Flip Chip Technology Market

Flip Chip Technology Market Outlook (2022 to 2032)

The global flip chip technology market size reached US$ 31.3 billion in 2022. Between 2022 and 2032, global flip chip technology demand will thrive at 4.3% CAGR. Overall flip chip technology sales revenue is set to reach US$ 47.6 billion by 2032.

In 2021, the worldwide market for flip technology reached a valuation of US$ 29.3 billion. Copper pillar is likely to remain the significant revenue-generating segment. As per the latest report, copper pillar segment will exhibit a CAGR of over 4.2% through 2032.

Key Market Shaping Factors:

• Rising usage of flip chip technology in consumer electronics, telecommunication, and automotive sectors will drive the global market
• Growing preference towards flip chip technology due to its various advantages will boost sales
• Increasing penetration of 5G, IoT, and other smart technologies will elevate flip chip technology demand
• Surging demand for miniaturized electronic devices will create growth prospects for the market
• Rising popularity of electric vehicles as well as portable or wearable electronic devices will support market expansion
• Growing trend of real-world gaming is likely to create prospects for flip chip technology manufacturers
• Increasing demand for sensors across various industries will stimulate market development

A method of connecting integrated circuit chips to packages and other components is known as flip chip technology. It involves interconnecting dies such as MEMS, IC chips, semiconductor devices, and integrated passive devices to external circuitry with conductive solder bumps instead of wires.

In recent years, flip chips have gained huge traction among manufacturers of cell phones and other compact electronics where size savings are crucial. Flip chip technology, also referred to as controlled collapse chip connection (C4) or direct chip attach reduces packaging size and offers excellent performance.

Development of flip chip technology has transformed semiconductor and electronics sectors. This advanced semiconductor fabrication process allows for complicated devices to be produced with higher yields and better performance. It has become an ideal replacement for wire bonding technology.

Companies are rapidly using flip hip technology as it enables them to manufacture cost-effective and high-performance electronic products with smaller sizes. By using this technology, components can be directly stacked onto one another. This allows for smaller form factors and enhanced thermal performance.

Key benefits of Flip Chip Technology:

• Better performance and reliability
• Lower packaging profile
• Excellent electrical performance
• Easier integration
• Cost savings
• Eliminates need for wires

Thanks to its various advantages over traditional semiconductor packages, the application areas of flip chip technology keep increasing. For instance, it is being used in consumer electronics sector to reduce the size and weight of devices while simultaneously improving their computing power.

This packaging technology allows companies to place a large count of contacts in small footprints, improve thermal characteristics, and increase electrical performance of their systems.

In automotive industry, flip chip technology is used in applications such as powertrain controllers and advanced driver assistance systems (ADAS). The ability of flip chip packages to handle vibrations, shocks, and high temperatures makes them suitable for use in vehicles.

Similarly, rising applications in aerospace industry will boost the global flip chip packaging market over the forecast period.

As per Persistence Market Research, growing demand for more powerful and space-saving devices will continue to make flip chip technology a go-to solution for chip manufacturers.

It is emerging as an ideal choice for miniaturing components. Rising trend of miniaturization will play a key role in fueling demand for flip chip technology during the forecast period.

Leading companies are continuously introducing new package substrates and other technologies for specific applications. For instance, in February 2023, a new substrate for connected cars was developed by Samsung Electronics.

While many of Samsung Electro-Mechanics' FCBGA were previously utilized in PCs and cell phones, the new FCBGA will be used for high-performance autonomous driving. It can accommodate conductive solder balls or 10,000 bumps that connect a chip and substrate, in an area that is similar to the width of a passport photo.

2017 to 2021 Flip Chip Technology Sales Outlook Compared to Demand Forecast from 2022 to 2032

As per Persistence Market Research, historically, from 2017 to 2021, the value of the flip chip technology market increased at 5.2% CAGR. Total market value at the end of 2021 reached about US$ 29.3 billion.

Over the next decade (2022 to 2032), global demand for flip chip technology is set to rise at 4.3% CAGR. The worldwide market for flip chip technology will create an absolute dollar opportunity of US$ 16.3 billion by 2032.

The primary drivers propelling the growth of the worldwide flip chip market are the rising demand for circuit downsizing, growing popularity of the Internet of Things (IoT), and technical breakthroughs over wire bonding.

Growing demand for sensors in the smartphone sector and the greater integration of flip chips in personal electronic devices such as PCs and mobiles will also boost the market.

Which are the Prominent Factors Spurring Growth in the Flip Chip Technology Industry?

Key factors spurring growth in the market are the increasing miniaturization and advancements in packaging technology.

There is a growing need for smaller and more densely packed semiconductor components due to the rising trend of miniaturization in electronic industry. The development of smaller and more compact chips that can be installed directly onto a printed circuit board (PCB) is made possible by flip-chip technology.

Hence, growing usage of flip chip technology for reducing size and weight of electronic devices as well as increasing their computing power will boost the global market.

The shorter interconnects between the chip and the PCB made possible by flip chip technology allow for improved electrical and thermal performance. As a result, the speed, power consumption, and reliability increase, which is crucial for many electronic applications.

Flip chip technology makes it possible to combine several functionalities into a single chip. It allows for the development of more sophisticated electronic devices with more capability. This is particularly significant for mobile applications, where functionality is essential, but space is at a premium.

The market demand for flip chip technology has expanded as a result of recent improvements in flip chip packaging technology, which have made it feasible to produce flip chip packages with lower bump pitches and finer bump sizes.

The financial benefits of flip-chip technology include lower assembly costs, fewer parts, and smaller PCB footprints. Flip chip technology is thus a desirable choice for the mass manufacture of electrical gadgets. Rising adoption of this advanced packaging technology will continue to fuel market expansion.

Which Factors are Limiting the Expansion of Flip Chip Technology Market?

The factors restraining the flip chip technology include the complexity of design and high development costs. Flip-chip technology has a complicated manufacturing process that calls for specialized equipment and knowledge, which can make production challenging and expensive.

This complexity often leads to poorer yields and greater failure rates, both of which may raise costs and impair profitability.

Flip chip technology development expenses are quite costly, especially for novel or specialized applications. Smaller businesses find it challenging to join the market or for established businesses to diversify their product offers as a result.

The flip-chip technology industry is quite competitive, and several businesses engage in research and development to advance their goods and procedures. Patent and intellectual property conflicts result from this, which hinder industry innovation and expansion.

Country-wise Insights:

How is the United States Flip Chip Technology Market Shaping?

The USA flip chip technology market progressed at a CAGR of 2.2% between 2017 and 2021. Over the next ten years, flip chip technology sales revenues will increase at 3.1% CAGR. This will steer total market valuation in the USA past US$ 7.1 billion by 2032.

Rising trend of miniaturization and growing adoption of advanced packaging technologies are key factors driving the United States flip chip packaging industry.

Heavy presence of leading flip chip technology companies is another factor boosting the USA market. Several USA-based companies are launching new packaging technologies as well as establishing new facilities.

For instance, in November 2021, a plan to expand advanced packaging technology in Vietnam was announced by Amkor Technology. The new start-of-the-art factory will initially concentrate on providing Advanced System in Package (SiP) assembly and test solutions to the manufacturing firms globally.

Why is China Becoming the Epicenter of the Flip Chip Technology Market?

When it comes to advanced packaging technologies, China leads from the forefront. The country is home to various leading industries such as electronics and semiconductors that use flip chip technology. Hence, growth of these industries will boost the China flip chip technology industry.

As per the latest report, China market will cross a valuation of US$ 12.2 billion by 2032. It will create an absolute $ growth of US$ 5.2 billion through 2032. Flip chip technology demand in the country is set to rise at a CAGR of 5.7% from 2022 to 2032.

Various strategies adopted by China-based flip chip technology providers are also contributing to the market’s development. For instance, in November 2022, FOCoS advancements were announced by ASE Group.

A new level of packaging developments, such as FOCoS-CF and FOCoS-CL, is being driven by the rising need for high density, high speed, and low latency of chip-to-chip connectivity.

By enabling chipset and multi-chip integration, which allows 2 or more chips to be fixed into a fan-out module and later assembled on a substrate, this mixed FOCoS-CL and FOCoS-CF portfolio will address the limitations of former flip-chip packages.

Category-wise Insights:

Which is the Most Commonly Used Wafer Bumping Process in Flip Chip Technology?

According to Persistence Market Research, copper pillar bumping will continue to remain the most commonly used wafer bumping process. This is due to various advantages offered by copper pillar technology.

Copper pillar bumping process provides the advantage of fine pitch as compared to other bumping processes. It has become a reliable solution to address the challenges which flip chip packages face when bump pitch size keeps shrinking.

Copper pillar bump is mostly used for various types of flip chip interconnect which offer several advantages. It is an ideal choice for applications such as power management, embedded processors, transceivers, SOCs, ASICs, etc where combination of electromigration performance, fine pitch, green compliance, and low cost are required.

Historically, from 2017 to 2021, copper pillar bumping segment exhibited a CAGR of 5%. Over the next ten years, the same segment is set to thrive at 4.2% CAGR. Hence, it will remain a key revenue-generation segment for flip chip technology companies.

Which Product Will Generate the Most Revenues in the Market?

Based on product, memory segment will generate the most revenue in the market. The memory segment progressed at a CAGR of 4.8% from 2017 to 2021. For the projection period, it is likely to expand at 4.1% CAGR.

The need for high-speed and high-density memory is rising in a variety of applications. This includes servers, cell phones, and personal PCs. Driven by this, demand for flip chip technology will rise at a significant pace.

Competitive Landscape:

Leading market players are rigorously investing in research and development to introduce novel technologies. They are also focusing on solidifying market positions by catering to newer technologies such as compact electronic devices, 5G communication, and high-performance data centers.

Recent Developments:

• In February 2021, technologies for high-density advanced package designs were introduced by Siemens and ASE. The Siemens OSAT Alliance, a program aimed at promoting quicker adoption of 3D IC, 2.5D, fan-out wafer-level packaging, and other novel HDAP technologies for next-generation IC designs, is where ASE got its start in developing the new high-density advanced packaging (HDAP) enabling solutions.
• In September 2022, a next-generation semiconductor package technology was introduced by Samsung Electro-mechanics. A highly integrated package substrate with superior thermal and electrical characteristics is the FCBGA, in which the package substrate and semiconductor chip are joined via the flip-chip approach.

Scope of the Report:

Flip Chip Technology Market Segmentation:

By Wafer Bumping Process:

• Copper Pillar
• Lead-free
• Tin/Lead Eutectic Solder
• Gold Stud+ Plated Solder

By Packaging Technology:

• 2D IC
• 2.5D IC
• 3D IC

By Product:

• Memory
• LED
• CMOS Image Sensor
• RF, Analog, Mixed Signal, and Power IC
• CPU
• SoC
• GPU

By Packaging Type:

• FC BGA
• FC PGA
• FC LGA
• FC QFN
• FC SiP
• FC CSP

By Application:

• Consumer Electronics
• Telecommunication
• Automotive
• Industrial Sector
• Medical Devices
• Smart Technologies
• Military and Aerospace

By Region:

• North America
• Latin America
• Europe
• Asia Pacific
• Middle East and Africa

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