Chiplet Market by Processor, Packaging Technology, End-use

List of Tables

[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.

KEY MARKET STATISTICS
Base Year [2023]	USD 9.75 billion
Estimated Year [2024]	USD 12.84 billion
Forecast Year [2030]	USD 83.62 billion
CAGR (%)	35.91%

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?

Product Code: MRR-E0619F0767CD

1. Preface

1.1. Objectives of the Study
1.2. Market Segmentation & Coverage
1.3. Years Considered for the Study
1.4. Currency & Pricing
1.5. Language
1.6. Stakeholders

2. Research Methodology

2.1. Define: Research Objective
2.2. Determine: Research Design
2.3. Prepare: Research Instrument
2.4. Collect: Data Source
2.5. Analyze: Data Interpretation
2.6. Formulate: Data Verification
2.7. Publish: Research Report
2.8. Repeat: Report Update

3. Executive Summary

4. Market Overview

5. Market Insights

5.1. Market Dynamics
- 5.1.1. Drivers
  - 5.1.1.1. Growing demand for smaller and more compact electronic devices
  - 5.1.1.2. Increase in the number of data centers globally
  - 5.1.1.3. Growing demand to enhance in-vehicle processing for ADAS
- 5.1.2. Restraints
  - 5.1.2.1. Interconnection complexity issues with chiplets
- 5.1.3. Opportunities
  - 5.1.3.1. Growing advancements in the development of chiplets
  - 5.1.3.2. Continuous investments and roll-out of 5G network
- 5.1.4. Challenges
  - 5.1.4.1. Scalability and security concerns associated with chiplets
5.2. Market Segmentation Analysis
- 5.2.1. Processor: Growing deployment of FPGAs offering hardware customization with integrated AI
- 5.2.2. Packaging Technology: Higher adoption of flip chip ball grid array technology for lower parasitic inductance and capacitance for superior electrical performance
- 5.2.3. End-use: Emerging potential of chiplets in consumer electronics with a trend of miniaturizing devices
5.3. Market Trend Analysis
- 5.3.1. Increasing research and development in the semiconductor industry and growing adoption by defense sector in the Americas
- 5.3.2. Increasing investment to improve chiplet production capabilities coupled with high availability of raw materials in the APAC region
- 5.3.3. Expanding demand for chiplets from automotive industry coupled with advancement in chiplet technology using Artificial Intelligence (AI) in the EMEA region
5.4. Cumulative Impact of High Inflation
5.5. Porter's Five Forces Analysis
- 5.5.1. Threat of New Entrants
- 5.5.2. Threat of Substitutes
- 5.5.3. Bargaining Power of Customers
- 5.5.4. Bargaining Power of Suppliers
- 5.5.5. Industry Rivalry
5.6. Value Chain & Critical Path Analysis
5.7. Regulatory Framework Analysis

6. Chiplet Market, by Processor

6.1. Introduction
6.2. Application Processing Unit
6.3. Artificial Intelligence Application-Specific Integrated Circuit Compressor
6.4. Central Processing Unit
6.5. Field-Programmable Gate Array
6.6. Graphic Processing Unit

7. Chiplet Market, by Packaging Technology

7.1. Introduction
7.2. 2.5 or 3D
7.3. Flip Chip Ball Grid Array
7.4. Flip Chip Scale Package
7.5. System-in-Package
7.6. Wafer-Level Chip Scale Package

8. Chiplet Market, by End-use

8.1. Introduction
8.2. Automotive
8.3. Consumer Electronics
8.4. Defense & Aerospace
8.5. Healthcare
8.6. Manufacturing
8.7. Telecommunications

9. Americas Chiplet Market

9.1. Introduction
9.2. Argentina
9.3. Brazil
9.4. Canada
9.5. Mexico
9.6. United States

10. Asia-Pacific Chiplet Market

10.1. Introduction
10.2. Australia
10.3. China
10.4. India
10.5. Indonesia
10.6. Japan
10.7. Malaysia
10.8. Philippines
10.9. Singapore
10.10. South Korea
10.11. Taiwan
10.12. Thailand
10.13. Vietnam

11. Europe, Middle East & Africa Chiplet Market

11.1. Introduction
11.2. Denmark
11.3. Egypt
11.4. Finland
11.5. France
11.6. Germany
11.7. Israel
11.8. Italy
11.9. Netherlands
11.10. Nigeria
11.11. Norway
11.12. Poland
11.13. Qatar
11.14. Russia
11.15. Saudi Arabia
11.16. South Africa
11.17. Spain
11.18. Sweden
11.19. Switzerland
11.20. Turkey
11.21. United Arab Emirates
11.22. United Kingdom

12. Competitive Landscape

12.1. Market Share Analysis, 2023
12.2. FPNV Positioning Matrix, 2023
12.3. Competitive Scenario Analysis
- 12.3.1. ASE launches its Integrated Design Ecosystem to Enable Silicon Package Design Efficiencies that Reduce Cycle Time by Half
- 12.3.2. Intel Flashes UCIe-Connected Test Chip Package
- 12.3.3. Singapore Opens USD 2 Billion Chiplet Factory
- 12.3.4. Marvell Joins Imec Automotive Chiplet Initiative to Facilitate Compute SoCs for Super-human Sensing
- 12.3.5. Alphawave Semi Spearheads Chiplet-Based Custom Silicon for Generative AI and Data Center Workloads with Successful 3nm Tapeouts of HBM3 and UCIe IP
- 12.3.6. Collaboration Between AMD and HPE Results in More Sustainable Technologies for Enterprise IT
- 12.3.7. IBM Advances Chiplets with Hybrid Bonding for Thinner, Smaller Connections
- 12.3.8. MediaTek Partners With NVIDIA to Transform Automobiles With AI and Accelerated Computing
- 12.3.9. Alphawave Semi Showcases 3nm Connectivity Solutions and Chiplet-Enabled Platforms for High Performance Data Center Applications
- 12.3.10. Eliyan Raises USD 40 Million from Intel and Micron to Build Chiplet Interconnects
- 12.3.11. Achronix Acquires Key IP and Expertise from FPGA Networking Solutions Leader Accolade Technology Achronix (PRNewsfoto/Achronix)

13. Competitive Portfolio

13.1. Key Company Profiles
13.2. Key Product Portfolio