A FPGA is an array of regular logic blocks, which may be configured to operate within a particular logical function. Digital logic functions can be synthesized onto the logic blocks of the FPGA and it is then programmed with the configuration information to perform that function. FPGA devices are economical at small volumes because the non-repetitive engineering (NRE) costs are lower than with an Application Specific Integrated Circuit (ASIC). (As production volumes rise, the longer-term cost efficiency of ASIC outweighs the increased NRE to make custom implementation viable.) FPGAs can also offer a time to market advantage, as the device can be programmed and tested after the design phase more quickly than an ASIC takes to synthesize. Design modification and re-programming costs are also low compared to re-fabrication.

Design tool costs for FPGA development are traditionally lower than for ASIC’s, making FPGA’s a viable training and prototyping vehicle and opening the FPGA market to smaller organizations. FPGA part vendors have traditionally provided FPGA design software. However, advances in fabrication technology have seen an explosion in FPGA logic capacity, and this has moved the complexity beyond software provided by FPGA tool vendors. ASIC tool vendors have now moved into the market place to provide very high quality front-end tools to the FPGA market at a reduced cost.

With front-end procedures being similar to digital ASIC and System on Chip development, FPGAs are a low cost proof of concept or training tool. EDA tools are also more financially accessible to small organizations and educational facilities.