Navigating the future of semiconductors: The critical role of IP management in advancing chiplet technology

As technology evolves, industries are seeking more efficient, high-performance semiconductor solutions to power the next generation of intelligent and connected systems. Chiplet technology is emerging as a breakthrough innovation, offering modular, scalable, and cost-effective designs that enhance functionality while improving energy efficiency. Its growing adoption spans multiple sectors, particularly automotive and HVAC, where advanced computing, real-time processing, and seamless integration are becoming essential.

A chiplet is a small integrated circuit (IC) designed with a specific set of functions. Its aim is to integrate smoothly with other chiplets on an interposer within a single package.

The automotive industry is embracing chiplet technology to power AI-driven software-defined vehicles (SDVs), advanced driver assistance systems (ADAS), and electrification. In HVAC, chiplets enable smart climate control, multi-sensor integration, and efficient energy management. However, their adoption depends on robust intellectual property (IP) management to address challenges like standardization, validation, and supply chain complexity, ensuring seamless integration and innovation protection.

This article explores the multifaceted world of chiplet technology, highlighting its applications in both automotive and HVAC industries. It also examines implementation challenges, innovative solutions, and the intellectual property landscape, with insights into key patent trends and contributors shaping the future of this technology.

Understanding Chiplet Technology

A chiplet is a small integrated circuit (IC) designed with a specific set of functions. Its aim is to integrate smoothly with other chiplets on an interposer within a single package. The core idea of chiplet technology is to break down a System-on-Chip (SoC) into its basic functional components. Complex-function chips can be divided into chiplets that provide unique functions, such as computation processors, graphics units, AI accelerators, I/O functions, and many other chip functions.

Read more: Chip up: Will India be able to gain a large footing in the global semiconductor market?

Chiplets can be integrated to form a system, much like a System-on-Chip (SoC), structured in a module. In the future, the vision is for interoperable, mix-and-match components from different vendors. The configuration of chiplets is a flexible ‘Lego-like’ assembly that offers several advantages over traditional System-on-Chip (SoC) designs:

• Reusable Intellectual Property (IP): the same chiplet can be used in multiple devices.
• Heterogeneous Integration: Chiplets can be produced with different processes, materials, and technological nodes, each designed for their particular purpose.
• Known Good Die: Chiplets can be tested before assembling. This, therefore, helps increase the overall yield of the final product.

Chiplets are revolutionizing the design of System-on-Chip (SoC) by providing a higher degree of diversity and modular structure. They allow designers to leverage the benefits of several technologies and domains, such as logic, memory, analog, RF, and photonics, to create electronics that are high-performance and low-power.

This innovation introduces a new framework for design automation. Chiplets can be chosen, combined, and fine-tuned to produce highly customizable Systems-on-Chip (SoCs) that fulfil specific design goals and limitations.

Why Chiplets?

Moore’s Law, proposed by Gordon Moore in 1965, states that the number of transistors on a microchip doubles approximately every two years, leading to significant increases in computing power and reductions in cost. However, as physical limitations like heat dissipation and quantum effects emerge, traditional scaling techniques face challenges, prompting the industry to seek alternative architectures for continued performance improvements.

Chiplets allow manufacturers to combine multiple smaller, task-specific chips into a single package. This modular approach provides design flexibility, enabling the mixing and matching of chiplets for customized solutions. By utilizing existing manufacturing processes, chiplets help address some challenges of Moore’s Law, supporting innovation in performance and efficiency while bypassing size constraints.

Advantages of Chiplet Technology

• Performance and Power Optimization: Chiplets can be custom-designed for specific functions, and their placement in close proximity to one another helps reduce latency. This approach enhances both system performance and power efficiency.
• Reduced Manufacturing Cost: Chiplets are designed in a modular manner, i.e., various chiplets can be chosen as per requirements. Thus, it reduces overall costs and improves the performance-to-cost ratio.
• Flexibility and Scalability: Chiplets enable easy modifications to SoC functionality, allowing independent updates and replacements that accelerate innovation.

Chiplet Technology in Action

According to research, the chiplet industry is projected to grow from USD 6.5 billion in 2023 to USD 148.0 billion by 2028, reflecting a Compound Annual Growth Rate (CAGR) of 86.7%. The growth of the chiplet industry is driven by adoption of advanced packaging technologies, and proliferation of data centers worldwide.

Chiplet technology is transforming the semiconductor industry by facilitating modular designs that improve performance, efficiency, and adaptability. By deconstructing intricate chip architectures into smaller, specialized components, chiplets can be tailored for various applications across multiple sectors.

Here’s a closer look at the influence of chiplets on important fields such as consumer electronics, data centers, automotive, telecommunications, and artificial intelligence (AI).

1.     Consumer Electronics

Chiplet technology is reshaping consumer electronics by enabling rapid advancements. Devices such as smartphones, tablets, wearables, and smart home gadgets require powerful components that deliver advanced features while remaining compact. Chiplets enable manufacturers to create highly tailored solutions for specific devices. For example, a smartphone might use specialized chiplets for processing, graphics, and connectivity, enhancing overall performance while keeping the device sleek and lightweight. The modular design of chiplets also helps lower manufacturing costs. By reusing existing designs and improving production processes, manufacturers can cut down on material and labor expenses. This is crucial in the highly competitive consumer electronics sector, where thin profit margins necessitate cost-effective solutions.

Additionally, chiplets accelerate product development cycles by allowing manufacturers to upgrade individual components rather than redesign entire devices. For example, a smartphone maker can improve AI-driven features such as voice recognition and real-time photo enhancement by integrating a new AI processing chiplet. Similarly, gaming consoles can achieve better graphics performance simply by replacing the GPU chiplet, extending the device’s longevity and keeping pace with evolving user expectations.

As technologies like 5G and IoT continue to expand, chiplets provide the flexibility needed to integrate new features without extensive redesign efforts, ensuring that consumer devices remain innovative and future-ready.

2.     Data Centers

Data centers are the backbone of modern computing, supporting cloud services, big data analysis, and enterprise applications. The use of chiplet technology is increasing to meet the demands of high-performance computing environments. Chiplets can be tailored to handle specific tasks, such as processing, memory, and input/output functions, allowing data centers to optimize performance based on workload requirements. This flexibility is essential, as different applications necessitate varying resource distributions. By employing chiplets designed for specific roles, data centers can achieve significant energy savings.

Energy efficiency is a key concern as data processing demands rise. Chiplets help reduce power consumption by enabling task-specific optimizations, lowering operational costs. Their modular nature also simplifies upgrades—new chiplets can be integrated seamlessly without overhauling entire systems.

Reliability is another advantage. Unlike traditional monolithic designs, where a single failure can disrupt the entire system, chiplet-based architectures ensure continued operation. If one chiplet malfunctions, performance may degrade slightly, but the system remains functional, enhancing overall resilience.

3.     HVAC

Chiplet technology has the potential to transform the HVAC industry by leveraging modularity, efficiency, and advanced integration. Key applications include:

• Smart Climate Control: Due to their high processing capability, chiplets can enable the integration of Artificial Intelligence and Machine Learning based optimized heating and cooling operation. Additionally, certain IoT functions such as remote operation and diagnostics, wireless communication, or internet-based functions etc.
• Multi Sensor Integration: Dedicated chiplet modules can be used for integrating an array of sensors each performing a different function. For example, sensors such as temperature sensors, humidity sensors, air quality sensors, fire sensors, infrared sensors, or PIR sensors etc. can be used simultaneously to enhance the HVAC system.
• Improved Operation: Chiplets allow for precise actuation of components such as compressors, valves, and actuators with reduced latency.
• Flexibility: Modularity offered by chiplets allows for addition or removal of specific chiplet modules without redesigning the entire system, this can make the system flexible and future proof.
• Power Efficiency: Chiplets enable on device processing, and task specific optimized chiplets can not only reduce costs but also reduce power consumption. Additionally, this helps reduce carbon footprint of the entire system.

4.     Automotive

The automotive industry is undergoing a significant transformation with the rise of electric vehicles (EVs) and advancements in autonomous driving technologies. Chiplet technology is crucial in tackling the complexities that come with modern cars. Today’s vehicles require advanced computing for various functions, including navigation, infotainment, safety, and driver assistance systems. Chiplets enable the integration of these different functionalities into a single package, which helps reduce weight and optimize space. They can be designed with built-in redundancy and fail-safes, which are vital for safety-critical systems in vehicles. This level of reliability is essential for applications like collision avoidance and automated driving, where any failure could have profound consequences.

By utilizing modular designs, automotive manufacturers can cut production costs and improve supply chain efficiency. This flexibility allows them to adapt to changing regulatory demands and consumer preferences without incurring significant expenses. As the interest in EVs and autonomous technologies grows, the future of chiplet technology will facilitate the development of specialized chips that meet the unique requirements of these vehicles, such as battery management systems and real-time navigation data processing.

5.     Telecommunications

The telecommunications industry is rapidly evolving with the rollout of 5G technology and the growing demand for enhanced connectivity. Chiplets are playing a pivotal role in enabling the advanced capabilities required for next-generation networks. Chiplet designs can support multiple communication protocols and frequencies, enabling faster data transmission speeds and increased bandwidth. This capability is essential for meeting the demands of 5G and beyond.

Telecommunications providers can customize chiplet architectures to meet specific network requirements, ensuring optimal performance across various environments. This flexibility is particularly valuable as network conditions can vary widely. As technology evolves, telecommunications companies can upgrade specific chiplets without needing to replace entire systems. This modular approach allows for smoother transitions to new standards and reduces downtime. Chiplets facilitate the deployment of edge computing solutions, which are increasingly important for reducing latency and improving response times in communication networks. This capability is critical for applications like autonomous vehicles and smart cities.

6.     Artificial Intelligence & Machine Learning

Artificial intelligence and machine learning are driving demand for specialized hardware capable of handling complex computations and massive datasets. Chiplet technology is uniquely suited for these needs, offering dedicated chiplets for neural network processing, image recognition, and real-time data analysis—delivering superior performance over traditional monolithic chips.

As AI workloads grow, chiplets provide a scalable solution, allowing processing power to be increased by simply adding more chiplets. This modular approach enhances adaptability to evolving computational demands while improving resource management and power efficiency—key concerns in AI applications where energy consumption is critical.

Additionally, chiplets foster innovation by enabling researchers and developers to experiment with new architectures and configurations without the limitations of conventional chip designs. This flexibility accelerates AI hardware advancements, paving the way for more efficient and powerful intelligent systems.

Intellectual Property Landscape of Chiplet Technology

IP management plays a crucial role in fostering creativity and maintaining competitiveness in chiplet technology. By protecting inventions and innovations, it attracts investment in research and development, driving technological progress.

The intellectual property landscape for chiplet technology is evolving rapidly, with a significant rise in patent applications in recent years. Leading corporations and research institutions are actively filing patents to secure their innovations, highlighting growing interest and investment in this field.

As a key enabler of high-performance computing (HPC), chiplet technology has seen a sharp increase in patent filings from 2019 to 2022. This trend signals strong future growth in the integrated circuits (ICs) sector.

Figure 1: Patent Filing Trend in Chiplet Technology

Note: Data from 2023 onwards is provisional, considering the 18-month window from the filing date to publication. Some patent applications filed in 2023 and 2024 may not yet be published.

Key Players Holding Chiplet Patents

Leading companies such as Intel, Micron Technology, Advanced Micro Devices, Global OLED Technology, IBM, Qualcomm, and Samsung Electronics are at the forefront of chiplet technology. Additionally, key players like Apple, Taiwan Semiconductor Manufacturing, Xerox, ATI Technologies, and Cambridge Display Technology are also making significant contributions to this evolving field.

Figure 2: Key Players in Chiplet Technology

Key Research Hubs

In the rapidly advancing field of chiplet technology, the United States leads the way in development, closely followed by China. Other countries making significant strides include Germany, South Korea, the United Kingdom, Japan, and Taiwan, all of which have made notable contributions to the evolution of this technology.

Notably, there are 19 WIPO applications, meaning that applicants are actively leveraging the Patent Cooperation Treaty (PCT) to secure international protection. This not only reflects confidence in the innovation but also highlights a strategic intent to tap into global markets and safeguard intellectual property across multiple jurisdictions.

Figure 3: Key Research Hubs in Chiplet Technology

Earliest Filing Trend of Key Players (2020-2024)

The evolution of chiplet technology over the years has been marked by substantial patent filings from leading assignees. The table below illustrates the annual distribution of patent families filed by major players in the field.

Intel stands out as a frontrunner, frequently leading the rankings with significant filings, especially in the years 2021 and 2022.

EARLIEST FILING YEAR	2020	2021	2022	2023	2024
INTEL	18	17	36	12	5
MICRON TECHNOLOGY	41	4	2	0	0
ADVANCED MICRO DEVICES	5	12	11	8	1
GLOBAL OLED TECHNOLOGY	0	0	0	0	0
IBM	2	0	2	4	0
QUALCOMM	1	5	11	10	0
SAMSUNG ELECTRONICS	1	4	5	6	4
APPLE	2	2	6	3	1
TAIWAN SEMICONDUCTOR MANUFACTURING	3	5	5	3	0
XEROX	1	0	4	2	0

Figure 4: Filing Trend of Key Players Over Years in Chiplet Technology

Global Filing Trend of Key Players

In the global landscape of chiplet technology, the geographical distribution of filings reveals strategic insights into where innovation originates and seeks protection. Specifically, the table below highlights the primary assignees and their corresponding earliest priority countries for patent filings.

The majority of earliest priority filings originate in the United States, underscoring its dominance as the leading jurisdiction for chiplet technology innovation. This highlights a U.S.-centric innovation landscape, with limited diversification into other markets. While Samsung maintains a strong presence in South Korea, most major players prioritize securing patents in the United States, solidifying its status as the central hub for chiplet R&D and patent protection.

EARLIEST PRIORITY COUNTRY	US	CN	DE	KR	GB	JP	TW	WO	EP	IN
INTEL	101	0	0	0	0	0	0	5	0	4
MICRON TECHNOLOGY	48	0	0	0	0	0	0	0	0	0
ADVANCED MICRO DEVICES	43	0	0	0	0	0	0	0	0	0
GLOBAL OLED TECHNOLOGY	36	0	0	0	0	0	0	0	1	0
IBM	34	0	0	0	0	0	0	0	0	0
QUALCOMM	26	0	0	0	0	0	0	1	0	0
SAMSUNG ELECTRONICS	1	1	0	22	0	0	0	0	0	0
APPLE	18	0	0	0	0	0	0	0	0	0
TAIWAN SEMICONDUCTOR MANUFACTURING	16	0	0	0	0	0	2	0	0	0
XEROX	18	0	0	0	0	0	0	0	0	0

Figure 5: Key Players and their Origin of Patent Filings in Chiplet Technology

Top International Patent Classifications (IPCs)

The chart below shows the distribution of chiplet technology domain patents by IPC classification. The main IPC classes cited are:

• H01L-025/065: Semiconductors and solid-state devices (~ 192 patents)
• G06F-013/42: Bus Transfer Protocol. (~ 72 patents)

These classifications highlight the primary technological areas. The number of patents in each class is higher compared to total no. of patents in the portfolio, as one patent reference may cite more than one IPC main or sub-class.

Figure 6: Top IPC Classes in Chiplet Technology

Legal Status of Patent Families

The legal status of patent families in chiplet technology reflects the growing interest and ongoing developments in this field:

• Granted Patents: Around 44% of filings have secured patent protection, indicating a solid foundation of established innovations.
• Pending Patents: Approximately 35% of applications are still under review, highlighting continued advancements and emerging technologies.

Figure 7: Legal Status of Patent Families in Chiplet Technology

Intellectual Property Landscape of Chiplet Technology in the Automotive Sector

Chiplets are enhancing performance and reducing complexity in the automotive sector, driving the demand for high-performance chips. These innovations are crucial for integrating advanced features like autonomous driving, making vehicles safer, more efficient, and more enjoyable for consumers. As the industry progresses, the importance of chiplets will continue to grow, offering flexibility to meet diverse market needs and shaping a promising future for the sector.

The adoption of chiplet technology has been fueled by the rise of electric vehicles (EVs) and connected vehicles, which require rapid data processing, enhanced sensor fusion, and superior communication capabilities to improve vehicle performance. For instance, Renesas has announced plans to integrate chiplets into its next generation of automotive Systems-on-Chip (SoCs), reflecting the growing acceptance of this technology.

Between 2018 and 2022, the surge in chiplet-related patent filings was driven by these advancements. As the adoption of chiplets continues to grow, effective intellectual property management has become increasingly essential to keep up with the rising number of patent applications within the automotive industry.

Figure 8: Patent Filing Trend in Chiplet Technology in Automotive Sector

Note: Data from 2023 onwards is provisional, considering the 18-month window from the filing date to publication. Some patent applications filed in 2023 and 2024 may not yet be published.

Key Players Holding Chiplet Patents in Automotive Sector

Leading companies like Intel, Qualcomm, and Mercedes-Benz Group are at the forefront of integrating chiplet technology into the automotive industry. Alongside them, innovators such as Micron Technology, Altera, Applied Materials, and Advanced Micro Devices are also playing key roles in advancing this cutting-edge technology.

Figure 9: Key Players in Chiplet Technology in Automotive Sector

Intellectual Property Landscape of Chiplet Technology in the HVAC Sector

Since 2019, patent applications for chiplet technology in the HVAC industry have been on the rise. The modularity, efficiency, and advanced integration of chiplets make them well-suited for the industry’s evolving computing needs. As innovation accelerates, effective intellectual property management becomes crucial to safeguarding advancements and maintaining a competitive edge.

Figure 10: Patent Filing Trend in Chiplet Technology in HVAC Sector

Note: Data from 2023 onwards is provisional, considering the 18-month window from the filing date to publication. Some patent applications filed in 2023 and 2024 may not yet be published.

Key Players Holding Chiplet Patents in HVAC Sector

Leading companies like Micron Technology, Intel, and Mercedes-Benz Group are making significant strides in chiplet technology within the HVAC industry. In addition, major players such as Xerox, IBM, and Applied Materials are also contributing to advancements in this field.

Figure 11: Key Players in Chiplet Technology in HVAC Sector

Challenges in Chiplet Technology and Proposed Solutions

1.     Product Development

Organizations must update their product lifecycle management strategies to reduce the time from product definition to manufacturing ramp while maintaining stable headcount and costs. To manage the many variations, combinations, and specifications enabled by chiplets, product development teams need creative tools and collaborative approaches to effectively work across engineering disciplines, supply chain, and fab/OSAT partners.

Managing concurrent engineering effectively in the face of increasing data—like Bill of Materials, simulations, and design files—is essential. It’s important to invest in automating workflows and managing data to achieve necessary cost and staffing goals. At the same time, existing cost models must evolve to incorporate chiplet selections in design and decisions about manufacturing partners.

2.     Engineering

Chiplets enable the integration of IP blocks from multiple vendors into one packaged solution. To effectively combine functional blocks from different manufacturers, standardized interfaces are crucial. System designers can choose from various industry standards for die-to-die interconnects, including Intel’s AIB and MDIO, along with TSMC’s LIPINCON. Furthermore, there are active initiatives to create open-source alternatives such as UCIe and BoW.

Leading industry experts are developing innovative solutions like UCIe (Universal Chiplet Interconnect Express) to accelerate the advancement of chiplet architecture. At the same time, the adoption of chiplets will necessitate new system pathfinding techniques to improve manufacturing processes. Improved electronic design automation (EDA) and simulation tools will be essential for accurately modeling new chiplet designs and manufacturing possibilities.

3.     Validation and Testing

The integration of chiplets presents ongoing challenges due to the absence of fully established industry standards, which can impact yield. To effectively tackle these issues, it will be crucial to synchronize system and product roadmaps across various generations. The conventional qualification methods employed by IDMs and OSATs, which evaluate each chiplet based on its operating specifications both individually and in the final assembly with all potential chiplet combinations, will necessitate a much larger investment in validation and qualification resources. This is essential because chiplets must be assessed for multiple factors, including observability, testability, debuggability, reliability, and vulnerability.

Companies should adopt a ‘shift-left’ strategy, conducting tests early and often to identify problems as soon as possible during the development cycle. Furthermore, incremental software modules will need to be developed to create and validate the package architecture and design.

4.     Planning Process

Managing a supply chain that includes 5, 10, 20, or even 40 types of chiplets, along with the necessary materials sourced from various global locations, marks a significant departure from current industry practices. While the production of chiplet-based designs is still relatively low, companies can utilize temporary solutions. However, as production volumes increase, the resulting complexity will require the adoption of planning automation and advanced forecasting techniques.

Supply planning tools, like Advanced Planning Systems, will need to be restructured to effectively communicate production signals across a greater number of sites and adapt to changes in plans. For mid to long-term planning, businesses will need to improve their demand forecasting by feature and manage wafer starts to maintain a strong yet not excessive inventory of chiplet dies. Planning must also align with testing to implement a ‘shift-left’ strategy and ensure compatibility among chiplets, thus optimizing production and the utilization of manufactured chiplets.

5.     Procurement

For IDMs, sourcing chiplets is anticipated to involve a mix of in-house production and various external suppliers to facilitate heterogeneous integration. This will require changes to current procurement processes and procedures within companies. For example, maintaining larger safety stock levels for chiplet die banks will be crucial to ensure service levels match those of traditional monolithic chip die banks. Additionally, the use of chiplets will lead to a wide range of potential Bills of Materials (BoMs) due to the many combinations of silicon that may be needed.

Engineering and operations leaders will need to adapt their existing operational models to ensure that different chiplet die banks meet the required performance standards for products. The situation will become even more complex if some chiplets are sourced from external suppliers while others are manufactured in-house.

Final Thoughts

Chiplet technology is transforming the semiconductor industry by enabling modular, flexible, and high-performance solutions across sectors such as consumer electronics, data centers, telecommunications, and AI. By integrating specialized components efficiently, chiplets overcome the limitations of traditional monolithic designs, driving improvements in performance, cost optimization, and scalability.

However, widespread adoption depends on addressing key challenges, including standardization, validation, supply chain complexity, and intellectual property management. Robust IP strategies are crucial for protecting innovations, ensuring compatibility, and fostering collaboration among vendors. At the same time, advancements in design automation, testing methodologies, and supply chain planning will be essential to streamline development and manufacturing.

As industries push for more powerful and efficient semiconductor solutions, overcoming these challenges will be critical to realizing the full potential of chiplet technology. With continued innovation and industry-wide collaboration, chiplets are poised to shape the future of semiconductor advancements.

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