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Global chip equipment spending hits record $36.55 billion in Q1 as AI investment grows
June 11, 2026 /SemiMedia/ — Global semiconductor equipment spending reached a record $36.55 billion in the first quarter of 2026, rising 14% from a year earlier and 1% from the previous quarter, according to the latest data from industry association SEMI. SEMI said the strong quarterly performance was driven mainly by AI-related investment, including capacity expansion and technology upgrades…
ASE unveils 310 mm panel-level packaging line for next-generation AI and HPC chips
May 29, 2026 /SemiMedia/ — ASE Technology Holding’s semiconductor packaging subsidiary ASE announced it has developed what it describes as the industry’s first automated 310 mm × 310 mm panel-level packaging (PLP) production line, with mass production scheduled to begin in the first half of 2027. The new platform represents a major step in the transition from conventional wafer-level packaging…
Amkor expands Arizona packaging plans as AMD joins advanced packaging customers
May 22, 2026 /SemiMedia/ — Amkor Technology said it is working with AMD to provide chip packaging services, further expanding its position in the growing advanced packaging market tied to AI and high-performance computing semiconductors. Earlier this week, Amkor announced it had acquired an additional 67 acres of land in Arizona adjacent to its existing 104-acre site. The company plans to build…
Government Investments Accelerating Innovation in the Chiplets Industry
Chiplets Market is benefiting from growing government investments and strategic collaborations aimed at strengthening semiconductor manufacturing capabilities worldwide. As global demand for advanced computing technologies rises, countries are increasingly prioritizing semiconductor innovation to improve technological competitiveness and reduce supply chain dependencies.
The Chiplets market was valued at USD 2,242 Million in 2023 and is projected to grow to USD 66,877 Million by 2030, registering a CAGR of 54.1% from 2025 to 2030. Governments across North America, Europe, and Asia-Pacific are launching funding programs and semiconductor initiatives to support research, manufacturing expansion, and advanced packaging technologies. Chiplet-based architectures are becoming a key focus area due to their scalability and efficiency advantages.
Public-private partnerships are playing an important role in advancing chiplet technologies. Semiconductor companies, research institutions, and government agencies are collaborating to develop standardized packaging solutions and next-generation interconnect systems. These initiatives are expected to improve interoperability between chiplets while accelerating commercialization of advanced semiconductor products.
Chiplets market opportunity continues to grow as governments increase investments in AI infrastructure and semiconductor innovation. According to the Chiplets market study, Europe is actively developing a long-term roadmap for chiplet manufacturing and advanced semiconductor research. Chiplets market insights also reveal increasing support for domestic semiconductor ecosystems and localized production capabilities.
The automotive and defense sectors are also contributing to rising chiplet demand. Advanced driver assistance systems, autonomous vehicles, and defense computing platforms require highly efficient processors capable of handling massive data workloads. Chiplet integration provides enhanced performance while reducing energy consumption and manufacturing complexity.
The future of the Chiplets industry will depend heavily on sustained investment in R&D, manufacturing infrastructure, and international collaboration. As geopolitical focus on semiconductor independence increases, chiplets are expected to become a critical technology supporting next-generation computing and communication systems.
Why is the Chiplets Market Size Exploding in the AI and Data Center Sectors?
The meteoric rise of the Chiplets market size is being fueled primarily by the insatiable appetite for compute power in the Artificial Intelligence and data center sectors. As AI models become increasingly complex, they require processors with higher core counts and massive memory bandwidth that exceed what a single monolithic die can provide. Chiplet architectures allow for the "scaling out" of processors by tile-based expansion, effectively creating massive "super-chips" that can handle trillions of operations per second. This scalability is the only way the industry can keep pace with the rapid evolution of generative AI and large language models.
In the data center, power efficiency and thermal management are the primary constraints, and chiplets offer a sophisticated solution to both. By placing high-bandwidth memory (HBM) chiplets in the same package as the processor, manufacturers can significantly reduce the distance data has to travel. This not only speeds up processing but also drastically lowers the energy consumed by data movement, which often accounts for a large portion of a chip's power budget. For hyperscale cloud providers, these efficiency gains translate directly into millions of dollars saved in cooling and electricity costs every year.
Customization is another major factor driving the volume of the chiplets market. Large tech companies are increasingly designing their own specialized silicon to gain a competitive edge in AI workloads. The chiplet model allows these firms to design a custom AI accelerator chiplet and "drop" it into a standard platform that already includes proven I/O and memory subsystems. This significantly lowers the barrier to entry for custom silicon, allowing software companies to become hardware innovators without having to design an entire complex processor from scratch.
According to Chiplets industry trends, the advancement in 2.5D and 3D packaging technologies is the technical engine behind this growth. These packaging methods allow chiplets to be stacked on top of each other or placed side-by-side on a high-density silicon interposer. This "Advanced Packaging" is now just as important as the lithography used to print the chips. As these packaging techniques become more mainstream and cost-effective, we will see chiplet-based designs move from high-end servers into premium laptops and even high-end smartphones, further expanding the total market size.
By 2030, the market valuation is expected to surpass USD 66 Billion, reflecting a CAGR of 54.1%. This growth suggests that by the end of the decade, the majority of the world's high-performance silicon will be chiplet-based. The transition is creating a new hierarchy in the semiconductor world, where the companies that master the integration and packaging of chiplets will hold as much power as those that own the foundries. The future of computing is no longer about the "single chip" but about the "system-in-package," a modular revolution that is just getting started.
Government Investments Accelerating Chiplets Industry Growth
The global Chiplets Market is witnessing unprecedented growth due to rising government investments and international semiconductor collaborations. The Chiplets market was valued at USD 2,242 Million in 2023 and is projected to grow to USD 66,877 Million by 2030, with a CAGR of 54.1% from 2025 to 2030.
Semiconductors have become strategically important for economic growth, national security, and technological competitiveness. Governments worldwide are introducing policies and funding programs to strengthen domestic chip manufacturing capabilities and reduce dependency on global supply chains.
Chiplets are emerging as a critical focus area because they enable advanced semiconductor packaging and modular processor design. Their ability to improve manufacturing efficiency and computational performance makes them highly attractive for next-generation computing applications.
The United States, Europe, China, Japan, and South Korea are heavily investing in semiconductor research, fabrication infrastructure, and workforce development. These initiatives aim to support AI computing, defense systems, automotive electronics, and telecommunications technologies.
Recent insights from Chiplets market insights indicate that collaborative industry partnerships are accelerating innovation in advanced semiconductor packaging technologies. Companies are increasingly forming strategic alliances to improve interoperability and manufacturing standardization.
One of the key advantages of chiplets is their flexibility in integrating different semiconductor technologies into a single package. This modular approach enables faster innovation cycles and lower production costs compared to traditional monolithic chip designs.
The rising demand for AI accelerators, cloud computing infrastructure, and high-performance processors is further strengthening market growth. Data center operators and cloud service providers are increasingly adopting chiplet architectures to improve energy efficiency and processing capabilities.
Supply chain resilience has also become a major priority following recent semiconductor shortages. Governments are encouraging localized semiconductor production to reduce geopolitical risks and ensure stable technology supply chains.