Introduction: Navigating the Competitive Landscape of Multi-Chip Modules
The MCM market is going through a transformation, based on the fast adoption of new technology and the changing expectations of consumers in terms of performance and efficiency. IT vendors, systems integrators and MCM vendors are competing to be the leaders of the market, using advanced technologies such as artificial intelligence, automation and the Internet of Things. These differentiating elements not only enhance the performance of the products, but also change the value propositions, enabling companies to capture niche segments and optimize the efficiency of their processes. These new players, especially in the field of green MCM and biometrics, are changing the competitive landscape, putting the established vendors in a difficult position, forcing them to invent or die. By 2024–2025, we expect the growth to come mainly from Asia-Pacific and North America. Strategic deployment trends, changing regulations and green initiatives will set the stage for a more competitive market.
Competitive Positioning
Full-Suite Integrators
These vendors provide comprehensive solutions encompassing design, manufacturing, and assembly of multi-chip modules.
| Vendor | Competitive Edge | Solution Focus | Regional Focus |
|---|
| Celestica |
End-to-end manufacturing capabilities |
Electronics manufacturing services |
North America, Europe, Asia |
| Jabil |
Global footprint with diverse capabilities |
Integrated manufacturing solutions |
Worldwide |
| ASE Technology |
Advanced packaging technologies |
Semiconductor assembly and testing |
Asia, North America |
Specialized Technology Vendors
These vendors focus on specific technologies or components critical to multi-chip module performance.
| Vendor | Competitive Edge | Solution Focus | Regional Focus |
|---|
| Analog Devices |
High-performance analog solutions |
Signal processing and conversion |
Global |
| Infineon Technologies |
Expertise in power management |
Semiconductors for automotive and industrial |
Europe, Asia, North America |
| Rohm Semiconductor |
Innovative power solutions |
Power management ICs |
Asia, Europe |
| Texas Instruments |
Broad analog and embedded processing portfolio |
Analog and embedded solutions |
Global |
| NXP Semiconductors |
Strong automotive and IoT focus |
Secure connectivity solutions |
Global |
| ON Semiconductor |
Diverse semiconductor solutions |
Energy-efficient products |
North America, Europe, Asia |
Infrastructure & Equipment Providers
These vendors supply the necessary infrastructure and equipment for the production and assembly of multi-chip modules.
| Vendor | Competitive Edge | Solution Focus | Regional Focus |
|---|
| STMicroelectronics |
Wide range of semiconductor solutions |
Microcontrollers and sensors |
Europe, Asia, North America |
| Qualcomm |
Leadership in wireless technology |
Mobile and connectivity solutions |
Global |
| Microchip Technology |
Comprehensive microcontroller offerings |
Microcontrollers and analog products |
Global |
| Broadcom |
Strong in networking and broadband |
Semiconductors for wired and wireless |
Global |
| Intel |
Pioneering computing technologies |
Processors and chipsets |
Global |
| Amkor Technology |
Expertise in advanced packaging |
Semiconductor packaging services |
Asia, North America |
Emerging Players & Regional Champions
- Achronix (USA) – Specializes in the design and manufacture of high-performance FPGAs and multichip-modules for use in data centers. Recently it landed a contract with a major cloud service provider to enhance its data-processing capabilities. By offering superior speed and efficiency, it is taking on the big players like Intel and Xilinx.
- Sierra Circuits (US): This company, which specializes in custom multi-chip modules for the defense and space industries, recently completed a project for a major defense contractor. It complements the established players in this field with its ability to provide tailored solutions that meet the most stringent regulatory requirements.
- Sankalp Semiconductors, based in India, has a design service for multi-chip modules that target IoT applications. The company has also teamed up with a local startup to develop smart sensors.
- Sierra Wireless (Canada): Provides Multi-Chip Modules for IoT connectivity, recently launched a new product line aimed at smart city applications, challenging traditional module manufacturers by integrating advanced connectivity features.
Regional Trends: In 2023, the MCM market will experience a noticeable increase in North America and Asia-Pacific, driven by the demand for high-performance computing and IoT applications. However, the industry will also see a diversification of offerings, with companies increasingly focusing on niche markets such as aeronautics, defense and smart cities. Customization and the integration of advanced technologies such as artificial intelligence and machine learning will also become a trend.
Collaborations & M&A Movements
- Intel and ASE Group entered into a partnership to enhance the development of advanced packaging technologies for multi-chip modules, aiming to improve performance and reduce costs in semiconductor manufacturing.
- Texas Instruments acquired Analog Devices' multi-chip module division to strengthen its product portfolio and expand its market share in the high-performance analog sector.
- Samsung Electronics and Qualcomm collaborated to develop next-generation multi-chip modules that integrate 5G and AI capabilities, positioning themselves as leaders in the rapidly growing IoT market.
Competitive Summary Table
| Capability | Leading Players | Remarks |
|---|
| High-Density Packaging |
Intel, Amkor Technology |
Intel's Multi-Chip-Module (MCM) technology has been developed to support high-density packaging, enabling smaller, higher-performance form factors. Amkor has implemented a number of innovations to improve thermal management in its collaboration with leading semiconductor companies. |
| Integration of Heterogeneous Components |
ASE Group, Texas Instruments |
Asel specializes in the integration of various semiconductors in multichip modules, enabling a wide variety of functions to be combined in a single device. The success of this heterogeneous integration in multichip modules has been demonstrated by the success of Texas Instrment's MCMs in the fields of automobiles and industry. |
| Cost-Effective Manufacturing |
Jabil, STMicroelectronics |
Jabil has developed its manufacturing processes to ensure cost-effectiveness and quality. The same is true of ST, which has developed its production systems to ensure the cost-effectiveness of its MCMs, particularly for high-volume applications in the consumer market. |
| Thermal Management Solutions |
NXP Semiconductors, Infineon Technologies |
NXP has developed advanced cooling solutions for its MCMs, which are crucial for automobile applications. The new technology improves the reliability of the MCMs, even under the most demanding operating conditions. |
| Sustainability Practices |
Samsung Electronics, Broadcom |
MCM is a product of MCM and is an example of the use of eco-friendly materials and processes. Its manufacturing process is aligned with the company's commitment to reduce the company's carbon footprint by using energy-efficient production methods. |
Conclusion: Navigating the Multi-Chip Module Landscape
The market for multi-chip modules in 2023 is characterised by high competition and considerable fragmentation, with both established and new players vying for a share of the market. The trend in the geographical area of multi-chip module production is a shift towards high-tech production centres, especially in the Asia-Pacific region, where innovation and cost-efficiency are paramount. Strategically, suppliers must position themselves on the basis of their ability to use AI, automation, and sustainable and flexible production. As a rule, established players are concentrating on enhancing their existing technology, while new players are disrupting the market with agile and sustainable solutions. As the market changes, investment in these key areas must be prioritised to ensure that companies are able to maintain their market leadership and remain agile in a rapidly changing environment.
