Flip Chip Technology Market - Growth, Trends, and Forecast (2019 - 2024)

The market can be segmented 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, SoC, LEDs, CPU, GPU), Application (Military and Defense, Automotive, Industrial), and Geography.

Market Snapshot

Flip Chip Summary
Study Period:

2018-2024

Base Year:

2018

Fastest Growing Market:

Asia Pacific

Largest Market:

North America

CAGR:

5.75%

Key Players:

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Market Overview

The flip chip technology market was valued at USD 24.45 billion in 2018 and is expected to reach a value of USD 33.91 billion by 2024, at a CAGR of 5.75%, over the forecast period (2019 - 2024). The medical industry is also embracing flip chips while suggesting health and fitness tracking bands to patients for measuring heart rates, blood pressure, glucose levels, and pulse. 

  • Packaging has become a key determinant for using or abandoning a device in a new design. Miniaturization plays an important role in product design. A small form factor in terms of size and weight, yet an increase in computing power helps to achieve the optimum design which is required by most of the consumer electronics. This is driving the flip chip market to grow in various segments especially electronics.  
  • For modern IC designs, the increasing design complexity and decreasing feature size makes I/O connection a critical problem. High integration density, larger I/O counts, faster speed and better signal intensity provided by flip chip packages is contributing to the market growth.
  • One of the factors hindering the growth of the market is packaging cost, which is more than wire bonding. The increase in cost is due to substrate and wafer bumping. These two cost drivers are related to the act of bringing I/Os out under the die.

Scope of the Report

Flip chip technology is one of the oldest and widely used techniques for semiconductor packaging. Flip chip was originally introduced by IBM 30 years ago. Nevertheless, it is keeping up with times and developing new bumping solutions to serve advanced technologies, such as 2.5D and 3D. Flip chip is used for traditional applications, such as laptops, desktops, CPU, GPU, chipsets, etc.

By Product
Memory
Light-Emitting Diode
CMOS Image Sensor
SoC
GPU
CPU
By Wafer Bumping Process
Copper Pillar
Tin-Lead Eutectic Solder
Lead Free Solder
Gold Stud Bumping
By Packaging Technology
2D IC
2.5D IC
3D IC
By Application
Military and Defense
Medical and Healthcare
Industrial Sector
Automotive
Consumer Electronics
Telecommunication
Other Applications
Geography
North America
Europe
Asia-Pacific
Latin America
Middle East & Africa

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Key Market Trends

Consumer Electronics to Dominate the Market

  • The demand for flip chips is expected to rise in mobile and wireless, consumer applications, and other high-performance applications, such as networks, servers, and data centers.
  • The flip chip technology is revolutionizing the market, where the expansion of the internet, digital camcorders, PDAs, desktop computers and laptops, digital cameras, mobile phones, and other electronic-based consumer products is seen.
  • Consumer electronics are becoming smaller, thinner, and lighter, by utilizing advanced electronic packaging. 
  • With the rising internet penetration and various government initiatives, such as smart cities, smart grids, and smart transportation, the IOT market is set to explode over the next decade. This will create sufficient demand for the flip chip market.
IOT

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Asia-Pacific to Witness the Fastest Growth

 

  • Growing economies in the Asia-Pacific region, such as India and China, impact every industry, including semiconductors. The Asia-Pacific flip chip market is expected to grow at a rapid pace, due to the rising proliferation of consumer electronics in this region.
  • With the improving economic conditions, increasing disposable income, growing number of the youth population, and rising employment rate, the consumer electronics market is flourishing in this region.
  • China’s plans to focus on the semiconductor sector as a part of the 12th five-year plan and strong growth of Taiwan’s semiconductor and electronics industry will augment the market for flip chip in this region.
  • With the rising internet penetration and various government initiatives, such as smart cities, smart grids, and smart transportation, the IoT market is set to explode in this region over the next decade. This will create sufficient demand for the flip chip market.
Flip Chip map

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Competitive Landscape

The flip chip market is slowing fragmenting due to the growing number of end users like automotive, industrial, and consumer electronics. Acquisitions also play an important role in upgrading the skills and manpower of the parent company.

  • February 2019 - Intel Corporation acquired Ineda Systems, a Hyderabad-based startup which manufactures microchips.
  • December 2018 - IBM announced an agreement with Samsung to manufacture 7-nanometer (nm) microprocessors for IBM Power Systems™, IBM Z™ and LinuxONE™, high-performance computing (HPC) systems, and cloud offerings.
  • July 2018 - Amkor partnered with Mentor to release Amkor’s SmartPackage™ Package Assembly Design Kit (PADK), the first in the industry to support Mentor’s High-Density Advanced Packaging (HDAP) design process and tools.

 

Major Players

  1. Amkor Technology Inc.
  2. IBM Corporation
  3. Intel Corporation
  4. Taiwan Semiconductor Manufacturing Company Limited
  5. Samsung Electronics Co. Ltd

* Complete list of players covered available in the table of contents below

Flip chip comp

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Introduction to Market Drivers and Restraints

    3. 4.3 Market Drivers

      1. 4.3.1 High Packaging Density Leading to Miniaturization

      2. 4.3.2 Advancements in Electronics Packaging is Causing the Market to Expand

    4. 4.4 Market Restraints

      1. 4.4.1 High Cost Associated With Flip Chip Technology

    5. 4.5 Value Chain Analysis

    6. 4.6 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.6.1 Threat of New Entrants

      2. 4.6.2 Bargaining Power of Buyers/Consumers

      3. 4.6.3 Bargaining Power of Suppliers

      4. 4.6.4 Threat of Substitute Products

      5. 4.6.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Product

      1. 5.1.1 Memory

      2. 5.1.2 Light-Emitting Diode

      3. 5.1.3 CMOS Image Sensor

      4. 5.1.4 SoC

      5. 5.1.5 GPU

      6. 5.1.6 CPU

    2. 5.2 By Wafer Bumping Process

      1. 5.2.1 Copper Pillar

      2. 5.2.2 Tin-Lead Eutectic Solder

      3. 5.2.3 Lead Free Solder

      4. 5.2.4 Gold Stud Bumping

    3. 5.3 By Packaging Technology

      1. 5.3.1 2D IC

      2. 5.3.2 2.5D IC

      3. 5.3.3 3D IC

    4. 5.4 By Application

      1. 5.4.1 Military and Defense

      2. 5.4.2 Medical and Healthcare

      3. 5.4.3 Industrial Sector

      4. 5.4.4 Automotive

      5. 5.4.5 Consumer Electronics

      6. 5.4.6 Telecommunication

      7. 5.4.7 Other Applications

    5. 5.5 Geography

      1. 5.5.1 North America

      2. 5.5.2 Europe

      3. 5.5.3 Asia-Pacific

      4. 5.5.4 Latin America

      5. 5.5.5 Middle East & Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Company Profiles

      1. 6.1.1 Amkor Technology Inc.

      2. 6.1.2 IBM Corporation

      3. 6.1.3 Intel Corporation

      4. 6.1.4 Taiwan Semiconductor Manufacturing Company Limited

      5. 6.1.5 Samsung Electronics Co. Ltd

      6. 6.1.6 Texas Instruments Inc.

      7. 6.1.7 GlobalFoundries U.S. Inc.

      8. 6.1.8 STATS ChipPAC Ltd

      9. 6.1.9 Powertech Technology (Singapore) Pte. Ltd.

    2. *List Not Exhaustive
  7. 7. INVESTMENT ANALYSIS

  8. 8. MARKET OPPORTUNITIES AND FUTURE TRENDS

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