Flip Chip Market Overview
The global Flip Chip market size is forecast to reach US$ 25 billion by 2027, growing at a CAGR of 6.8% from 2022 to 2027. Flip chip, also known as controlled collapse chip connection, is a method for interconnecting dies such as semiconductor devices, Integrated circuits (IC) chips, integrated passive devices and microelectromechanical systems (MEMS), to external circuitry with solder bumps that have been deposited onto the chip pads. Instead of facing up and bonded to the package leads with wires from the outside edges of the chip, any surface area of the flip chip can be used for interconnection, which is typically done through metal bumps of solder, copper or nickel or gold. The growth contributing factors include need of data transmission between devices on higher frequency, increasing research in micro electrical mechanical systems (MEMS) technologies for flip chips and growing government initiatives to boost the flip chip market. However, expensive raw material and fabrication process as well as some technical limitations such as heat dissiiation issue, low mechanical strength hinder the growth of flip chip market.
Flip Chip Market Report Coverage
The report: “Flip Chip Industry Outlook – Forecast (2022-2027)”, by IndustryARC covers an in-depth analysis of the following segments of the Flip Chip industry.
- The copper pillar segment held the largest market in the flip chip market segmented by solder. This is owing to the efficient conductivity, the demand for improved performance and lower power consumption.
- The military and defence segment held the largest share in Flip Chip market by application, in 2021. This is attributed to demand for automation in armaments, advanced security systems and demand of portable and compact military devices.
- APAC (Asia-Pacific) market held the largest market share of 37%, in 2021. This is due to abundant availability of raw materials in Asian countries and increasing research in micro electrical mechanical systems (MEMS) and system-on-a-chip (SoC) technologies for flip chips.
- The growth in demand of portable and compact circuit devices, need of data transmission between devices on higher frequency and increasing research in micro electrical mechanical systems (MEMS) technologies for flip chips are the contributing factors in the growth of flip chip market.
Flip Chip Market Segment Analysis- By Solder
The flip chip market by solder has been segmented into copper pillar, tin, tin-lead, lead free, high lead, gold, electrically conductive epoxy adhesives, eutectic, and others. The copper pillar segment held the largest share of 70%, in 2021. This is owing to greater control of the joint diameter and standoff height, finer-pitch joints and improved electrical performance. There are more advantages of copper pillar use over traditional solders such as improved electromigration resistance, improved thermal conductivity, simplified under bump metallization, and higher input-output density. In August 2021, AMD is the first vendor to unveil chips using copper hybrid bonding, an advanced die-stacking technology that enables next-generation 3D-like devices and packages. Hybrid bonding stacks and connects chips using tiny copper-to-copper interconnects, providing higher density and bandwidth than existing chip-stacking interconnect schemes. Intel’s 3D CPU, HBM, and other chips use tiny copper microbumps as the interconnect schemes in the package, along with a flip-chip process. Thus, copper pillar bumping technology is continuously progressing to improvise the overall performance of the electronic device which helps in boosting the growth of the market.
Flip Chip Market Segment Analysis- By End User
The flip chip market by end user has been segmented into consumer electronics, automotive, industrial equipments, healthcare, military and defense, aerospace, IT and telecom, others. The military and defence segment held the largest share of 25%, in 2021. This is because of growing use of sensor technology, automated security systems and advanced arms and ammunitions. This drives requirements for flip chip technology in military computing platforms. For military requirements, the need to cool components down to lower temperatures that has led to the development of a technology-based on indium micro pumps. For any radar, packaging and assembly are essential to improve its performance. As radar applications proliferate, cost becomes critical. Hence, flip chips are often adopted due to its high frequency operations. In May 2020, Semiconductor firm Qorvo announced that it has secured a new contract with the U.S. Department of Defense (DoD). The aim is to further advance the development of copper-pillar-on-GaN flip-chip technology. Thus, growing research and applications in military and defence field assists in the flip chip market growth.
Flip Chip Market Segment Analysis- By Geography
The Flip Chip market by geography is segmented into North America, Europe, Asia-Pacific (APAC), South America, and the rest of the world (RoW). APAC (Asia-Pacific) held the largest Flip Chip market share with 37% of total market size. This is due to availability of flip-chip raw materials, manufacturing equipments, growing research in advanced flip chip technologies such as MEMs and system on a chip (SoC) and growing government initiatives in asian countries. High integration density, larger I/O counts, faster speed and better signal intensity provided by flip chip packages also contribute to the market growth. In April 2022, Samsung announced that it will be supplying Flip Chip Ball Grid Array FC-BGA chip to Apple for its next-generation M2 processor. Due to the growing demand of Apple’s substrate chip in its latest MacBook series of laptops, tablets and iPads will be supplied by Samsung. Recently, In March 2022, Samsung Electro-Mechanics and LG Innotek, the two major IT component makers in Asia-Pacific announced to expand in the market with a next-generation semiconductor packaging substrate called flip chip ball grid array (FCBGA), increasing the investment in this sector to compete against Japanese and Taiwanese competitors as per the company officials statement. Thus, growing demand and expanding manufacturing of flip chips is helping the growth of APAC market.
Flip Chip Market Drivers
There is an increasing demand of applications with high frequency which contributes in the growth of flip chip market
Rising 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. There is also high growth in monolithic microwave integrated circuits (MMIC) as they are devices that operate at microwave frequencies ranging from 300 MHz to 300 GHz. These devices typically perform functions such as microwave mixing, power amplification, low-noise amplification, and high-frequency switching. 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 connections are made through bumps in flip chips, which reduce the length and in turn offer improved electrical efficiency. In February 2022, a communication chip firm RFHIC is in process to secure around 80 billion won in government subsidies for the development of chips related to satellite communication. The company is planning to expand its development gallium nitride (GaN) monolithic microwave IC (MMIC) to include modules and platform, sources said. GaN-based MMIC is especially in high demand for satellite communication applications, as power consumption in space is limited. Thus, growing applications for high frequency requirements in various verticals is driving the flip chip market growth.
The increasing circuit miniaturization and need of replacement of conventional processes for technological advances helps to boost the market growth.
There is an increasing demand of miniaturization in electronic devices, enhanced electrical efficiency, and less power consumption. Flip-chip processes allow miniaturization of electronic circuitry by utilizing integrated circuit (IC) chips. For instance, increase in demand of compact, high speed processors and graphic cards required to fit in limited space of mobiles, laptops or game consoles and Sensors for IoT are miniaturized and require high performance to work in harsh operating environments, All these factors are driving the demand of flip chips that provide faster performance in the circuits. In conventional packaging, the interconnection between the die and the carrier is made using wire. This wire bonding has many drawbacks; hence flip chip packaging is adopted. Flip chip provides superior thermal and electrical performance, the highest I/O capability, and substrate flexibility for varying performance requirements than conventional wire bond packaging. Thus, growing miniaturization and drawbacks of conventional processes is driving the flip chip market. In December 2021, Thomasnet launched Hi-Watty Light which has its applications in automated semiconductor test systems for automotive engineering or in the context of flip-chip assembly, a high-tech process for contacting microelectronic elements without housing. It can be also used in semiconductor and medical technology, as well as in the automotive and aerospace industries. Thus, growing miniaturization requirements is boosting the use of flip chips in multiple industries which drives the growth of this market.
Flip Chip Market Challenges
The bumping of beads make stiff and short prone to cracking and need of extreme flat surfaces for heat dissipation acts as a restraining factor for the growth of flip chip market
Flip Chips connect a semiconductor die to a substrate; the dies are bumped and then flipped onto a substrate. Bumps are placed directly on the die input-output pads typically distributed in an array across the entire die surface. As the chip is directly connected to the circuit board, the wire is shorter, resulting in less resistance and faster signal transmitting. However, this short distanced bumps lack mechanical strength and in case of thermal expansion mismatch are vulnerable to cracking at higher temperatures. Another issue arising is efficient heat removal and dissipiation, as amplifier or other components are suspended over a substrate on metal bumps that act as thermal stand-offs. a common design approach is to use a low-loss substrate combined with a flip-chip device and on-module EMI shielding. In 2021, a research report by showed that silicones filled with metal or metal-coated particles can provide reliable heat shielding along with dependable electrical conductivity to reduce the issue of heat dissipiation in flip chips. Another instance of Xradia's VersaXRM™ 3D X-ray microscope enables high resolution imaging of bump cracks and voids down to submicron levels, even for large packages without any sample preparation. In the case of flip chips, bumps connect the chip to the package substrate, soldered into place are difficult to look for soldering faults without destruction of sample. Thus, many such efforts are made to detect failure of flip chips at early stage. These mechanical failures and other technical issues are restraining the flip chip market growth.
Flip Chip Market Landscape
Product launches, acquisitions, and R&D activities are key strategies adopted by players in the Flip Chip industry. The Flip Chip top 10 companies include:
- Texas Instruments
- Intel Corporation
- Samsung Group
- Amkor Technology
- TDK Electronics Europe
- IBM Corporation
- Taiwan Semiconductor Manufacturing Company
- 3M Company
- Kyocera International
- In May 2022, -Phison Electronics Corp. a leading provider of NAND controller and NAND storage solutions integration services, announced today that it is successfully deploying the world's first PCIe 5.0 Redriver IC PS7101 certified by the PCI-SIG Association to help solve the compatibility problems of high-speed signal transmission between CPU (Central Processing Unit) and peripheral devices (such as SSD and graphics card, etc.). The PCIe 5.0 Redriver IC PS7101 adopts Flip-Chip packaging and testing technology to reduce signal reflection and crosstalk interference caused by IC packaging. Thus, growing use of flip chip technology in innovative products will help in the market growth.
- In May 2022, Faraday Technology Corporation a leading ASIC design service and IP provider, announced that its Gigabit Ethernet PHY has been silicon proven on UMC’s 28HPC+ process and is now available for new ASIC SoC designs and IP licensing. This new IP, based on 28nm node, provides the benefits of low power-consumption and high performance. In addition, the solution supports flip-chip and wire-bond layouts to meet the customer’s package requirement for high performance SoC or cost effective applications. Thus, flip chip compatible products will assist in boosting the demand in the market.
- In March 2022, -Teledyne e2v HiRel announced the new TD99102 UltraCMOS® High-speed FET and GaN transistor driver offering very high switching speed of 20 MHz. The new flip-chip part is ideal for driving Teledyne HiRel’s 100 V high reliability GaN HEMT devices in DC-DC, AC-DC converters, orbital Point-of-Load (POL) modules and space motor drives. Hence, this new product shall help the company to aquire a significant market share in flip chip market.
- In December 2021, Dow announced to preview its latest silicone technologies for advanced semiconductor packaging at SEMICON® Taiwan 2021. Dow’s hybrid solutions combine silicone and organics in a unique formulation. These adhesives deliver enhanced mechanical properties that silicone alone can’t achieve, such as higher modulus and strong adhesion to various surfaces. Potential applications include flip chip packaging, which can experience delamination after harsh reliability testing when epoxy mold underfill is used.Thus, this new material assisting to reduce the drawback in flip chip will help in growth of the market.
Relevant Report Titles:
Report Code: ESR 0402
Report Code: ESR 61874
Report Code: ESR 89961
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