What it is
Chiplets are individual functional blocks or components of a semiconductor device, designed to be integrated side-by-side or stacked within a single package. This modular approach allows designers to mix and match different chiplets, each optimized for specific tasks like processing, memory, or input/output. Instead of building an entire complex chip on a single large piece of silicon, chiplets enable the creation of powerful processors by assembling smaller, independently manufactured units. This method enhances design flexibility and can improve chip yield.
The rise of chiplets is a response to the increasing costs and technical challenges of manufacturing monolithic chips at advanced process nodes. By using chiplets, companies can combine components made on different process nodes or even by different foundries. This allows for more cost-effective production of high-performance processors, especially for demanding applications like AI accelerators and high-end CPUs. The industry is moving towards chiplet-based designs to overcome the physical limits of Moore's Law and extend performance gains.
Why it matters
Chiplets are a key technology driving the next generation of high-performance computing, impacting the capabilities and costs of advanced processors. Understanding them helps track innovation in the semiconductor industry.
Reviewed under editorial standardsUpdated September 26, 2026Not investment advice