Chiplet Market Growth Forecast to Reach $411 Billion by 2035

Chiplet technology is revolutionizing the semiconductor industry by offering alternative advantages compared with traditional monolithic designs. The brand new IDTechEx report on the topic, “Chiplet Technology 2025-2035: Technology, Opportunities, Applications“, highlights the transformative potential of chiplets. It predicts the market will reach US$411 billion by 2035, driven by high-performance computing demands across sectors such as data centers and AI.

Chiplets break down complex chips into smaller, specialized components, providing enhanced flexibility and customization, leading to faster time to market and shorter upgrade cycles. This modular approach allows manufacturers to integrate components tailored to specific tasks, resulting in versatile and efficient chips. Chiplet technology overcomes constraints like reticle size and the memory wall, which traditionally hinder performance and scalability. It also reduces manufacturing costs, improves yield rates, and enhances supply chain resilience by enabling sourcing from multiple suppliers.

Due to these advantages, leading companies like AMD and Intel have adopted chiplet designs in products such as AMD’s EPYC processors and Intel’s Ponte Vecchio GPUs. This widespread adoption underscores the growing importance of chiplets in high-performance computing applications.

With the chiplet market projected to experience substantial growth, the new IDTechEx report analyses key sectors where chiplet technology plays a crucial role:

  • Server: High-performance computing demands drive significant adoption.
  • Telecommunications, 5G, IoT: Chiplets enable efficient network solutions.
  • PCs: Enhanced performance and customization are key drivers.
  • Mobile Phones: Chiplets contribute to advanced functionality and efficiency.
  • Automotive Industry: The integration of diverse functionalities supports automotive innovations.
  • Others: Various applications benefit from the modularity of chiplets.

Market segmentation by application predicted in 2030.

IDTechEx’s 10-year forecast considers the entire value of devices utilizing chiplet designs—such as CPUs, GPUs, HBMs, FPGAs, AI-ASICs, cache memory, flash storage, I/O controllers, and optical I/O components—reflecting the integral role of chiplets in enhancing performance and functionality. Application-based segmentation analyzes chiplet adoption across various use cases, identifying specific market trends and growth opportunities within each sector. Building on current shipment and value data from existing suppliers, the forecast estimates future demand by considering technological advancements and emerging industry needs over the next decade. This comprehensive analysis positions chiplet technology as a cornerstone for future semiconductor innovations, driving growth and fostering collaboration across the industry.

The IDTechEx report “Chiplet Technology 2025-2035: Technology, Opportunities, Applications” also provides a detailed analysis of the chiplet technology landscape, starting with the basics of chiplet technology. It explores the drivers and benefits that make chiplet design attractive while also identifying the challenges and hurdles in its adoption and implementation. It provides insights into technology and manufacturing processes, including design methodologies and packaging techniques. The discussion extends to inter-chiplet communication, focusing on interconnects and standards necessary for seamless integration. Thermal management strategies are outlined to address heat management in densely packed systems. It also delves into the supply chain, highlighting key players and their roles in advancing chiplet technology.

To find out more about this brand new IDTechEx report, including downloadable sample pages, please visit www.IDTechEx.com/Chiplet.

For the full portfolio of semiconductors, computing, and AI market research available from IDTechEx, please see www.IDTechEx.com/Research/Semiconductors.

Dr Xiaoxi He
Research Director, IDTechEx

Upcoming free-to-attend webinar: Chiplet Technology: Revolutionizing Semiconductor Design and Integration

Dr Xiaoxi He, Research Director at IDTechEx and author of this article, will be presenting a free-to-attend webinar on the topic on Thursday 14 November 2024Chiplet Technology: Revolutionizing Semiconductor Design and Integration.

This webinar explores the innovative world of chiplet technology, examining its role in transforming semiconductor design and integration. It provides a comparison with traditional System-on-Chip (SoC) and System-in-Package (SiP) technologies, introduces the concept of heterogeneous integration, and discusses the drivers, advantages, challenges, and future insights related to chiplets.

Key points covered in the presentation:

  • Definition and significance of chiplets in modern semiconductor design
  • Comparison with SoC and SiP technologies
  • Introduction to heterogeneous integration
  • Drivers and advantages of adopting chiplet technology
  • Brief overview of challenges in implementing chiplets
  • Insights into the future potential and impact of chiplet technology

We will be holding exactly the same webinar three times in one day. Please click here to register for the session most convenient for you.

If you are unable to make the date, please register anyway to receive the links to the on-demand recording (available for a limited time) and webinar slides as soon as they are available.

About IDTechEx

IDTechEx provides trusted independent research on emerging technologies and their markets. Since 1999, we have been helping our clients to understand new technologies, their supply chains, market requirements, opportunities and forecasts. For more information, contact [email protected] or visit www.IDTechEx.com.

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