Chiplet Market

Chiplet Market Overview

The global Chiplet Market overview size was valued at USD 10.97 billion in 2024 and is predicted to reach USD 243.47 billion by 2030, with a CAGR of 68.8% from 2025-2030.  

The factors such as rise in number of PC enthusiasts, growing inclination towards autonomous vehicles and rise in number of 5G technology users drives the market growth. 

However, the complexity involved in the integration of chiplet into advanced electronic gadgets inflates the price of those gadgets that restrains the market growth. On the contrary, use of this modern semiconductor in smartphones creates future opportunity as integration of this into phones increases the power and longevity of the phones. 

Moreover, the top players namely Intel, NVIDIA and others are taking initiatives involving product launch and collaborations in order to enhance their market position and expand product offerings. These initiatives are expected to drive innovations and adoption in the market, creating a secure and efficient digital ecosystem. 

Advancements in this silicon-based chip are enabling advanced systems to be integrated in 5G compatible appliances, and as the market matures, demand for this advanced form of microchip is expected to grow steadily.

PC Gaming Boom Fuels the Chiplet Market Growth

A high number of PC gaming enthusiasts demand for these chiplet processors as it offers more scalable and efficient configurations that addresses gaming requirements in best possible ways, boosting the market growth. 

According to PwC's Global Entertainment and Media Outlook, 2022, the global gaming market is estimated to reach a valuation of USD 321 billion by 2026. Increased PC gaming interest is creating demand for a broader high-performance processor based on the semiconductor model, thereby increases the growth in the industry.

Autonomous Vehicle Demand Accelerates the Market Growth

The chiplet industry is further driven by rising demand for self-driving vehicles as autonomous systems demands high-performance, scalable and energy-efficient processors for real-time AI computing and sensor integration. According to International Energy Agency 2023, 14 million new electric cars were registered across the globe in 2023. This pushed the global number of electric cars on roads to 40 million by 2023. This in return, boosts the demand for this advanced semiconductor, as they are invincible part of electric and autonomous vehicles.

5G Demand Drives the Chiplet Market Demand

The demand for 5G connectivity is fueling the chiplet market growth as 5G infrastructure requires high-performance, scalable semiconductor for efficient data processing and network management. 

According to reports published by 5G Americas, 2024, the adoption of 5G connections boosted, adding 700 million new connections globally and reaching a total of 1.76 billion, by 2023. This demand for 5G connectivity drives the market growth that requires high-performance, scalable semiconductor for efficient data processing.

Technical Complexity in Integration Hinders the Chiplet Market Expansion

The complexity involved in the integration of chiplet into advanced gadgets hinders the growth of the market. It involves combining multiple smaller chips into a single package, ensuring it work seamlessly together that requires sophisticated design and advanced manufacturing processes. This complexity lead to higher cost and technical difficulties, slowing down the adoption. 

Use of Chiplets in Smartphone System Create Future Opportunity

The use of this advanced semiconductor chip in smartphones presents an opportunity for more customized and efficient processor, allowing manufacturers to tailor performance based on user needs, while also reducing costs and power consumption. This led to smarter, faster and longer-lasting devices. For instance, in November 2023 Samsung is reportedly considering the integration of 3D chiplet technology into its Exynos mobile application processors (Aps). It involves placing various parts in a chip on top of one another vertically instead of next to each other that aids with multiple advantages, such as speed of performance at very low power.
 
Market Segmentations and Scope of the Study

The chiplet market report is segmented on the basis of semiconductor technology, type, processor, packaging technology, application, end-users and region. On the basis of semiconductor technology, the market is divided into chip-on-wafer (COW), chip-on-interposer (COI), chip-on-substrate (COS), chip-on-foil (COF) and others. On the basis of type, the market is divided into compute chiplet, memory chiplet, i/o chiplet, fabric chiplet, and others. Further on the basis of processor the market is segmented into central processing unit (CPU), graphics processing unit (GPU), application processing unit (APU), artificial intelligence processors, integrated circuit coprocessor, field programmable gate array and others. Based on packaging technology, the market is segmented into 2D, 2.5D, 3D, heterogeneous, flip chip scale package, flip chip ball grid array, fan-out, system-in-package, wafer-level chip scale package and others. Based on application, the market is divided into high performance computing (HPC), artificial intelligence (AI), cloud computing, edge computing, mobile computing and others. On the basis of end-users, the market is further bifurcated into consumer electronics, automotive, telecommunications, aerospace & defence, industrial automation and others. Regional breakdown and analysis of each of the aforesaid segments includes regions comprising of North America, Europe, Asia-Pacific, and Rest of The World (Row).

Geographical Analysis

The Asia-Pacific dominates the chiplet market share during the forecast period. The rising demand for EVs (electric vehicles) in the region is accelerating the industry, because the systems involve real-time processing and sensor integration and require a high-performance and scalable semiconductor chip. 

According to recent information reports from Information Technology & Innovation Foundation, 2024, Chinese auto manufacturers manufacture 21% of the world's electric vehicles and 77% of EV batteries. 

China increased its global electric vehicle exports from 2020 to 2023 by 851% due to a strong demand for semiconductor to fuel the increasing demand for EV. The demand for ADAS is actually boosting up the industry as modern electric vehicles require high-performance chiplet for efficient data processing.

Additionally, the growth of PC gaming enthusiasts in the region is driving the chiplet market, since gaming systems require high-performance scalable processors for superior graphics and quicker processing speeds. 

According to reports by Ministry of Commerce and Industry, 2024, India is today the biggest gaming market in the world with 568 million users and marked 9.5 billion downloads of PC gaming applications in 2023. The growth of PC gaming is propelling the industry because it requires high-performance processors for better graphics and faster speeds in games.

On the other hand, North America is expected to witness a steady growth in the chiplet industry during the forecast period. Expansion in the defence industry across the region is driving market growth, as these semiconductors play a crucial role in rugged military computers. 

These advanced components provide adaptable, domestically developed solutions that enhance performance, reliability, and efficiency in modern defence technologies. 

As per the USAFacts, 2024, the U.S. military budget for 2023 was approximately USD 820.30 billion, equivalent to approximately 13.3% of the overall fiscal federal budget for that year. This growing focus on advanced technology continues to drive innovation and strengthen defence capabilities in the region.

Furthermore, growing demand for chiplet in the region is accelerated due to the growing adoption of 5G technology and, correspondingly, increasing needs for higher processing power. 

According to reports released by 5G Americas in 2023, Canadian 5G users saw a 28% increase in time spent streaming HD/4K videos and a 59% increase in multi-view video streaming in 2023. The rise in data-intensive applications due to increased usage will continue to push up demand for more advanced semiconductor chips to meet such increasing needs.

Competitive Landscape

Various key players operating in the chiplet industry include Intel Corporation, Advanced Micro Devices, Inc., International Business Machines Corporation, Marvell, NVIDIA Corporation, Achronix Semiconductor Corporation, Ranovus, ASE Technology Holding Co., Ltd., Samsung Electronics Co., Ltd., NHanced Semiconductors, Taiwan Semiconductor Manufacturing Company Limited, Cadence Design Systems, Inc., Ayar Labs, Siemens AG, Michigan Engineering and others. These market players are adopting strategies such as product launch and collaboration to remain dominant in the market.  

For instance, in June 2024, Intel introduced its first integrated optical I/O chiplet designed for AI infrastructure. This innovation comes with up to 4 terabits per second bandwidth that significantly improve performance and energy efficiency in data centres and AI workloads.

Furthermore, in May 2023, NVIDIA partnered with MediaTek to integrate a new GPU chiplet into its Dimensity Auto platform. This collaboration enhances next-generation smart cabin features by providing advanced AI, connectivity, and computing capabilities, aiming to improve in-car experiences with smarter, more efficient technology. 

Key Benefits

• The report provides quantitative analysis and estimations of the chiplet market from 2025 to 2030, which assists in identifying the prevailing market opportunities.

• The study comprises a deep-dive analysis of the current and future chiplet market  trends to depict prevalent investment pockets in the market.

• Information related to key drivers, restraints, and opportunities and their impact on the market is provided in the report. 

• Competitive analysis of the players, along with their market share is provided in the report.

• SWOT analysis and Porters Five Forces model is elaborated in the study.

• Value chain analysis in the market study provides a clear picture of roles of stakeholders.

Chiplet Market Key Segments

By Semiconductor Technology

• Chip-on-Wafer (CoW)

• Chip-on-Interposer (CoI)

• Chip-on-Substrate (CoS)

• Chip-on-Foil (CoF)

• Others

By Type

• Compute Chiplet

• Memory Chiplet

• I/O Chiplet

• Fabric Chiplet

• Others

By Processor

• Central Processing Unit (CPU)

• Graphics Processing Unit (GPU)

• Application Processing Unit (APU)

• Artificial Intelligence Processors

• Integrated Circuit Coprocessor

• Field Programmable Gate Array

• Others

By Packaging Technology

• 2D

• 2.5D

• 3D

• Heterogeneous

• Flip Chip Scale Package

• Flip Chip Ball Grid Array

• Fan-Out

• System-in-Package

• Wafer-Level Chip Scale Package

• Others

By Application

• High performance Computing (HPC)

• Artificial Intelligence (AI)

• Cloud Computing

• Edge Computing

• Mobile Computing

• Others

By End-Users

• Consumer Electronics

• Automotive

• Telecommunications

• Aerospace & Defense

• Healthcare

• Others

By Region

• North America

  • The U.S.

  • Canada

  • Mexico

• Europe

  • The U.K.

  • Germany

  • France        

  • Italy        

  • Spain        

  • Denmark        

  • Netherlands        

  • Finland        

  • Sweden        

  • Norway        

  • Russia        

  • Rest of Europe

• Asia-Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia-Pacific 

• Rest of the World (RoW)

  • Latin America

  • Middle East 

  • Africa

Key Players

• Intel Corporation

• Advanced Micro Devices, Inc.

• International Business Machines (IBM) Corporation

• Marvell Technology Group Ltd.

• NVIDIA Corporation

• Achronix Semiconductor Corporation

• Ranovus Inc.

• ASE Technology Holding Co., Ltd.

• Samsung Electronics Co., Ltd.

• NHanced Semiconductors Inc. 

• Taiwan Semiconductor Manufacturing Company Limited

• Cadence Design Systems, Inc.

• Ayar Labs

• Siemens AG

• Broadcom Inc.

REPORT SCOPE AND SEGMENTATION:

 

Parameters	Details
Market Size in 2024	USD 10.97 Billion
Revenue Forecast in 2030	USD 243.47 Billion
Growth Rate	CAGR of 68.8% 2025 to 2030
Analysis Period	2024–2030
Base Year Considered	2024
Forecast Period	2025–2030
Market Size Estimation	Billion (USD)
Growth Factors	Rise in number of gaming enthusiasts is propelling the chiplet industry growth. Demand for autonomous vehicle is boosting the chiplet industry. Inclination towards 5G usage is accelerating the market demand.
Countries Covered	28
Companies Profiled	15
Market Share	Available for 10 companies
Customization Scope	Free customization (equivalent to up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope.
Pricing and Purchase Options	Avail customized purchase options to meet your exact research needs.