Introduction
In today’s fast-evolving tech world, semiconductors power everything from smartphones to supercomputers. But have you ever wondered how these tiny chips come to life? Enter the world of chiplet — small, modular building blocks that are transforming how semiconductor are designed and manufactured.
Unlike traditional chips made as a single piece, chiplets let companies mix and match specialized parts, speeding up innovation while cutting costs.
This journey from initial design to the final product involves a complex chain of experts and processes working seamlessly behind the scenes.
Let’s explore how chiplets travel from concept to the core of the devices that shape our modern lives.
techovedas.com/how-chiplets-can-change-the-future-by-extending-moores-law
Brief Overview in 5 Points
Chiplet modularize semiconductor design, improving cost-efficiency and speed.
SiP OEMs like Microsoft and Tesla design system-in-package solutions tailored to specific needs.
Chiplet designers such as AMD and Intel create reusable blocks like CPUs and GPUs.
Manufacturing involves foundries, substrate suppliers, OSATs, and IDMs to produce and assemble chiplets.
Material, equipment, and EDA tool suppliers provide critical resources and software for cutting-edge chiplet production.
Chiplet: A New Era in Semiconductor Design
Chiplets represent an innovative approach to semiconductor manufacturing by breaking complex chips into smaller, modular components.
Instead of building a single large chip, designers create and assemble smaller chiplets, which reduces costs, shortens development time, and enables custom configurations.
This shift supports advancements in AI, 5G, automotive electronics, and more.
A chiplet is a small, modular piece of a semiconductor chip designed to perform a specific function, like processing, memory, or input/output. Instead of making one huge, complex chip, manufacturers build multiple chiplets and connect them together on a single package. This modular approach makes chips faster to design, more customizable, and cheaper to produce.
Applications of Chiplets: Transforming Modern Electronics
Chiplets are revolutionizing semiconductor design by enabling modular, high-performance, and cost-efficient systems.
Instead of building a monolithic chip, manufacturers now assemble smaller chiplet blocks to build powerful, customizable solutions. Here’s how they’re making a difference across industries:
Data Centers & AI Computing
Application: Chiplets allow for high-performance computing by combining powerful CPU, GPU, and AI accelerators into one package.
Example: AMD Instinct MI300 – AMD uses chiplet architecture to pack CPU and GPU on the same package for AI and HPC workloads.
Consumer Electronics (Smartphones & Laptops)
Application: Chiplets help integrate functions like CPU, modem, and graphics on a compact platform with better thermal efficiency.
Example: Apple M1 Ultra – Apple connects two M1 Max chips via UltraFusion, a chiplet-style interconnect, for high performance in Mac Studio.
Automotive Systems
Application: Modern cars require chips for infotainment, ADAS, and EV systems. Chiplets offer flexibility in combining these features.
Example: Tesla FSD Chip – Tesla’s Full Self-Driving hardware is rumored to use a chiplet-based design for processing multiple AI tasks simultaneously.
Aerospace & Defense
Application: Rugged, mission-critical systems benefit from modular designs that can be easily upgraded or customized.
Example: DARPA CHIPS Program – The U.S. Defense Advanced Research Projects Agency uses chiplets to rapidly develop and deploy new defense technologies.
Cloud Gaming & Graphics
Application: Chiplets enable higher performance GPUs and CPUs for immersive gaming and graphics rendering.
Example: NVIDIA Grace Hopper Superchip – Combines CPU and GPU chiplets using NVLink-C2C for faster memory sharing in cloud gaming and AI.
Key Players in the Chiplet Value Chain
1. SiP OEM/Designers: Innovation Starts Here
Companies like Microsoft, Google, Tesla, and HP lead the charge by designing system-in-package (SiP) solutions.
They define the chip’s overall functionality and performance requirements, often combining multiple chiplets to create specialized products for cloud computing, autonomous vehicles, or consumer electronics.
2. Chiplet OEM/Designers: Building Blocks of Innovation
Industry giants such as AMD, NVIDIA, Intel, and Qualcomm focus on designing reusable chiplet blocks.
These blocks include CPUs, GPUs, and input/output modules. Their work increases flexibility and cuts down costs by enabling reuse across different chipsets.
3. Foundries and Interposer Manufacturers
Foundries like TSMC, Intel, GlobalFoundries, and Samsung manufacture both chiplets and interposers. Interposers are essential substrates that physically connect multiple chiplets on a single package, ensuring high-speed communication and power efficiency.
| Company | Role | Market Share (2024 est.) |
|---|---|---|
| TSMC | Foundry & Chiplet Maker | 54% |
| Samsung | Foundry & Packaging | 18% |
| Intel | IDM & Foundry | 12% |
| GlobalFoundries | Foundry | 6% |
4. Substrate and PCB Suppliers
Companies like Ibiden, Unimicron, and AT&S provide critical substrates that support chiplet packaging.
These materials help with heat dissipation and maintaining signal integrity—both crucial for high-performance semiconductor operation.
5. OSATs and IDMs: Assembly and Testing
Outsourced Semiconductor Assembly & Test (OSAT) companies such as Amkor, ASE, and JCET manage wafer dicing, assembly, and testing services. Integrated Device Manufacturers (IDMs) like Intel, Micron, and Texas Instruments combine design, manufacturing, and chiplet integration.
Why Chiplets Matter
Chiplets are changing the semiconductor industry. Instead of building one large chip, companies now use smaller, modular blocks called chiplets. This approach improves speed, cost, and flexibility.
5 Reasons Why Chiplets Matter
Lower Costs: Reusing chiplets cuts design and manufacturing expenses.
Faster Development: Modular design speeds up innovation cycles.
Better Yields: Small chiplets reduce defects and waste.
Custom Performance: Mix and match chiplets for AI, 5G, and more.
Compact Devices: Chiplets enable smaller, more powerful gadgets.
Essential Supporting Players
Material Suppliers: DuPont, Corning, and Shin-Etsu supply essential photoresists, wafers, and chemicals.
Equipment Suppliers: ASML, Applied Materials, and Lam Research provide lithography and deposition tools that define precision manufacturing.
EDA Tool Suppliers: Software companies like Synopsys, Cadence, Siemens, and Ansys enable chiplet design, simulation, and verification.
/techovedas.com/applied-materials-hiring-software-engineer-interns-exciting-opportunity-for-freshers
End Users and Industry Impact
The chiplet revolution benefits multiple sectors. Aerospace and automotive industries gain compact, power-efficient chips.
Data centers enjoy scalable, high-performance processors. Consumer electronics see faster innovation cycles and cost reductions.
Follow us on LinkedIn for everything around Semiconductors & AI
Conclusion
The chiplet semiconductor value chain spans a complex ecosystem of designers, manufacturers, and suppliers working together to deliver modular, customizable chips.
As chiplets reshape semiconductor design, companies that understand this value chain position themselves at the forefront of innovation.
Contact @Techovedas for guidance and expertise in Semiconductor domain
