Flip Chip Market

Global Flip Chip Market Size (2023 to 2028)

The global flip chip market size is expected to be worth 31.37 Billion USD in 2023. It is expected to grow at a CAGR of 6.1% during the forecast period and reach a value of 42.18 Billion USD by 2028.

The flip chip, also known as controlled collapse chip connection (C4), is made up of conductive bumps placed on chip pads on the wafer's surface, followed by flipping the chip to attach semiconductor devices. Because of its multiple advantages, including cheaper cost, high packaging density, enhanced circuit reliability, and small dimensions, flip chip use has surged in the electronic industry. Flip Chip devices have a smaller footprint and perform better. Because all of the bonds form at the same time, it is less expensive than wire bonding. As a result, an increase in global demand for smart electronics is predicted to drive the global flip chip market size up throughout the forecast period.

The market for flip chips is expanding due to the increased demand for miniaturization and high performance in electronic products. Due to the requirement for low-cost packaging technologies, demand for scalable and tolerant optical interface approaches based on flip-chip bonding is increasing. As a result, the flip-chip industry is benefiting from the widespread usage of flip-chip technology in silicon packaging.

Silicon packaging is used in a range of electronic products due to its low cost, high-density packaging, and higher reliability properties. Additionally, because the approach does not involve wire joining, it enables smaller electrical device designs. As a result, the broad adoption of better packaging technology in electronics has a positive impact on the flip-chip industry's growth.

Impact of COVID-19 on the flip chip market:

The global flip chip market has grown significantly in recent years; nevertheless, the business has recently experienced a sharp decline when major electronics manufacturing companies were temporarily shut down, mostly to contain COVID-19's spread. Furthermore, the pandemic had a significant influence on the worldwide supply chain, affecting both suppliers and consumers by reducing spending in China on semiconductor-dependent products like consumer electronics, vehicles, and other items due to component, material, and finished goods shortages. Furthermore, the semiconductor sector is under pressure to change its global supply chain model, which will have a favorable impact on market growth soon.

REPORT COVERAGE:

This research report on the global flip chip market has been segmented and sub-segmented into the following categories.

Flip Chip Market – By Packaging Technology:

• 3D IC
• 2.5D IC
• 2D IC

In 2020, the 2.5D IC segment generated over $10 billion in revenue, accounting for over 35% of the market. Between 2021 and 2026, the 3D IC packaging technique is expected to grow at an annual rate of about 8%. This rapid expansion can be due to the numerous benefits that these integrated circuits provide. Reduced connector length allows for faster operation and even lower power consumption; heterogeneous integration, increased device density, and improved microelectronics cooling are just a few of the benefits.

Flip Chip Market – By Bumping Technology:

• Copper Pillar
• Solder Bumping
• Gold Bumping

The capacity to achieve finer pitches is a major driving force behind copper pillar bumping technology. This lower pitch allows for greater joint diameter control and a lower stand-off height, which improves overall electrical performance. In addition, the segment's supremacy in 2020 has been aided by decreased costs and improved durability. It contributed to just under 55% of the flip chip market, bringing in about $ 13.5 billion in revenue.

Gold bumping accounts for the second-largest share of the overall flip-chip market. Due to its high manufacturing cost, fragile construction, and intricacies involved in the bumping process, the gold bumping segment is likely to develop at a slower rate than other bumping technologies. Furthermore, the better heat dissipation of ball grid array-type flip chips makes them a good alternative in applications where smaller chips are needed and an external heat sink is not required.

In the global flip chip market, the solder-bumping technology sector has the third-highest share. This is due to the low cost of solder bumping technology as well as a significant increase in binding efficiency. The sudden demise of tin-lead eutectic solder can be linked to widespread opposition to the use of lead due to its serious environmental impact. Furthermore, despite being an outdated technology, it is still employed in the majority of flip-chip manufacture. However, due to government laws restricting the use of lead in chips due to its dangerous effects on the environment, its development rate is projected to decelerate.

Flip Chip Market – By Industry:

• Electronics
• Industrial
• Automotive & Transport
• Healthcare
• IT & Telecommunication
• Aerospace & Defense
• Others

The flip chip market was dominated by the electronics industry, which employed it in smartphones, digital cameras, smart wearables, household electronics, laptops, CPUs, GPUs, chipsets, and other electronic applications. It controlled about half of the market in 2020, bringing in just under $12 billion in revenue. However, in recent years, the IT and telecommunications industries have begun to investigate the usage of these chips due to their increased efficiency and reliability. As a result, from 2022 - 2027, the segment is expected to grow at the quickest CAGR of around 10%.

Flip Chip Market – By Region:

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

In terms of both manufacturers and customers, the Asia-Pacific region dominates the flip-chip industry. The disruption of the electronics value chain in 2019 was caused by a contraction in China's supply chain, which had a huge impact on enterprises all over the world. Due to the increasing proliferation of consumer electronics in this region, the Asia-Pacific flip-chip market is expected to rise at a quick rate. The consumer electronic market is thriving in this region thanks to improving economic conditions, rising disposable income, an increase in the number of young people, and a rising employment rate. The market for Flip chips in this region will be augmented by China's aspirations to focus on the semiconductor sector as part of its economic year plan, as well as the significant expansion of Taiwan's semiconductor and electronics industry. The IoT industry in this region is anticipated to boom over the next decade, thanks to rising internet adoption and various government projects like smart cities, smart grids, and smart transportation. Because of the presence of large companies in the region and strong R&D investments, North America has the second biggest market share in the worldwide flip-chip technology industry.

Market Leader

Intel is the leading player in the global flip-chip market.

Key Players

3M (US), AMD (US), Amkor Technology (US), Apple (US), Texas Instruments Inc (US), IBM (US), Fujitsu (Japan), Samsung (South Korea), TSMC (Taiwan), ASE Group (Taiwan)

RECENT HAPPENINGS IN THE MARKET:

• 3M Health Information Systems and Blackford, a premier AI platform for medical imaging, have formed a strategic agreement. The partnership will focus on the North American market to improve AI efficiency in the radiology reporting process. 
• Amkor Technology Inc. aims to increase its advanced packaging technology capability by building a state-of-the-art smart facility in Bac Ninh, Vietnam. The new factory's initial phase will offer innovative system-in-package (SiP) assembly and test solutions to the world's premier semiconductor and electronic manufacturing firms. 
• Fujitsu and Botanical Water Technologies (BWT) have agreed to collaborate on the development of Botanical Water Exchange, a blockchain-based water trading platform (BWX). Fujitsu will build the world's first water trading platform for the exchange of plant-derived water, based on the notion of sustainable water offsetting, to assist enterprises in meeting sustainability goals and alleviating water shortages.
• The Tesla Model Y will receive a significant improvement in 2022. With the addition of an AMD Ryzen chip for a better and faster touchscreen, the corporation is preparing to receive an upgrade in the interface. The new processor will essentially allow the car to provide a better user experience, along with additional changes such as a lithium-ion auxiliary battery and laminated glass.