Chiplet market to reach $411 billion in semiconductor industry by 2035

Chiplet technology is revolutionizing the semiconductor industry by offering alternative advantages compared with traditional monolithic designs.

The brand new IDTechEx report on the topic, "Chiplet Technology 2025-2035: Technology, Opportunities, Applications", highlights the transformative potential of chiplets. It predicts the market will reach $411 billion by 2035, driven by high-performance computing demands across sectors such as data centers and AI.

Chiplets break down complex chips into smaller, specialized components, providing enhanced flexibility and customization, 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 the key sectors where chiplet technology plays a crucial role:

Servers: High-performance computing demands drive significant adoption.
Telecommunications: 5G, IoT: Chiplets enable efficient network solutions.
PCs: Enhanced performance and customization are key drivers.
Mobile Phones: Chiplets contribute to advanced functionality and efficiency.
Automotive Industry: The integration of diverse functionalities supports automotive innovations.
Others: Various applications benefit from the modularity of chiplets.