Global Chiplet Market Size, Share & Industry Trends Analysis Report By Processor, By End-use, By Packaging Technology, By Regional Outlook and Forecast, 2023 - 2030

Global Chiplet Market Size, Share & Industry Trends Analysis Report By Processor, By End-use, By Packaging Technology, By Regional Outlook and Forecast, 2023 - 2030

The Global Chiplet Market size is expected to reach $373.4 billion by 2030, rising at a market growth of 75.7% CAGR during the forecast period.

FPGAs are designed with configurable logic blocks (CLBs) and programmable interconnects. Users can program the FPGA to implement various digital logic functions, making them suitable for multiple applications. Therefore, the FPGA segment would generate 1/5th share of the market by 2030.FPGAs have a grid of interconnects that allow users to route signals between different logic blocks. This flexibility in routing enables the creation of complex digital designs. The logic blocks within an FPGA contain look-up tables (LUTs), flip-flops, multiplexers, and other digital logic elements. Users can program these elements to create custom logic circuits. FPGAs are versatile tools in digital design, enabling engineers and developers to create custom digital logic circuits without the need for costly and time-consuming ASIC development. They are pivotal in accelerating computational tasks and providing customized hardware solutions across various industries. Some of the factors impacting the market are adoption of high-performance computing (HPC) servers in various sectors, proliferation of data centers worldwide, and difficulties regarding heat management issues.

Chiplets allow HPC server manufacturers to integrate multiple high-performance processing units, such as CPUs and GPUs, into a single server. This substantially boosts computing power, enabling faster and more efficient execution of complex calculations and simulations. Chiplet-based architectures provide scalability, making expanding the processing capacity of HPC servers easier. They offer flexibility for upgrades and replacements, extending the server's lifespan and reducing the need for complete hardware replacements. The expansion of the market is closely linked to the increasing demand for high-performance computing across multiple sectors. Additionally, Chiplets provides a scalable and customizable solution for data center operators. By integrating chiplets, data centers can easily expand processing power, memory, and other capabilities to meet the increasing demands of their customers. Data centers are among the biggest consumers of electricity. Chiplets enable data centers to optimize power-hungry components like CPUs, GPUs, and accelerators, resulting in significant energy savings and reduced operational costs. As data center providers expand their services to meet the demands of emerging markets and regions, chiplet technology allows for more cost-effective scaling without excessive infrastructure investment. The global proliferation of data centers underscores the need for efficient, high-performance, and energy-saving solutions. Chiplet technology is increasingly becoming a fundamental component of modern data center infrastructure, enabling the scaling and customization required to support the ever-expanding digital landscape. Due to the above factors, market growth will be boosted significantly.

However, the high integration of chiplets in a small footprint can lead to concentrated heat sources. Efficient thermal dissipation is essential to prevent overheating and maintain the reliability of electronic systems. Chiplets often integrate different types of components with varying power and thermal characteristics. Managing the heat generated by these heterogeneous chiplets can be complex. Moreover, the densely interconnected configurations of chiplets exacerbate heat generation, compounding the problem. The diverse thermal properties of chiplet materials and the variability in their operating conditions further complicate the design of effective, standardized thermal management solutions. Due to heat management issues, market growth will be restricted in the coming years.

Processor Outlook

On the basis of processor, the market is segmented into field-programmable gate array (FPGA), graphics processing unit (GPU), central processing unit (CPU), application processing unit (APU), and AI-ASIC coprocessor. In 2022, the central processing unit (CPU) segment dominated the market with the maximum revenue share. As the demand for higher processing power, energy efficiency, and scalability surge, chiplet-based CPU designs are expected to gain popularity. Chiplets enable CPU manufacturers to optimize and modularize their designs, incorporating specialized chiplets for various functions like cores, cache, and memory controllers. This approach enhances overall CPU performance, efficiency, and adaptability, catering to diverse applications from consumer electronics to data centers.

Packaging Technology Outlook

Based on packaging technology, the market is fragmented into 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), and fan-out (FO). In 2022, the 2.5D/3D segment held the highest revenue share in the market. 2.5D/3D packaging has emerged as a transformative technology reshaping the chiplet landscape. By enabling vertical stacking of chiplets, 2.5D/3D packaging guarantees high performance, bandwidth, and miniaturization. 2.5D/3D is a packaging methodology that enables the inclusion of multiple ICs into the same package. In a 2.5D structure, two or more active semiconductor chips are set side-by-side on a silicon interposer to achieve high die-to-die interconnect density. In a 3D structure, active chips are integrated by die stacking for the shortest interconnect and smallest package footprint.

End-use Outlook

By end-use, the market is classified into enterprises electronics, consumer electronics, automotive, industrial automation, healthcare, military & aerospace, and others. The consumer electronics segment acquired a significant revenue share in the market in 2022. Chiplets contribute to thinner and lighter designs, which are desirable for ultrabooks and portable laptops. Chiplets can be used to improve video decoding, rendering, and upscaling, enabling higher-quality video content on smart TVs. Chiplets can improve power efficiency for longer battery life in devices like smartwatches and fitness trackers. Chiplets can integrate sensors for health monitoring and motion tracking. Chiplets offer consumer electronics manufacturers the flexibility to tailor their devices to meet specific performance and efficiency requirements.

Regional Outlook

Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. In 2022, the Asia Pacific region witnessed the largest revenue share in the market. The semiconductor industry in the region boasts a robust network of foundries, manufacturers, and technology innovators, driving significant advancements in chiplet-based designs. The region is also witnessing high demand for advanced electronic devices, particularly in populous countries such as China and India, making it a prime target for chiplet technology. Moreover, the rapid rollout of 5G networks across the region drives the need for efficient, high-performance computing, aligning seamlessly with chiplet capabilities in power efficiency and heterogeneous integration. Asia Pacific governments' substantial investments in research and development, notably in South Korea, Taiwan, and Singapore, underscore their commitment to fostering innovation.

The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Intel Corporation, Advanced Micro Devices, Inc., Apple Inc., IBM Corporation, Marvell Technology Group Ltd., MediaTek, Inc., NVIDIA Corporation, Achronix Semiconductor Corporation, ASE Technology Holding Co., Ltd. (ASE Group), and NXP Semiconductors N.V.

Scope of the Study

Market Segments covered in the Report:

By Processor

• Central Processing Unit (CPU)
• Graphics Processing Unit (GPU)
• Field-Programmable Gate Array (FPGA)
• AI-ASIC Coprocessor
• Application Processing Unit (APU)

By End-use

• Enterprise Electronics
• Consumer Electronics
• Industrial Automation
• Automotive
• Healthcare
• Military & Aerospace
• Others

By Packaging Technology

• 2.5D/3D
• System-in-Package (SiP)
• Wafer-Level Chip Scale Package (WLCSP)
• Flip Chip Chip Scale Package (FCCSP)
• Flip Chip Ball Grid Array (FCBGA)
• Fan-Out (FO)

By Geography

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Singapore
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA

Companies Profiled

• Intel Corporation
• Advanced Micro Devices, Inc.
• Apple Inc.
• IBM Corporation
• Marvell Technology Group Ltd.
• MediaTek, Inc.
• NVIDIA Corporation
• Achronix Semiconductor Corporation
• ASE Technology Holding Co., Ltd. (ASE Group)
• NXP Semiconductors N.V.

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