Chiplets Market
PUBLISHED: 2024 ID: SMRC25848
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Chiplets Market

Chiplets Market Forecasts to 2030 - Global Analysis By Processor (Field-Programmable Gate Array (FPGA), Graphics Processing Unit (GPU) and Other Processors), By Packaging Technologies (2.5D Packaging, 3D Packaging, Chip-on-Board (COB) and Other Packaging Technologies), Application and By Geography

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4.2 (20 reviews)
Published: 2024 ID: SMRC25848

This report covers the impact of COVID-19 on this global market
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According to Stratistics MRC, the Global Chiplets Market is accounted for $6.82 billion in 2023 and is expected to reach $449.46 billion by 2030 growing at a CAGR of 81.9% during the forecast period. Chiplets are modular semiconductor components that perform specific functions within an integrated circuit (IC) system. These small, individual chips can be independently designed, manufactured, and tested before being assembled into a larger IC package. Chiplets enable flexible and scalable system designs, allowing for improved performance, reduced development costs, and faster time-to-market for complex electronic devices such as CPUs, GPUs, and AI accelerators.

According to Consumer Technology Association, in October 2020, the population in the U.S. in the holiday season spent about US$ 528, on average, on technology-based items, which included video game consoles, laptops, wearable’s and television sets.

Market Dynamics: 

Driver: 

Demand for higher performance and efficiency

The demand for higher performance and efficiency is a key driver in the chiplets market due to the relentless pursuit of innovation in electronic devices. Chiplets enable manufacturers to integrate specialized components with optimized performance characteristics, such as CPUs, GPUs, and AI accelerators, into a single system. This modular approach allows for greater flexibility in designing high-performance products while also improving energy efficiency. As consumer expectations for faster and more powerful devices continue to rise, the adoption of chiplet-based architectures is poised for significant growth.

Restraint:

Standardization and interoperability

Without universally accepted standards, compatibility issues arise between chiplets from different vendors, hindering seamless interoperability and integration into heterogeneous systems. This lack of standardization complicates system design, increases development time, and raises costs for manufacturers. Furthermore, the absence of standardized interfaces limits the potential for ecosystem development and collaboration, stifling innovation and market growth. 

Opportunity:

Ecosystem development

Collaborative efforts among semiconductor companies, foundries, packaging suppliers, and system integrators can establish standardized interfaces, develop reference designs, and create supply chain partnerships. This fosters innovation, interoperability, and scalability, enabling faster adoption of chiplet-based solutions across various applications. Additionally, a robust ecosystem promotes knowledge sharing, accelerates technological advancements, and stimulates investment, driving the expansion of the chiplets market and unlocking new opportunities for stakeholders to capitalize on emerging trends and demands.

Threat:

Intellectual property (IP) risks

Intellectual property (IP) risks pose a significant threat to the chiplets market due to the complex ecosystem of technology development and integration. With chiplets being developed by multiple entities and integrated into various systems, there's a risk of IP infringement, unauthorized use, or misappropriation of proprietary designs, algorithms, or technologies. This can lead to legal disputes, loss of competitive advantage, and damage to business relationships, potentially hampering innovation and market growth in the chiplets industry.

Covid-19 Impact: 

The COVID-19 pandemic disrupted the chiplets market, causing supply chain disruptions, factory closures, and reduced consumer demand. Uncertainty and economic downturns led to delays in product launches and investments in semiconductor technologies. However, the increased demand for digital infrastructure and remote work solutions has driven the adoption of chiplets in data centers and telecommunication networks, mitigating some of the market's downturns.

The central processing unit (CPU) segment is expected to be the largest during the forecast period

In the chiplets market, the central processing unit (CPU) segment is anticipated to dominate during the forecast period due to the critical role CPUs play in electronic devices. CPUs handle tasks ranging from basic operations to complex computations, driving demand for advanced chiplet-based CPU designs. With the increasing need for high-performance computing in various applications such as data centers, gaming, and artificial intelligence, the CPU segment is expected to lead in market share and revenue.

The automotive segment is expected to have the highest CAGR during the forecast period

The automotive segment is poised for the highest CAGR in the chiplets market due to the increasing adoption of advanced driver assistance systems (ADAS), electrification, and connected vehicle technologies. Chiplets enable the integration of complex functionalities, such as AI processors, sensors, and communication modules, into automotive systems, enhancing vehicle safety, efficiency, and connectivity. Additionally, the demand for electric and autonomous vehicles further drives the growth of chiplets in the automotive sector.

Region with largest share:

Over the forecast period, Asia Pacific is poised to dominate the chiplets market due to the region's robust semiconductor manufacturing ecosystem, including foundries, packaging facilities, and assembly plants. Additionally, the growing demand for consumer electronics, automotive vehicles, and industrial automation in countries like China, Japan, South Korea, and Taiwan drives the adoption of chiplets. Moreover, government initiatives, investments in technology infrastructure, and a skilled workforce further bolster Asia Pacific's leadership in the chiplets market.

Region with highest CAGR:

During the forecast period, the Asia Pacific region is expected to experience rapid expansion in the chiplets market due to various factors. These include the region's robust semiconductor manufacturing infrastructure, increasing investments in research and development, growing demand for consumer electronics and rising adoption of advanced technologies such as artificial intelligence and 5G. Additionally, the presence of key market players in countries like China, Japan, South Korea, and Taiwan contribute to the region's promising growth trajectory in the chiplets market.

Key players in the market

Some of the key players in Chiplets Market include Advanced Micro Devices, Inc. (AMD), Applied Materials, Inc., ARM Holdings, Broadcom Inc., GlobalFoundries Inc., IBM Corporation, Infineon Technologies AG, Intel Corporation, Marvell Technology Group Ltd., MediaTek Inc., Micron Technology, Inc., NVIDIA Corporation, Qualcomm Incorporated, Renesas Electronics Corporation, Samsung Electronics Co., Ltd., Synopsys, Inc., Taiwan Semiconductor Manufacturing Company Limited (TSMC), Texas Instruments Incorporated, United Microelectronics Corporation (UMC) and Xilinx, Inc.

Key Developments:

In January 2024, Intel Corportion announced its intention to collaborate with an R&D hub named IMEC, to ensure Intel’s advanced chiplet packaging technologies satisfy the stringent quality and reliability requirements required for automotive use cases.

In August 2023, Google Cloud (US) and NVIDIA Corporation (US) collaborated to offer advanced AI infrastructure and software for deploying large generative AI models and accelerating data science tasks. This partnership streamlines AI supercomputer deployment via Google Cloud's NVIDIA-powered solutions, leveraging the same technology utilized by Google DeepMind and research teams. The integration optimizes PaxML, Google's LLM framework, for NVIDIA, accelerated computing, enhancing experimentation and scalability with H100 and A100 Tensor Core GPUs.

In June 2023, Intel Corporation (US) announced a partnership with Taiwan Semiconductor Manufacturing Company Limited (Taiwan) to manufacture chips for Intel's high-performance computing and graphics products. The partnership would help Intel reduce its reliance on external foundries.

Processors Covered:
• Field-Programmable Gate Array (FPGA)
• Graphics Processing Unit (GPU)
• Central Processing Unit (CPU)
• Application Processing Unit (APU)
• Artificial Intelligence Application-specific Integrated Circuit (AI ASIC)

Packaging Technologies Covered:
• 2.5D Packaging
• 3D Packaging
• Chip-on-Board (COB)
• Chip-on-Flex (COF)
• Chip-on-Glass (COG)
• Chip-on-Wafer (COW)
• Wafer-Level Packaging (WLP)
• Fan-Out Wafer-Level Packaging (FO-WLP)
• Other Packaging Technologies

Applications Covered:
• Consumer Electronics
• Healthcare
• Automotive
• Aerospace and Defense
• Industrial
• Telecommunications
• Semiconductor 
• Other Applications

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan        
o China        
o India        
o Australia  
o New Zealand
o South Korea
o Rest of Asia Pacific    
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa 
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings: 
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances

Table of Contents

1 Executive Summary       
        
2 Preface       
 2.1 Abstract      
 2.2 Stake Holders      
 2.3 Research Scope      
 2.4 Research Methodology      
  2.4.1 Data Mining     
  2.4.2 Data Analysis     
  2.4.3 Data Validation     
  2.4.4 Research Approach     
 2.5 Research Sources      
  2.5.1 Primary Research Sources     
  2.5.2 Secondary Research Sources     
  2.5.3 Assumptions     
        
3 Market Trend Analysis       
 3.1 Introduction      
 3.2 Drivers      
 3.3 Restraints      
 3.4 Opportunities      
 3.5 Threats      
 3.6 Technology Analysis      
 3.7 Application Analysis      
 3.8 Emerging Markets      
 3.9 Impact of Covid-19      
        
4 Porters Five Force Analysis       
 4.1 Bargaining power of suppliers      
 4.2 Bargaining power of buyers      
 4.3 Threat of substitutes      
 4.4 Threat of new entrants      
 4.5 Competitive rivalry      
        
5 Global Chiplets Market, By Processor       
 5.1 Introduction      
 5.2 Field-Programmable Gate Array (FPGA)      
 5.3 Graphics Processing Unit (GPU)      
 5.4 Central Processing Unit (CPU)      
 5.5 Application Processing Unit (APU)      
 5.6 Artificial Intelligence Application-specific Integrated Circuit (AI ASIC)      
        
6 Global Chiplets Market, By Packaging Technology       
 6.1 Introduction      
 6.2 2.5D Packaging      
 6.3 3D Packaging      
 6.4 Chip-on-Board (COB)      
 6.5 Chip-on-Flex (COF)      
 6.6 Chip-on-Glass (COG)      
 6.7 Chip-on-Wafer (COW)      
 6.8 Wafer-Level Packaging (WLP)      
 6.9 Fan-Out Wafer-Level Packaging (FO-WLP)      
 6.10 Other Packaging Technologies      
        
7 Global Chiplets Market, By Application       
 7.1 Introduction      
 7.2 Consumer Electronics      
  7.2.1 Smartphones     
  7.2.2 Tablets     
  7.2.3 Wearable Devices     
  7.2.4 Gaming Consoles     
  7.2.5 Personal Computers     
  7.2.6 Smart Home Devices     
 7.3 Healthcare      
  7.3.1 Medical Devices     
  7.3.2 Wearable Health Monitors     
  7.3.3 Implantable Medical Devices     
  7.3.4 Diagnostic Equipment     
 7.4 Automotive      
  7.4.1 Advanced Driver Assistance Systems (ADAS)     
  7.4.2 Infotainment Systems     
  7.4.3 Engine Control Units (ECUs)     
  7.4.4 Advanced Sensors     
 7.5 Aerospace and Defense      
  7.5.1 Radar Systems     
  7.5.2 Avionics     
  7.5.3 Communication Systems     
  7.5.4 Surveillance Systems     
 7.6 Industrial      
  7.6.1 Industrial Automation     
  7.6.2 Robotics     
  7.6.3 Process Control Systems     
  7.6.4 Internet of Things (IoT) Devices     
 7.7 Telecommunications      
  7.7.1 Network Switches     
  7.7.2 Routers     
  7.7.3 Base Stations     
  7.7.4 Optical Transport Systems     
 7.8 Semiconductor       
  7.8.1 Chiplet Development     
  7.8.2 Incorporation into SoCs     
  7.8.3 Heterogeneous Integration     
 7.9 Other Applications      
        
8 Global Chiplets Market, By Geography       
 8.1 Introduction      
 8.2 North America      
  8.2.1 US     
  8.2.2 Canada     
  8.2.3 Mexico     
 8.3 Europe      
  8.3.1 Germany     
  8.3.2 UK     
  8.3.3 Italy     
  8.3.4 France     
  8.3.5 Spain     
  8.3.6 Rest of Europe     
 8.4 Asia Pacific      
  8.4.1 Japan     
  8.4.2 China     
  8.4.3 India     
  8.4.4 Australia     
  8.4.5 New Zealand     
  8.4.6 South Korea     
  8.4.7 Rest of Asia Pacific     
 8.5 South America      
  8.5.1 Argentina     
  8.5.2 Brazil     
  8.5.3 Chile     
  8.5.4 Rest of South America     
 8.6 Middle East & Africa      
  8.6.1 Saudi Arabia     
  8.6.2 UAE     
  8.6.3 Qatar     
  8.6.4 South Africa     
  8.6.5 Rest of Middle East & Africa     
        
9 Key Developments       
 9.1 Agreements, Partnerships, Collaborations and Joint Ventures      
 9.2 Acquisitions & Mergers      
 9.3 New Product Launch      
 9.4 Expansions      
 9.5 Other Key Strategies      
        
10 Company Profiling       
 10.1 Advanced Micro Devices, Inc. (AMD)      
 10.2 Applied Materials, Inc.      
 10.3 ARM Holdings      
 10.4 Broadcom Inc.      
 10.5 GlobalFoundries Inc.      
 10.6 IBM Corporation      
 10.7 Infineon Technologies AG      
 10.8 Intel Corporation      
 10.9 Marvell Technology Group Ltd.      
 10.10 MediaTek Inc.      
 10.11 Micron Technology, Inc.      
 10.12 NVIDIA Corporation      
 10.13 Qualcomm Incorporated      
 10.14 Renesas Electronics Corporation      
 10.15 Samsung Electronics Co., Ltd.      
 10.16 Synopsys, Inc.      
 10.17 Taiwan Semiconductor Manufacturing Company Limited (TSMC)      
 10.18 Texas Instruments Incorporated      
 10.19 United Microelectronics Corporation (UMC)      
 10.20 Xilinx, Inc.      
        
List of Tables        
1 Global Chiplets Market Outlook, By Region (2021-2030) ($MN)       
2 Global Chiplets Market Outlook, By Processor (2021-2030) ($MN)       
3 Global Chiplets Market Outlook, By Field-Programmable Gate Array (FPGA) (2021-2030) ($MN)       
4 Global Chiplets Market Outlook, By Graphics Processing Unit (GPU) (2021-2030) ($MN)       
5 Global Chiplets Market Outlook, By Central Processing Unit (CPU) (2021-2030) ($MN)       
6 Global Chiplets Market Outlook, By Application Processing Unit (APU) (2021-2030) ($MN)       
7 Global Chiplets Market Outlook, By Artificial Intelligence Application-specific Integrated Circuit (AI ASIC) (2021-2030) ($MN)       
8 Global Chiplets Market Outlook, By Packaging Technology (2021-2030) ($MN)       
9 Global Chiplets Market Outlook, By 2.5D Packaging (2021-2030) ($MN)       
10 Global Chiplets Market Outlook, By 3D Packaging (2021-2030) ($MN)       
11 Global Chiplets Market Outlook, By Chip-on-Board (COB) (2021-2030) ($MN)       
12 Global Chiplets Market Outlook, By Chip-on-Flex (COF) (2021-2030) ($MN)       
13 Global Chiplets Market Outlook, By Chip-on-Glass (COG) (2021-2030) ($MN)       
14 Global Chiplets Market Outlook, By Chip-on-Wafer (COW) (2021-2030) ($MN)       
15 Global Chiplets Market Outlook, By Wafer-Level Packaging (WLP) (2021-2030) ($MN)       
16 Global Chiplets Market Outlook, By Fan-Out Wafer-Level Packaging (FO-WLP) (2021-2030) ($MN)       
17 Global Chiplets Market Outlook, By Other Packaging Technologies (2021-2030) ($MN)       
18 Global Chiplets Market Outlook, By Application (2021-2030) ($MN)       
19 Global Chiplets Market Outlook, By Consumer Electronics (2021-2030) ($MN)       
20 Global Chiplets Market Outlook, By Smartphones (2021-2030) ($MN)       
21 Global Chiplets Market Outlook, By Tablets (2021-2030) ($MN)       
22 Global Chiplets Market Outlook, By Wearable Devices (2021-2030) ($MN)       
23 Global Chiplets Market Outlook, By Gaming Consoles (2021-2030) ($MN)       
24 Global Chiplets Market Outlook, By Personal Computers (2021-2030) ($MN)       
25 Global Chiplets Market Outlook, By Smart Home Devices (2021-2030) ($MN)       
26 Global Chiplets Market Outlook, By Healthcare (2021-2030) ($MN)       
27 Global Chiplets Market Outlook, By Medical Devices (2021-2030) ($MN)       
28 Global Chiplets Market Outlook, By Wearable Health Monitors (2021-2030) ($MN)       
29 Global Chiplets Market Outlook, By Implantable Medical Devices (2021-2030) ($MN)       
30 Global Chiplets Market Outlook, By Diagnostic Equipment (2021-2030) ($MN)       
31 Global Chiplets Market Outlook, By Automotive (2021-2030) ($MN)       
32 Global Chiplets Market Outlook, By Advanced Driver Assistance Systems (ADAS) (2021-2030) ($MN)       
33 Global Chiplets Market Outlook, By Infotainment Systems (2021-2030) ($MN)       
34 Global Chiplets Market Outlook, By Engine Control Units (ECUs) (2021-2030) ($MN)       
35 Global Chiplets Market Outlook, By Advanced Sensors (2021-2030) ($MN)       
36 Global Chiplets Market Outlook, By Aerospace and Defense (2021-2030) ($MN)       
37 Global Chiplets Market Outlook, By Radar Systems (2021-2030) ($MN)       
38 Global Chiplets Market Outlook, By Avionics (2021-2030) ($MN)       
39 Global Chiplets Market Outlook, By Communication Systems (2021-2030) ($MN)       
40 Global Chiplets Market Outlook, By Surveillance Systems (2021-2030) ($MN)       
41 Global Chiplets Market Outlook, By Industrial (2021-2030) ($MN)       
42 Global Chiplets Market Outlook, By Industrial Automation (2021-2030) ($MN)       
43 Global Chiplets Market Outlook, By Robotics (2021-2030) ($MN)       
44 Global Chiplets Market Outlook, By Process Control Systems (2021-2030) ($MN)       
45 Global Chiplets Market Outlook, By Internet of Things (IoT) Devices (2021-2030) ($MN)       
46 Global Chiplets Market Outlook, By Telecommunications (2021-2030) ($MN)       
47 Global Chiplets Market Outlook, By Network Switches (2021-2030) ($MN)       
48 Global Chiplets Market Outlook, By Routers (2021-2030) ($MN)       
49 Global Chiplets Market Outlook, By Base Stations (2021-2030) ($MN)       
50 Global Chiplets Market Outlook, By Optical Transport Systems (2021-2030) ($MN)       
51 Global Chiplets Market Outlook, By Semiconductor (2021-2030) ($MN)       
52 Global Chiplets Market Outlook, By Chiplet Development (2021-2030) ($MN)       
53 Global Chiplets Market Outlook, By Incorporation into SoCs (2021-2030) ($MN)       
54 Global Chiplets Market Outlook, By Heterogeneous Integration (2021-2030) ($MN)       
55 Global Chiplets Market Outlook, By Other Applications (2021-2030) ($MN)       
        
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.        

List of Figures

RESEARCH METHODOLOGY


Research Methodology

We at Stratistics opt for an extensive research approach which involves data mining, data validation, and data analysis. The various research sources include in-house repository, secondary research, competitor’s sources, social media research, client internal data, and primary research.

Our team of analysts prefers the most reliable and authenticated data sources in order to perform the comprehensive literature search. With access to most of the authenticated data bases our team highly considers the best mix of information through various sources to obtain extensive and accurate analysis.

Each report takes an average time of a month and a team of 4 industry analysts. The time may vary depending on the scope and data availability of the desired market report. The various parameters used in the market assessment are standardized in order to enhance the data accuracy.

Data Mining

The data is collected from several authenticated, reliable, paid and unpaid sources and is filtered depending on the scope & objective of the research. Our reports repository acts as an added advantage in this procedure. Data gathering from the raw material suppliers, distributors and the manufacturers is performed on a regular basis, this helps in the comprehensive understanding of the products value chain. Apart from the above mentioned sources the data is also collected from the industry consultants to ensure the objective of the study is in the right direction.

Market trends such as technological advancements, regulatory affairs, market dynamics (Drivers, Restraints, Opportunities and Challenges) are obtained from scientific journals, market related national & international associations and organizations.

Data Analysis

From the data that is collected depending on the scope & objective of the research the data is subjected for the analysis. The critical steps that we follow for the data analysis include:

  • Product Lifecycle Analysis
  • Competitor analysis
  • Risk analysis
  • Porters Analysis
  • PESTEL Analysis
  • SWOT Analysis

The data engineering is performed by the core industry experts considering both the Marketing Mix Modeling and the Demand Forecasting. The marketing mix modeling makes use of multiple-regression techniques to predict the optimal mix of marketing variables. Regression factor is based on a number of variables and how they relate to an outcome such as sales or profits.


Data Validation

The data validation is performed by the exhaustive primary research from the expert interviews. This includes telephonic interviews, focus groups, face to face interviews, and questionnaires to validate our research from all aspects. The industry experts we approach come from the leading firms, involved in the supply chain ranging from the suppliers, distributors to the manufacturers and consumers so as to ensure an unbiased analysis.

We are in touch with more than 15,000 industry experts with the right mix of consultants, CEO's, presidents, vice presidents, managers, experts from both supply side and demand side, executives and so on.

The data validation involves the primary research from the industry experts belonging to:

  • Leading Companies
  • Suppliers & Distributors
  • Manufacturers
  • Consumers
  • Industry/Strategic Consultants

Apart from the data validation the primary research also helps in performing the fill gap research, i.e. providing solutions for the unmet needs of the research which helps in enhancing the reports quality.


For more details about research methodology, kindly write to us at info@strategymrc.com

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