Chiplet Market Expected to Rise with Edge AI and IoT Device Integration

The global chiplet market size was estimated at USD 9.06 billion in 2024 and is projected to reach USD 223.56 billion by 2033, growing at a CAGR of 43.7% from 2025 to 2033. Market momentum is being fueled by the rising demand for AI and high-performance computing (HPC) workloads, which require scalable and modular processing architectures.

The growing cost and complexity of monolithic system-on-chips (SoCs) are driving the shift toward disaggregated chiplet-based designs, which improve yields and accelerate time-to-market. At the same time, advancements in 2.5D/3D integration and advanced packaging technologies are making heterogeneous integration more practical and cost-efficient. Beyond data centers, significant opportunities are emerging in edge AI and IoT applications, where customization and power efficiency are critical. However, high design and validation costs remain a major barrier, particularly for smaller players with limited R&D capacity.

The expansion into edge AI and IoT is being driven by the need for scalable, low-latency, and energy-efficient compute solutions that can process data closer to the source. This demand is propelled by the rapid adoption of connected devices, smart sensors, and real-time analytics in automotive and industrial automation. Chiplet-based architectures enable modular, customizable integration that boosts performance while reducing development cycles. For example, in January 2025, DreamBig announced advancements in its MARS Chiplet Platform, integrating 3D HBM-stacked Chiplet Hub and Networking IO Chiplets. By partnering with Samsung Foundry and Silicon Box, DreamBig aims to deliver high-performance AI, data center, and automotive solutions with improved energy efficiency and lower latency—highlighting how chiplet platforms are enabling next-generation edge innovations.

Still, the high design and validation costs represent a critical market restraint. Development of chiplet systems often requires multi-million-dollar investments per project, alongside extensive testing and compatibility validation. These expenses increase financial risk for startups and smaller companies, slowing broader adoption despite the clear technical benefits.

Key Market Highlights:

• Asia Pacific accounted for a 40.5% share of the global chiplet market in 2024.
• China held a substantial market share in 2024.
• By processor type, the CPU chiplets segment captured the largest share at 41.2% in 2024.
• By packaging technology, the 2.5D/3D packaging segment held the largest market share in 2024.
• By end-user industry, the data center & HPC segment dominated the market in 2024.

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Market Performance:

• 2024 Market Size: USD 9.06 Billion
• 2033 Projected Market Size: USD 223.56 Billion
• CAGR (2025–2033): 43.7%
• Asia Pacific: Largest market in 2024

Prominent Companies & Market Dynamics:

Some of the leading players in the chiplet market include Advanced Micro Devices, Inc. (AMD), Intel Corporation, NVIDIA Corporation, Marvell Technology, Inc., and Broadcom Inc.

• Advanced Micro Devices, Inc. (AMD) – Founded in 1969 and headquartered in Santa Clara, California, AMD is a pioneer in chiplet-based processors for HPC, AI, and gaming. Its multi-die architecture powers EPYC server processors and Ryzen desktop CPUs, enabling higher scalability, performance-per-watt, and manufacturing flexibility.
• Intel Corporation – Established in 1968 and based in Mountain View, California, Intel is a global leader in modular chiplet integration and semiconductor manufacturing. Its portfolio spans processors, accelerators, and interconnect technologies optimized for data centers, AI, and edge devices. Intel has played a key role in open standards such as UCIe and is advancing its IDM 2.0 strategy, Intel Foundry Services, and the Chiplet Alliance to accelerate packaging innovation and cross-vendor interoperability.

Key Companies:

• Advanced Micro Devices, Inc. (AMD)
• Intel Corporation
• NVIDIA Corporation
• Marvell Technology, Inc.
• Broadcom Inc.
• Samsung Electronics Co., Ltd.
• Tenstorrent Inc.
• Amazon Web Services, Inc. (AWS)
• Alibaba Group Holding Ltd. (T-Head)
• Microsoft Corporation

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Conclusion:

The chiplet market is set for exponential growth, driven by AI, HPC, and the expansion of edge computing. While high costs and integration complexities remain challenges, advances in packaging, modularity, and cross-vendor standards are positioning chiplets as the cornerstone of next-generation semiconductor innovation.