The flip chip market size was valued at $24.76 billion in 2019, and is projected to reach $39.67 billion by 2027, growing at a CAGR of 6.1% from 2020 to 2027.
Flip chip, also known as controlled collapse chip connection (C4), consists of conductive bumps deposited on chip pads on the surface of wafer, followed by mounting semiconductor devices by flipping the chip. The adoption of flip chip has increased in the electronic industry due to its numerous advantages such as lower cost, high packaging density, improved reliability of circuits, and compact dimensions. Thus, increase in demand for smart electronics across the globe is a major factor expected to drive the growth of the global flip chip market size during the forecast period.
Furthermore, flip chip has revolutionized the portable electronics and electric vehicle industries by proving to be an ideal product for electrical interconnections.
Increase in trend of real-world gaming is expected to propel the growth of the global flip chip market, as they are incorporated in the processors used inside gaming consoles and graphic cards used in personal computers. Key players such as AMD and Intel are spending considerable amount on intensive research and development for the improvement of these chips. Furthermore, flip chips are incorporated in sensors used in smartphones, which give users a real-life experience while playing games, as they change visuals according to the motion of phone. Surge in demand for these sensors and processors is expected to boost the flip chip market growth during the forecast period.
One major advantage that flip chip offers over other technologies is its ability to provide data transmission between devices on higher frequency. This is attributed to the fact that connections are made through bumps in flip chips, which reduce the length and in turn offer improved electrical efficiency. Surge in demand for high-frequency microwave, ultrasonic frequency operations and rise in demand for high-speed portable devices are expected to contribute toward the growth of the global flip chip market in the near future.
By Packaging Technology
3D IC is projected as one of the most lucrative segments.
However, the use of additional wafer bumping and substrate of higher price restrain the market growth. Furthermore, the number of input output ports provided on these chips cannot be customized after manufacturing, owing to their extremely complex architecture and compact size. Thus, these factors collectively hamper the growth of the overall market. On the contrary, technological advancements through research and development facilities and investment by key players in the market are projected to abate the impact of the restraining factor, thereby offering remunerative opportunities for the expansion of the overall flip chip market.
By Bumping Technology
Gold Bumping is projected as one of the most significant segments.
Increase in sales of portable electronic products is the key driving factor of electronics segment. The growth of the flip chip market is further driven by extensive use of flip chips in telecommunication applications, such as network systems, telecommunication switching, cellular base stations, optoelectronics, and wireless products.
IT and Telecommunication is projected as one of the most significant segments.
The report focuses on the growth prospects, restraints, and market analysis. The study provides Porter’s five forces analysis of the flip chip industry to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the market.
Asia-Pacific would exhibit the highest CAGR of 7% during 2020-2027.
The global flip chip market is segmented into packaging technology, bumping technology, industry, and region. Depending on bumping technology, the market is categorized into copper pillar, solder bumping, gold bumping, and others, including aluminum & conductive polymer bumping. By packaging technology, it is categorized into 3D IC, 2.5D IC, and 2D IC. On the basis of industry, it is fragmented into electronics, industrial, automotive & transport, healthcare, IT & telecommunication, aerospace & defense, and others. Region wise, it is analyzed across four regions, including North America, Europe, Asia-Pacific, and LAMEA.
The market players operating in the flip chip market analysis include 3M, Advanced Micro Devices, Inc., Amkor Technology, Apple Inc., Fujitsu Limited, Intel Corporation, International Business Machines Corporation, Samsung Electronics Co., Ltd., Taiwan Semiconductor Manufacturing Company Limited, and Texas Instruments Incorporated.
COVID Impact Analysis
The global flip chip market revenue has witnessed significant growth in the past years; however, the market is witnessing sudden downfall as the critical electronics manufacturing industries were temporarily shut down mainly to limit COVID-19’s spread. In addition, this pandemic majorly affected the global supply chain by impacting both suppliers via shortages of components, materials, and finished goods and consumers by creating reduced spending in China on semiconductor-dependent products such as consumer electronics, automobiles, and others. Furthermore, semiconductor industry is compelled to transform its global supply chain model which in turn will positively impact the growth of the market in the near future.
Top impacting factors
The prominent factors that impact the growth of the global flip chip market include development of the portable electronic market and increase in popularity of Internet of Things (IoT), rise in need for circuit miniaturization in microelectronic devices, technological superiority over wire bonding, higher cost & less customization options available in comparison to wired bonding, and requirement of high-frequency data transmission. However, each of these factors is anticipated to have a definite impact on the growth of the overall flip chip market during the forecast period.
Rise in need for circuit miniaturization in microelectronic devices
Upsurge in requirement for size reduction in electronic devices, improved electrical efficiency, and less power consumption drive the adoption of flip chip in microelectronic devices. Flip chip improves the performance of electrical devices operating at high frequencies, which increases its adoption in microwave and ultrasonic operations. Flip chip market exhibits low inductance and high overall system efficiency while consuming smaller space as compared to its alternatives. These specific attributes of flip chips drive its adoption in electronic devices. Furthermore, constant ongoing R&D activities by key players in the global market are expected to offer potential growth opportunities for the flip chip market during the forecast period.
Technological superiority to wire bonding
Flip chips have gradually replaced wire bonding packaging, owing to their enhanced features such as compact size, rugged structure, improved efficiency, and high frequency application support at a relatively low cost. Currently, wire bonding is witnessing increased popularity in the overall packaging market. However, flip chip market forecast is expected to witness rapid growth in future, as they are replacing wire bonded technology, owing to their remarkable properties such as higher I/O capability, superior thermal & electrical performance, and substrate flexibility for varying performance requirements. These specifications have enforced the replacement of wire bond technology with flip chips in devices such as smartphones, PC processors, and gaming consoles. Furthermore, increase in usage of flip chip in contemporary devices is expected to augment the flip chip market growth in the near future.
Key Benefits For Stakeholders
- This study includes the flip chip market trends, opportunity, analysis, and future estimations to determine the imminent investment pockets.
- The report presents information related to key drivers, restraints, and opportunities of the flip chip industry.
- The flip chip market share is quantitatively analyzed from 2019 to 2027 to highlight the financial competency of the industry.
- Porter’s five forces analysis illustrates the potency of the buyers & suppliers in the flip chip market.
Flip Chip Market Report Highlights
By Packaging Technology
By Bumping Technology
By Industry Vertical
Key Market Players
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED, AMKOR TECHNOLOGY, APPLE INC., ADVANCED MICRO DEVICES, INC., 3M, INTERNATIONAL BUSINESS MACHINES CORPORATION, INTEL CORPORATION, FUJITSU LIMITED, SAMSUNG ELECTRONICS CO., LTD., TEXAS INSTRUMENTS INCORPORATED
Flip chip holds promising potential as packaging technology in changing the scenario of conventional electrical interconnection solutions. The fundamental properties of flip chip make it a potential interconnection packaging technology for different industry verticals. Flip chip is one of the most studied packaging technologies for electrical interconnections due to its potential to change the current packaging market landscape. It offers several advantages, such as smaller IC footprint, reduced size, improved performance, superior reliability, and thermal capabilities for electronic devices such as smartphones, digital camera & camcorders, and laptops & tablets. The copper pillar segment is expected to witness highest growth, owing to smaller pitch, enhanced performance, and cost-effectiveness. 3D IC packaging is expected to account for significant market share in the near future, owing to rise in application of 3D IC among miniature consumer electronics.
Flip chip has promising scope in IoT due to its varied application in consumer electronics, automotive & transport, industrial, healthcare, aerospace & defense, and renewable energy resources. The executive, Oommen Mathews, lead specialist for advanced silicon packaging at Intel Corporation stated that “Internet of Things (IoT) is the main driver of the flip chip market, owing to high performance, small packaging size, and hybrid integration capability of flip chips.” The growth of the flip chip market is majorly driven by the emerging concept of IOT, which is a network of physical devices, vehicles, buildings, and others, including embedded electronics, software, sensors, actuators, and network connectivity.
The adoption rate of flip chip is affected by bumping cost and assembly process cost. Key market players are focusing on launching efficient and advanced packaging solutions to sustain the stiff competition in the market. Flip chip finds its major application in the electronic packaging and electrical interconnections. Copper pillar bump is a next-generation flip chip interconnect, which offers advantages in design to cater to the current and future electronic device requirements. It is a remarkable interconnect choice for applications such as transceivers, embedded processors, and electrical processors.
The key players operating in the global flip chip market include 3M, AMD, Inc., Amkor Packaging Technology, Inc., Apple, Inc., Fujitsu Ltd, IBM Corporation, Intel Corporation, Samsung electronics Co., Ltd., TSMC, Ltd., and Texas Instruments, Inc.. These players have adopted various revenue and business growth strategies to enhance and develop their product portfolio, strengthen their flip chip market share, and help them increase their market penetration.