Flip Chip Market size is estimated to surpass USD 50 Billion by the end of 2036, growing at a CAGR of about 7% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of flip clips was USD 28 Billion. The major element that influences the market expansion is the growing demand for vehicles. In 2022, there were over 9 million electric cars sold globally; this year, sales are predicted to increase by another 34% to close to 13 million. Therefore, the market revenue for the flip chip is also growing.
Furthermore, there has been a rising need to reduce the power consumption which is expected to be achieved through flip chips. For instance, excellent heat-dissipation and energy-saving features are additional features of flip-chip COB. The flip-chip's power consumption may be lowered by over 44% within the same brightness circumstances, and its screen surface temperature is about 9% lower than that of other screens, enabling it to better ensure the consistent operation of LED display panels. Its increased service life is attributed to its ultra-high protection, shock resistance, impact resistance, waterproof, dustproof, smoke prevention, and anti-static properties. Hence, further with the growing demand for LED lights, the flip chip market is expected to grow significantly.
Growth Drivers
Challenges
Base Year |
2023 |
Forecast Year |
2024-2036 |
CAGR |
~7% |
Base Year Market Size (2023) |
~ USD 28 Billion |
Forecast Year Market Size (2036) |
~ USD 50 Billion |
Regional Scope |
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Wafer Bumping Process (Copper Pillar, Tin-Lead Eutectic Solder, Lead Free Solder, Gold Stud Bumping)
The copper pillar segment in the flip chip market is anticipated to gather the highest revenue share of about 40% over the coming years. Cu Pillar is a fine pitch bumping technology for flip chips that is reasonably priced. Copper pillars are an excellent option for interconnecting devices including transceivers, embedded CPUs, baseband, power management, ASICs, and SOCs owing to their advancements in technology. Additionally, since this technology has a higher current density and is less expensive than alternatives such as gold bumping, corporations have been integrating it into their goods. The primary factors driving the demand for copper pillar bumping technology are its superior longevity, convenient availability, good circuit performance, and cheaper cost as compared to alternative bumping technologies. Additionally, it is believed that the benefits of this technology—such as less bump pitch and the ability to maintain standoff with less pitch—will present prospects for market expansion shortly. Furthermore, the growing demand for tablets is also estimated to boost the segment growth. In 2023, almost 127 million tablets were supplied globally; in the last quarter of the year, shipments topped over 35 million devices.
Packaging Technology (2D IC, 2.5D IC, 3D IC)
The 2.5D IC segment in the flip chip market is projected to capture the highest revenue share of about 50% in the coming years. In the 2.5D IC packaging technique, a silicon interposer substrate (passive or active) is inserted between the SiP substrate and the dice, enabling considerably finer die-to-die connections that boost efficiency and lower power expenses. International adoption of 2.5D IC flip chips is primarily driven by its reduced size in comparison to other packaging technologies, improved performance, increased capacity to pack more chips, and higher efficiency. In addition, there should be significant market expansion potential associated with a rise in the production of through-silicon via (TSV). This might be related to the fact that TSV is frequently employed to boost market expansion by producing 3D integrated circuits and packages.
Our in-depth analysis of the global market includes the following segments:
Wafer Bumping Process |
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Packaging Technology |
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Product |
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Packaging Type |
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Application |
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APAC Market Forecast
The Asia Pacific flip chip market is poised to generate the highest revenue share of 30% during the forecast period. This growth is set to be influenced by the rising number of the semiconductor industry in this region. Additionally, this region also consists of key manufacturers in the field of flip chips. Moreover, the production of automobiles such as self-driving cars and electric vehicles. is surging in this region. Hence, the adoption of flip chips in autonomous cars is surging further booting market growth. Furthermore, various initiatives have been launched by the government to encourage the sale of electric vehicles which is also projected to encourage market growth.
North American Market Analysis
The North American flip chip market is also estimated to have notable growth during the forecast period. This growth could be owing to rising demand for wearables. In the US, over 39% of survey people between the ages of 35 and 54 in 2021 reported using wearable technology, such as activity trackers and smartwatches. Also, the use of flip chips is growing in healthcare applications owing to the growing investment in advancing healthcare technology in this region. Therefore, the market growth in this region is set to experience growth.
Author Credits: Abhishek Verma, Hetal Singh
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