Chiplets: A Technology, Not A Market

An open, plug-and-play chiplet ecosystem still faces significant hurdles in interconnect standardization and packaging.

By Geoff Tate
Semi Engineering -- March 6th, 2025

Chiplets are big business, and that business is growing. The total chiplet market today is roughly $40 billion annually.

Chiplets account for roughly 15% of TSMC’s revenues, and they account for about 25% of all DRAMs.

All of the major AI/HPC semiconductor companies (NVIDIA, AMD, Marvell, Broadcom) and the major hyper scalers (Amazon, Google, etc) are looking to chiplets to build superior solutions. And, at least so far, they remain a technology for big players.

And while some of those chiplets will be developed by smaller chipmakers for well-defined sockets, the chiplet market is not an open, plug-and-play market. The only open-market chiplet today in production volume is for HBM memory. Logic chiplets are full-custom for each high-volume application. None are UCIe-compatible.

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