An application specific integrated circuit (ASIC) is a custom-designed microchip tailored to perform a specific function or set of functions efficiently. Unlike general-purpose processors, ASICs are created for targeted applications, such as Bitcoin mining, telecommunications, or high-speed data processing. ASICs integrate all necessary circuits and components into a single chip, optimizing power consumption, speed, and size for their designated tasks. 

By tailoring the design to exact requirements, application specific integrated circuit chips can outperform standard chips in terms of performance and efficiency. However, due to their specialized nature, application specific integrated circuit devices often require significant upfront investment and are less flexible than programmable alternatives like FPGAs.