Chiplets Market Definition And Segments
Chiplets refer to individual semiconductor components or functional blocks that are manufactured separately and then assembled to create a larger integrated circuit (IC) or system. They are used in various applications across the semiconductor industry for designing and manufacturing integrated circuits.
The main processors of chiplets market are field programmable gate array (FPGA), graphics processing unit (GPU), central processing unit (CPU), application processing unit (APU), and artificial intelligence application-specific integrated circuit (AI ASIC) coprocessor. The Field Programmable Gate Array (FPGA) is a specific type of integrated circuit that may be programmed or reprogrammed after it is manufactured. The various packaging technologies are system-in-package (SiP), flip chip scale package (FCSP), flip chip ball grid array (FCBGA), 2.5d/3d, wafer-level chip scale package (WLCSP), and fan-out (FO) and used by various end-users such as enterprise electronics, consumer electronics, industrial automation, healthcare, automotive, military and aerospace, and others.
The chiplets market covered in this report is segmented –
1) 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
2) By Packaging Technology: System-in-Package (SiP), Flip Chip Scale Package (FCSP), Flip Chip Ball Grid Array (FCBGA), 2.5D/3D, Wafer-Level Chip Scale Package (WLCSP), Fan-Out (FO)
3) By End-User: Enterprise Electronics, Consumer Electronics, Industrial Automation, Healthcare, Automotive, Military and Aerospace, Others End-Users
The chiplets market size has grown exponentially in recent years. It will grow from $4.44 billion in 2023 to $7.8 billion in 2024 at a compound annual growth rate (CAGR) of 75.8%. The growth in the historic period can be attributed to semiconductor industry growth, healthcare sector expansion, electronics manufacturing, stringent regulatory standards, globalization of supply chains.
The chiplets market size is expected to see exponential growth in the next few years. It will grow to $64.4 billion in 2028 at a compound annual growth rate (CAGR) of 69.5%. The growth in the forecast period can be attributed to growing biopharmaceutical industry, increasing demand in the food industry, advanced manufacturing techniques, global health concerns, stricter environmental regulations. Major trends in the forecast period include increased research and development activities, rising nanotechnology applications, technological advancements, technological advancements in cleanroom equipment, growing biotechnology and life sciences research.
Explosive Growth In Electronic Gadgets Fuels Surge In Chiplets Market Demand
Rising demand for electronic gadgets is expected to propel the chiplets market going forward. Electronic gadgets refer to devices or tools that utilize electronic components and technology to perform specific functions. Chiplets provide a more adaptable, economical, and scalable method of creating and producing electronic gadgets, meeting the growing complexity and needs of contemporary technologies. For instance, in May 2023, according to the Japan Electronics and Information Technology Industries Association, a Japan-based trade association, consumer electronics production reached $2,178,430 million (¥32,099 million) in May 2023, compared to $1,714,724 million (¥25,268 million) in May 2022. Furthermore, in February 2023, according to Uswitch Limited, a UK-based financial conduct authority, beginning in 2022, there were 71.8 million mobile connections in the UK, a 3.8% (or around 2.6 million) increase over 2021. The UK population is expected to grow to 68.3 million by 2025, of which 95% (or around 65 million individuals) own a smartphone. Therefore, the rising demand for electronic gadgets rate is driving the chiplets market.
Major companies operating in the chiplets market report are Samsung Electronics, Taiwan Semiconductor Manufacturing Company, Intel Corporation, IBM, Qualcomm Technologies Inc., NVIDIA Corporation, Micron Technology Inc., Advanced Micro Devices Inc., ASE Technology Holding Co. Ltd., MediaTek Inc., NXP Semiconductors N.V., United Microelectronics Corporation, GlobalFoundries, Synopsys Inc., Marvell Technology Inc., Cadence Design Systems Inc., Xilinx Inc., ALPHAWAVE SEMI, Tenstorrent, Ayar Labs Inc., Kandou Bus SA, SiFive Inc., Achronix Semiconductor Corporation, Ranovus, Netronome, X-Celeprint, NHanced Semiconductors, Rain Neuromorphics, Eliyan, Chipuller
Leading Chiplets Market Players Drive Innovation With 5G Technology Integration
Major companies operating in the chiplets market are focused on developing new technological solutions such as 5G technology to strengthen their position. For instance, in 2023, Intel Corporation, a US-based technology company, launched the 4th Gen Intel Xeon Scalable processors with Intel vRAN Boost, Intel announced the intel infrastructure power manager for 5G core reference software, which provides a 30% average run-time3 CPU power savings. Intel’s hardware and software solutions enable 5G core networks to work harder and smarter at achieving a balance between critical business and customer requirements for power efficiency, performance, and latency. This technology is expected to help 5G core networks run on software, delivering cloud-native agility.
AMD's Strategic Acquisition Of Xilinx Redefines High-Performance Computing Landscape
In February 2022, AMD's (Advanced Micro Devices, Inc.), a US-based semiconductor company, acquired Xilinx for approximately $135 billion. Through this acquisition, AMD (Advanced Micro Devices, Inc.) creates the industry's high-performance and adaptive computing leader, combining complementary products, customers, markets, and technologies to expand AMD's addressable market and strengthen its position in the high-performance computing industry. Xilinx is a US-based semiconductor manufacturing company that operates in chiplets market.
Asia-Pacific was the largest region in the chiplets market in 2023. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the chiplets market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the chiplets market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain
The chiplets market includes revenues earned by entities by providing services such as chiplet integration services, chiplet design services, and testing and verification services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included. The chiplets market consists of sales of security chiplets, sensor chiplets, quantum computing chiplets, and AI accelerator chiplets. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
The chiplets market research report is one of a series of new reports from The Business Research Company that provides chiplets market statistics, including the chiplets industry global market size, regional shares, competitors with a chiplets market share, detailed chiplets market segments, market trends and opportunities, and any further data you may need to thrive in the chiplets industry. This chiplets market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.