Chiplets Market Valuation to Reach US$ 47.19 Bn by 2031 - Transparency Market Research

Players in the semiconductor packaging industry aim at new semiconductor designs by harnessing heterogeneous, chiplet-based architectures and drive innovations through low-cost customization of hardware

Semiconductor companies are increasingly focusing on 10nm transistor features for chiplets with small functional dies to capture massive revenues from the consumer electronics industry

ALBANY, N.Y., Oct. 7, 2021 /PRNewswire/ --

Chiplets Market: Broad Contours

Chiplet assembly approaches are attracting immense attention among businesses in the semiconductor industry and foundries. Advancements in tools and methodologies for chip and package designing have enabled them to overcome the limitations of traditional system-on-chip (SoC), and have spurred the shift toward multi-chiplet architectures. The demand for advanced IC packaging in terms of performance or efficiency is driving R&D activities in the chiplets market.

The increased adoption of 3D die stacking techniques has reduced turnaround time and design efforts, and eventually allowed electronic product designers to build up a powerful circuitry for next-gen electronics. Numerous benefits of chiplet are fueling its demand among end-use industries, such as high manufacturing yield and cost reduction considerably.

The global chiplets market is projected to advance at a CAGR of 40.9% from 2021 to 2031, and is estimated to reach US$ 47.19 Bn by 2031. Microprocessor (MPU) chiplets will pave the way for advanced circuitry for electronics in various end-use industries.

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Key Findings of Chiplets Market Study

Chiplet-based Architectures to Reduce Costs, Overcome Performance Constraints of Traditional System-on-Chip (SoC): The high cost of designing a large number of monolithic SoCs has propelled the need for advancing the IC packaging. This has intensified research on chiplet assembly-based processors. The heterogeneous design has led semiconductor packaging companies to disaggregate the SoC architecture and then reintegrate the chiplets on to a single substrate. The demand for low-cost alternatives to SoC is high in the automotive and consumer electronics applications, offering potential gains to players in the chiplets market. Particularly, chiplets with small functional dies are proving to be promising for modern sub 10nm (nanometer) transistor features for building up a high-performance circuitry that has SoC-like low-latency but built at lower cost and in less time.

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Microprocessor Suppliers Aim at Commercialization of Chiplets, Faster Time-To-Market Key Advantage: The gains that a heterogenous integration of chiplets offers for low-cost customization of electronics hardware for a wide range of applications will speed up mainstreaming of chiplet-based architectures in the near future. Some of the emerging applications microprocessor suppliers and foundries in the chiplets market are focusing on are advanced system on chip devices, graphic processing units (GPUs), and programmable logic devices (PLDs). In developed nations, the demand for the next-gen military technology will increasingly accelerate the efforts of commercialization of products in the chiplets market.

Chiplets Market: Drivers

• Continuous strides made by the semiconductor industry are a key driver for advancing chip packaging technologies and assembly methods in the chiplets market. The trend has stridently paved the way for the testing and the commercialization of new microarchitectural designs in processors. Thus, chiplet-based architecture has evolved to cater to the requirements of next-gen application processors for artificial intelligence (AI) and Internet-of-Things (IoT) in various industries.
• The trend of low-cost customization of hardware has gained momentum among automotive companies, given the slew of investments made in autonomous vehicles in recent years. Chiplets are proving to be promising investment for developing next generation of automotive platforms and electronics for defense applications, thus lending an impetus to the evolution of the chiplets market.

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Chiplets Market: Regional Growth Dynamics

• Asia Pacific has been a highly lucrative chiplets market, and is projected to scale opportunities worth of US$ 29.14 Bn by 2031. The revenue generation is driven by presence of a vast semiconductor manufacturing hub in several economies, notably China. Semiconductor foundries across the region are increasingly growing their R&D in novel design and assembly methods.
• The North America chiplets market is anticipated to expand at a promising CAGR during 2021 – 2031 (forecast period). The focus of semiconductor companies on the development of proprietary advanced packaging chiplets as part of advanced packaging strategies is one of the trends propelling growth prospects of this regional market.

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Chiplets Market: Competition Dynamics

Some of the key players in the chiplets market are Xilinx, Taiwan Semiconductor Manufacturing Company Ltd., NXP Semiconductors, NHanced Semiconductors, Inc., Netronome, Marvell Technology Group, and Intel Corp.

Global Chiplets Market: Segmentation

Chiplets Market, by Application

• Microprocessors (MPUs)
• System-on-Chip (SOC) Device
• Graphic Processing Units (GPUs)
• Programmable Logic Devices (PLDs)

Chiplets Market, by End-use Industry

• Automotive Electronics
• Consumer Electronics
• Industrial Automation
• Healthcare
• Military
• IT & Telecommunication
• Others (Transportation, Energy & Power, etc.)

Chiplets Market, by Region

• North America
• Europe
• Asia Pacific (APAC)
• Rest of the World

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