Multi-chip Module (MCM) Market - 2026: Industry Trends, Growth Analysis, ENd-User and geography
Growth in consumer demand for smaller and lighter electronic goods which makes manufacturers to consider different production methods to optimize designs predominantly drives the growth of the multi-chip module market. As integrated circuits are installed on single platform they require less space, and hence are advantageous for smaller consumer electronics.
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Growth of IoT creates requirements for memory, which further drive the demand for the multi-chip module market. Multi-chip modules can be used in different industries such as consumer electronics, automotive, and others. Automotive segment is expected to be one of the fastest growing segments for multi-chip module market. In automotive segment, multi-chip modules are used in car radios and automotive control modules. Growth of connected cars market can be an opportunity for the growth of the multi-chip modules market.
Advantages such as lower ball count due to reduced area footprint and increase in performance and density drive the adoption of these modules in IoT applications such as active safety systems and automotive infotainment. Also, there is an increase in the demand for multi-chip modules in segments such as aerospace & defense systems, medical devices, and LED arrays. In the healthcare segment, multi-chip modules are used in professional medical equipment. They are used for either providing the lasing or pump another type of laser. These infrared wavelengths of multi-chip modules are used for hair removal, face lifting, skin rejuvenation, blood vessel removal, wrinkle reduction, pigment removal, and acne treatment.
However, technical challenges such as corrosion of the controlled collapse chip connections and retaining the integrity of the multi-chip module during the assembly processes are the two biggest restraints for the vendors. Also, cyclical nature of semiconductor industry hampers the growth of the market.
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Multi-chip modules are different based on complexity and design, and the requirements of end user. Some examples are pre-packaged ICs on a small printed circuit board, which are meant to replicate the package footprint of an existing chip package and another where a fully custom package integrates many chips on a substrate.
Growth of embedded devices is leading to the rapid evolution of multi-chip packaging. OEMs and semiconductor suppliers work toward developing advanced packaging technologies for better silicon integration. Assembly and packaging rapidly become important as it is one of the key differentiators in product development in the semiconductor industry. Various advantages of multi-chip module include reduced cost, reduced size and weight, hermeticity and less number of interconnections to improve performance. Also, multi-chip module would be a better option than system-on-chip (SoC) due to multi-chip module advantages such as cost and efficiency.
In May 2018, Intel launched a multi-chip module in which a Xeon Skylake processor would be integrated with a field-programmable gate array (FPGA). Fujitsu plans to deliver a system based on this new chipset. The data center is expected to be the largest market for the products growth. Furthermore, Intel has collaborated with Advanced Micro Devices (AMD) to integrate a semi-custom GPU with a multi-chip processor package. Intels multi-chip package will integrate a GPU from AMD, bandwidth memory and compute silicon on a single multi-chip module (MCM), which will enable sleek designs. According to Intel, this integrated design will reduce the silicon footprint by almost 50%.
The Asia-Pacific market for multi-chip module is expected to grow at a high rate in the near future due to the increase in usage of the product in several industries such as consumer electronics, healthcare, and automotive sectors.
The global multi-chip modules market is segmented based on type and end-user. The types of multi-chip modules include NAND-based MCP, NOR-based MCP, eMCP, and uMCP. Based on end user, the market is sub-divided into consumer electronics, automotive, healthcare, aerospace & defense, and others. Further, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
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Some of the key players operating in the market include Intel, SK Hynix Inc., Texas Instruments, Infineon Technologies, STMicroelectronics, Samsung Electronics, Micron Technology, Cypress Semiconductor Corporation, Macronix International Co., Ltd., and Tektronix, Inc.
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