Flip Chip Market by Packaging Technology, Bumping Technology, 2014 - 2022

Flip Chip Market Report, published by Allied Market Research, forecasts that the global market is expected to garner $46 billion by 2022, registering a CAGR of 9% during the period 2016-2022. In the year 2015, Asia-Pacific dominated the global flip chip market and contributed over half of the market share owing to thriving market for semiconductors and electronic devices.

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Flip chips majorly differ from each other on the basis of bumping technology used in them. Currently, copper bumping is extensively used in market owing to its advantages such as considerably low cost than other methods, high efficiency and compatibility with bond pads. Furthermore, impending need of circuit miniaturization, thriving portable devices industry and technological superiority over wire bond connections are major factors expected to propel the growth in global flip chip market. However, availability of less customization options as well as high capital investment requirements for setting up a new plant are the limitations that restrict the market growth.

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2.5D IC packaging technology dominated the overall market in 2015 owing to its several advantages such as enhanced capacity, improved performance, and reduced system space requirements and low power consumption. 3D IC is expected to register highest CAGR as it is equipped with all the advantages of 2.5D IC as well as some additional advantages.

In bumping technology segment, copper bumping held over 50% in the year 2015 due to its exclusive advantages of low cost, compatibility with bond pads and applications in technologies such as transceivers, embedded processors, application processors, power management, baseband, ASICs and SOCs. However, Tin-lead eutectic solder is expected to witness low growth rate due to government initiatives to ban toxic substances that have impacted its market heavily.

Electronics industry contributed over 45% of the overall flip chip market in the year 2015. Imminent need of size reduction in electronics devices, requirement of higher data transmission speed and improvement in efficiency collectively thrust the replacement of wire bond with flip chips in electronics industry, hence making it dominant in the overall market. However, IT and telecommunication would be the fastest growing segment and is expected to register highest CAGR 12.3% during the forecast period. This is due to the increasing reach of telecommunication services in remote areas as well as introduction of new players in IT industry where flip chips are used in large scale in servers, host systems and data centers.

Asia-pacific dominated the market in the year 2015 by accounting over 50% of the total market revenue and it is expected to maintain its dominance throughout the forecast period. This is accredited to the presence of various manufacturing facilities in the region, high consumption and production of electronic products where flip chip is steadily replacing wire bond and ongoing research and development in the region.

Key Findings of Flip Chip Market:

1. In 2015, copper pillar led the overall flip chip market revenue, and is projected to grow at a CAGR of 9.8% during the forecast period.

2. Tin-lead eutectic solder is expected to witness low growth rate due to government initiatives to ban toxic substances that have impacted its market heavily.

3. Electronics industry constituted significant share in the overall flip chip market in the year 2015 due to imminent need of size reduction in electronics devices, requirement of higher data transmission speed and improvement in efficiency.

4. In packaging technology of flip chips, 2.5D IC packaging dominated the market in 2015.

5. Asia-Pacific dominated the market in the year 2015 by accounting over 50% of the total market revenue.

The key players in the flip chip market are focused on expanding their business operations in the emerging countries with new product launches through various research and development facilities. The major players profiled in this report include IBM, Intel Corporation, Fujitsu Ltd., 3M, Samsung electronics Co., Ltd., Amkor Technology, Inc., TSMC, Ltd., Apple, Inc., Texas Instruments, Inc., and AMD, Inc. among others.

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