Flip Chip Technology Market Size Forecast to Reach $36.7 Billion by 2026

(I-BusinessNews.Com, August 05, 2021 ) The Flip Chip Technology Market is forecast to reach $36.7 billion by 2026, growing at a CAGR of 8.2% from 2021 to 2026. Flip chip is a packaging technology that interconnects the chip and substrate of a package carrier using a bump. It is also used in interconnecting semiconductor devices such as IC chips, printed circuit boards (PCBs) and microelectromechanical systems (MEMS) to external circuitry with soldier bumps to be deposited on to the chip pads.;

Flip chips mostly appear in high-volume consumer products such as computer peripherals, mobile phones, digital cameras and MP3 players. Flip chips offer a wide variety of benefits as compared to wire-bond packaging and has good electrical performance, high-speed and reliability. One of the factors positively influencing the demand for flip chip technology is the high functionality of devices such as smartphones, laptops and other portable devices.

Flip Chip Technology Market Segment Analysis – By Packaging Technology

There are three types of packaging technologies such as 2D, 2.5D and 3D integrated circuits. Three dimensional integrated circuits contain multiple layers of active devices which have the potential to enhance chip performance, functionality and semiconductor device packing density and are projected to grow at fastest rate of 10.1% through 2026. It has additional advantages over 2.5D IC such as enhanced capacity, improved performance and low power consumption. 3D integrated circuits are preferred over 2D and 2.5D due to reduced latency, high density, and greater bandwidth. Hence, 3D integrated circuit to register a highest growth in the forecast period.

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Flip Chip Technology Market Segment Analysis – By Bumping Technology

Copper pillar bumping has become more common in the past couple of years for several reasons and accounts for over 40.5% share in 2020. It is intended as a replacement to traditional solder bumping. Solder bumping is a lower cost process than copper bumping, it doesn’t allow for the density and current capacity like copper pillar bumping due to their lower resistance. Copper pillars don’t heat as much as a solder bump reducing electro migration issues which permits higher densities. Copper pillar is likely to increase in the future as a packing technology in MEMS and PCB applications. The superior resistance properties of copper allows for smaller bumping pitches and improves electrical and thermal performance on these circuits.

Flip Chip Technology Market Segment Analysis – By Geography

Asia-Pacific is expected to dominate the global flip chip market with a share of 35.8% in 2020 due to presence of major manufacturing hubs in countries like India and China which are likely to provide significant opportunities for market growth. The increasing demand for consumer electronics such as smartphones, tablets and wearable electronics like smart watches and fitness bands in the region driving the market growth. On the other hand growing disposable income, improving economic conditions are some factors contributing to market growth.

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Flip Chip Technology Market Drivers

Advancement of copper pillar and micro bumping driving the market growth

The demand for flip chip technology is currently high due to advancements in copper pillar and micro bumping metallurgy which are extensively applied in various applications like consumer electronics and mobile phones. Copper pillar bumping method supports the most advanced manufacturing techniques in the industries and it can be modified to meet new challenges. Copper pillar bump is considered as next-generation flip chip interconnect which provides advantages to meet future requirements for electronic devices. Increase in demand for mobile phones, computer and consumer applications is pushing the market growth for flip-chip technology.

Ease of integration in electronic devices

Electronic devices which use flip chip technology have been observed a high demand in the past few years. Flip chip technology is expanding with the expansion of the internet, digital camcorders, desktop computers, digital cameras, mobile phones, and other electronic consumer products. As expansion became more factors like product functionality, volume production and time to market have become a matter of critical importance. The heavy use of flip chip technology in these products is driving need for next generation which includes integration and innovation which leads to expansion of applications in various industries. Thus, ease of integration of electronic devices drive the market growth.

Flip Chip Technology Market Challenges

Huge Initial Investment

One of the challenging factor in flip chip market in huge initial investment to manufacture flip chips. The cost associated with flip chips stem from wafer fabrication vendors, substrate vendors and assembly or packaging subcontractors. The increased cost is realized at every step of the process from repassivation and redistribution at wafer fabrication to the high performance multi-layer organic build-up substrate provided by the substrate vendor. With the added costs of assembly the flip chip package becomes cost-prohibitive option. One of the challenging factors in flip chip market is huge initial investment in manufacturing the flip chips.

Flip Chip Technology Market Landscape

Product launches, acquisitions, and R&D activities are key strategies adopted by players in the flip chip market. The flip chip market is dominated by major companies such Amkor Technology, Apple Inc., Fujitsu Ltd, Intel Corporation, International Business Machines Corporation, Samsung Electronics Co. Ltd, Powertech Technology, Taiwan Semiconductor Manufacturing Co. Ltd, United Microelectronics, Palomar Technologies.

Acquisitions/Technology Launches/Partnerships

In May 2020, Three Asian companies Chang Chun Petrochemical Co. Ltd, United Integrated Services Co. Ltd and Mirle Automation Corporation announced plans to establish facilities in Arizona to supply Taiwan Semiconductor Manufacturing Co. Ltd. Forthcoming plant in Phoenix.

Key Takeaways

The demand for flip chip technology is high during the forecast period due to advancement of copper pillar and micro bumping metallurgy and its extensive application in consumer electronics and mobile phones.

Flip chips mostly appear in high-volume consumer products such as computer peripherals, mobile phones, digital cameras and MP3 players.

Flip chips offer a wide variety of benefits as compared to wire-bond packaging and has good electrical performance, high-speed and reliability.

Asia-Pacific is anticipated to dominate the global market over the forecast period due to countries like China and India are major manufacturing hubs of flip chips.

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