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Chiplets Market to Expand at a Healthy CAGR Of 40.9% from 2021 to 2031 – TMR

Transparency Market Research delivers key insights on the global chiplets market. In terms of revenue, the global chiplets market is estimated to expand at a CAGR of 40.9% during the forecast period, owing to numerous factors, regarding which TMR offers thorough insights and forecasts in its report on the global chiplets market.

The global chiplets market is broadly affected by several factors, including increase in adoption of chiplets in the automotive electronics sector.

Chiplets Market: Dynamics

The use of chiplets has been increasing in more advanced and highly integrated semiconductor devices. These include microprocessors (MPUs), system-on-chip (SOC) devices, graphics processing units (GPUs), and programmable logic devices (PLDs). These are chips that combine different processing elements such as applications processors that integrate graphics, security engines, artificial intelligence (AI) acceleration, and low-power Internet of Things (IoT) controllers.

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The demand for semiconductors and computing power is rising due to exciting new applications such as autonomous driving, XR, AI, and machine learning algorithms. The applications mentioned above are driving entirely advanced demands, as autonomous driving often requires specialized chips to provide the power necessary to fuel them.

Chiplets offer numerous advantages for developers of autonomous vehicles. Currently, autonomous driving is being introduced by various intermediate steps, and mid-class vehicles are likely to only permit partially autonomous driving in the near future.

Various automotive manufacturers are focused on the development of electric vehicles where multiple tasks are expected to be simultaneously performed by microprocessors. The difficult levels of micro processing power and system interfaces must be made available for the various E-vehicles. It is significantly easier to meet this requirement with a modular approach of chiplets than with a monolithic approach such as SoCs. Therefore, the automotive industry is focused on the development of chiplets.

Manufacturers of automotive semiconductors supply a custom amount of programmable logic in their devices, which enables for customization beyond typical CPU or GPU and subsequently, boosts the demand for chiplets in the automotive electronics sector. Vehicle electrification and demand for advanced safety, convenience, and comfort systems are also fueling the integration of electronics content in automotive.

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Furthermore, advanced driver-assistance systems (ADAS), a rapidly expanding automotive segment, offer significant opportunity to offer a competitive advantage in automotive for new architectures such as chiplets.

In August 2020, Tesla unveiled that it is working on an HW4.0 self-driving chip along with the semiconductor company TSMC with a timeline for mass production in the fourth quarter of 2021. The company has a goal to design a super-powerful and efficient chip for self-driving.

Computing special application chiplets (ASIC) can be employed to control and support advanced driving assistance systems, car entertainment, and electric vehicle power transmission. The four major applications of automotive electronics, such as systems and car body electronic components, are estimated to further support the real-time computing required for self-driving cars. Thus, this factor is projected to have a high positive impact on the global chiplets market in the near future.

Chiplets Market: Prominent Regions

The chiplets market in Asia Pacific is expected to expand during the forecast period, owing to the presence of key market players, technological advancements, and expansion of semiconductor and automotive sectors in the region. The market in Asia Pacific is anticipated to expand at a prominent growth rate, as compared to that in North America and Europe during the forecasting period, in terms of value, owing to rise in the adoption of chiplets in the semiconductor industry, rapid technological advancements in developing economies, and high investments in research & development in the region. Developing economies are witnessing an increased demand to achieve cost-effectiveness and high performance for semiconductor devices. In Asia Pacific, the market in China is growing at a prominent rate, as a large number of foundries are located in the country. Many fab and fabless companies are well-established in all countries.

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The chiplets market in Asia Pacific is projected to expand further due to the significant rise in the demand for consumer electronics devices. The Asia Pacific market is estimated to cross a value of US$ 29.14 Bn by 2031. The chiplets market in North America is likely to grow at a notable CAGR of 38.8% during the forecast period, owing to the presence of a significant number of players manufacturing chiplets in the region.

Chiplets Market: Key Players

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.

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