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Companies Review Costs to Update Working Capital Plans amid COVID-19 Crisis

Since stakeholders in the technology sector typically have locations around the world, companies in the chiplets market are ensuring that they continue functioning effectively during the coronavirus outbreak. Managers are setting up a crisis response team, owing to unprecedented events such as sudden rise in COVID-19 cases in the U.S. Companies are financially and operationally restructuring their business processes to reduce risk and prevent revenue loss.

Companies in the chiplets market are reviewing costs and updating their working capital plans amid the ongoing pandemic. Stakeholders are focusing on mission-critical projects in automotive & consumer electronics and med-tech devices to ensure business continuity and continuous revenue flow. They are ensuring insurance policies and access to emergency funds to tide over uncertainties during the pandemic.

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R&D Investment Gains Prominence to Overcome Issues in Semiconductor Designs

The global chiplets market is projected to expand at a CAGR of 36.4% during the forecast period. However, developers experience several issues related to putting chiplets together. Hence, companies are increasing their R&D efforts to overcome these issues. This has led to the recognition of Arteris, Inc. - a multinational technology firm that develops the on-chip interconnect fabric technology used in System-on-Chip (SoC) semiconductor designs.

Companies in the chiplets market are gaining awareness that built-in self-test (BiST) is becoming an important requirement for SoCs, which has led to the capability of self-testing for chiplets to be usable in systems.

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Chip Integration Allows Lowering Cost of Semiconductor Designs

The demand for chiplets is being driven by need for a more cost-effective solution for semiconductor designs, reuse of IP (Internet Protocol), and new test flows. Companies in the chiplets market are looking at the possibility of cost reduction when die functions such as I/O (input/output) control are split out. Since these die functions are more difficult to scale, cost reduction is being achieved by chip integration.

With chips divided into two, developers can stack the split chips to provide further cost reduction. Such findings are translating into revenue opportunities for stakeholders in the chiplets market, since chip partitioning improve time-to-market. The exponential growth of the consumer electronics sector is gaining the attention of manufacturers in the market.

Companies Leverage Lucrative Growth Opportunities in U.S. Due to Trade Disputes

Intel Corporation - a U.S. multinational corporation and technology company, has bagged a second-phase contract with the U.S. military to help provide next-gen military tech through advanced semiconductors. Such trends are indicating the use of the chiplet technology as an economical solution for highly specific applications to make the most of semiconductor devices.

It has been found that almost 75% of the world’s semiconductor devices are manufactured in Asia. Due to tensions between China and the U.S., stakeholders are taking an interest to move manufacture back to the U.S. Such trends are translating into value-grab opportunities for manufacturers in the U.S. chiplets market.

Modern Sub Transistor Features Hold Potentials in Chiplets with Small Functional Dies

The chiplets market is expected to cross US$ 47.19 Bn by 2031. The increase in the popularity of chiplets stems from the issues faced by semiconductor manufacturers as a result of increasingly smaller transistors. Thus, chips that have incredibly small transistors need to be without any defects in the crystal structure.

Chiplets with small functional dies are being utilized with modern sub 10nm (nanometer) transistor features, which allow for powerful complex functions. The end device integrates multiple chiplets into a single package with the net result being a powerful device with a high transistor count that reduces the number of failed dies. This, in turn, reduces the final cost of the die and maximizes yield. These findings are contributing to the growth of the chiplets market.

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Analysts’ Viewpoint

Companies in the chiplets market are reassessing their technology infrastructure and resilience capabilities during the ongoing COVID-19 crisis. If the physical size of each die is increased, it will allow for more transistors, resulting in powerful circuitry. However, this leads to a rise in the cost of each die, as more are discarded through failure. Hence, companies should increase research in modern 10nm transistor features for chiplets with small functional dies, which help to develop powerful circuitry. Latest chiplet solutions with the help of the 3D integration technology are emerging as a form of heterogeneous system integration. Heterogeneous integration is defined as the integration of separately manufactured components into a higher-level assembly in semiconductor designs.

Chiplets Market: Overview

  • According to Transparency Market Research’s latest research report on the global chiplets market for the historical period of 20172019 and the forecast period of 20212031, rising demand for chiplets in the consumer electronics industry worldwide is expected to boost the global chiplets market during the forecast period
  • In terms of revenue, the global chiplets market is estimated to exceed a value of US$ 47.19 Bn by 2031, expanding at a CAGR of 40.9% during the forecast period

Rising Demand for Chiplets in Consumer Electronics Industry Worldwide: Key Driver of Chiplets Market

  • Chiplets provide greater flexibility and integration, enabling a compact and thin package that offers an active interposer. Therefore, the need for longer battery life, smart, fast processing units, latest graphics, and small size designs in smartphones, tablets, and other consumer electronic devices is fueling the chiplets market.
  • Increasing popularity of Internet of Things (IoT), which is considered the third wave of technology, and expansion of the portable electronics market are boosting the usage of the chiplets technology
  • Moreover, several recent technological advancements in consumer electronics gadgets, such as circuit miniaturization, compact size, wireless, fast processing units, 3D visualization, and other smart electronic gadgets boost the demand for chiplets in the consumer electronics industry across the globe
  • Microprocessors (MPUs) chiplets are utilized in various consumer electronics devices, including computers, laptops, tablets, smartphones, televisions, VCRs, DVD players, microwaves, toasters, ovens, stoves, clothes washers, stereo systems, handheld game devices, thermostats, video game systems, alarm clocks, bread machines, dishwashers, home lighting systems, and even some refrigerators with digital temperature control
  • Integration of consumer electronics, such as speakers and earphones with voice assistant equipment, is also estimated to fuel the chiplets market. Additionally, product upgrades and new product launches by several consumer electronics companies to increase consumer experience are also driving the electronics industry.
  • Rise in disposable income of people resulted in an increase in their spending on technically advanced consumer electronics devices, which, in turn, propels the global chiplets market
  • According to Consumer Technology Association, in October 2020, the population in the U.S. in the holiday season spent about US$ 528, on average, on technology-based items, which included video game consoles, laptops, wearables, and television sets
  • Thus, this factor is projected to have a highly positive impact on the global chiplets market during the forecast period
  • However, limited adoption of chiplets in the industry may hamper the market. Chiplet model continues to gain traction in the global market; however, there are still some negative factors that hinder broader support for the technology. Thus, limited adoption of chiplets in the industry is a key factor that is projected to have a moderate negative impact on the chiplets market during the forecast period.

Growing Momentum in Semiconductor Industry

  • Chiplets have emerged as a practical alternative to overcoming scaling, cost, and time-to-market challenges with chip design, and this is evidenced by leading semiconductor companies such as AMD and Intel. These vendors are already using them in their next-generation designs.
  • The commercially new model can effectively reduce the design cycle time and costs that semiconductor companies currently face for packaging chips, while providing relatively equivalent performance to cater to the increasing compute demands
  • Semiconductor manufacturers can choose chiplets based on their own unique requirements such as cost, performance, and power, and the options they choose are likely to increase even more, as new chiplets that support the standardized interconnect schemes are introduced in the market
  • Thus, this factor is projected to have a medium positive impact on the global chiplets market during the forecast period

Chiplets Market: Competition Landscape

  • Detailed profiles of providers of chiplets have been provided in the report to evaluate their financials, key product offerings, recent developments, and strategies. Key players operating in the global chiplets market are Advanced Micro Devices, Intel Corp., Marvell Technology Group, Netronome, NHanced Semiconductors, Inc., NXP Semiconductors, Taiwan Semiconductor Manufacturing Company Ltd., Xilinx, and zGlue Inc.

Chiplets Market: Key Developments

  • Key providers of chiplets such as Taiwan Semiconductor Manufacturing Company Ltd, Intel Corp., Advanced Micro Devices, and NHanced Semiconductors, Inc. are focused on the design of cost-effective chiplets to attract more customers. Other key developments in the global chiplets market have been highlighted below:
    • In July 2021, Intel Corporation announced the launch of their first 14th-gen chiplet CPUs codenamed Meteor Lake. The Meteor Lake would be made of three different tiles: a Compute Die, SOC-LP die, and a GPU die. Its customized CPU is built using the newly named Intel 4 production process.
    • In January 2021, Advanced Micro Devices filed the patent for its Graphic Processing Units (GPU) chiplet implementation. The company is focused on creation of larger GPU configurations than the single monolithic die.
    • In August 2020, TSMC introduced the 3D Fabric, which is a 3D silicon stacking and advanced packaging technology. It consists of both 2D and 3D frontend and backend interconnect technologies. It includes 3D stacked dies and processes them into the stacked devices. The company’s 3D Fabric backend technologies include CoWoS and InFO family of packaging technologies.
    • In June 2020, NXP Semiconductors strategically collaborated with TSMC. The collaboration adopted TSMC’s 5-nanometer (5nm) technology for NXP’s next-generation, high-performance automotive platform. According to this collaboration, TSMC and NXP work together to create a System-on-Chip (SoC) platform in 5nm to deliver the next generation of automotive processors.
    • In April 2019, Achronix Semiconductor released a document that they are working toward the use of chiplets in the design and manufacture of new, high-performance semiconductor devices with multiple dies using multi-chip modules (MCMs)
    • Advanced Micro Devices announced Chiplet Design Approach in 2018, modular design EPYC processors, featuring its Zen microarchitecture. The integration involves CPU Chiplets made using 7 nm as well as an I/O die made using a mature 14 nm process.
  • In the global chiplets market report, we have discussed individual strategies, followed by company profiles of providers of the chiplets. The ‘Competition Landscape’ section has been included in the report to provide readers with a dashboard view and company market share analysis of key players operating in the global chiplets market.

Chiplets Market Snapshot

Attribute

Detail

Market Size Value in 2020 (Base Year)

USD 1,115.7 Million

Market Forecast Value in 2031

USD 47,197 Million

Growth Rate (CAGR)

36.4%

Forecast Period

2021-2031

Quantitative Units

US$ Mn for Value

Market Analysis

It includes cross segment analysis at global as well as regional level. Furthermore, qualitative analysis includes drivers, restraints, opportunities, key trends, Porters Five Forces analysis, value chain analysis, key market indicator, etc.

Competition Landscape

Company Profiles, Dashboard, Market Share Analysis of Companies

Format

Electronic (PDF) + Excel

Market Segmentation

  • Application
    • Microprocessors (MPUs)
    • System-on-Chip (SOC) Device
    • Graphic Processing Units (GPUs)
    • Programmable Logic Devices (PLDs)
    • Others
  • End-use Industry
    • Automotive Electronics
    • Consumer Electronics
    • Industrial Automation
    • Healthcare
    • Military
    • IT & Telecommunication
    • Others (Transportation, Energy & Power, etc.)

Regions Covered

  • North America
  • Europe
  • Asia Pacific
  • Rest of the World (Middle East & Africa and South America)

Countries Covered

  • U.S.
  • Canada
  • Germany
  • U.K.
  • France
  • Japan
  • China
  • India
  • ASEAN
  • Brazil
  • Mexico
  • Argentina
  • GCC Countries
  • South Africa

Companies Profiled

  • Advanced Micro Devices
  • Intel Corp.
  • Marvell Technology Group
  • Netronome
  • NHanced Semiconductors, Inc.
  • NXP Semiconductors
  • Taiwan Semiconductor Manufacturing Company Ltd.
  • Xilinx
  • zGlue Inc.

Customization Scope

Available upon Request

Pricing

Available upon Request

Chiplets Market – Scope of Report

A new study on the global chiplets market is published by Transparency Market Research (TMR). It presents detailed information on key market dynamics, including drivers, trends, and challenges for the global chiplets market as well as its structure. TMR’s study offers valuable information on the global chiplets market in order to illustrate how the market is expected to expand during the forecast period i.e. 2017–2031.

Key indicators of market growth, which include value chain analysis and compound annual growth rate (CAGR), are elucidated in TMR’s study in a comprehensive manner. This data can help readers interpret the quantitative growth aspects of the global chiplets market.

An extensive analysis of business strategies adopted by leading market players is also featured in TMR’s study on the global chiplets market. This can help readers understand key factors responsible for growth of the global chiplets market. In this study, readers can also find specific data on avenues for qualitative and quantitative growth of the global chiplets market. This data would guide market players in making apt decisions in the near future.

Key Questions Answered in TMR’s Study of Chiplets Market

  • What would be the Y-o-Y growth trend of the global chiplets market between 2021 and 2031?
  • What is the influence of changing trends in the type segment on the global chiplets market?
  • Would Asia Pacific continue to be the most dominant regional market for providers of chiplets in the next few years?
  • Which factors would hinder the global chiplets market during the forecast period?
  • Which are the leading companies operating in the global chiplets market?

Research Methodology

A unique research methodology is utilized by TMR to conduct comprehensive research on the global chiplets market and arrive at conclusions on future growth prospects for the market. This research methodology is a combination of primary and secondary research, which helps analysts warrant the accuracy and reliability of the conclusions drawn.

Secondary research sources referred to by analysts during production of the report on the global chiplets market include statistics from company annual reports, SEC filings, company websites, World Bank database, investor presentations, regulatory databases, government publications, and market white papers. Analysts have also interviewed senior managers, product portfolio managers, CEOs, VPs, and market intelligence managers, who have contributed to production of TMR’s study on the global chiplets market as a primary research source.

These primary and secondary sources provided exclusive information during interviews, which served as a validation from leading players operating in the global chiplets market. Access to an extensive internal repository as well as external proprietary databases allowed this report to address specific details and questions about the global chiplets market with accuracy. The study also uses a top-down approach to assess the numbers for each segment and a bottom-up approach to counter-validate them. This has helped in making TMR’s estimates on future prospects for the global chiplets market more reliable and accurate.

Chiplets Market – Segmentation

TMR’s study of the global chiplets market segments the market based on application, end-use industry, and region. Changing market trends and other crucial market dynamics associated with segments of the global chiplets market have been discussed in detail in TMR’s study.

Application
  • Microprocessors (MPUs)
  • System-on-Chip (SOC) Device
  • Graphic Processing Units (GPUs)
  • Programmable Logic Devices (PLDs)
  • Others
End-use Industry
  • Automotive Electronics
  • Consumer Electronics
  • Industrial Automation
  • Healthcare
  • Military
  • IT & Telecommunication
  • Others (Transportation, Energy & Power, etc.)
Region
  • North America
  • Europe
  • Asia Pacific
  • Rest of the World

Custom Market Research Services

TMR offers custom market research services that help clients to get information on their business scenario required where syndicated solutions are not enough.

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Chiplets Market

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