PUBLISHER: Global Industry Analysts, Inc. | PRODUCT CODE: 1737554
PUBLISHER: Global Industry Analysts, Inc. | PRODUCT CODE: 1737554
Global Chiplets Market to Reach US$74.3 Billion by 2030
The global market for Chiplets estimated at US$10.1 Billion in the year 2024, is expected to reach US$74.3 Billion by 2030, growing at a CAGR of 39.5% over the analysis period 2024-2030. Microprocessors Application, one of the segments analyzed in the report, is expected to record a 37.6% CAGR and reach US$33.8 Billion by the end of the analysis period. Growth in the System-on-Chip Application segment is estimated at 36.1% CAGR over the analysis period.
The U.S. Market is Estimated at US$2.7 Billion While China is Forecast to Grow at 48.0% CAGR
The Chiplets market in the U.S. is estimated at US$2.7 Billion in the year 2024. China, the world's second largest economy, is forecast to reach a projected market size of US$17.8 Billion by the year 2030 trailing a CAGR of 48.0% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 33.4% and 36.9% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 34.8% CAGR.
Global Chiplets Market - Key Trends & Drivers Summarized
Why Are Chiplets Redefining Semiconductor Design for High-Performance, Scalable, and Cost-Efficient Computing?
Chiplets-modular integrated circuit (IC) components designed to be assembled into a single system-on-package-are emerging as a breakthrough in semiconductor architecture, enabling higher performance, greater design flexibility, and improved yield economics compared to traditional monolithic system-on-chip (SoC) designs. As Moore’s Law slows and manufacturing costs at advanced nodes increase, chiplets allow engineers to mix and match heterogeneous functions-such as CPU cores, memory, AI accelerators, and I/O interfaces-on a single substrate using advanced packaging technologies like 2.5D/3D integration or interposers.
This disaggregated design approach enhances scalability, simplifies system upgrades, and accelerates time-to-market, particularly in applications demanding customized performance profiles such as AI/ML, data centers, HPC, 5G infrastructure, and automotive electronics. Chiplets are enabling semiconductor companies to decouple logic and interface technologies, optimize yields, and repurpose validated IP blocks across multiple product lines-driving design modularity while controlling fabrication complexity and cost.
How Are Advanced Packaging, Open Standards, and Ecosystem Collaboration Accelerating Chiplet Adoption?
Breakthroughs in advanced packaging-including silicon interposers, EMIB (Embedded Multi-die Interconnect Bridge), Foveros, and hybrid bonding-are enabling high-bandwidth, low-latency interconnects between chiplets, delivering near-monolithic performance. The development of open chiplet interconnect standards, such as UCIe (Universal Chiplet Interconnect Express), is fostering cross-vendor interoperability and ecosystem collaboration-critical for reducing design fragmentation and enabling scalable plug-and-play assembly of disaggregated components.
Collaborative efforts among semiconductor giants, foundries, and EDA (electronic design automation) tool providers are strengthening support for chiplet-based design flows, simulation, and verification. These developments are simplifying heterogeneous integration across logic, memory, analog, and RF domains-unlocking innovation in both consumer and enterprise-grade silicon solutions. Foundries are also playing a central role by offering chiplet libraries and advanced packaging as part of turnkey service offerings to fabless customers.
Where Is Demand for Chiplets Expanding and Which Application Domains Are Leading Commercialization?
The U.S. is at the forefront of chiplet innovation, led by major players such as Intel, AMD, and NVIDIA who are integrating chiplet architectures into next-gen processors, GPUs, and accelerators. Asia-Pacific, particularly Taiwan and South Korea, is a critical region for advanced packaging and manufacturing, while China is ramping up interest in chiplets as part of its semiconductor self-reliance initiatives. Europe is supporting chiplet R&D through government-backed initiatives in automotive, industrial IoT, and secure computing.
High-growth applications include data center CPUs and GPUs, AI/ML accelerators, networking ASICs, high-bandwidth memory (HBM) integration, and chipsets for edge computing. Defense, aerospace, and automotive OEMs are exploring chiplet platforms for modular upgrade paths and system-level fault tolerance. Additionally, cloud providers are adopting chiplet-based custom silicon designs for application-specific infrastructure optimization.
What Is Fueling the Global Growth of the Chiplets Market?
The global chiplets market is being propelled by the need for performance scaling beyond the limits of traditional SoC fabrication, surging demand for heterogeneous computing, and growing cost pressures in leading-edge semiconductor manufacturing. As AI, 5G, quantum computing, and real-time analytics drive demand for high-throughput, low-power compute architectures, chiplets offer an attractive solution for performance enhancement without the prohibitive costs of full-node migration.
Supportive regulatory and funding initiatives-such as the CHIPS Act in the U.S. and equivalent programs in the EU and Asia-are accelerating domestic semiconductor R&D with a focus on advanced packaging and modular architectures. As the chiplet ecosystem matures through open standards, toolchain integration, and foundry services, a defining question shapes future scalability: Can chiplets deliver the modularity, interoperability, and performance-per-watt efficiency required to redefine next-generation silicon innovation-while ensuring design portability, ecosystem standardization, and long-term manufacturability at global scale?
SCOPE OF STUDY:
The report analyzes the Chiplets market in terms of units by the following Segments, and Geographic Regions/Countries:
Segments:
Application (Microprocessors, System-on-Chip, Graphic Processing Units, Programmable Logic Devices); End-Use (Automotive Electronics, Consumer Electronics, Industrial Automation, Healthcare, Aerospace & Defense, IT & Telecom, Other End-Uses)
Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.
Select Competitors (Total 37 Featured) -
TARIFF IMPACT FACTOR
Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.
We are diligently following expert opinions of leading Chief Economists (14,949), Think Tanks (62), Trade & Industry bodies (171) worldwide, as they assess impact and address new market realities for their ecosystems. Experts and economists from every major country are tracked for their opinions on tariffs and how they will impact their countries.
We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.
As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.
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APRIL 2025: NEGOTIATION PHASE
Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.
JULY 2025 FINAL TARIFF RESET
Complimentary Update: Our clients will also receive a complimentary update in July after a final reset is announced between nations. The final updated version incorporates clearly defined Tariff Impact Analyses.
Reciprocal and Bilateral Trade & Tariff Impact Analyses:
USA <> CHINA <> MEXICO <> CANADA <> EU <> JAPAN <> INDIA <> 176 OTHER COUNTRIES.
Leading Economists - Our knowledge base tracks 14,949 economists including a select group of most influential Chief Economists of nations, think tanks, trade and industry bodies, big enterprises, and domain experts who are sharing views on the fallout of this unprecedented paradigm shift in the global econometric landscape. Most of our 16,491+ reports have incorporated this two-stage release schedule based on milestones.
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