Flip Chip Technology Market - Growth, Trends, and Forecast (2020 - 2025)

Flip Chip Technology Market - Growth, Trends, and Forecast (2020 - 2025)

Market Overview

The flip chip technology market was valued at USD 23.95 billion in 2019 and is expected to reach a value of USD 33.71 billion by 2025, at a CAGR of 5.74%, over the forecast period (2020 - 2025). Fan-Out wafer-level packaging and Embedded die are some of the fastest emerging technologies in the market. Hence, some of the prominent vendors are increasing their investment in these technologies, thereby expanding their scope of the studied market in the future.

  • Increasing demand for wearable devices is driving the market as flip chip technology is widely used in many high-performance applications to meet the demands of the electronics industry for higher density, faster speed, improved performance, and miniaturized packaging, which is the prime factor for its use in wearable electronics.
  • Strong growth in MMIC (monolithic microwave IC) is driving the market as MMIC are devices that operate at microwave frequencies (300 MHz to 300 GHz). These devices typically perform functions, such as microwave mixing, power amplification, low-noise amplification, and high-frequency switching. With increase demand for MMICs from the flourishing smartphone industry and increasing adoption of E band to meet the increasing bandwidth requirements of the space, defense, and wireless communication infrastructure sector are driving the growth.
  • Higher costs associated with the technology is restraining the market. Despite the benefits, such as superior thermal and electrical performance, the highest I/O capability, and substrate flexibility for varying performance requirements, flip chips have not been a cost-effective packaging solution.
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 innovative 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.

Key Market Trends

LED to Witness the Market Growth
  • The global light-emitting diode (LED) chip market is currently observing a high demand, owing to the new applications, such as illumination and LCD backlighting. The emission of carbon from the LED-based lighting is relatively less as compared to competitive technologies, such as halogen and incandescent light.
  • The other primary driver behind global LED chip growth is the rise of LED niche lighting, in the fields of fishing lighting, healthcare lighting, marine, horticulture lighting, and harbor lighting, in addition to their ability to be driven at higher current, free of wire-bonding, and are smaller packages offerings.
  • The adoption of flip chip LED (FCLED) in the automotive sector is slowly gaining momentum, owing to the increased interest for high power LED modules among automobile manufacturers and enhanced brightness, among other applications.
  • A recent research study conducted by The Institute of Technological Sciences and Center for Photonics and Semiconductors, on GaN-based vertical light-emitting diodes (VLED) and flip chip LED (FCLED) demonstrated that the heat dissipation and current spreading performance is better in VLED compared to an FCLED. These factors are expected to hinder the growth of the market in coming future.
Automotive Occupies the Significant Market Share
  • The automotive environment can be one of the harshest operating environments for electronic products. Applications of electronics can be found in hostile locations, such as under the hood (engine bay), on engine, and even in contact with engine or transmission-operating fluids.
  • Due to the increasing complexities and higher performance, pin count, power, and cost requirements of automotive applications, the packaging industry is moving toward high-performance packages, such as flip chip or wafer-level fan-out packaging, for automotive infotainment, GPS, and radar applications.
  • The use of flip chip technology for this type of application has proven itself, in many applications, to be a reliable packaging technology to achieve high-density electronics. Automotive IC’s are traditionally wire bond packages. Due to the increasing complexity and higher performance requirements of automotive applications, the packaging industry is moving toward high-performance flip chip and advanced fan-out packages for automotive infotainment, GPS, and radar applications.
  • The growing trend of autonomous vehicle industry is being viewed as a lucrative market opportunity for flip chip technology. As the complexity of automotive chips grows, so does the complexity of the package. Advanced packaging options such as flip chip packaging can reduce the bottlenecks for the flow of data, speeding up response time for critical systems, particularly accident avoidance in autonomous and driver-assisted vehicles. Also the increasing demand for ICs will increase the demand for flip chip packages which will grow the market in future.
Competitive Landscape

The flip chip market is fragmenting due to the growing number of end users in automotive, industrial, and consumer electronics. The market is expected to grow with a fair steady rate over the forecast period. The existing players in the market are striving to maintain a competitive edge by catering to newer technologies, such as 5G telecommunication, high-performance data centers, compact electronic devices, etc. Key players are Amkor Technology Inc., UTAC Holdings Ltd, etc. Recent developments in the market are -
  • Aug 2019 - Globalfoundries announced that it has taped-out an Arm-based 3D high-density test chip that may enable a new level of system performance and power efficiency for computing applications such as AI/ML and high-end consumer mobile and wireless solutions
  • Apr 2019 - UTAC Holdings Ltd secured a license for relevant patents relating to imaging ball grid array (iBGA) packaging technology from a patent licensing company. UTAC and its affiliates now have full rights to produce, use, and sell products utilizing iBGA packaging technology that is claimed in the licensed patents.
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1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
4.1 Market Overview
4.2 Introduction to Market Drivers and Restraints
4.3 Market Drivers
4.3.1 High Packaging Density Leading to Miniaturization
4.3.2 Advancements in Electronics Packaging is Causing the Market to Expand
4.4 Market Restraints
4.4.1 High Cost Associated With Flip Chip Technology
4.5 Value Chain Analysis
4.6 Industry Attractiveness - Porter's Five Force Analysis
4.6.1 Threat of New Entrants
4.6.2 Bargaining Power of Buyers/Consumers
4.6.3 Bargaining Power of Suppliers
4.6.4 Threat of Substitute Products
4.6.5 Intensity of Competitive Rivalry
5.1 By Product
5.1.1 Memory
5.1.2 Light-Emitting Diode
5.1.3 CMOS Image Sensor
5.1.4 SoC
5.1.5 GPU
5.1.6 CPU
5.2 By Wafer Bumping Process
5.2.1 Copper Pillar
5.2.2 Tin-Lead Eutectic Solder
5.2.3 Lead Free Solder
5.2.4 Gold Stud Bumping
5.3 By Packaging Technology
5.3.1 2D IC
5.3.2 2.5D IC
5.3.3 3D IC
5.4 By Application
5.4.1 Military & Defense
5.4.2 Medical & Healthcare
5.4.3 Industrial Sector
5.4.4 Automotive
5.4.5 Consumer Electronics
5.4.6 Telecommunication
5.4.7 Other Applications
5.5 Geography
5.5.1 North America
5.5.2 Europe
5.5.3 Asia-Pacific
5.5.4 Latin America
5.5.5 Middle East & Africa
6.1 Company Profiles
6.1.1 Amkor Technology Inc.
6.1.2 IBM Corporation
6.1.3 Intel Corporation
6.1.4 Taiwan Semiconductor Manufacturing Company Limited
6.1.5 Samsung Electronics Co. Ltd.
6.1.6 Texas Instruments Inc.
6.1.7 GlobalFoundries U.S. Inc.
6.1.8 STATS ChipPAC Ltd
6.1.9 Powertech Technology (Singapore) Pte. Ltd.

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