The global flip chip technology market size was valued at USD 31.94 billion in 2021. It is expected to reach USD 51.3 billion by 2030, growing at a CAGR of 6.1% during the forecast period (2022–2030). Flip chip, also known as direct chip attach, is the procedure by which a semiconductor die is mounted to a substrate or carrier with the bond pad side facing down. The flip chip package technology has existed for three to four decades and originated as a solution for high-pin-count and high-performance package requirements. Initially, the bulk of flip chip package applications was for higher pin count SoCs, which a conventional Wire-Bond BGA package type may not be able to handle correctly. In addition, certain SoCs had high-speed interfaces (including RF) that wire bonds may not be able to sustain due to their high inductance. Flip chip bonding has several advantages over other interconnection techniques. Flip chip bonding can result in a greater I/O count because the entire die surface can be utilized for connections. Due to the shorter connectivity paths compared to wire bonds, a device's speed can be increased.
Flip chip often referred to as controlled collapse chip connection (C4), is a semiconductor mounting technique that starts with the deposition of conductive bumps on chip pads on the surface of the wafer. Increased usage of flip chips in the electronic industry can be attributed to its multiple benefits, such as cheaper cost, high packaging density, better circuit reliability, and compact dimensions. Consequently, the increase in demand for smart electronics throughout the globe is likely to be a significant driver driving the growth of the global flip chip market over the forecast period. Real-world gaming is predicted to drive the development of the worldwide flip chip market, as these chips are used in the CPUs of game consoles and the graphic cards of personal computers.
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Need for Circuit Miniaturization in Microelectronic Devices and Superiority to Wire Bonding
The adoption of flip chips in microelectronic devices is driven by the rise in demand for smaller electronic devices, increased electrical efficiency, and reduced power consumption. Flip chip is increasingly used in microwave and ultrasonic operations because it enhances the performance of electrical equipment that operates at high frequencies. The flip chip market uses less space than its competitors while displaying low inductance and excellent overall system efficiency. Flip chips' widespread use in electrical gadgets is driven by these characteristics. Furthermore, it is envisioned that over the forecast period, ongoing research and development projects by significant players in the global market would present fresh growth opportunities for the flip chip market.
Flip chips have also progressively replaced wire bonding packaging because of their improved qualities, including their small size, sturdy construction, increased efficiency, and ability to support high-frequency applications at a reasonable price. Wire bonding is currently becoming more and more common in the packaging industry. Flip chips are replacing wire bonded technology due to their remarkable qualities, including greater I/O capability, excellent thermal & electrical effectiveness, and substrate adaptability for various performance requirements. As a result, the flip chip market forecast is expected to experience rapid growth in the future. Due to these criteria, flip chips have been pushed to replace wire bond technology in products like cellphones, PC processors, and gaming consoles. Additionally, a surge in flip chip utilization in modern gadgets is anticipated to accelerate the growth of the flip chip market soon.
Flip chips technology has not proven to be a cost-effective packaging solution, despite its benefits, including improved electrical and thermal effectiveness, substrate flexibility for shifting performance needs, and the best I/O capabilities. Customers can no longer afford the flip chip package due to the increased expenses of production and packaging. The higher cost is seen across the entire process, from wafer fabrication's re-passivation and redistribution to the substrate vendor's high-performance multi-layer organic building substrate. The cost of assembly makes the flip chip package an unaffordable alternative. Due to their exceedingly complex compact size and architecture, these chips' number of input-output ports cannot be changed after production. As a result, these factors combinedly impede market expansion.
Popularity of Real-World Gaming
As flip-chip technology is integrated into the processors used in graphic cards used in personal computers and inside gaming consoles, it is projected that the booming trend of real-world gaming would boost the development of the flip-chip technology market globally. Leading producers like Intel and AMD are investing a sizable sum in intensive research & development to advance these chips. Furthermore, flip chips are built into the sensors found in smartphones. This gives players a more realistic gaming experience because the graphics adjust to the phone's movement.
Throughout the assessment period, the flip-chip technology market will expand due to a rise in demand for these processors and sensors. The technique enables greater frequency data transmission between devices. This is because connections in flip chips are established through bumps, which reduce the length and hence improve electrical efficiency. Over the following years, a rise in demand for high-frequency microwave, high-speed portable devices, and ultrasonic frequency activities will be a factor in the growth of the worldwide flip chip technology market.
The global flip chip technology market is classified into wafer bumping process, packaging technology, end-user, and region.
Based on wafer bumping process, the global flip chip technology market comprises Copper Pillar, Tin-Lead Eutectic Solder, Lead-Free Solder, and Gold Stud Bumping.
The Copper Pillar section is projected to expand at a CAGR of 6.81% and hold the largest market share over the forecast period. The copper pillar technology market segment is increasing as a solution to address shrinking silicon feature sizes, mobile device form factors, and other technical constraints of current flip-chip devices. Copper pillar technology is used as a first-level connection. The market category is driven by copper pillar technology, which offers better joint diameter and standoff height control than conventional solder bumps. This allows for the construction of junctions with finer pitches. Along with lower pitches, the copper pillar offers several other advantages, such as better electrical performance, another driver boosting the market sector.
The Lead-Free Solder section will hold the second-largest market share. Since lead solders are dangerous, several governments worldwide highlight the need to replace them. According to estimates, this will fuel the lead-free solder market. The composition of lead-free solder differs from the structure of solder that contains lead. Lead-free solder is mainly copper, tin, and silver (SAC). Since lead-free solders have a relatively low melting point, temperature load changes significantly impact the solder joint's characteristics.
Based on packaging technology, the global flip chip technology market comprises BGA (2.1D/2.5D/3D) and CSP.
The BGA (2.1D/2.5D/3D) section is projected to grow at a CAGR of 6.7% and hold the largest market share over the forecast period. A surface-mount package called a BGA, or ball grid array, is used in electrical goods to mount integrated circuits like WiFi chips, FPGAs, and microprocessors. This segment is driven by the Ball Grid Array packaging for integrated circuits, which enables it to address the majority of standard electronics applications with recognized and proven benefits of low-cost, high-volume capability, design flexibility, and electrical/thermal/mechanical performances.
The CSP section will hold the second-largest market share. Due to the benefits provided by chip-scale packages (CSP), such as smaller size (reduced footprint and thickness), lighter weight, comparatively more straightforward assembly, cheaper total production costs, and improved electrical performance, the market is expanding. Since a smaller die size can still be supported by the interposer architecture without modifying the CSP's footprint, CSPs are also tolerant of changes in die size.
Based on end-user, the global flip chip technology market comprises Military & Defense, Medical & Healthcare, Industrial Sector, Automotive, Consumer Electronics, and Telecommunications.
The Consumer Electronics section will likely grow at a CAGR of 4.51% and hold the largest share over the forecast period. Notably, flip chip products are being used by makers of cutting-edge consumer electronics goods to reduce size and weight, integrate functions, lower costs, and shorten time-to-market. Flip chip mounting has become the norm for high-power IC devices like the Pentium from Intel or the Athlon from AMD. It can distribute I/O, manage power requirements, and offer the highest-quality electrical channel for high-speed signals. Technologies with flip chip attachments claim to be the most affordable. Due to these factors, a flip chip attached to a substrate for multichip packages is becoming more popular in the industry.
The Telecommunications section will hold the second-largest market share. Due to its tiny form factor and, in some situations, high speed, flip chip packaging is frequently needed in applications like cellular telephones. Flip chip technology is now essential and often required for networking, telecommunications, and complicated computing applications. FCBGA packaging is anticipated to be used in most futuristic advanced designs.
Preeminence of Asia-Pacific
Region-wise, the global flip chip market includes North America, Europe, Asia-Pacific, and the Rest of the World.
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Asia-Pacific will command the market, with China and Taiwan constituting a significant share in the regional market. Taiwan will have the largest market share, expanding at a CAGR of 5.29% during the forecast period. Flip-chip technologies are widely used in mainframe computers, watches, mobile phones, disk drivers, hearing aids, LCDs, and portable communications. Taiwan and Japan have partnered to increase their market-related cooperation. Taiwan Semiconductor Manufacturing Co. has gained approval to establish a semiconductor factory in Japan. The advancement of flip chips is being furthered by the growth of Taiwan's semiconductor sector. With improved semiconductor development, various flip chips with different transistor counts and functions—previously impossible to imagine—are now readily available on the Taiwanese market to fulfill the needs of multiple applications.
China will likely expand at a CAGR of 8%. Flip chip is one of the three essential integrated chip bonding technologies that may use the entire chip area to connect to the substrate, significantly increasing the number of I/Os. Flip chip technology benefits product cost, performance, and high-density packing. As a result, its use has gradually become more commonplace across many industries. Many Chinese businesses operate actual packaging and assembly operations. These businesses are primarily located in Jiangsu, Guangdong, and Shanghai. As there is a high demand for IC components, which has resulted in the adoption of innovative packaging solutions that enable a higher level of integration, the packaging sector in China is predicted to proliferate. China wants to grow its chip sector with the help of supportive government policies.
North America will show substantial growth during the forecast period. The United States is a major consumer of flip-chip technology. It has traditionally been a pioneer in the semiconductor industry, particularly in research and development activities, including electronic design automation (EDA), core intellectual property (IP), chip design, and advanced production equipment. By business model and subproduct, US-based semiconductor businesses are market leaders; in particular business model subsegments, the US industry trails its Asian counterparts. Although the United States leads in research & development activities, it lags in capital expenditures and labor-intensive sectors. Over the past decade, the average pace of chip manufacturing output has increased five times faster worldwide than in the United States. This is partly because of the substantial incentive packages that countries have implemented to encourage semiconductor production.