Chiplets Market to Surpass Valuation of US$ 47.19 Bn by 2031

Since stakeholders in the technology sector typically have locations around the world, companies in the chiplets market are ensuring that they continue functioning effectively during the coronavirus outbreak. Managers are setting up a crisis response team, owing to unprecedented events such as sudden rise in COVID-19 cases in the U.S. Companies are financially and operationally restructuring their business processes to reduce risk and prevent revenue loss.

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Companies in the chiplets market are reviewing costs and updating their working capital plans amid the ongoing pandemic. Stakeholders are focusing on mission-critical projects in automotive & consumer electronics and med-tech devices to ensure business continuity and continuous revenue flow. They are ensuring insurance policies and access to emergency funds to tide over uncertainties during the pandemic.

R&D Investment Gains Prominence to Overcome Issues in Semiconductor Designs

The global chiplets market is projected to expand at a CAGR of 40.9% during the forecast period. However, developers experience several issues related to putting chiplets together. Hence, companies are increasing their R&D efforts to overcome these issues. This has led to the recognition of Arteris, Inc. - a multinational technology firm that develops the on-chip interconnect fabric technology used in System-on-Chip (SoC) semiconductor designs.

Companies in the chiplets market are gaining awareness that built-in self-test (BiST) is becoming an important requirement for SoCs, which has led to the capability of self-testing for chiplets to be usable in systems.

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Chip Integration Allows Lowering Cost of Semiconductor Designs

The demand for chiplets is being driven by need for a more cost-effective solution for semiconductor designs, reuse of IP (Internet Protocol), and new test flows. Companies in the chiplets market are looking at the possibility of cost reduction when die functions such as I/O (input/output) control are split out. Since these die functions are more difficult to scale, cost reduction is being achieved by chip integration.

With chips divided into two, developers can stack the split chips to provide further cost reduction. Such findings are translating into revenue opportunities for stakeholders in the chiplets market, since chip partitioning improve time-to-market. The exponential growth of the consumer electronics sector is gaining the attention of manufacturers in the market.

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Companies Leverage Lucrative Growth Opportunities in U.S. Due to Trade Disputes
Intel Corporation - a U.S. multinational corporation and technology company, has bagged a second-phase contract with the U.S. military to help provide next-gen military tech through advanced semiconductors. Such trends are indicating the use of the chiplet technology as an economical solution for highly specific applications to make the most of semiconductor devices.

It has been found that almost 75% of the world's semiconductor devices are manufactured in Asia. Due to tensions between China and the U.S., stakeholders are taking an interest to move manufacture back to the U.S. Such trends are translating into value-grab opportunities for manufacturers in the U.S. chiplets market.

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Modern Sub Transistor Features Hold Potentials in Chiplets with Small Functional Dies
The chiplets market is expected to cross US$ 47.2 Bn by 2031. The increase in the popularity of chiplets stems from the issues faced by semiconductor manufacturers as a result of increasingly smaller transistors. Thus, chips that have incredibly small transistors need to be without any defects in the crystal structure.

Chiplets with small functional dies are being utilized with modern sub 10nm (nanometer) transistor features, which allow for powerful complex functions. The end device integrates multiple chiplets into a single package with the net result being a powerful device with a high transistor count that reduces the number of failed dies. This, in turn, reduces the final cost of the die and maximizes yield. These findings are contributing to the growth of the chiplets market.

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