NYSE:TSM 17 June 2025 - 17 July 2025

Chiplet technology has emerged as a transformative approach to chip design, breaking large monolithic chips into multiple smaller chiplets that operate together in one package. This modular design offers key advantages over traditional system-on-chip architectures. By partitioning complex systems into specialized dies, chiplets provide greater flexibility, allow mixing of different process nodes, and improve manufacturing yield and cost-efficiency creativestrategies.com semiengineering.com. As one analysis explains, “chiplets are small, and smaller dies improve wafer yields since the chance of a defect affecting a die diminishes with size. In a monolithic SoC, a single flaw can render the entire chip unusable” creativestrategies.com. Indeed, AMD reported that using a chiplet architecture in its EPYC server processors yielded up to 70% cost reduction compared to a comparable single-die design azonano.com – a testament to how higher yields and node optimization drive down cost per chip. Beyond cost, chiplets help overcome scaling limitations. They sidestep the lithography reticle size limit, enabling construction of “virtual” larger chips by stitching multiple reticle-sized dies creativestrategies.com. High-performance processors like AMD’s Instinct MI300 use numerous chiplets to pack more transistors and functionality than a single die could creativestrategies.com. Chiplets also alleviate the “memory wall” by allowing memory dies to sit close