The chiplet market is anticipated to grow at a CAGR of 6.4% during the forecast period (2025-2035). The market is segmented by type (Central Processing Unit (CPU) chiplets, Graphics Processing Unit (GPU) chiplets, Field-Programmable Gate Array (FPGA) chiplets, Application-Specific Integrated Circuit (ASIC) chiplets, and memory chiplets) by end-user industry (automotive electronics, consumer electronics, industrial automation, healthcare, military, and IT & telecommunication), and geography (North America, Europe, Asia-Pacific, and the Rest of the World).
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Market Dynamics
- The automotive segment is anticipated to hold the largest market share during the forecast period. The growth is primarily owing to the increasing demand for software-enabled use cases such as Advanced Driver Assistance Systems (ADAS), and infotainment systems. Additionally, growing technological advancements in automobiles and the growth of the global electric vehicles (EV) market are driving demand for chiplets.
- The demand for chiplets is expected to grow in the IT and telecommunications segment. It is attributed to the rising demand for higher processing power and performance. Additionally, growing use cases and R&D activities in the chiplet industry are driving demand for chiplet.
- North America market is expected to grow significantly during the forecast period owing to the significant presence of semiconductor and end-user industries such as Intel Corp., Nvidia, and Texas Instruments among others. The players are focusing on adopting strategic initiatives and product launches. In addition, the regional government is increasingly inclined towards R&D activities in the semiconductor industry is further propelling the market growth.
- The chiplet market is expected to grow significantly in Asia Pacific. The region holds the highest share in production and sales of end-user industries such as automobiles, consumer electronics, IT, and telecommunications among others. Additionally, growing support for the chiplet and the semiconductor industry from regional governments is contributing to the market growth.
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The major companies serving the global chiplet market are Ampere Computing, Inc., Taiwan Semiconductor Manufacturing Co., Ltd., Intel Corp., and Marvell Technology, Inc. among others. The market players are contributing significantly to the market growth by adopting various by applying strategies such as collaborations, mergers, and acquisitions to stay competitive in the market, significantly contributing to the market growth.
Recent Developments
- In November 2024, Cadence developed an Arm-based system chiplet. It integrates processors, system IP, and memory IP within a single package, interconnected through the Universal Chiplet Interconnect Express™(UCIe™) standard interface. It is designed with Arm’s Chiplet System Architecture (CSA), and ensures interoperability and speeds time-to-market for chiplets. It manages the resources and overall multi-chiplet SoC. It features a system processor, safety management processor, Cadence controllers, and Cadence PHY IP for LPDDR5 and UCIe. It accommodates up to 64GB/s peak bandwidth for UCIe IP and 32GB/s peak memory bandwidth for LPDDR5 IP.
- In November 2024, LG Electronics and Tenstorrent entered into a partnership, to develop the initial chiplet project to develop System-on-Chips (SoCs) and systems for the global market. LG aims to enhance its design and development capabilities for AI chips tailored to its products and services, for AI-powered home appliances and smart home solutions, expanding its capabilities in future mobility and commercial applications.
- In December 2022, Loongson Technology announced a next-gen 32-Core 3D5000 CPUs that utilize a chiplet architecture and launched it in 2023. The total cache size of the 3C5000 is 64MB and has four 64-bit DDR4 memory interfaces with 3200 Mhz bandwidth and support for ECC. It offers 128 cores and consumes power levels between 130 to 170 watts and bandwidths between 2.00 to 2.20 GHz, respectively. It provides eight memory lanes with up to four-way multiprocessor configurations on its single design.
- In November 2022, Fraunhofer IIS/EAS announced its first implementation of the Bunch of Wires (BoW) standard-based interface IP from the Open Compute Project (OCP) on Samsung’s 5 nm technology. The launch highlighted the rapid introduction of chiplet technology, enabling electronic products with smaller production runs. The chiplet interface is economically feasible for high-volume applications.
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