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Chiplets set to transform electronics, says IDTechEx

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New report highlights advantages and opportunities provided by chiplets

A new IDTechEx report says chiplet technology is poised to revolutionise the semiconductor industry, offering new solutions to many of the challenges faced by traditional monolithic designs, and new opportunities for companies.

"This modular approach not only enhances performance and functionality but also opens up a wealth of opportunities across various sectors of the semiconductor ecosystem", says IDTechEx.

Chiplets support heterogeneous integration by combining different process nodes and materials, optimising both performance and cost. This capability allows for the integration of diverse functionalities within a single package, enhancing overall efficiency.

This allows manufacturers to integrate specialised components tailored to specific tasks, resulting in versatile and customisable chips. Such flexibility reduces development timelines and costs while enabling rapid adaptation to market demands. And the modular nature of chiplets aids supply chain security by allowing manufacturers to source components from multiple suppliers, reducing dependency on any single supplier or geographic area, mitigating risks associated with geopolitical tensions and trade restrictions.

The adoption of chiplet technology can also overcome constraints such as reticle size and the memory wall, which traditionally hinder the performance and scalability of semiconductor devices, according to the IDTechEx report.

In addition, chiplets can achieve better utilisation of wafer corner space and have lower defect rate on chips, which are often underutilised in conventional chip designs, particularly in larger SoCs that demand an increasing number of functions.

Opportunities for more players

The report points out that the adoption of chiplet technology creates numerous opportunities for various players in the semiconductor ecosystem.

For materials and components suppliers, there is an increased demand for innovative materials that enhance reliability and performance, particularly in advanced packaging and interconnect technologies.

In the realm of design and intellectual property (IP), chiplet technology promotes collaboration among companies sharing IP models, facilitating faster development cycles and reducing costs.

Manufacturing and equipment sectors also stand to benefit significantly from chiplet technology, says IDTechEx. Foundries and equipment manufacturers can capitalise on the demand for advanced packaging solutions required for chiplet integration. Companies like TSMC and Intel are already offering proprietary technologies designed specifically for chiplets.

OEMs can leverage chiplet technology to develop tailored solutions that meet specific customer needs, particularly in industries such as automotive, PCs, and artificial intelligence.

The IDTechEx report is called 'Chiplet Technology 2025-2035: Technology, Opportunities, Applications'.

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