Chiplet technology is revolutionising the semiconductor industry by offering alternative advantages compared with traditional monolithic designs, according to new research from IDTechEx, which highlights the transformative potential of chiplets.
In its latest study – Chiplet Technology 2025 – 2035: Technology, Opportunities, Applications – IDTechEx predicts the market will reach $411-billion by 2035, driven by high-performance computing demands across sectors such as data centres and AI.
Chiplets break down complex chips into smaller, specialised components providing enhanced flexibility and customization and 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.
IDTechEx’s 10-year forecast considers the entire value of devices utilising 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 analyses 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.