The industry can no longer count on monolithic integration to achieve the economic gains of the previous era. New packaging solutions are being adopted to achieve the economic advantages that were previously met with silicon scaling. The role of heterogeneous integration, especially chiplets, is pivotal in this new era.

TSMC indicates that the use of chiplets will be one of the most important developments for the next 10 to 20 years. A chiplet can be created by partitioning a die into functions and is typically attached to a substrate or interposer. System-in-Package (SiP) is defined as two or more dissimilar die, typically combined with other components. SiP is a broader term that has been in production for many years. Chiplets are one type of SiP.

This report describes the drivers for growth in each segment and package types for different applications. Market projections for chiplets and SiP are provided. An analysis of the impact of the use of chiplets instead on monolithic die integration is provided. Critical material needs for packaging and assembly are identified and the roles for OSAT and foundry are discussed. Investment requirements and the supply chain for chiplets are highlighted.

A set of PowerPoint slides is included with the detailed analysis.