Chiplets Market Is Expected To Reach A Revenue Of USD 384.3 Bn By 2033, At 48.1% CAGR: Dimension Market Research

New York, Jan. 30, 2025 (GLOBE NEWSWIRE) -- Overview:

The Chiplets Market size is expected to reach USD 11.2 billion by 2024 and is further anticipated to reach USD 384.3 billion by 2033 according to Dimension Market Research. The market is anticipated to register a CAGR of 48.1% from 2024 to 2033.

Chiplets are small, modular integrated circuits (ICs) designed to work together as building blocks to develop a bigger, and more complex processor. Instead of manufacturing a single, large monolithic chip, chiplets are made individually and connected on a substrate or via advanced packaging technologies, which simplifies production, reduces costs, and allows companies to mix and match chiplets for special needs, like integrating different processing cores, memory units, or accelerators into one system.

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The US Overview

The Chiplets Market in the US is projected to reach USD 2.7 billion in 2024 at a compound annual growth rate of 45.0% over its forecast period.

The U.S. chiplet market is driven by leadership in semiconductor technologies, strong R&D, and government help for domestic manufacturing. Also increase in demand in AI, cloud computing, and 5G boosts adoption. However, high production complexity and cost, along with standardization challenges, may slow progress.

Important Insights

• The Chiplets Market is expected to grow by USD 368.2 billion by 2033 from 2025 with a CAGR of 48.1%.
• The CPU as a processor segment is anticipated to get the majority share of the Chiplets Market in 2024.
• In terms of packaging technology 2.5D/3D are expected to be leading the market in 2024.
• The consumer electronic segment is anticipated to get the largest revenue share in 2024 in the Chiplets Market.
• Asia Pacific is predicted to have a 39.8% share of revenue share in the Global Chiplets in 2024.

Global Chiplets Market: Trends

• Modular Chip Design: Higher focus on modular chiplets for better performance and affordability, allowing customization for specific applications.
• AI and Machine Learning Integration: The increase in the adoption of chiplets in AI and machine learning applications to improve computational power and scalability.
• Industry Collaboration: Major partnerships between semiconductor manufacturers, research institutions, and tech companies to drive standardization and innovation.
• 3D Packaging Advancements: The growing use of 3D packaging technologies for enhanced chiplet integration provides higher performance and reduces power consumption.

Chiplets Market: Competitive Landscape

The chiplet market is moderately fragmented, with companies investing in advanced packaging technologies like 2.5D and 3D integration to improve performance and efficiency.

Also, collaboration between manufacturers, research institutions, and standardization bodies highly promote interoperability. As, intense competition drives the development of customized solutions for AI, 5G, and IoT, advancing the chiplet ecosystem.

Some of the major players in the market include IBM Corp, Intel Corp, NVIDIA Corp, Micron Technology, Samsung Electronics, and more.

Some of the prominent market players:

• IBM Corp
• Intel Corp
• NVIDIA Corp
• Micron Technology
• Samsung Electronics
• TSMC
• Broadcom Inc
• Qualcomm Inc
• ON Semiconductor
• AMD
• Other Key Players

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Chiplets Market Scope

Segment Analysis:

The consumer electronics sector is set to dominate the global chiplet market, driven by the demand for high-performance, energy-efficient devices like smartphones, tablets, laptops, and gaming consoles.

Chiplets’ modular design improves performance, reduces production costs, and allows for customized solutions to meet specific device needs, which supports innovation, compact designs, and efficiency, key factors in consumer electronics.

The growth of smart home devices and wearables further boosts chiplet demand, solidifying their role in IoT and ensuring continued market growth.

Chiplets Market Segmentation

By Processor

• 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) Coprocessor

 By Packaging Technology

• System-in-Package (SiP)
• Flip Chip Chip Scale Package (FCCSP)
• Flip Chip Ball Grid Array (FCBGA)
• 5D/3D
• Wafer-Level Chip Scale Package (WLCSP)
• Fan-Out (FO)

By Application

• Consumer Electronics
• Data Centers
• Automotive
• Industrial
• Healthcare
• Other Applications

By End User                              

• IT and Telecommunication Services
• Automotive
• Healthcare and Life Sciences
• Consumer Electronics
• Other End-Users

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Global Chiplets Market: Driver

• Advanced Packaging Technologies: The adoption of 2.5D and 3D integration enhances performance, scalability, and energy efficiency, driving the need for chiplets.
• AI, 5G, and IoT Applications: The rise in the demand for high-performance, customizable solutions in emerging technologies fuels chiplet adoption.
• Government Support: Initiatives to enhance domestic semiconductor manufacturing and R&D boost market growth.
• Cost Efficiency and Customization: Chiplets provides an affordable, modular solution, allowing tailored designs for various industries, enhancing performance while lowering production complexity.

Global Chiplets Market: Restraints

• High Production Costs: The complex manufacturing process and the demand for advanced packaging technologies increase the cost of chiplet production.
• Technical Challenges: Integration and interoperability between distinct chiplets can be difficult, impacting widespread adoption.
• Standardization Issues: Lack of industry-wide standards for chiplet design and packaging slows the development of a unified ecosystem.
• Supply Chain Constraints: Global semiconductor supply chain disruptions can impact the availability and production of chiplets.

Global Chiplets Market: Opportunities

• Emerging Technologies: The rise in demand for AI, 5G, and IoT applications creates opportunities for customized chiplet solutions.
• Government Initiatives: Higher investments and support for domestic semiconductor manufacturing can replicate chiplet market growth.
• Sustainability Focus: Chiplets provide energy-efficient solutions, aligning with global trends toward sustainable electronics and reducing electronic waste.
• Advanced Semiconductor Innovation: Development in packaging and integration technologies providing opportunities for further performance improvements and market expansion.

Regional Analysis

The Asia-Pacific region is set to lead the global chiplet market with a 39.8% share in 2024, driven by advanced manufacturing, R&D investments, and strong government support. APAC's focus on semiconductor technology and collaborations with tech giants fuel its market dominance.

North America will also hold a major share, driven by the need for high-performance computing in cloud and electronics. Also, Europe, with a slightly smaller share, contributes to chiplet growth through automotive and industrial applications, emphasizing energy efficiency and sustainable electronic design.

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By Region

North America

• The U.S.
• Canada

Europe

• Germany
• The U.K.
• France
• Italy
• Russia
• Spain
• Benelux
• Nordic
• Rest of Europe

Asia-Pacific

• China
• Japan
• South Korea
• India
• ANZ
• ASEAN
• Rest of Asia-Pacific

Latin America

• Brazil
• Mexico
• Argentina
• Colombia
• Rest of Latin America

Middle East & Africa

• Saudi Arabia
• UAE
• South Africa
• Israel
• Egypt
• Rest of MEA

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Recent Developments in the Chiplets Market

• Novemebr 2024: Cadence introduced the development and successful tape-out of its first Arm-based system chiplet, which is a major development in chiplet technology, showcasing Cadence's commitment to driving industry-leading solutions through its chiplet architecture and framework.
• November 2024: SEMIFIVE made a collaboration with Synopsys to create an advance high-performance computing (HPC) platform integrating SEMIFIVE's CPU chiplet with a third-party I/O chiplet into a unified package.
• October 2024: Faraday Technology Corporation & Kiwimoore announced that their jointly developed 2.5D packaging platform has successfully entered the mass production stage.
• June 2024: Rapidus Corporation along IBM launched a partnership focused on establishing mass-production technologies for chiplet packages, which will allow Rapidus to receive packaging technology from IBM for high-performance semiconductors, and the two companies will collaborate, aiming to further innovate in this space.

About Dimension Market Research (DMR):

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