Flip Chip Market By Packaging Technology (3D IC, 2.5D IC, 2D IC), By Bumping Technology (Copper Pillar, Solder Bumping, Gold Bumping, Others), By Industry Vertical (Electronics, Industrial, Automotive & Transport, Healthcare, IT & Telecommunication, Aerospace & Defence, Others) and By Region (North America, Europe, Asia Pacific, Latin America, MEA) - Global Forecasts 2017 to 2027

Flip chip Market Definition and Estimation:

Developed by General Electric’s light military electronics department in New York, the flip chip is used to interconnect dies such as semiconductor devices, IC chips, microelectromechanical systems, with external circuitry using bumps deposited on chip pads. These chips minimize the size of the device and improve overall performance.

The flip chip market size was USD 25.26 billion in 2019 and expected to reach USD 43.65 billion by 2027; this converts into a compound annual growth rate (CAGR) of 7.08% for the forecast period.

Flip chip Market Overview:

Initially introduced by IBM more than 30 years ago, the flip chip technology is able to serve an advanced packaging such as the 2.5D ICs and 3D ICs due to the development of new bumping solutions. The introduction of copper pillar and micro-bumping metallurgy has expanded the application base in various end-user verticals. Owing to its benefits, flip chips are widely accepted even in low-range applications in certain cases. The rising demand for flip chips will therefore ensure a growth of the market during the forecast years.

The Flip chip Market is segmented to include:

By Packaging Technology:

• 3D IC
• 2.5D IC
• 2D IC

By Bumping Technology:

• Copper pillar
• Solder bumping
• Gold bumping
• Others (Aluminium & Conductive Polymer)

By Industry Vertical:

• Electronics
• Industrial
• Automotive & transport
• Healthcare
• IT & telecommunication
• Aerospace & defence
• Others

Only an incremental step from the 2D IC packaging technology, the 2.5D IC provides a dramatic increase in capacity and performance. Furthermore, owing to its minimal space requirements and low power consumption, the 2.5D IC segment garnered over USD 10 billion in revenue, which corresponds to over 35% of the market in 2019. The 3D IC packaging technology is predicted to display an approximate 8% CAGR between 2020 and 2027. This high growth rate can be attributed to the several advantages that these ICs bring with them. The advantages include a decreased interconnect length which permits for faster operation and even lower power consumption, heterogeneous integration, increased device density, improved microelectronics cooling, etc.

The copper pillar bumping technology is largely driven by its ability to produce finer pitches. This reduced pitch enables better control of the joint diameter and reduced stand-off height, thereby improving overall electrical performance. Besides, the lower cost and enhanced durability have also contributed to the segment’s dominance in 2019. It accounted for a little under 55% of the flip chip market, accumulating close to USD 13.5 billion in revenue. Gold bumping offers reduced interconnect length, power requirements, minimizes package size, and is a clean process. This bumping technology is being widely used in flat panel display drivers, CMOS image sensors, fingerprint sensors, RFID, medical devices, and more. The extensive use will ensure a high CAGR of nearly 9% during the forecast timeline.

Traditionally used in electronic applications such as smartphones, digital cameras, smart wearables, household electronics, laptops, CPUs, GPUs, chipsets, etc., the flip chip market was captured largely by the electronics segment. In 2019, it held nearly 50% of the market, collecting under USD 12 billion in revenues. However, the IT & telecommunication industry began exploring the use of these chips, owing to their higher efficiency and reliability in recent times. The segment is, therefore, anticipated to expand at the fastest CAGR of around 10% from 2020 to 2027.

Flip chip Market by Geography Overview:

Based on geography, the market is segmented as below:

• North America
• Europe
• APAC
• Latin America (LATAM)
• Middle East & Africa (MEA)

The presence of well-established players like Intel Corporation, Texas Instruments, The 3M Company and more has resulted in increased investment in the flip chip technology in North America. Also, the advancements in technology such as IoT and the demand for lightweight, compact and higher performance consumer electronics is driving the flip chip market growth.

Asia-Pacific is estimated to expand at the fastest CAGR of 8% among all other regions. Rapid industrialization in the region has led to a vast presence of manufacturing hubs. The strong demand for IC components will further boost the market. The flourishing electronics sector accounted for the dominance of the region in 2019. It held over one-half of the market.

Flip chip Market Dynamics:

Drivers:

Development of the portable electronic market coupled with an increase in popularity of Internet of Things (IoT).

Portable electronics, as well as IoT, require miniaturized components for high performance even in the harshest environments. Flip chips are compact in size and provide the required performance. As a result, the rising need for portable electronics and the increase in demand for IoT will boost market growth.

Technological superiority over wire bonding.

Higher I/O capability, superior thermal & electrical performance, substrate flexibility for varying performance along the flip chip’s inherent benefits are replacing the wire bond technology. These chips have already made their way into smartphones, PC processors, and gaming consoles. The rising adoption of flip chips in several other devices will augment the flip chip market growth in the years to come.

Restraint:

Higher cost and less customization options available in comparison to wire bonding.

As compared to conventional wire bonding, flip chips use an additional wafer bumping and substrate. This leads to an increase in overall cost. Additionally, due to their complex architecture and compact size, the number of input and output ports on these chips cannot be customized once manufactured. Hence, these factors collectively may significantly hamper market growth.

Opportunity:

Rise in need for high frequency in electronic gadgets.

The use of bumps for connections in flip chips reduces the length, improves electrical efficiency, and in turn provides data transmission between devices at high frequencies. The increase in requirements for high-frequency microwave, ultrasonic frequency operations, and high-speed portable devices will therefore create numerous opportunities for the flip chip market to flourish.

The market is studied by analyzing all the key market participants across the ecosystem. The key players include, but not limited to:

• 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
• Texas Instruments Incorporated

Recent news and developments in the Flip chip market:

• Intel announced the discontinuation of part numbers using leaded solder bumps on the 1st level interconnect for a few field-programmable gate arrays (FPGA) flip chip product families in December 2020.
• Samsung Electronics Co. Ltd. developed the semiconductor industry’s first 12-layer 3D TSV technology in July 2019. This 3D packaging technology will feature a shorter data transmission time than wire bonding technology, thereby providing faster speed and lower power consumption.

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