Chiplets Market Share, Size, Trends, Industry Analysis Report, By Processor; By Packaging Technology; By Industry Vertical; By Region; Segment Forecast, 2024 - 2032
- Published Date:Mar-2024
- Pages: 114
- Format: PDF
- Report ID: PM4674
- Base Year: 2023
- Historical Data: 2019 – 2022
Report Outlook
Global chiplets market size was valued at USD 6.90 billion in 2023. The market is anticipated to grow from USD 12.67 billion in 2024 to USD 1,660.65 billion by 2032, exhibiting a CAGR of 83.9% during the forecast period.
Market Overview
The growing demand for cutting-edge semiconductor technology coupled with the consumer electronics industry's expanding need for chiplets drive the chiplets market growth. Moreover, the customization and scalability of integrated circuits (ICs) enabled by chiplets, enhanced performance, cost-effective manufacturing, and higher yield rates are some of the advantages that contribute to the expansion of the market. Furthermore, current research activities on the use of chiplet technology in the automotive sector will expand the market during the forecast period.
The increasing use of this technology in desktop PCs, workstations, and servers is expected to propel the chiplets market growth throughout the forecast period. Moreover, the economic cost of 5G devices and the deployment of new networks lead to an increase in the adoption of 5G technology, thereby providing long-term opportunities for market growth. Furthermore, the global expansion of data centers, increasing adoption of revolutionary packaging technologies, and growing demand for high-performance computing (HPC) servers from various industries are the major factors responsible for the growth of the global chipsets market.
- For instance, in June 2023, Stony Brook University announced its intention to deploy a new High-Performance Computing (HPC) system. This system will be based on the technologies launched by Hewlett Packard Enterprise (HPE) and Intel.
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However, the market is expected to witness hindrances owing to the testing & bonding challenges. For instance, testing chiplets with tiny micro bumps presents considerable financial and technical challenges. Moreover, one of the primary difficulties with chiplet technology is inter-chiplet communication and integration. In order to achieve high integration, technological challenges pertaining to packaging, heat dissipation, and reliability must be addressed. Furthermore, the high preference for monolithic chips in developing and under-developed countries hampers chiplets market growth.
Growth Factors
Several advantages of chiplets over monolithic design will propel the chiplets market growth.
Chiplets are smaller functional units made up of parts of an integrated circuit that eliminates the need for the creation of single monolithic chips. The combination of different chiplets having specific functionalities, such as memory, processors, and input/output components allows designers to create an efficient and highly customized system. Thus, the chiplet technology is considered as the future of semiconductor design. Moreover, benefits such as the modular approach to chip design, parallel development of different components, reduction in manufacturing costs, and improvement in yield rates are expected to fuel the overall chiplets market forecast period.
The growing use of high-performance computing (HPC) servers is contributing to the chiplets market growth.
The ability to analyze data and carry out complex calculations at high speeds is known as high-performance computing (HPC). With the utilization of chiplet-based technology, the HPCs allow for the efficient integration of specialized processing units, accelerators, and memory. The growing need to design powerful chips and increasing adoption of HPCs in various fields such as finance, research, weather forecasting, manufacturing, pharmaceuticals, energy, government, automotive, and telecommunications will fuel the market growth in the coming years. As chiplets can revolutionize the HPC sector, companies are focusing on strategic initiatives such as new product launches and acquisitions. For instance, in January 2022, NVIDIA Corporation completed the acquisition of Bright Computing, a leading company providing software for managing high-performance computing systems.
Restraining Factors
Problems associated with chiplets technology limit the chiplets market growth.
Despite the technologically-advanced nature of chiplets, several problems may hinder their adoption in the market. Wafer management, testing efficiency, yield challenges, cost implications, and human resource requirements are some of the major hurdles in the adoption of chiplet technology. For instance, merging of diverse wafers into a cohesive package through heterogeneous integration leads to the problems such as time sensitivity, complexity, and a high risk of errors. Moreover, the high costs associated with the chiplet designing and testing restrains the market growth. Furthermore, lack of focus on streamlining of testing processes for maximum efficiency also hampers the chiplets market.
Report Segmentation
The market is primarily segmented based on processor, packaging technology, industry vertical, and region.
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By Processor |
By Packaging Technology |
By Industry Vertical |
By Region |
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By Processor Insights
The CPU segment is projected to grow at a significant CAGR during the chiplets market forecast period.
The Central Processing Unit (CPU) segment is anticipated to expand at a considerable CAGR in the projected years. CPU is an essential processor for many computing devices. The increasing focus of CPU manufacturers on energy efficiency, scalability, and higher processing power will significantly contribute to the growth of this segment in the upcoming years. Moreover, the ability of chiplets to increase efficiency and organize CPU design allows CPU manufacturers to concentrate on the adoption of this technology. Thus, with the increasing need for CPUs in a wide range of applications, from consumer electronics to data centers, the demand for chiplets is expected to increase in the coming years.
By Packaging Technology Insights
2.5D/3D technology emerged as the largest chiplets market share.
The 2.5D/3D segment held the dominant share of the market in 2023. The assurance of excellent performance, miniaturization, and bandwidth provided by this packaging technology owing to the vertical stacking of chiplets contributes to the largest share of this segment. Moreover, this technology makes it possible to include multiple ICs in the same package. Thus, the benefits in accomplishing high package density and energy efficiency have made 2.5D/3D technology an ideal chiplet integration platform. Such factors have contributed to the dominance of this segment.
By Industry Vertical Insights
The consumer electronics segment held a significant share of the chiplets market.
Based on application, the consumer electronics segment generated significant revenue in 2023. Increasing demand for thinner and lighter designs of portable laptops and ultrabooks owing to the use of chiplet technology will contribute to segmental growth. Moreover, factors such as the rising use of chiplets for viewing higher quality video content on smart TVs coupled with the rapid growth of the consumer electronics sector are expected to fuel the segmental growth during the forecast period. For instance, according to the statistics published by the Indian Brand Equity Foundation (IBEF), 4.5 million televisions were shipped to India in the first half of 2023. Such a strong shipment volume of electronic products contributes to segmental growth.
Regional Insights
Asia Pacific generated the largest market revenue in 2023
Asia Pacific dominated the global chiplets market in 2023 and is projected to register the highest CAGR during the forecast timeframe. The dominance of this region is attributed to factors such as investments in research & development, supportive regulatory framework, government-led programs for digital transformation, and expansion of the consumer electronics industry. Moreover, the growth of the chiplets market is also driven by the Asia Pacific semiconductor industry, which is a home to a strong network of manufacturers, technology innovators, and foundries.
Increasing demand for electronic devices from highly populated countries such as China and India will prove beneficial for the growth of the chiplets market forecast period. Moreover, increasing government support for the research & development of this technology is expected to fuel the market growth. For instance, in August 2023, the National Natural Science Foundation of China (NSFC), a major domestic funding source for basic research and frontier exploration, launched a new program to provide funding to numerous projects focused on chiplet technology. This program will enhance China’s domestic innovation capabilities, thereby spurring market growth.
Key Market Players & Competitive Insights
The launch of new products based on chiplet technology will strengthen the market share of companies.
In terms of competition, the chiplets market is consolidated. Companies have a strong strategic focus on chiplet technology. The companies are concentrating on improving their market shares through the strategies such as acquisition and new product launches with chiplet technology. For instance, in November 2022, Advanced Micro Devices, Inc. (AMD) unveiled new gaming graphics cards that featured an advanced AMD chiplet design.
Some of the major players operating in the global market include:
- Achronix Semiconductor Corporation (U.S.)
- Advanced Micro Devices, Inc. (AMD) (U.S.)
- Apple Inc. (U.S.)
- ASE Technology Holding Co., Ltd. (Taiwan)
- IBM (U.S.)
- Intel Corporation (U.S.)
- Marvell (U.S.)
- MediaTek (Taiwan)
- NVIDIA Corporation (U.S.)
- Ranovus (Canada)
Recent Developments in the Industry
- In July 2023, Marvell joined the automotive chipset initiative coordinated by the IMEC. This initiative has been launched to meet the design challenge of bringing multi-functional chiplet computing modules to the automotive sector.
Report Coverage
The Chiplets market report emphasizes key regions across the globe to provide a better understanding of the product to the users. Also, the report provides market insights into recent developments and trends and analyzes the technologies that are gaining traction around the globe. Furthermore, the report covers an in-depth qualitative analysis pertaining to various paradigm shifts associated with the transformation of these solutions.
The report provides a detailed analysis of the market while focusing on various key aspects such as competitive analysis, processor, packaging technology, application, and their futuristic growth opportunities.
Chiplets Market Report Scope
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Report Attributes |
Details |
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Market size value in 2024 |
USD 12.67 billion |
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Revenue Forecast in 2032 |
USD 1,660.65 billion |
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CAGR |
83.9% from 2024 – 2032 |
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Base year |
2023 |
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Historical data |
2019 – 2022 |
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Forecast period |
2024 – 2032 |
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Quantitative units |
Revenue in USD billion and CAGR from 2024 to 2032 |
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Segments Covered |
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Regional scope |
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Competitive Landscape |
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Report Format |
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Customization |
Report customization as per your requirements with respect to countries, regions, and segmentation. |
FAQ's
The Chiplets Market report covering key segments are processor, packaging technology, industry vertical, and region.
Chiplets Market Size Worth $1,660.65 Billion By 2032
Chiplets market , exhibiting a CAGR of 83.9% during the forecast period.
Asia Pacific is leading the global market
key driving factors in Chiplets Market are growing use of high-performance computing (HPC) servers
