Chiplets Take the Lead in the Silicon Race

Silicon Box’s milestone shows chiplet packaging moving mainstream as U.S. firms scale local capacity

10 Nov 2025

Singapore-based Silicon Box has shipped its 100 millionth chiplet package, marking a significant moment in the semiconductor industry’s move from traditional single-chip designs to modular architectures. The milestone highlights how advanced packaging, a process once considered secondary, is becoming central to chip innovation and production.

The transition comes as demand surges for artificial intelligence, high-performance computing and smart vehicles, all of which require faster and more efficient processors. Bloomberg Intelligence estimates that the advanced packaging market could reach $80bn by 2033, reflecting growing investment in new chip assembly methods.

For much of the past five decades, semiconductor progress was driven by shrinking transistors on a single die. Now, performance gains increasingly depend on how multiple smaller dies, known as chiplets, are connected within a single package. Industry executives say this shift has placed packaging expertise on par with front-end fabrication in determining cost, performance and power efficiency.

Silicon Box’s achievement adds momentum to wider efforts to diversify global supply chains. In the US, several advanced packaging facilities are being developed under policies designed to reduce reliance on Asian production hubs. These initiatives aim to create a more balanced ecosystem rather than to isolate regional supply networks.

For chip designers, modular architectures demand closer coordination with packaging partners. Local integration could shorten production times and improve resilience, though it also introduces challenges such as materials compatibility and standardisation of interconnect technologies like UCIe.

While the chiplet approach remains in its early stages, industry analysts see its growth as inevitable. Companies that master modular design and establish robust, geographically diverse supply chains are expected to define the next phase of semiconductor innovation.