The largest fraction of silicon
integrated circuit respins and
steppings are due at least in part to functional errors and bugs inadvertently introduced at
RTL stage of the design process. Thus, comprehensive
functional verification is key to reducing development costs and delivering a product on time. Functional verification of a design is most often performed using
logic simulation and/or
FPGA prototyping. There are advantages and disadvantages to each and often both are used. Logic simulation is easy, accurate, flexible, and low cost. However, simulation is often not fast enough for large designs and almost always too slow to run application software against the hardware design.
FPGA-based prototypes are fast and inexpensive, but the time required to implement a large design into several FPGAs can be very long and is error-prone. Changes to fix design flaws also take a long time to implement and may require board wiring changes. With traditional vendor tools, FPGA prototypes have little debugging capability, probing signals inside the FPGAs in real time is very difficult, and recompiling FPGAs to move probes takes too long. This is changing with the emergence of more advanced FPGA prototype debug tools
 that remove limitations on signal visibility. The usual compromise is to use simulation early in the verification process when bugs and fixes are frequent, and prototyping at the end of the development cycle when the design is basically complete and speed is needed to get sufficient testing to uncover any remaining system-level bugs. FPGA prototyping is also popular for testing software.
Simulation acceleration can address the performance shortcomings of simulation to an extent. Here the design is mapped into a hardware accelerator to run much faster and the testbench (and any behavioral design code) continues to run on the simulator on the workstation. A high-bandwidth, low latency channel connects the workstation to the accelerator to exchange signal data between testbench and design. By
Amdahl's law, the slowest device in the chain will determine the speed achievable. Normally, this is the testbench in the simulator. With a very efficient testbench (written in C or transaction-based), the channel may become the bottleneck. In some cases, a transaction-level testbench is able to feed as much data to the design being emulated as "live" stimulus.
In-circuit emulation improves somewhat on FPGA prototyping’s implementation times, and provides a comprehensive, efficient debugging capability. Emulation does this at the expense of running speed and high cost ($1M+) compared to FPGA prototypes ($75K).
Looking at emulation from the other direction, it improves on acceleration’s performance by substituting "live" stimulus for the simulated testbench. This stimulus can come from a target system (the product being developed), or from test equipment. At 10,000 to 100,000 times the speed of simulation, emulation makes it possible to test application software while still providing a comprehensive hardware debug environment.