Chiplets Trends and Forecast
The future of the global chiplets market looks promising with opportunities in the automotive electronics, consumer electronics, industrial automation, healthcare, military and it & telecommunication markets. The global chiplets market is expected to reach an estimated CAGR of 35.4% from 2024 to 2030. The major drivers for this market are increasing demand of internet of things (IoT) and growth of consumer electronics.
• Lucintel forecasts that, within the application category, SOC is expected to witness highest growth over the forecast period due to growing at faster rate due to reduction of development costs, shorten time to market, and improve power efficiency in socs used in various applications, from smartphones to iot devices.
• Within the end use industry category consumer electronics will remain the largest segment due to technological advancements and usage in computers, laptops, tablets, smartphones, televisions, vcrs, dvd players, microwaves, toasters, ovens, and others.
• In terms of regions, APAC is expected to witness highest growth over the forecast period due to growth of consumer electronics in China and India.
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Emerging Trends in the Chiplets Market
The chiplet market is undergoing various emerging trends in the form of popular moves that will alter the future of the market as well as the competitive environment. These evolving trends represent new breakthroughs in technology, market demands, or consumer wants.
• Enhanced modularization and flexibility momentum: There seems to be an increasing trend toward modular design, due in part to the use of chiplets that enable structural customization. As the encapsulation of several chiplets into one package becomes the norm, manufacturers can balance performance with features according to specific use cases. Furthermore, this allows for a reduction in development time and costs, improving the ability to scale alongside various use cases.
• Rise in high-performance computing and data centers: There is an increasing need for chiplets in high-performance computing (HPC) and data centers, primarily because of their capability to increase processing power and efficiency. By allowing many high-performance cores to be integrated with interoperability, chiplets facilitate the creation of powerful and efficient computing systems. Additionally, this trend eases the construction of advanced data center infrastructure and enhances the performance of HPC applications.
• Convergence with advanced packaging solutions: More VoIP-focused vendors are becoming dispersed and then agglomerating their packages using advanced packaging techniques such as interposer and/or 3D stacking. Such packaging improvements increase the versatility and efficiency of chiplet system integration by allowing faster data transfer and better heat dispersion. Furthermore, integration with advanced packaging technologies fosters the next generation of semiconductor developments.
• Customization is emphasized for chiplet applications: Chiplet manufacturers are concentrating on designing chiplets that are application-based, such as in automotive, IoT, and telecommunications. These types of chiplets can be customized to serve specific needs that are unique in the wider market, contributing to improved systems. This trend enables the development of targeted solutions that cater to the needs of different industry sectors.
• Industry collaboration and chiplet integration standards: There is growing interaction among industry players in the chiplet market, along with significant efforts toward developing chiplet integration standards and standards for chiplet interoperability. Industry collaboration and chiplet integration standards and practices for design occupy a fundamental position in the primary structure and processes of chiplets from different suppliers throughout the component manufacturing and design phases. Enhancements in chiplet performance are encouraged by this trend, accelerating the adoption of chiplet technology in the industry.
The chiplet market is being transformed by emerging trends, including modularization, expansion in HPC, inclusion of advanced packaging, customization for specific uses, and collaborative ecosystems. These trends boost innovation, improve performance, and broaden the use of chiplets across different markets, changing the market structure and evolution.
Recent Developments in the Chiplets Market
The latest progress made by the chiplets market involves improvement of the technology, evolution of the business models and exploitation of the new market segments. These developments are fueling the inventive processes and molding the evolution of chiplet technology.
• Emergence of Industry Defined Chiplet Standards: One such recent development is the formulation of common agreed upon norms concerning chiplet integration, the open domain-specific architectures (ODSA) and universal chiplet interconnect express (UCIe). These guidelines seek to improve the integration of chiplets from different manufacturers requiring less complicated integration. Standardization helps improve the adoption rate of the chiplet technologies within the industry.
• Progress in 3D Integration and 3D packaging: Recent trends in 3D packaging and integration techniques show that it is possible to improve the performance of chiplet-based systems. Other innovations like through-silicon vias (TSVs) and micropumps assist in routing chiplets more closely together while controlling the heat more effectively. All of these developments expand the chiplet solution capabilities and aid in developing more compact and more sophisticated semiconductor systems.
• Surge in Demand for Customization in Chiplet Integration Solutions: In the particular domain and industry segments, there is increasing demand for chiplet solutions that can be customized. Custom chiplets are developed for application areas such as automotive, IoT, and telecommunications etc. This trend allows optimal performance to be achieved as it caters to the various needs of the application and creates a market for custom chiplet solutions.
• Rising Funds for Chiplet R&D: It has been observed that there is quite an increase in funding for chiplet R and D by both technology companies and the government. This funding enables chiplet technology research, design, manufacturing processes, and chiplet integration technology improvement. Resource availability in R&D helps most chiplet solutions work towards progress and concomitantly bring new solutions to reality.
• Growing Collaborative Ecosystems: There has been an increase in the outreach of collaborative ecosystems that incorporate semiconductor firms, research institutes and industry partnerships. Such collaboration seeks to improve chiplet technologies, design new conventions and assist with new ideas. Collaboration and synergies result in a stronger and lively chiplet industry, promoting innovation and growth in technology.
In recent years, the chiplets market has witnessed some of the major technological developments-like industry standards, 3D packaging capabilities, concrete industry 4.0 solutions, R&D focused investments, and a collaborative ecosystem that are enhancing technological growth and creating more opportunities in the market. These trends are changing the landscape of the technology of chiplets further into the future and its dominance within the industry.
Strategic Growth Opportunities for Chiplets Market
The chiplet market offers plenty of room for market expansion tactics across different applications. Focusing on these opportunities enables organizations to extend their market reach to meet new demands across multiple industries.
• High-performance computing (HPC): Chiplets can be extensively used in high-performance computing (HPC) due to their capacity to improve processing and operational effectiveness in systems. By stacking several high-performance chiplets, HPC systems can provide better performance while also maintaining the flexibility to be scalable. This opportunity aims to ensure that advanced computing systems for data centers and research purposes are realized.
• Automotive electronics: The automotive sector offers new markets for chiplets, especially with advanced driver-assistance systems (ADAS) and self-driving cars. Custom chiplets are expected to meet the needs of automotive applications, such as high-speed computing and safe, secure operations. This initiative contributes to the adoption of new technologies within the automotive environment and improves the safety and performance of vehicles.
• IoT (Internet of Things): Chiplets find applicability in the Internet of Things (IoT), which emphasizes modularity and scalability. The use of chiplets in customizing and interconnecting IoT devices is likely to make them more efficient and functional. This opportunity supports the increasing adoption of smart devices within various connected ecosystems, including consumer electronics and industrial automation.
• Telecommunications and 5G: The 5G telecommunications industry is also a great opportunity for chiplets. The performance and functionality of intelligent equipment essential for 5G infrastructure, like base stations and network equipment, are enhanced by chiplets. This opportunity promotes the growth of lower latency and higher-speed communication systems and enhances the 5G infrastructure.
• Consumer electronics: In the consumer electronics sector, chiplets can be purposefully adopted in mobile devices, tablets, and wearables that are in demand, targeting the highly competitive electronics market. The use of chiplets enables manufacturers to enhance the performance and functionality of devices while reducing the time spent on development. This opportunity drives creative differentiation in consumer electronics and improves user satisfaction.
Some targeted strategic growth opportunities in the chiplet market include applications in HPC, automotive electronics, IoT, telecommunications, and consumer electronics. Focusing on these areas will enable companies to foster innovative technologies, meet varying market requirements, and take advantage of upcoming trends, further promoting the growth and development of the chiplet market.
Chiplets Market Driver and Challenges
The chiplets market has drivers and challenges such as technology related factors, market related factors and regulatory factors. These factors should be recognized as they guide in the market and its growth opportunities.
The factors responsible for driving the chiplets market include:
• Technological Advancements in Semiconductor Design: Technological advancements in semiconductor designs enhance the adoption of chiplets through more efficient and flexible chip architectures. Increased development of integration technologies such as 3D stacking and better packaging gives room for improvement and scalability for chiplet systems. Such improvements help in producing high performance and low cost semiconductor devices.
• Growing Demand for High-Performance Computing (HPC): There is an increasing need for chiplets that provide more processing power and efficient chips due to the high demand for high performance computing. Due to the integration of several high performance cores, chiplets allow the construction of systems that are powerful enough to push Data Centers, scientific research and other HPC applications.
• Efficiency of Manufacturing and Scalability Adaptability: Modular architectures that encompass chiplets, enable chip designs to be included and manufactured in a more efficient manner. This decreases developments and time to market, which increases the chances of the manufacturers designing the specific semiconductor solutions. Manufacturability efficiency and scalability in production create the future of chiplets in diverse applications.
• Tailoring for Particular Use Cases: The factor of being able to customize a chiplet depending on the area of application like the automotive sector, IoT applications, telecommunications, and designers etc. plays a big role in the growth of this market. Chiplets with adjustable designs are easy to meet the specification required by various industries improving the performance and effectiveness. This trend is favorable in achieving the production of semiconductor systems that can serve the entire market.
• Collaborations and Chiplet Market Opportunities: Collaborative ecosystems and standardization within the marketplace of chiplets facilitate enhancement of inter-communication and interoperability. These activities promote creativity, simplify the design and building stages, and aid the accelerated acceptance of the chiplet technology. Collaborative activity accelerates the market by installing a more sound and active atmosphere for the chiplet business.
Challenges in the chiplets market are:
•Concerns of chiplet integration: Manufacturers are switching over their technologies, and this enhances multiple sourcing for the customers. The inseparable machinations argue that they are immaterial and chiplet integration will never be applied. This factor is problematic as design planning requires careful attention to avoid ensuring that the chiplet integration will pose some tensile strength challenges.
• Any related Issues in IP Rights and Licensing: Licensing or intellectual property discussing concerns mostly impact the chiplets market, mainly when several companies are involved in the designing and development of the chiplets. Competitional the licensing concepts and policies helps in making sure that no cases are raised against collaboration between the players as there is always a legal way of settling all arguments.
• Market Penetration Limits and Competition Threat: The chiplets market also identifies the aspects of market saturation and the level of competition which presents challenges to this particular market. Due to the incoming of many players on the market, companies are required to expand their market share by providing unique products In the highly competitive nature of the business. Innovation, quality and good positioning are what are required in overcoming these.
Technological advancement, increase in HPC demand, cheaper production, customization, and ecosystem cooperation are some of the factors driving developments in chiplets market while there are integration, intellectual property, and market flooding issues. The barriers and drivers will have to be handled for one to maneuver the environment and grow.
List of Chiplets Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. With these strategies chiplets companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the chiplets companies profiled in this report include-
• Advanced Micro Devices
• Intel
• Marvell Technology
• Netronome, NHanced Semiconductors
• NHanced Semiconductors
• NXP Semiconductors
• Taiwan Semiconductor Manufacturing Company
• Xilinx
Chiplets by Segment
The study includes a forecast for the global chiplets by application, end use industry, and region.
Chiplets Market by Application [Analysis by Value from 2018 to 2030]:
• MPUs
• SOC
• GPUs
• PLDs
• Others
Chiplets Market by End Use Industry [Analysis by Value from 2018 to 2030]:
• Automotive Electronics
• Consumer Electronics
• Industrial Automation
• Healthcare
• Military
• IT & Telecommunication
• Others
Chiplets Market by Region [Analysis by Value from 2018 to 2030]:
• North America
• Europe
• Asia Pacific
• The Rest of the World
Country Wise Outlook for the Chiplets Market
Seeking ways to enhance performance and minimize costs has profoundly changed the chiplet market in recent years. Chiplets are small integrated chips that can be assembled together to provide more complex functions than traditional large monolithic dedicated chips. As observed across different countries, including the United States, China, Germany, India, and Japan, there are major developments in technology, manufacturing, and the market.
• United States: Demand for chiplets is on the rise due to improvements in semiconductor technologies and the need for more computing power. Many technology companies investing in this area have embraced chiplet-based designs, aiming to increase the modularity of new products while reducing their time to market. To become more high-performance and configurable, projects from companies like AMD and Intel are integrating multiple chiplets into one package. Various technology companies in the United States are collaborating with academic institutions to encourage further development in chiplet innovations.
• China: With the government seeking technological independence and limiting the import of foreign semiconductor technologies, China is making significant headway in the chiplet market. Chinese firms are allocating substantial funds toward rapidly learning chiplet technologies and their application in the local semiconductor distribution market. Several large government programs and partnerships with local IT companies support the growth of the chiplet market in China. Furthermore, there is strong momentum for creating chiplets targeted at telecommunications and home electronics.
• Germany: Chiplet development is strategically financed, and German market players are investing heavily in technology. Targeting automotive and industrial applications, German chip companies are leveraging chiplet technology to enhance performance and efficiency. In an environment where demand for chiplets is increasing, the culture and policies promoting precision engineering and innovation further support these practices. Germany’s approach includes fostering cross-pollination between research and industry to accelerate high-tech advancements in microelectronics.
• India: IndiaÄX%$%Xs chiplet market is securing a stronghold in the semiconductor value chain by concentrating on affordable and versatile chiplet designs. Indian firms are developing chiplets for use in consumer electronics and telecommunications, taking advantage of the growing IT infrastructure and engineering resources in the country. This trend occurs against the backdrop of government advocacy aimed at increasing local semiconductor production while reducing the need for imports. In India, there is also a rise in tech entrepreneurs and large companies partnering to harness the growth of new ideas in chiplet technologies.
• Japan: Leading semiconductor makers and technology companies in Japan are making strides in developing chiplet technologies. The country focuses on embedding chiplets within sophisticated computing systems, such as in robotics, automotive, and consumer electronics industries. The advancement of chiplet technology in Japan can be attributed to the country’s commitment to research and development activities and its strong manufacturing capabilities. Japanese firms also aim to improve their position in the chiplet market through foreign partnerships.
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FAQ
Q.1 What is the growth forecast for chiplets market?
Answer: The global chiplets market is expected to grow with a CAGR of 35.4% from 2024 to 2030.
Q.2 What are the major drivers influencing the growth of the chiplets market?
Answer: The major drivers for this market are increasing demand of internet of things (IoT) and growth of consumer electronics.
Q.3. What are the major segments for chiplets market?
Answer: The future of the chiplets market looks promising with opportunities in the automotive electronics, consumer electronics, industrial automation, healthcare, military and IT & telecommunication markets.
Q.4. Who are the key chiplets market companies?
Answer: Some of the key chiplets companies are as follows:
• Advanced Micro Devices
• Intel
• Marvell Technology
• Netronome, NHanced Semiconductors
• NHanced Semiconductors
• NXP Semiconductors
• Taiwan Semiconductor Manufacturing Company
• Xilinx
Q.5. Which chiplets market segment will be the largest in future?
Answer: Lucintel forecasts that soc is expected to witness highest growth over the forecast period due to growing at faster rate due to reduction of development costs, shorten time to market, and improve power efficiency in socs used in various applications, from smartphones to iot devices.
Q.6 In chiplets market, which region is expected to be the largest in next 5 years?
Answer: APAC is expected to witness highest growth over the forecast period due to growth of consumer electronics in China and India.
Q.7 Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 11 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the chiplets market by application (MPUs, SOC, GPUs, PLDs, and others ), end use industry (automotive electronics, consumer electronics, industrial automation, healthcare, military, IT & telecommunication, and others), and region (North America, Europe, Asia Pacific, and the Rest of the World)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. Which region will grow at a faster pace and why?
Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.5. What are the business risks and competitive threats in this market?
Q.6. What are the emerging trends in this market and the reasons behind them?
Q.7. What are some of the changing demands of customers in the market?
Q.8. What are the new developments in the market? Which companies are leading these developments?
Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
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