2025 Outlook with Dr. Rui Tang of MSquare Technology

Tell us a little bit about yourself and your company. 

I am Rui Tang, co-founder and VP of MSquare Technology. With a Ph.D. in Computer Engineering from Northeastern University and a master’s degree in management science and engineering from Stanford University, I bring over 23 years of experience in the IC industry. Prior to MSquare, I served as Chief Strategy Officer and General Manager at FuriosaAI, Investment Director at BOE Venture, Staff Engineer at Apple, and Principal Engineer at Oracle.

Founded in 2021, MSquare Technology is a leading provider of integrated circuit IPs and Chiplet solutions, committed to addressing challenges in chip interconnectivity and vertical integration in the smart economy era. With offices in Shanghai, Taipei, Sydney, and San Jose, and a team of over 150 employees—80% dedicated to research and development—we aim to foster an open ecosystem platform for AI and Chiplets. Our mission is to empower innovation and growth across the IP and Chiplet industry, leveraging our extensive, cutting-edge, and cost-effective IP library to meet the diverse needs of our global clients.

What was the most exciting high point of 2024 for your company?

In June 2024, MSquare Technology reached a significant milestone with the readiness of our Chiplet product–ML100 IO Die, designed to bridge the connection between UCIe and HBM (High Bandwidth Memory). This year, we achieved successful commercial adoption of the IO Die ML100 by two leading clients, marking a major step in the product’s market validation and implementation.

As a high-bandwidth memory solution, the ML100 IO Die integrates efficient Die-to-Die interconnect IP and supports the UCIe 1.1 protocol. It delivers a maximum bandwidth of 819.2GB/s and supports data transfer rates of 6400 Mbps. This product meets the stringent requirements of AI applications for high bandwidth and low power consumption, enabling ultra-low latency interconnects between chips and high-speed data transfer. These capabilities greatly enhance the efficiency of AI model training and inference, contributing to the continued advancement of AI technologies.

In addition to the success of ML100 IO Die, we’ve expanded our product portfolio with multiple new offerings in 2024, further strengthening our position in the semiconductor industry. Our IP products have been validated by the top 5 foundries, covering over 400 process nodes from 5nm to 180nm.

What was the biggest challenge your company faced in 2024?

In 2024, the semiconductor industry faced a confluence of macroeconomic fluctuations, geopolitical tensions, technological evolution, and tightened capital flows. Many chip startups struggled to survive and were eventually eliminated in the fierce competition. However, challenges often come hand-in-hand with opportunities.

From a technical perspective, MSquare encountered unique challenges in advancing Chiplet architecture, which is regarded as the future trend of the semiconductor industry. While Chiplet technology offers the potential for higher computational performance and resource integration, it also brings several critical hurdles:

1. Complexity in Heterogeneous Architecture Disaggregation: Breaking down GPU or ASIC designs into Chiplets poses significant technical bottlenecks, as avoiding increases in area and cost while optimizing data transfer performance remains challenging.
2. Interconnect Standards and Compatibility Issues: Although the release of the UCIe standard provides a foundation for the Chiplet ecosystem, the actual implementation is hindered by compatibility issues between different vendors’ IPs. This increases the ecosystem’s closed nature and complicates product development.

These industry-wide technical challenges demand robust innovation capabilities and high execution efficiency from companies to navigate successfully.

How is your company’s work addressing this biggest challenge? 

To address these challenges, MSquare has successfully turned obstacles into opportunities for growth through three key strategies: technological breakthroughs, ecosystem collaboration, and resource focus:

1. Technological Innovation and Product Breakthroughs
   • In Chiplet architecture design, MSquare introduced its self-developed ML100 IO Die, which optimizes interconnect efficiency and power consumption during data processing. This innovation effectively overcomes bandwidth bottlenecks in multi-Chiplet collaboration.
   • To address memory bandwidth limitations and constraints in main chip design, we developed the groundbreaking M2LINK solution. This solution converts the HBM protocol to the UCIe protocol and integrates it into a standard module using RDL interposer packaging, while enabling seamless integration with the main SoC. This breakthrough delivers several technical and commercial advantages:
     • Reduces main chip and packaging costs
     • Enhances memory capacity and bandwidth performance
     • Increases design flexibility and shortens product development cycles
     • Ensures stability for high-performance computing and AI applications
2. Ecosystem Collaboration and Standards Advocacy
   • MSquare actively participates in industry collaborations to promote the adoption of UCIe standards, improving IP compatibility and openness within the Chiplet ecosystem. Through deep cooperation with customers and industry partners, we have optimized Chiplet design and production processes, lowering the technical barriers for customers adopting MSquare’s technologies.
3. Strategic Focus and Resource Optimization
   • MSquare concentrates on fast-growing market segments such as AI, high-performance computing (HPC), and data centers, channeling resources into breakthrough innovations in these areas.
   • By avoiding the inefficiencies of blind expansion, our resource allocation strategy has significantly enhanced R&D efficiency and customer delivery capabilities, further strengthening our market competitiveness.

What do you think the biggest growth area for 2025 will be, and why?

Looking ahead to 2025, the biggest growth area is expected to be the rapid expansion of AI and data centers, as AI-powered systems and devices continue to transform industries. This growth is driven by increasing demand for chips that address three core challenges in AI development: memory capacity, interconnect bandwidth, and computing performance.

As AI workloads grow more complex, there will be a surge in demand for innovative semiconductor solutions capable of meeting these evolving requirements. Additionally, the growth of AI is triggering significant changes in data center architectures, creating new opportunities for IP and Chiplet suppliers to innovate. One notable trend is the shift from traditional LPO/NPO approaches to Co-Packaged Optics (CPO) technology, which enables higher bandwidth and power efficiency. Furthermore, Optical Chiplets are gaining traction, particularly in their use within switches and in facilitating communication between XPUs and memory.

This transformative wave is reshaping the semiconductor landscape and presenting unprecedented opportunities for companies at the forefront of AI and Chiplet innovation.

How is your company’s work addressing this growth? 

MSquare is addressing the rapidly growing demands in the AI and data center industries with innovative Chiplet solutions, such as our ML100 IO Die. This product offers two flexible configurations: UCIe + HBM3 and UCIe + LPDDR. The UCIe + HBM3 solution decouples HBM from the SoC, reducing the influence of SoC temperature on HBM performance and ensuring compatibility with HBM3 chips for flexible placement. The UCIe + LPDDR solution decouples the Memory PHY from the SoC, increasing memory capacity and offering integration options that accelerate product upgrades.

The ML100 IO Die is built on the UCIe 1.1 Specification, enabling ultra-high bandwidth of up to 1 TB/s with ultra-low latency. This architecture ensures seamless communication between dies, while the integrated HBM3 IP supports transfer rates of up to 6400 Mbps. These technologies provide high flexibility and scalability, empowering customers to overcome performance bottlenecks in AI workloads and data center applications.

To further support the adoption of Chiplet designs, MSquare is continuously developing high-speed interface IPs, including UCIe, HBM, and LPDDR, while collaborating with ecosystem partners in packaging and manufacturing. This approach not only ensures seamless integration but also accelerates solution implementation for customers. With these advancements, MSquare is well-positioned to lead the industry and drive innovation in next-generation AI and data center technologies.

What conferences did you attend in 2024 and how was the traffic?

In 2024, we participated in several prominent conferences across the globe, including:

• IIC 2024, Shanghai
• AI Hardware & Edge AI Summit 2024, San Jose
• SemiBAY, Shenzhen
• EE Tech Summit, Taipei
• ICCAD-Expo 2024, Shanghai

Traffic at these events varied. ICCAD-Expo 2024, for example, exceeded expectations with over 6,700 attendees, highlighting the strong interest in advanced chip design. Similarly, AI-focused events like the AI Hardware & Edge AI Summit saw significant year-on-year growth in attendance, reflecting the increasing momentum in artificial intelligence and edge computing sectors.

On the other hand, events such as SemiBAY and EE Tech Summit had moderate but steady traffic, providing valuable opportunities for targeted networking and discussions in more traditional semiconductor and electronics domains.

Overall, the increased attendance at AI and chip design conferences aligns with the industry’s shift toward intelligent computing and advanced architectures, reinforcing our focus on these high-growth areas.

Will you attend conferences in 2025? Same or more?

Yes, we plan to attend conferences in 2025, and the number will likely increase compared to 2024. Based on the positive outcomes and valuable connections we gained from this year’s events, we aim to expand our presence at both existing and new conferences.

In particular, we will focus on attending events in high-growth areas such as artificial intelligence and Chiplet, aligning with industry trends and our strategic priorities. AI-related conferences, which have seen a rise in attendance and engagement, will remain a key focus for us.

Additionally, we are exploring opportunities to participate in more global forums to strengthen our international visibility. By attending a broader range of conferences, we aim to stay at the forefront of emerging technologies and continue fostering partnerships that drive innovation.

How do customers engage with your company?

Customers engage with us through multiple channels, ensuring a seamless and collaborative experience throughout their journey:

1. Direct Collaboration:
   We work closely with customers through direct consultations to understand their needs, provide tailored IP solutions, and assist in their chiplet design and integration efforts. Our technical team actively supports their development process to ensure smooth implementation.
2. Conferences and Industry Events:
   Conferences such as IIC, ICCAD-Expo, and AI Hardware Edge AI Summit serve as key touchpoints where customers can engage with us in person. These events allow us to showcase our latest products, demonstrate use cases, and discuss collaborative opportunities face-to-face.
3. Digital Channels:
   Many customers reach out to us through our website, online webinars, and social media platforms. These channels provide accessible ways for customers to learn about our offerings, request product demos, and initiate discussions.
4. Long-Term Partnerships:
   For our strategic partners, engagement is often a continuous, multi-phase process. We work as an extension of their teams, offering co-development opportunities and customized solutions aligned with their roadmaps.

By offering diverse engagement methods, we ensure that customers have the flexibility to interact with us in ways that best suit their needs, ultimately building strong, long-term relationships.

Additional questions or final comments? 

As we look ahead to 2025, we’re excited about the continued opportunities in Chiplet, AI, and high-performance computing. Our team is focused on pushing the boundaries of innovation while maintaining strong customer relationships. If there are any specific questions regarding our products or upcoming developments, we’d be happy to discuss them further.

We appreciate your interest in our company, and we look forward to exploring new ways to collaborate and contribute to the advancement of the semiconductor industry in the years to come. Feel free to reach out anytime!

Also Read:

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Harnessing Modular Vector Processing for Scalable, Power-Efficient AI Acceleration

2025 Outlook with Paul Wells of sureCore

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