The Problem with Fixed-Size Chunking

Traditional chunking splits text every N characters or tokens:

• ❌ Breaks sentences mid-thought
• ❌ Separates related content
• ❌ No context awareness

Semantic chunking splits based on meaning, not length.

How Semantic Chunking Works

1. Embed each sentence using a sentence encoder
2. Calculate similarity between consecutive sentences
3. Split where similarity drops (topic change)

DEVELOPERpython
from sentence_transformers import SentenceTransformer
import numpy as np

model = SentenceTransformer('all-MiniLM-L6-v2')

def semantic_chunk(text, similarity_threshold=0.5):
    # Split into sentences
    sentences = text.split('. ')

    # Embed all sentences
    embeddings = model.encode(sentences)

    # Calculate cosine similarity between consecutive sentences
    chunks = []
    current_chunk = [sentences[0]]

    for i in range(1, len(sentences)):
        similarity = np.dot(embeddings[i-1], embeddings[i]) / (
            np.linalg.norm(embeddings[i-1]) * np.linalg.norm(embeddings[i])
        )

        if similarity < similarity_threshold:
            # Topic changed - start new chunk
            chunks.append('. '.join(current_chunk))
            current_chunk = [sentences[i]]
        else:
            current_chunk.append(sentences[i])

    # Add final chunk
    chunks.append('. '.join(current_chunk))

    return chunks

LangChain Semantic Chunking (2025)

LangChain now includes built-in semantic chunking:

DEVELOPERpython
from langchain.text_splitter import SemanticChunker
from langchain_openai.embeddings import OpenAIEmbeddings

text_splitter = SemanticChunker(
    OpenAIEmbeddings(),
    breakpoint_threshold_type="percentile",  # or "standard_deviation"
    breakpoint_threshold_amount=95
)

chunks = text_splitter.create_documents([long_text])

Advanced: Multi-Level Semantic Chunking

Combine semantic splits with size constraints:

DEVELOPERpython
def smart_semantic_chunk(text, max_chunk_size=1000, min_chunk_size=200):
    # First: semantic split
    semantic_chunks = semantic_chunk(text)

    final_chunks = []

    for chunk in semantic_chunks:
        # If chunk too large, further split
        if len(chunk) > max_chunk_size:
            # Split by paragraphs within this semantic section
            paragraphs = chunk.split('\n\n')
            sub_chunk = ""

            for para in paragraphs:
                if len(sub_chunk) + len(para) < max_chunk_size:
                    sub_chunk += para + "\n\n"
                else:
                    final_chunks.append(sub_chunk.strip())
                    sub_chunk = para + "\n\n"

            if sub_chunk:
                final_chunks.append(sub_chunk.strip())

        # If chunk too small, merge with next
        elif len(chunk) < min_chunk_size and final_chunks:
            final_chunks[-1] += "\n\n" + chunk
        else:
            final_chunks.append(chunk)

    return final_chunks

Llamaindex Semantic Splitter

DEVELOPERpython
from llama_index.node_parser import SemanticSplitterNodeParser
from llama_index.embeddings import OpenAIEmbedding

embed_model = OpenAIEmbedding()

splitter = SemanticSplitterNodeParser(
    buffer_size=1,  # Sentences to group
    breakpoint_percentile_threshold=95,
    embed_model=embed_model
)

nodes = splitter.get_nodes_from_documents(documents)

When to Use Semantic Chunking

Use semantic chunking when:

• Documents have clear topic transitions
• You need high precision retrieval
• Content is narrative or explanatory
• You can afford the compute cost

Stick to fixed-size when:

• Speed is critical
• Documents are very uniform
• Budget is limited
• Content is tabular or structured

Performance Considerations

Embedding cost:

• Semantic chunking requires embedding every sentence
• For a 10,000-word document: ~300 sentences to embed
• Consider caching embeddings

Speed comparison (November 2025):

• Fixed-size: ~1ms per document
• Semantic: ~100-500ms per document (depending on model)

Hybrid Approach: Best of Both Worlds

DEVELOPERpython
def hybrid_chunk(text, target_size=500):
    # 1. Semantic split first
    semantic_chunks = semantic_chunk(text, similarity_threshold=0.6)

    # 2. Merge small chunks, split large ones
    final_chunks = []
    buffer = ""

    for chunk in semantic_chunks:
        if len(buffer) + len(chunk) < target_size * 1.5:
            buffer += "\n\n" + chunk if buffer else chunk
        else:
            if buffer:
                final_chunks.append(buffer)
            buffer = chunk

    if buffer:
        final_chunks.append(buffer)

    return final_chunks

Evaluation

Test retrieval quality with semantic vs fixed chunking:

DEVELOPERpython
# Your test queries
queries = [
    "How does photosynthesis work?",
    "What are the benefits of exercise?"
]

# Compare retrieval accuracy
semantic_results = evaluate_chunking(semantic_chunks, queries)
fixed_results = evaluate_chunking(fixed_chunks, queries)

print(f"Semantic MRR: {semantic_results['mrr']}")
print(f"Fixed MRR: {fixed_results['mrr']}")

Semantic chunking typically improves retrieval by 15-30% but costs 100x more compute. Choose based on your accuracy/cost tradeoff.