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Statistics

Chiplet Statistics By Application Insights, Revenue And Regional

Saisuman RevankarBy Saisuman RevankarFebruary 20, 2025No Comments10 Mins Read
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Chiplet Statistics

Introduction

Contents

  • Introduction
  • Editor’s Choice
  • What is a Chiplet?
  • General Chiplet Statistics
  • Chiplet Statistics By Application Insights
  • Chiplet Revenue Statistics
  • Chiplet Regional Statistics
  • Conclusion

Chiplet Statistics: The chiplets market is quickly growing and changing the semiconductor industry. Chiplets are small parts of an integrated circuit that can be put together to create a bigger system-on-chip (SoC). This allows manufacturers to be more flexible, save money, and improve performance. A report from the U.S. Department of Commerce predicts that the semiconductor industry will be worth around $1 trillion by 2030, with chiplet technology being a key driver of this growth.

The ability to combine chiplets from different suppliers speeds up innovation, helping companies stay ahead of rapid technological changes. We shall shed more light on Chiplet Statistics through this article.

Editor’s Choice

  • The Chiplets Market is expected to grow at an impressive rate of 5% per year over the next 10 years, reaching a value of USD 107.0 billion by 2033. This growth is expected to continue into 2024, with the market estimated to be worth USD 4.4 billion.
  • In 2023, CPU chiplets were the top market leader, holding over 41% of the total market share. Their ability to improve processing power while using less energy is the main reason for their dominance.
  • The Consumer Electronics sector was the largest part of the market in 2023, with over 26% of the market share. This is because technology in devices like smartphones, laptops, and wearables is advancing quickly, and chiplets offer flexibility and scalability.
  • The IT and Telecommunication Services sector also made up a large part of the market in 2023, holding more than 24% of the share. This is driven by the increasing need for powerful computing in data centers and more efficient network systems.
  • In 2023, the Asia-Pacific (APAC) region was the biggest player in the market, holding more than 40% of the global market share. This is due to APAC’s strong semiconductor manufacturing capabilities and rapid technological progress.
  • North America has a strong presence in the chiplets market, with about 8% of the global market share, while Europe holds about 20.9%, with major contributions from Germany, the UK, and France.
  • Latin America is a smaller market, with 7% of the global chiplets market share, but it is growing steadily.
  • The Middle East and Africa region is an emerging player, with a 1% market share in the chiplets industry.

What is a Chiplet?

A chiplet is a small part of a computer circuit that performs a specific task. It’s made to work with other chiplets in a single package, often placed on a base (called an interposer), to build something bigger, like a computer processor. Each chiplet only handles a part of the processor’s work. These chiplets can be combined flexibly, like putting together Lego pieces. This approach has several advantages over traditional system-on-chip (SoC) designs, which use a single large silicon piece:

  • Reusable IP (Intellectual Property): The same chiplet can be used in different products.
  • Heterogeneous integration: Chiplets can be made using different processes, materials, and technologies, each designed for a specific function.
  • Known good die: Chiplets can be tested before they are assembled, which improves the final product’s quality.

Chiplets are connected through standards like UCIe, a bunch of wires (BoW), AIB, OpenHBI, and OIF XSR. When chiplets come from different companies, they must be designed to work together properly.

The term “chiplet” was first introduced by Professor John Wawrzynek from the University of California, Berkeley, in 2006 as part of the RAMP Project (Research Accelerator for Multiple Processors), which the Department of Energy funded.

Some popular examples of chiplet-based processors include:

  • Intel Meteor Lake
  • AMD Ryzen (using Zen 2 and later designs)
  • NVIDIA H100

General Chiplet Statistics

  • According to SEMI, China, Taiwan, and Korea are expected to be the top three countries for semiconductor equipment spending in 2023 and 2024.
  • Taiwan is predicted to lead in 2023, while China is expected to take the top spot again in 2024. However, global spending on equipment is expected to drop in most regions in 2023, with a recovery expected in 2024.
  • The Information Technology & Innovation Foundation (ITIF) states that China is working to become self-sufficient in semiconductors.
  • They want to reduce reliance on other countries and build strong domestic companies. However, Chinese companies are about 1-2 years behind global leaders in designing chips for AI and mobile devices.
  • In areas like memory chips, manufacturing equipment, and assembly, testing, and packaging (ATP), China is further behind, although they are showing signs of innovation.
  • Between 2021 and 2022, ITIF found that 55% of all global semiconductor patent applications came from China, which is double the number from the U.S.
  • China’s investment in semiconductor research and development (R&D) is lower than in other regions, at 7.6%, compared to 18.8% in the U.S. and 15% in the EU.
  • China has made progress in producing older types of semiconductors (those with a size larger than 28 nm) and competes mainly on cost rather than innovation.
  • In June 2023, the U.S. and the Netherlands agreed to stop China from getting ASML’s advanced EUV lithography equipment, which is essential for making cutting-edge chips. These export restrictions, along with the complexity of the semiconductor industry, make it harder for China to create a complete domestic semiconductor ecosystem.
  • ITIF also points out that EUV technology, developed by ASML with an investment of about EUR 6 billion (USD 6.3 billion) over 17 years, remains a critical part of chipmaking.
  • Even though Chinese companies are speeding up their development of intellectual property (IP) and innovation, they still fall behind in many areas of chip design and manufacturing.

Chiplet Statistics By Application Insights

download

(Source: fortunebusinessinsights.com)

  • In 2023, the enterprise electronics segment was the largest part of the chiplets market.
  • This is because chiplets are essential for improving the performance and efficiency of gadgets like smartphones, tablets, laptops, and gaming consoles.
  • These devices benefit greatly from chipsets’ advanced design, which allows them to include high-performance components without the high cost or complexity of traditional single-chip designs.
  • The automotive sector is expected to grow the fastest during the forecast period.
  • As cars become more electric and depend more on technology, chiplets will play a key role in meeting consumer demands for better safety, connectivity, and efficiency.
  • These needs are pushing the market for automotive chiplets to expand rapidly.
  • This breakdown shows how chiplets are important in different industries and how they are helping improve technology in various areas.

Chiplet Revenue Statistics

chiplets-market-revenue-worldwide-from-2023-to-2033

(Reference: statista.com)

Year In billion U.S dollars

2023

3.1
2024

4.4

2025

6.3
2026

9

2027

12.8
2028

18.2

2029

26
2030

37

2031

52.7
2032

75.1

2033

107

  • Chiplets are small, separate parts of semiconductors that can be combined to create a bigger and more complex chip.
  • This method lets designers mix different micro-architectures, leading to flexible and high-performance products.
  • The chiplets market is growing because of the increasing use of advanced packaging techniques.
  • The global chiplets market is expected to reach $4.4 billion by 2024 as chiplet technologies spread worldwide.
  • Looking forward, the market is expected to keep growing and could be worth around $100 billion by 2033.
  • This growth is driven by the development of more powerful, affordable, and customizable semiconductor solutions that meet the changing needs of various industries.

Chiplet Regional Statistics

Chiplet_Market

(Source: marketresearchfuture.com)

#1. Asia-Pacific region

  • In 2023, the Asia-Pacific (APAC) region became a major force in the global chiplets market, holding more than 40% of the market share and earning around $1.2 billion.
  • This strong position highlights how important APAC is in the semiconductor and microelectronics industries, thanks to its advanced manufacturing and large investments in research and development.
  • The region’s focus on improving semiconductor technologies, along with strong support from governments and partnerships between big tech companies, has been key to the growth and innovation in the chiplets market.
  • APAC’s leading role shows that it will continue to play a major part in future advancements in chiplet technology.

Here are some key reasons why APAC is leading the chiplets market in 2023:

  • Top Semiconductor Manufacturing: APAC is home to some of the best semiconductor production centers, especially in Taiwan, South Korea, and China. These countries have the latest technology and invest heavily in semiconductor manufacturing, helping to boost the chiplets market.
  • Growing Demand for High-Performance Computing: There is a rising need for high-performance computing in industries like AI, data centers, and consumer electronics across APAC. Chiplets are popular in these fields because they improve computing power and efficiency, which is essential for handling complex tasks and large amounts of data.
  • Cost Savings: The chiplets approach is cost-effective, which is especially important in a region that focuses on managing costs. Chiplets allow different components to be made separately, which helps lower overall manufacturing costs—a big advantage in price-sensitive markets.
  • Flexible Supply Chain: APAC benefits from using modular chiplet designs, giving companies more flexibility in sourcing components from different suppliers. This reduces the risk of relying on a single source and makes the supply chain more resilient.
  • Fast Technological Growth: The region is known for quickly adopting new technologies, which helps drive the use of chiplet designs. This rapid pace of innovation supports the complex needs of modern electronics, reinforcing APAC’s leadership in the chiplets market.

Chiplets-Market

(Source: market.us)

#2. North America

  • North America is the leader in the chiplets market, holding 5% of the share.
  • This region benefits from having many major semiconductor companies and a strong support system for technological innovation.
  • The demand for chiplets in North America is mainly driven by the need for high-performance computing in industries like cloud computing and advanced electronics.

#3. Europe

  • In Europe, the market share is lower at 50.3%. The focus on automotive and industrial uses helps the chiplets market grow.
  • Europe’s efforts to cut down on electronic waste and improve energy efficiency also support the development of chiplet technologies, making it an important region for eco-friendly electronic designs.

#4. Latin America

  • Latin America has a 48.6% market share and is becoming more competitive.
  • The region is investing a lot in building up its telecommunications networks, which need advanced semiconductor solutions like chiplets.
  • As Latin America continues to improve its digital infrastructure, the demand for chiplets is expected to grow.

#5. Asia-Pacific

  • Asia-Pacific (APAC) holds the largest market share at 54.6%.
  • This is because the region has a huge manufacturing base and is seeing rapid growth in consumer electronics and the automotive industry.
  • Countries like China, South Korea, and Taiwan play a big role in the chiplets market, leading innovation with large investments in semiconductor research and development.

#6. The Middle East & Africa

  • The Middle East & Africa holds 39.8% of the market, showing great potential for future growth.
  • The region is still in the early stages of adopting chiplet technology and is focused on building its tech infrastructure and digital services.
  • As these markets grow, the use of chiplets is expected to increase, helping local development.
  • Each region’s growth in the chiplets market reflects its own technological strengths and industry needs, which will shape the future of semiconductor technology.

Conclusion

In summary, the chiplets market is growing rapidly in different regions, fueled by technological progress and the increasing need for high-performance, affordable semiconductor solutions. North America, Europe, Latin America, Asia-Pacific, and the Middle East & Africa all play important roles in the market’s growth, each driven by factors like innovation, industry demand, and regional investments.

As technology continues to improve and chiplets become more widely used in industries like automotive, telecommunications, and electronics, the market is expected to keep expanding in the next few years, making it a key area for future growth in the global tech industry. We have shed enough light on Chiplet Statistics through this article.

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Saisuman Revankar
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Saisuman is a talented content writer with a keen interest in mobile tech, new gadgets, law, and science. She writes articles for websites and newsletters, conducting thorough research for medical professionals. Fluent in five languages, her love for reading and languages led her to a writing career. With a Master’s in Business Administration focusing on Human Resources, Saisuman has worked in HR and with a French international company. In her free time, she enjoys traveling and singing classical songs. At Coolest Gadgets, Saisuman reviews gadgets and analyzes their statistics, making complex information easy for readers to understand.

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