Chiplets and modular chips: how modular semiconductor design is reshaping hardware

Semiconductor design is moving from monolithic chips to modular building blocks. Chiplets—small, specialized die packaged together to form a single logical system—are unlocking new ways to improve performance, reduce cost, and accelerate feature development across data center, mobile, and edge devices.

What chiplets bring to the table
– Cost and yield efficiency: Smaller dies have higher manufacturing yields. Splitting a large system into multiple chiplets lets manufacturers mix advanced process nodes for compute-intensive functions with mature nodes for I/O, reducing overall cost.
– Heterogeneous integration: Different functions (CPU cores, graphics, networking, memory controllers, specialized accelerators) can be implemented on the most suitable process and then integrated. This enables tailored systems without re-spinning an entire large die.
– Faster time-to-market: Designers can iterate on individual chiplets independently, swapping or upgrading components without redesigning the whole package.
– Supply-chain flexibility: Companies can source chiplets from multiple foundries and IP partners, reducing risk and enabling specialization.

Packaging technologies enabling chiplets
Advanced packaging is the bridge that turns chiplets into seamless systems. Techniques like high-density interposers, embedded bridges, and stacked die approaches provide the high-bandwidth, low-latency connections needed between chiplets.

Open standards for interconnects are gaining traction to ensure interoperability and scale across vendors.

Key challenges to address
– Thermal management: Packing high-power chiplets in close proximity raises thermal density.

Efficient heat spreading and thermal-aware floorplanning become critical to maintain performance and reliability.
– Latency and bandwidth: Inter-chiplet communication must approach on-die levels for latency-sensitive workloads. Packaging and interconnect choices heavily influence system performance.
– Testing and yield analysis: Chiplet assemblies complicate testing flows.

New test methodologies and design-for-test strategies are needed to isolate failures and maximize usable yields.
– Security and IP protection: Distributed IP across multiple suppliers demands robust trust models, secure boot, and hardware-level attestation to prevent tampering and cloning.
– Ecosystem maturity: Design tools, verification flows, and supply-chain coordination are still evolving to support complex multi-die systems at scale.

Practical advice for product teams
– Embrace standards: Where possible, adopt industry interconnect standards to simplify sourcing and enable a broader ecosystem of compatible chiplets.
– Design for partitioning: Identify components that benefit most from separate process nodes—high-performance compute, memory stacks, and analog I/O are typical candidates.
– Prioritize thermal and power early: Simulate thermal profiles and power delivery networks at the package level during architectural exploration, not as an afterthought.
– Plan test and validation flows: Invest in design-for-test features and partner with packaging houses that offer robust testing and repair capabilities to maximize yield.
– Consider hybrid architectures: Use chiplets alongside a small monolithic die for critical low-latency paths if absolute on-die performance is required.

Why it matters
Modular semiconductor design lowers barriers to innovation by letting companies combine the best process technology for each function. For industries facing rapid change—cloud infrastructure, mobile computing, networking, and specialized appliances—chiplets offer a practical path to deliver performance, customization, and cost-efficiency without the risk and expense of full monolithic designs.

As packaging technologies, interconnect standards, and design tools mature, expect chiplet-based systems to become a mainstream option for many high-performance and cost-sensitive applications, driving a more flexible and collaborative semiconductor ecosystem.