Flip Chip Market Size & Share, by Wafer Bumping Process (Copper Pillar, Tin-Lead Eutectic Solder, Lead Free Solder, Gold Stud Bumping); Packaging Technology (2D IC, 2.5D IC, 3D IC); Product (Memory, LED, CMOS Image Sensor, GPU, Others); Packaging Type (FC BGA, FC PGA, FC CSP, Others); Application (Consumer Electronics, Telecommunication, Automotive, Others) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2024-2036

  • Report ID: 5690
  • Published Date: Feb 20, 2024
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2024-2036

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.


Flip Chip Market
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Flip Chip Sector: Growth Drivers and Challenges

Growth Drivers

  • Surge in Popularity of IoT  -The Internet of Things (IoT) is a network composed of many interconnected items, machines, and computing devices. These devices are employed to send and receive data from any area to the central system. They are equipped with sensors that give them a unique identity. The demand for Internet of Things devices has surged as a result of the introduction of concepts including smart factories, smart manufacturing, and smart grids. There will be a greater need for IoT devices as industrialized nations integrate smart grids with their current networks. The need for sensors has grown as the market for IoT devices has expanded. IoT sensors must operate at high-performance levels in difficult circumstances due to their small size. Flip chip technology, which can miniaturize equipment and offer higher performance than traditional technologies, is being used in the Internet of Things. Therefore, flip chip architecture is used in microelectromechanical systems (MEMS) sensors, which propels the expansion of the flip chip market worldwide.
  • Growing Demand for Smartphones -There are expected to be over 5 billion smartphone users globally in 2024, a rise of 2.2% each year. Furthermore, close to 3 billion, or about 83%, more people use smartphones currently than there were in 2013, which was more than ten years ago. Flip-chip technologies have been extensively used for the CPUs of smartphones
  • Rising Technological Advancement in Wire Bounding - The improvements in flip chip connectivity technology over wire bonding technology are what is driving demand for it. ICs have to be packed into more space using wire bonding technology, and the wires use more energy. In addition, these chips are less reliable given that cables are being used to establish connections, which raises the possibility of malfunction because of lost connections. Compared to traditional wire-bond packaging, flip chips have several benefits, including increased 1/O capability, improved thermal and electrical performance, substrate flexibility for a range of performance needs, familiarity with well-established production equipment, and smaller form factors.

Challenges

  • Lack of Mechanical Strength - With flip chips, a semiconductor die is connected to a substrate by being nudged and then flipped onto it. Directly on the die input-output pads, bumps are usually arranged in an array over the whole die surface. Since the chip and circuit board are directly connected, there is less resistance and faster signal transmission due to the shorter connection. Nevertheless, due to their lack of mechanical strength and susceptibility to thermal expansion mismatch, these short-distance bumps may rupture at higher temperatures. Since the amplifier and other components are suspended above a substrate on metal bumps that serve as thermal stand-offs, another problem that arises is the effective removal and dissipation of heat. Using a low-loss substrate in conjunction with a flip-chip device and on-module EMI shielding is a popular design strategy.
  • High Price of Flip Chip
  • Lack of Enough Customization Options

Flip Chip Market: Key Insights

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

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Flip Chip Segmentation

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

  • Copper Pillar
  • Tin-Lead Eutectic Solder
  • Lead Free Solder
  • Gold Stud Bumping

          Packaging Technology

  • 2D IC
  • 2.5D IC
  • 3D IC

          Product

  • Memory
  • LED
  • CMOS Image Sensor
  • CPU
  • SoC
  • GPU

          Packaging Type

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

          Application

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

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Flip Chip Industry- Regional Synopsis

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.

Research Nester
Flip Chip Market size
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Top Featured Companies Dominating the Flip Chip Landscape

top-features-companies
    • Amkor Technology
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Phison Electronics
    • IBM Corporation
    • 3M
    • ASE Technology Holding Co., Ltd.
    • Advanced Micro Devices, Inc.
    • APPLE INC.
    • Powertech Technology Inc.
    • Stats ChipPAC Ltd
    • NepesPte Ltd

In-the-news

In The News

  • November 4, 2021: Amkor Technology, Inc., a preeminent supplier of test services and semiconductor packaging, revealed its intentions to construct a cutting-edge smart factory in Bac Ninh, Vietnam. The world's top semiconductor and electronic manufacturing businesses will receive Advanced system-in-package (SiP) assembly and test solutions from the new factory during its first phase of operation.
  • May 17, 2022: The world's first PCIe 5.0 Redriver, IC PS7101 certified by the PCI-SIG Association, is being successfully deployed by Phison Electronics Corp., a leading provider of NAND controller and NAND storage solutions integration services, to help resolve issues with high-speed signal transmission between CPU (central processing unit) and peripheral devices (such as SSD and graphics card, and more).

Author Credits:  Abhishek Verma, Hetal Singh


  • Report ID: 5690
  • Published Date: Feb 20, 2024
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

The major factors driving the growth of the market are the surge in the popularity of IoT, growing demand for smartphones, and rising technological advancement in over-wire bounding.

The market size of the flip chip is anticipated to attain a CAGR of 7% over the forecast period, i.e., 2023-2036.

The major players in the market are Amkor Technology, Phison Electronics, IBM Corporation, 3M, and others.

The 2.5D IC segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.

The market in the Asia Pacific region is projected to hold the largest market share by the end of 2036 and provide more business opportunities in the future.
Flip Chip Market Report Scope
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