subject: How does Zero-NRE model for FPGA-to-ASIC conversions work?…And how you can afford it [print this page] How does Zero-NRE model for FPGA-to-ASIC conversions work?And how you can afford it
The "Zero-NRE" model means that the customer doesn't pay in advance for the one time design cost known also as NRE (Non Recurrent Engineering). The customer places a purchase order for the chips as if they were "off-the-shelf" chips without considering NRE.
Technically, our ability to offer a Zero-NRE model is associated with the functional guarantee we provide.
The functional guarantee is possible because there is no RTL touch and no human errors during the automated conversion phase a process which is handled by a highly experienced team.
After the customer accepts the quote for the desired quantities, the first order for which the customer delivers a Prototype-Approval-Conditioned-PO (Purchase Order) is placed before we start to work and is actually the conversion project kick-off.
After the stated lead-time, we provide 10 prototypes, in order to let the customer approve the functionality. Once approved, production starts and the first batch of the first order is then shipped according to the agreed terms.
For any additional order beyond the first order, we'll provide the goods based on the original quote for the "next order". We provide an end to end solution we ship finished goods in any format: packaged, bare die, T&R, tubes or any other method requested by the customer.
FPGA to ASIC Conversion
Usually, our model offers a price per final replacement good chip with No NRE charge. We take into account all the NRE expenses including the minimum order lot and calculate them into the chip price accordingly. We find the chip price where a defined quantity of the replacement ASIC chip should be cheaper (or even much cheaper) compared to the FPGA chip price.
The minimum quantity that represents this price is the breakeven point for preferring an ASIC replacement chip over the original FPGA (FPGA to ASIC conversion). If your target is cost, then there is no question about it: you need to pass the breakeven point of minimum quantity.
Since we sell the replacement chips and not the conversion service, the quote is highly associated with the quantity you can commit to produce (you can refer to yearly quantity). As a result, the customer enjoys both the easiness of placing a purchase order for an "off-the-shelf" 2nd source replacement chip and the fast lead-time and seamless process that our unique automated conversion tool can offer.
