Can Chiplets Serve Cost-Conscious Apps?

The economics are not yet clear for industrial or consumer electronics.

By Bryon Moyer, Semi Engineering | April 17th, 2025

Chiplets are emerging as a significant new phase in the evolution of the semiconductor market, providing a way to continue scaling performance well beyond the size limitations of a reticle. But that improvement comes with a high price tag and a lot more complexity, which so far has limited adoption.

One of the main reasons for the cost increase is the need for advanced packaging when employing chiplets, which represents a fundamental shift in how semiconductors are designed, built, and tested. It requires extra time, effort, expertise, and experimentation, because there are no set recipes. Standards eventually may help mitigate the risk, but it’s not clear whether the cost of advanced packaging will ever beat that of traditional packaging.

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