[186 Pages Report] The Chiplet Market size was estimated at USD 9.75 billion in 2023 and expected to reach USD 12.84 billion in 2024, at a CAGR 35.91% to reach USD 83.62 billion by 2030.

Chiplets are individual silicon dies, each encapsulating a carefully crafted subsystem or component of a larger Integrated Circuit (IC), which are then interconnected precisely and efficiently. This modular approach in system design allows manufacturers to build large, complex semiconductor devices by combining smaller chip components, or chiplets, which can be tailor-made for specific functionalities. Chiplets are pivotal in formulating electronic and digital systems, especially in the semiconductor sector, providing cost-efficient variants to traditional monolithic IC design. This technology market’s expansion is primarily propelled by the quest for cost-effective production and enhanced performance in semiconductors, spiked data volumes, and progressions in artificial intelligence (AI), machine learning (ML), and the Internet of Things (IoT). However, intricate design requirements and interoperability obstacles pose significant challenges for the global chiplet market. Refining the chiplet design process, investigating new applications, and inventing new packaging techniques for chiplets offer immense potential for innovation and growth for the chiplet market.

Processor: Growing deployment of FPGAs offering hardware customization with integrated AI

The APU, also known as an accelerated processing unit, is a chip that integrates both a central processing unit (CPU) and graphic processing unit (GPU) on one piece of silicon, efficiently balancing graphic and numeric intensive tasks. The need-based preference for an APU is often seen in small form-factor systems, single-board computers, and portable devices where power efficiency and compactness are paramount. The AI ASIC Compressor is a custom chip designed specifically for AI workloads. These dedicated chips accelerate AI applications by enabling high-performance calculations with reduced power consumption. This chiplet solution is preferred where AI is heavily integrated, such as in cloud servers, machine learning systems, and robotics. The central processing unit is a primary component of a computer that performs the majority of processing inside the computer. CPUs are highly versatile and can manage a wide variety of workloads. The need-based preference for CPUs is seen most generically in everyday computer systems, laptops, server environments, and data centers. FPGA is a semiconductor device that has programmable logic components and interconnects. FPGAs have a need-based preference in prototyping, radar and image processing, software-defined radios, encryption, signal processing, and more. GPU is designed to handle graphics rendering tasks with proficiency and is heavily used in gaming, video editing, animation, 3D rendering, and, more recently, machine learning tasks.

Packaging Technology: Higher adoption of flip chip ball grid array technology for lower parasitic inductance and capacitance for superior electrical performance

2.5/3D technology tackles signal integrity, power integrity, and thermal integrity issues by integrating different chiplets vertically. It is preferred for high-performance applications such as graphics and AI based on need. An emerging technology, fan-out is highly preferred where size reduction and performance enhancement are needed, especially in applications including smartphones. Flip chip ball grid array (FCBGA) is widely adopted for integrated circuit packaging and is preferred for high-density applications such as CPUs, GPUs, SoCs, and network chips. Flip chip scale package (FCCSP) offers exceptional electrical performance and is preferred for high-speed or high-frequency applications with thin-core ceramic or laminate package construction. System-in-Package (SiP) is ideal for space-constrained applications due to its high integration capacity, stable product performance, and heat dissipation characteristics. Wafer-level chip scale package (WLCSP) is need-based for applications requiring a small footprint and high-speed performance, such as wearables and consumer electronics. The key advantages of the WLCSP are minimized die-to-PCB inductance, reduced package size, and enhanced thermal conduction characteristics.

End-use: Emerging potential of chiplets in consumer electronics with a trend of miniaturizing devices

In the automotive sector, chiplets are heavily favored for their role in advanced driver-assistance systems (ADAS) and electric vehicles (EVs) due to their energy efficiency and high performance. Chiplets are crucial in consumer electronics, smartphones, smart TVs, laptops, and other devices. The need-based preference for chiplets here revolves around their ability to enhance performance while reducing product size in the electronics industry. In defense and aerospace, chiplets facilitate the development of advanced radar systems, spacecraft, and military-grade equipment. The defense & aerospace sector prefers chiplets with superior performance, durability, and energy efficiency. Within the healthcare sector, chiplets are used in medical imaging devices, wearable health monitors, and other equipment. Chiplets are preferred here for their high reliability, low power consumption, and compact size. In manufacturing, chiplets are incorporated for automation and robotics applications. The preference for chiplets in this sector is influenced by their ability to augment efficiency in production. The telecommunication industry leverages chiplets for its vast network infrastructure, providing a solid backbone for 5G and beyond. The preference for chiplets in telecommunication is attributed to their capabilities to handle high data volumes and low latency.

Regional Insights

In the Americas, especially the United States and Canada, the demand for chiplets is predominantly driven by the growth in high technology and cloud applications. Consumer trends show an escalating preference for hybrid computing platforms and small electronic products, accelerating the demand for the Americas’ chiplet market. The market of chiplets in Europe is expanding dynamically, driven by major vendors from different European Union countries. A recent German consortium to secure the supply chain for chiplets and boost final assembly in Europe has been creating potential demand for the chiplet market across the region. The Middle East and Africa’s chiplet market showcases great potential attributed to initiatives for fostering local chiplet production and improving technological self-sufficiency. The APAC region, with major technologically advanced countries, such as Japan, China, and South Korea, and predominant semiconductor manufacturers, presents lucrative opportunities for the global chiplet market. The expansion of the chiplet market in the APAC region is driven by a substantial surge in government and private investments in electronic manufacturing.

FPNV Positioning Matrix

The FPNV Positioning Matrix is pivotal in evaluating the Chiplet Market. It offers a comprehensive assessment of vendors, examining key metrics related to Business Strategy and Product Satisfaction. This in-depth analysis empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success: Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The Market Share Analysis is a comprehensive tool that provides an insightful and in-depth examination of the current state of vendors in the Chiplet Market. By meticulously comparing and analyzing vendor contributions in terms of overall revenue, customer base, and other key metrics, we can offer companies a greater understanding of their performance and the challenges they face when competing for market share. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With this expanded level of detail, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Key Company Profiles

The report delves into recent significant developments in the Chiplet Market, highlighting leading vendors and their innovative profiles. These include Achronix Semiconductor Corporation, Advanced Micro Devices, Inc., Alphawave Semi, Ambarella, Inc., Apple Inc., ASE Technology Holding Co, Ltd, Ayar Labs, Inc., Beijing ESWIN Technology Group Co., Ltd., Broadcom Inc., Cadence Design Systems, Inc., CHIPLET.US, Chipuller, Eliyan, GlobalFoundries Inc., Huawei Technologies Co., Ltd., Intel Corporation, International Business Machines Corporation, JCET Group, Kandou Bus, S.A., Marvell Technology, Inc., MediaTek Inc., Mercury Systems, Inc., Netronome Systems, Inc., NHanced Semiconductors, Inc., NVIDIA Corporation, NXP Semiconductors N.V., Palo Alto Electron, Inc., Qualcomm Incorporated, RANVOUS Inc., Samsung Electronics Co., Ltd., Socionext Inc., STMicroelectronics N.V., Synopsys, Inc., Tachyum, Taiwan Semiconductor Manufacturing Company Limited, Tenstorrent Inc., TongFu Microelectronics Co., Ltd., and X-Celeprint.

Market Segmentation & Coverage

This research report categorizes the Chiplet Market to forecast the revenues and analyze trends in each of the following sub-markets:

  • Processor
    • Application Processing Unit
    • Artificial Intelligence Application-Specific Integrated Circuit Compressor
    • Central Processing Unit
    • Field-Programmable Gate Array
    • Graphic Processing Unit
  • Packaging Technology
    • 2.5 or 3D
    • Flip Chip Ball Grid Array
    • Flip Chip Scale Package
    • System-in-Package
    • Wafer-Level Chip Scale Package
  • End-use
    • Automotive
    • Consumer Electronics
    • Defense & Aerospace
    • Healthcare
    • Manufacturing
    • Telecommunications

  • Region
    • Americas
      • Argentina
      • Brazil
      • Canada
      • Mexico
      • United States
        • California
        • Florida
        • Illinois
        • New York
        • Ohio
        • Pennsylvania
        • Texas
    • Asia-Pacific
      • Australia
      • China
      • India
      • Indonesia
      • Japan
      • Malaysia
      • Philippines
      • Singapore
      • South Korea
      • Taiwan
      • Thailand
      • Vietnam
    • Europe, Middle East & Africa
      • Denmark
      • Egypt
      • Finland
      • France
      • Germany
      • Israel
      • Italy
      • Netherlands
      • Nigeria
      • Norway
      • Poland
      • Qatar
      • Russia
      • Saudi Arabia
      • South Africa
      • Spain
      • Sweden
      • Switzerland
      • Turkey
      • United Arab Emirates
      • United Kingdom

The report offers valuable insights on the following aspects:

  1. Market Penetration: It presents comprehensive information on the market provided by key players.
  2. Market Development: It delves deep into lucrative emerging markets and analyzes the penetration across mature market segments.
  3. Market Diversification: It provides detailed information on new product launches, untapped geographic regions, recent developments, and investments.
  4. Competitive Assessment & Intelligence: It conducts an exhaustive assessment of market shares, strategies, products, certifications, regulatory approvals, patent landscape, and manufacturing capabilities of the leading players.
  5. Product Development & Innovation: It offers intelligent insights on future technologies, R&D activities, and breakthrough product developments.

The report addresses key questions such as:

  1. What is the market size and forecast of the Chiplet Market?
  2. Which products, segments, applications, and areas should one consider investing in over the forecast period in the Chiplet Market?
  3. What are the technology trends and regulatory frameworks in the Chiplet Market?
  4. What is the market share of the leading vendors in the Chiplet Market?
  5. Which modes and strategic moves are suitable for entering the Chiplet Market?