Press release
Chiplet Market Expansion Fueled by AI ASIC Coprocessors and 2.5D/3D Packaging Technology to Achieve 71.3 Percent CAGR
InsightAce Analytic Pvt. Ltd. announces the release of a market assessment report on the "Global Chiplet Market- (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), 2.5D/3D, Wafer-Level Chip Scale Package (WLCSP), Fan-Out (FO)), By End Users (Enterprise Electronics, Consumer Electronics, Healthcare, Automotive, Industrial Automation, Military & Aerospace, Others)), Trends, Industry Competition Analysis, Revenue and Forecast To 2031."According to the latest research by InsightAce Analytic, the Global Chiplet Market is valued at US$ 5.03 Bn in 2022, and it is expected to reach US$ 633.38 Bn by 2031, with a CAGR of 71.3% during the forecast period of 2023-2031.
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The chiplet market represents a rapidly evolving segment of the semiconductor industry, driven by the need for higher performance and greater specialization in semiconductor solutions. Chiplet technology, also referred to as chip-in-chip architecture, introduces a novel approach to semiconductor design and manufacturing. This methodology involves decomposing a traditional monolithic semiconductor chip into smaller, discrete components-known as chiplets-that can be independently designed, fabricated, and tested.
The market for chiplets has been experiencing significant expansion, fueled by increasing demand from key applications such as data centers, artificial intelligence (AI), high-performance computing (HPC), and 5G infrastructure. As the semiconductor industry continues to explore innovative solutions to overcome the limitations of conventional monolithic chip designs, the adoption of chiplet technology is expected to accelerate. Additionally, as the technology matures, new applications and use cases are likely to emerge, further driving market growth.
Furthermore, the chiplet market is poised for substantial expansion, supported by advancements in semiconductor manufacturing processes, increasing consumer demand for compact and energy-efficient electronic devices, and the widespread adoption of 5G technology. The growing emphasis on AI and machine learning applications is also contributing to market growth. Additionally, the shift towards heterogeneous integration-where various types of chiplets are combined to create comprehensive system-on-chip (SoC) solutions-is expected to further propel market demand.
List of Prominent Players in the Chiplet Market:
• Intel Corporation (US),
• Advanced Micro Devices, Inc. (US),
• Apple Inc. (US),
• IBM (US),
• Marvell (US),
• MediaTek Inc. (Taiwan),
• NVIDIA Corporation (us),
• Achronix Semiconductor Corporation (US),
• Ranovus (Canada),
• ASE Technology Holding Co., Ltd. (Taiwan).
• Apart from this,
• Netronome (US),
• Cadence Design Systems, Inc. (US),
• Synopsys, Inc. (US),
• SiFive, Inc. (US),
• ALPHAWAVE SEMI (UK),
• Eliyan (US),
• Ayar Labs, Inc. (US),
• Tachyum (US),
• X-Celeprint (Ireland),
• Kandou Bus SA (Switzerland),
• NHanced Semiconductors (US),
• Tenstorrent (Canada),
• Chipuller (China)
• Rain Neuromorphics (US).
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Market Dynamics:
Market Drivers:
The adoption of chiplet technology is being driven by its ability to enhance semiconductor performance through the integration of specialized chiplets tailored for specific functions. This results in superior system efficiency, making chiplets highly suitable for applications such as data centers, high-performance computing (HPC), and artificial intelligence (AI). The versatility of chiplet technology extends across multiple industries, including 5G infrastructure, automotive electronics, and consumer electronics, which has led to increasing investments and interest in its development.
Additionally, advancements in semiconductor packaging technologies-such as silicon interposers and 3D stacking-have facilitated seamless chiplet integration. These innovations enable high-bandwidth interconnections essential for chiplet-based systems, further propelling market growth.
Market Challenges:
Despite its potential, the chiplet ecosystem faces challenges related to interoperability due to the lack of standardized interfaces and protocols. The absence of industry-wide standards can hinder adoption and complicate system integration. Furthermore, the ecosystem remains in its nascent stage, with limited participation from semiconductor manufacturers and foundries, restricting the availability and variety of chiplets for system designers.
Security concerns also pose a challenge, as the modular nature of chiplet-based systems introduces potential vulnerabilities. The separation of functions within chiplet architectures can create new attack vectors, making it crucial to develop robust security measures to protect data and system operations.
Regional Insights:
The Asia-Pacific region is anticipated to capture a substantial market share, driven by the rapid expansion of AI and data centers, which necessitate high-performance, energy-efficient computing solutions. The region hosts numerous fabless semiconductor companies that specialize in chip design while outsourcing manufacturing, many of which are leveraging chiplet technology to develop innovative products.
Meanwhile, North America also holds a significant market share, particularly due to the increasing demand for energy-efficient, high-performance processors in data centers. Cloud computing and data analytics applications have accelerated the adoption of chiplet-based server processors in the region. Additionally, North America's strong presence in HPC, supported by leading research institutions and enterprises, has fueled the development of high-performance CPUs and accelerators utilizing chiplet architectures.
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Recent Developments
• In Sept 2023, At Innovation 2023, Intel unveiled Pike Creek, the inaugural chiplet-based test chip connected to UCIe. This event served as the public debut of operational UCIe-enabled silicon. In conjunction with a Synopsys UCIe IP chip manufactured on the state-of-the-art TSMC N3E node, the test chip displayed an Intel UCIe IP chiplet produced on its own Intel 3 process node. Two chiplets exchanged information using Intel's EMIB interface.
• In May 2023, MediaTek and NVIDIA agreed to work together to provide a full range of AI cabin solutions for the next wave of software-defined vehicles. The partnership took the best parts of each company's automobile offerings and put them together to make the best solutions for modern connected cars.
Segmentation of Chiplet Market-
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)
• 2.5D/3D
• Wafer-Level Chip Scale Package (WLCSP)
• Fan-Out (FO)
By End Users
• Enterprise Electronics
• Consumer Electronics
• Healthcare
• Automotive
• Industrial Automation
• Military & Aerospace
• Others
By Region-
North America-
• The US
• Canada
• Mexico
Europe-
• Germany
• The UK
• France
• Italy
• Spain
• Rest of Europe
Asia-Pacific-
• China
• Japan
• India
• South Korea
• South East Asia
• Rest of Asia Pacific
Latin America-
• Brazil
• Argentina
• Rest of Latin America
Middle East & Africa-
• GCC Countries
• South Africa
• Rest of Middle East and Africa
About Us:
InsightAce Analytic is a market research and consulting firm that enables clients to make strategic decisions. Our qualitative and quantitative market intelligence solutions inform the need for market and competitive intelligence to expand businesses. We help clients gain competitive advantage by identifying untapped markets, exploring new and competing technologies, segmenting potential markets and repositioning products. Our expertise is in providing syndicated and custom market intelligence reports with an in-depth analysis with key market insights in a timely and cost-effective manner.
Contact us:
InsightAce Analytic Pvt. Ltd.
Visit: www.insightaceanalytic.com
Tel : +1 551 226 6109
Asia: +91 79 72967118
info@insightaceanalytic.com
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