# US Application Specific Integrated Circuit Market

> US Application Specific Integrated Circuit Market Size, Share and Research Report By Application (IT Telecommunication, Industrial, Automotive, Consumer Electronics) and By Product Type (Full Custom Design, Semi-Custom Design, Programmable) - Industry Forecast Till 2035

- **Forecast Period:** 2025 - 2035
- **CAGR:** 6.72%
- **2024:** $ 4,891.85 Million
- **2025:** $ 5,220.58 Million
- **2035:** $ 10,000 Million
- **Key Players:** Intel Corporation (US), Qualcomm Incorporated (US), Texas Instruments Incorporated (US), NXP Semiconductors N.V. (NL), Broadcom Inc. (US), Analog Devices, Inc. (US), Microchip Technology Incorporated (US), Infineon Technologies AG (DE)

**Report ID:** MRFR/SEM/12797-HCR · **Pages:** 200 · **Author:** Apoorva Priyadarshi & Garvit Vyas · **Last Updated:** April 06, 2026

**URL:** https://www.marketresearchfuture.com/reports/us-application-specific-integrated-circuit-market-14324

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## Market Summary

## **US [Application Specific Integrated Circuit Market](../../../reports/application-specific-integrated-circuit-market-5611) Overview:**

The US Application Specific Integrated Circuit Market Size was estimated at 4.49 (USD Billion) in 2023. The US Application Specific Integrated Circuit Market Industry is expected to grow from 4.91(USD Billion) in 2024 to 11.21 (USD Billion) by 2035. The US Application Specific Integrated Circuit Market CAGR (growth rate) is expected to be around 7.794% during the forecast period (2025 - 2035).

### **Key US Application Specific Integrated Circuit Market Trends Highlighted**

The US Application Specific Integrated Circuit market is currently witnessing a shift towards greater customization and specialization in semiconductor design, driven by the increasing demand for high-performance electronics across various sectors such as telecommunications, automotive, and consumer electronics. The growing trend of remote work and digital transformation is further pushing the demand for efficient, application-specific solutions tailored to specific use cases. Another key market driver is the push for energy-efficient devices, as businesses and consumers alike increasingly prioritize sustainability.

This has led to a rise in the development of low-power ASICs, which cater to the needs of both battery-operated and energy-sensitive applications. Opportunities within the US market are seen in the expansion of sectors like artificial intelligence, where ASICs can significantly enhance processing speeds for machine learning tasks. The ongoing advancements in 5G technology also present avenues for ASIC development, as manufacturers seek to create products that optimize network performance and reduce latency.

Additionally, the resurgence of domestic manufacturing in the US, as indicated by government initiatives to support local semiconductor production, opens up pathways for companies to innovate and meet the specific needs of the national market. Recent trends include a marked increase in partnerships and collaborations among tech companies, governments, and academic institutions to funnel resources and expertise into ASIC innovation. The focus on reducing supply chain vulnerabilities has resulted in more localized supply chains, improving the reliability and security of semiconductor production in the US.

This collective effort reflects a significant evolution in the manufacturing landscape, benefiting various industries reliant on Application Specific Integrated Circuits. As the market adapts to new technological advancements and consumer preferences, it highlights a robust potential for growth and development within the US landscape.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

## **US Application Specific Integrated Circuit Market Drivers**

### **Rising Demand for Advanced Electronics**

The ongoing evolution and innovation in consumer electronics, including smartphones, laptops, and wearable devices, are creating a significant demand for Application Specific Integrated Circuits (ASICs) within the US Application Specific Integrated Circuit Market Industry. According to the Consumer Technology Association, consumer electronics spending in the United States increased by 6.8% in 2021, reaching a landmark of USD 487 billion. This growth reflects a shift towards more advanced electronics that often require specialized chips for enhanced performance and efficiency.

Companies like Intel Corporation and Qualcomm Incorporated are heavily investing in Research and Development to produce innovative ASIC solutions tailored for their electronics, which is further driving the market growth. With the projected increase in electronics usage, ASICs are expected to play a crucial role, enhancing the functionality of rapidly evolving technological products.

### **Expansion of Internet of Things (IoT) Applications**

The expansion of Internet of Things (IoT) applications across various sectors such as healthcare, automotive, and smart home technologies is significantly influencing the US Application Specific Integrated Circuit Market Industry. The National Institute of Standards and Technology has indicated that the number of connected devices in the US is anticipated to reach 75 billion by 2025. This adoption rate boosts the demand for ASICs which provide tailored functionalities and energy efficiency required for IoT devices.

Leading corporations such as Texas Instruments Incorporated are developing specialized ASICs that aid in the seamless integration of IoT solutions into existing infrastructures, further propelling market growth caused by this trend.

### **Government Initiatives for Semiconductor Growth**

The US government has recognized the strategic importance of semiconductor technologies and has initiated several programs aimed at bolstering domestic semiconductor manufacturing. The CHIPS for America Act, introduced in 2021, promotes the research, development, and manufacturing of semiconductors on American soil, leading to increased investments in the US Application Specific Integrated Circuit Market Industry. A report from the White House estimates that investing USD 52 billion in semiconductor manufacturing could lead to more than USD 700 billion in economic output over the next decade.

This initiative directly benefits companies specializing in ASIC technologies by supporting local production and innovation, fostering an environment conducive to growth in this sector.

## **US Application Specific Integrated Circuit Market Segment Insights:**

### **Application Specific Integrated Circuit Market Application Insights**

The US Application Specific Integrated Circuit Market exhibits substantial growth potential within its Application segment, driven by multiple factors. This segment encompasses diverse applications, notably including IT and Telecommunication, Industrial, Automotive, and Consumer Electronics, each playing a vital role in the overall landscape. In the IT and Telecommunication sector, the demand for high-performance, customized chips is increasing as organizations seek to improve data processing and communication capabilities, thus enhancing the efficiency of networks. The Industrial segment is witnessing a shift towards automation and smart systems, necessitating specialized integrated circuits that can support advanced manufacturing processes and improve operational efficiency.

In the Automotive sector, the transition towards electric and autonomous vehicles represents significant growth opportunities, as Application Specific Integrated Circuits are essential for managing various vehicle functions, from powertrains to infotainment systems. The Consumer Electronics market remains a major driver of innovation, with requirements for high-speed processing power and energy efficiency influencing design choices in everything from smartphones to smart home devices. Understanding the dynamics within these segments is critical, as they cater to evolving consumer preferences and advancing technology.

The overall growth in application-specific configurations within the US Application Specific Integrated Circuit Market is supported by increasing demand for customized solutions that address both functional and technological challenges, making it imperative for stakeholders to stay abreast of emerging trends and align their strategies accordingly. As these segments continue to expand, the need for efficient and specialized chips will dominate discussions around innovation and competitive positioning in the US Application Specific Integrated Circuit Market.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

### **Application Specific Integrated Circuit Market Product Type Insights**

The US Application Specific Integrated Circuit Market is a dynamic sector that features diverse Product Types, including Full Custom Design, Semi-Custom Design, and Programmable options. Full Custom Design holds significant importance due to its ability to cater specifically to customer requirements, providing highly optimized solutions for performance and efficiency. Semi-Custom Design combines the benefits of custom and standard designs, offering flexibility along with reduced time-to-market, thus appealing to various industries seeking cost-effective yet tailored solutions.

Programmable designs are gaining traction, particularly in emerging technology areas like the Internet of Things (IoT) and artificial intelligence, as they allow developers to implement updates and changes post-manufacture, promoting longevity and adaptability. This variety in Product Type supports a broad spectrum of applications, contributing to the market's overall growth and reflecting the increasing demand for specialized, application-driven integration of circuits. As industries in the US continue to innovate, the adaptability and customization capabilities of these Product Types are expected to drive significant advancements in various sectors.

## **US Application Specific Integrated Circuit Market Key Players and Competitive Insights:**

The US Application Specific Integrated Circuit Market is characterized by its dynamic nature, marked by rapid technological advancement and robust competition among major industry players. With the increasing demand for tailored solutions that meet the specific requirements of various applications such as telecommunications, automotive, and consumer electronics, companies in this market are compelled to innovate continuously. Competitive insights reveal that firms are leveraging their expertise in design and manufacturing processes to deliver high-performance ICs that cater to niche applications.

The market's landscape is not only defined by established companies but also by emerging players who bring fresh perspectives and technologies to the forefront. The competitive strategies often focus on expanding product portfolios, enhancing operational efficiencies, and establishing strategic partnerships to maintain a leadership position. Focusing specifically on Microchip Technology within the context of the US Application Specific Integrated Circuit Market, the company showcases significant strengths that contribute to its competitive edge.

Renowned for its innovative design capabilities, Microchip Technology excels in delivering a diverse range of ASIC solutions that cater to various industry needs, including industrial automation and automotive applications. The company's integrated solutions, characterized by low power consumption and high reliability, have positioned it favorably within the market. Furthermore, Microchip Technology emphasizes robust customer support and engagement, which fosters customer loyalty and results in long-term partnerships. The firm's extensive experience and solid reputation for quality further bolster its presence in the competitive landscape, allowing it to address specific market demands and capitalize on emerging opportunities.

Turning to Infineon Technologies, its position in the US Application Specific Integrated Circuit Market reflects a strong commitment to advancing semiconductor technologies tailored for automotive, industrial, and security applications. Infineon is recognized for its wide array of products, including power semiconductors, microcontrollers, and sensor ICs, which are essential in facilitating energy efficiency and system performance. The company's strategic focus on mergers and acquisitions has enabled it to broaden its technology base and enhance its product offerings in the US market.

Infineon’s strengths lie in its capability to innovate and adapt to regulatory standards, as well as its dedication to sustainability initiatives that resonate well with current market trends. With a comprehensive understanding of customer requirements and a goal-oriented approach to R&D, Infineon Technologies continues to solidify its relevance and authority in the US Application Specific Integrated Circuit Market.

### **Key Companies in the US Application Specific Integrated Circuit Market Include:**

### **US Application Specific Integrated Circuit Market Industry Developments**

The US Application Specific Integrated Circuit Market has seen notable developments with a focus on technological advancements and strategic mergers. In March 2023, Microchip Technology announced its collaboration with Broadcom to enhance data center capabilities, paving the way for increased performance and efficiency in integrated circuits. In April 2023, Infineon Technologies completed its acquisition of Cypress Semiconductor, strengthening its position in the market by expanding its product portfolio.

Additionally, the growth in market valuation among companies such as Qualcomm and Intel has been substantial, propelled by the increasing demand for consumer electronics and automotive applications, with the market expected to reach a valuation of over $50 billion by 2026. Over the last 2-3 years, companies such as Maxim Integrated and Analog Devices have also focused on expanding their Research and Development initiatives to address the rising need for connectivity and embedded systems.

The ongoing technological race to develop efficient power management solutions and enhanced communication technologies continues to shape the landscape of the US Application Specific Integrated Circuit Market, crucial for various sectors including telecommunications, automotive, and industrial applications.

## **US Application Specific Integrated Circuit Market Segmentation Insights**

### **Application Specific Integrated Circuit Market Application****Outlook**

### **Application Specific Integrated Circuit Market Product Type****Outlook**

## Market Drivers

### Expansion of 5G Technology

The rollout of 5G technology is creating new opportunities for the application specific-integrated-circuit market. As telecommunications companies invest heavily in infrastructure to support faster and more reliable networks, the demand for specialized circuits that can handle increased data throughput is rising. In 2025, the global 5G infrastructure market is expected to surpass $100 billion, with application specific-integrated-circuit solutions being integral to this development. These circuits are designed to optimize signal processing and enhance communication capabilities, which are essential for the successful implementation of 5G technology. Consequently, the application specific-integrated-circuit market is likely to experience significant growth as manufacturers develop innovative solutions to meet the evolving demands of the telecommunications industry.

### Increased Adoption of IoT Devices

The proliferation of Internet of Things (IoT) devices is significantly impacting the application specific-integrated-circuit market. As more devices become interconnected, the need for specialized circuits that can handle specific tasks efficiently is becoming paramount. In 2025, the number of IoT devices is expected to exceed 30 billion, creating a substantial demand for application specific-integrated-circuit solutions. These circuits are designed to optimize performance while minimizing power consumption, which is crucial for battery-operated devices. The application specific-integrated-circuit market is thus positioned to benefit from this trend, as manufacturers seek to develop innovative solutions that cater to the unique requirements of IoT applications. This shift not only enhances device functionality but also drives competition among manufacturers to deliver cutting-edge technology.

### Growing Demand for Automotive Electronics

The automotive sector is increasingly relying on advanced electronics, which is propelling the application specific-integrated-circuit market. With the rise of electric vehicles (EVs) and autonomous driving technologies, the need for specialized circuits that can manage complex functions is becoming more pronounced. In 2025, the automotive electronics market is projected to reach $50 billion, with application specific-integrated-circuit solutions playing a critical role in this transformation. These circuits are essential for various applications, including power management, safety systems, and infotainment. As automotive manufacturers prioritize innovation and efficiency, the application specific-integrated-circuit market is likely to see substantial growth, driven by the demand for reliable electronic components that meet stringent automotive standards.

### Technological Advancements in Electronics

The application specific-integrated-circuit market is experiencing a surge due to rapid technological advancements in electronics. Innovations in semiconductor technology, such as FinFET and SOI, are enabling the production of smaller, more efficient chips. This trend is particularly evident in consumer electronics, where the demand for high-performance devices is escalating. In 2025, the market is projected to reach approximately $25 billion, driven by the need for enhanced processing power and reduced energy consumption. As manufacturers strive to meet these demands, the application specific-integrated-circuit market is likely to expand, offering tailored solutions for various electronic applications. Furthermore, the integration of artificial intelligence and machine learning into devices is pushing the boundaries of what application specific-integrated-circuit technology can achieve, thereby fostering growth in this sector.

### Rising Focus on Renewable Energy Solutions

The shift towards renewable energy sources is influencing the application specific-integrated-circuit market. As the demand for solar, wind, and other renewable energy technologies increases, there is a corresponding need for specialized circuits that can efficiently manage energy conversion and storage. In 2025, the renewable energy market is projected to reach $1 trillion, with application specific-integrated-circuit solutions playing a vital role in optimizing energy systems. These circuits are essential for enhancing the efficiency of power inverters and battery management systems, which are critical components in renewable energy applications. As the industry continues to evolve, the application specific-integrated-circuit market is likely to expand, driven by the need for innovative solutions that support sustainable energy initiatives.

## Future Outlook

The application specific-integrated-circuit market is projected to grow at a 6.72% CAGR from 2025 to 2035, driven by advancements in technology and increasing demand for customized solutions.

**New opportunities:**

- Development of AI-optimized ASICs for enhanced processing power.
- Expansion into IoT devices with tailored ASIC solutions.
- Partnerships with automotive firms for electric vehicle ASIC integration.

By 2035, the market is expected to achieve robust growth, driven by innovation and strategic partnerships.

## Segment Insights

### By Product Type: Full Custom (Largest) vs. Semi-Custom (Fastest-Growing)

The market for application specific-integrated-circuits is characterized by distinct segments including Full Custom, Semi-Custom, and Programmable designs. Among these, Full Custom holds the largest market share, demonstrating strong adoption particularly in high-performance applications. Semi-Custom, while currently smaller in market share, is rapidly gaining traction due to its flexibility and cost efficiency, appealing to a broader range of applications. Programmable circuits also play a significant role as they offer versatility, catering to various niche segments within the market.

The growth trends related to these product types are driven by advancements in technology and increasing demand for application-specific functionalities. Full Custom designs continue to be preferred for their performance and optimization in specific applications. However, Semi-Custom circuits are seeing the fastest growth, driven by the need for faster development cycles and reduced costs in production. Programmable solutions, while less dominant, are emerging as key players for businesses needing adaptable technology solutions in a rapidly changing market landscape.

Full Custom (Dominant) vs. Semi-Custom (Emerging)

Full Custom application specific-integrated-circuits are recognized as the dominant product type, primarily due to their tailored performance capabilities that meet the stringent requirements of high-end applications. These circuits are designed from the ground up, offering optimization for speed, power consumption, and functional density. On the other hand, Semi-Custom circuits are emerging as a cost-effective alternative, combining pre-designed components with user-specific tweaks. This hybrid approach allows for faster time-to-market and a balance between customization and cost. Their increasing adoption across various sectors underscores their growing relevance as manufacturers seek to meet user demands while managing operational costs effectively.

### By Application: Consumer Electronics (Largest) vs. Automotive (Fastest-Growing)

In the US application specific-integrated-circuit market, the distribution of market share is characterized by a significant dominance of the Consumer Electronics segment, which leads the market owing to the high demand for smartphones, tablets, and smart home devices. Following closely is the IT & Telecommunication sector, which benefits from the increasing reliance on connectivity solutions. The Automotive and Industrial segments, while smaller, are also crucial contributors to the market, reflecting the diversification of applications for integrated circuits across various industries.

The growth trends within this segment indicate that while Consumer Electronics maintains its prominent position, the Automotive segment is rapidly emerging as the fastest-growing category, driven by the proliferation of electric vehicles and advanced driver-assistance systems (ADAS). The Industrial sector shows steady growth, supported by the need for automation and smart manufacturing solutions. Overall, technological advancements and evolving consumer preferences are propelling the demand for application specific-integrated circuits across all segments.

Consumer Electronics: Dominant vs. Automotive: Emerging

The Consumer Electronics segment holds a dominant position in the US application specific-integrated-circuit market, characterized by a wide array of products including smartphones, tablets, and home automation devices. This segment benefits from rapid technological advancements and high consumer demand, affirming its significance. In contrast, the Automotive segment is recognized as an emerging player, with accelerated growth driven by innovations in electric vehicles and autonomous driving technologies. As vehicle manufacturers increasingly integrate sophisticated electronics for enhanced safety and performance, the demand for application specific-integrated circuits in this sector is set to surge, highlighting a shift towards smarter automotive solutions. Both segments showcase a dynamic interplay of innovation and shifting consumer trends.

## Competitive Benchmarking

The market is characterized by intense competition and rapid technological advancements. Key growth drivers include the increasing demand for customized solutions across various sectors such as automotive, telecommunications, and [consumer electronics.](https://www.marketresearchfuture.com/reports/consumer-electronics-mlcc-market-35506) Major players like Intel Corporation (US), Qualcomm Incorporated (US), and Texas Instruments Incorporated (US) are strategically positioned to leverage their extensive R&D capabilities and established market presence. These companies focus on innovation and partnerships to enhance their product offerings, thereby shaping a competitive environment that emphasizes technological superiority and customer-centric solutions.
In terms of business tactics, companies are increasingly localizing manufacturing to mitigate supply chain disruptions and optimize operational efficiency. The market structure appears moderately fragmented, with a mix of established giants and emerging players. The collective influence of key players is significant, as they drive trends in product development and market expansion, often through strategic collaborations and acquisitions.
In October 2025, Qualcomm Incorporated (US) announced a partnership with a leading automotive manufacturer to develop next-generation integrated circuits tailored for electric vehicles. This collaboration is poised to enhance Qualcomm's position in the automotive sector, aligning with the industry's shift towards electrification and smart technologies. The strategic importance of this move lies in Qualcomm's ability to integrate advanced connectivity features into automotive applications, potentially increasing its market share in a rapidly growing segment.
In September 2025, Intel Corporation (US) unveiled its latest line of application specific-integrated-circuits designed for AI applications, showcasing a commitment to innovation in high-performance computing. This launch is significant as it positions Intel to capitalize on the burgeoning demand for AI-driven solutions across various industries. By focusing on AI integration, Intel aims to differentiate itself in a competitive landscape increasingly driven by data-centric applications.
In August 2025, Texas Instruments Incorporated (US) expanded its manufacturing capabilities in the US, investing heavily in local production facilities. This strategic move not only enhances supply chain reliability but also aligns with the growing trend of reshoring manufacturing to ensure quality control and responsiveness to market demands. The investment reflects Texas Instruments' commitment to maintaining a competitive edge through operational excellence and localized production.
As of November 2025, current competitive trends in the application specific-integrated-circuit market are heavily influenced by digitalization, sustainability, and AI integration. Strategic alliances are increasingly shaping the landscape, enabling companies to pool resources and expertise to drive innovation. Looking ahead, competitive differentiation is likely to evolve from traditional price-based competition to a focus on technological innovation, supply chain reliability, and sustainable practices. This shift underscores the importance of agility and adaptability in a market that is continuously evolving.

## Recent News & Developments

The US Application Specific Integrated Circuit Market has seen notable developments with a focus on technological advancements and strategic mergers. In March 2023, Microchip Technology announced its collaboration with Broadcom to enhance data center capabilities, paving the way for increased performance and efficiency in integrated circuits. In April 2023, Infineon Technologies completed its acquisition of Cypress Semiconductor, strengthening its position in the market by expanding its product portfolio.

Additionally, the growth in market valuation among companies such as Qualcomm and Intel has been substantial, propelled by the increasing demand for consumer electronics and automotive applications, with the market expected to reach a valuation of over $50 billion by 2026. Over the last 2-3 years, companies such as Maxim Integrated and Analog Devices have also focused on expanding their Research and Development initiatives to address the rising need for connectivity and embedded systems.

The ongoing technological race to develop efficient power management solutions and enhanced communication technologies continues to shape the landscape of the US Application Specific Integrated Circuit Market, crucial for various sectors including telecommunications, automotive, and industrial applications.

## Report Scope

| MARKET SIZE 2024 | 4891.85(USD Million) |
| --- | --- |
| MARKET SIZE 2025 | 5220.58(USD Million) |
| MARKET SIZE 2035 | 10000.0(USD Million) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 6.72% (2025 - 2035) |
| REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR | 2024 |
| Market Forecast Period | 2025 - 2035 |
| Historical Data | 2019 - 2024 |
| Market Forecast Units | USD Million |
| Key Companies Profiled | Intel Corporation (US), Qualcomm Incorporated (US), Texas Instruments Incorporated (US), NXP Semiconductors N.V. (NL), Broadcom Inc. (US), Analog Devices, Inc. (US), Microchip Technology Incorporated (US), Infineon Technologies AG (DE) |
| Segments Covered | Product Type, Application |
| Key Market Opportunities | Growing demand for energy-efficient solutions drives innovation in the application specific-integrated-circuit market. |
| Key Market Dynamics | Technological advancements drive innovation in application specific-integrated-circuits, enhancing performance across diverse industries. |
| Countries Covered | US |

## Frequently Asked Questions

**Q: What was the market valuation of the US application specific-integrated-circuit market in 2024?**
A: The market valuation was 4891.85 $ Million in 2024.

**Q: What is the projected market valuation for the US application specific-integrated-circuit market by 2035?**
A: The projected valuation for 2035 is 10000.0 $ Million.

**Q: What is the expected CAGR for the US application specific-integrated-circuit market during the forecast period 2025 - 2035?**
A: The expected CAGR during the forecast period 2025 - 2035 is 6.72%.

**Q: Which companies are considered key players in the US application specific-integrated-circuit market?**
A: Key players include Intel Corporation, Qualcomm Incorporated, Texas Instruments Incorporated, NXP Semiconductors N.V., Broadcom Inc., Analog Devices, Inc., Microchip Technology Incorporated, and Infineon Technologies AG.

**Q: What are the main product types in the US application specific-integrated-circuit market?**
A: The main product types include Full Custom, Semi-Custom, and Programmable, with valuations ranging from 1000.0 $ Million to 4000.0 $ Million.

**Q: How does the automotive application segment perform in the US application specific-integrated-circuit market?**
A: The automotive application segment had a valuation ranging from 1500.0 $ Million to 3000.0 $ Million.

**Q: What is the valuation range for the consumer electronics application segment in the US application specific-integrated-circuit market?**
A: The consumer electronics application segment had a valuation range from 1191.85 $ Million to 3500.0 $ Million.

**Q: What was the valuation for the industrial application segment in the US application specific-integrated-circuit market?**
A: The industrial application segment had a valuation ranging from 1200.0 $ Million to 2500.0 $ Million.

**Q: What is the valuation range for the IT & telecommunication application segment in the US application specific-integrated-circuit market?**
A: The IT & telecommunication application segment had a valuation range from 1000.0 $ Million to 2000.0 $ Million.

**Q: How do the valuations of the product types compare in the US application specific-integrated-circuit market?**
A: The valuations for product types indicate that Semi-Custom products are likely to dominate, with a range of 2000.0 $ Million to 4000.0 $ Million.


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