This paper presents an extensive survey of trends in embedded processor use with an emphasis on emerging applications in wireless communication, multimedia, and general telecommunications. We demonstrate the importance of application-specific instructionset processors (ASIP's) in high-volume, low cost applications. We also examine some of the underlying trends of the applications in which embedded processors are used. This is followed by a description of embedded software development tool requirements. High-performance software compilation emerges as a key requirement. Finally, specific industrial case studies of products in MPEG, videophone, and low-cost digital signal processor (DSP) applications are used to illustrate the architecture design tradeoffs, and highlight specific tool requirements. A companion paper in this issue [1] presents a comprehensive survey of embedded software development tools, focusing mostly on retargetable software compilation.