Flip Chip Market Report 2025

The flip chip market size has grown rapidly in recent years. It will grow from $38.25 billion in 2024 to $42.3 billion in 2025 at a compound annual growth rate (CAGR) of 10.6%. The growth in the historic period can be attributed to miniaturization and size reduction, improved electrical performance, consumer electronics growth, improved heat dissipation, increased speed and data transmission.

The flip chip market size is expected to see rapid growth in the next few years. It will grow to $66.24 billion in 2029 at a compound annual growth rate (CAGR) of 11.9%. The growth in the forecast period can be attributed to automotive electronics, high-density interconnects, heterogeneous integration, 3D ic integration, semiconductor material advancements. Major trends in the forecast period include 5g and high-performance computing, internet of things (iot) expansion, advanced packaging technologies, ai and machine learning acceleration, quantum computing.

The growth of the flip chips market is expected to be propelled by the increasing sales of electronic products during the forecast period. Flip chip technology plays a crucial role in enhancing the performance of portable electronic devices, especially those operating at higher frequencies, making them suitable for applications in ultrasonic and microwave operations. Renowned for its high overall system efficiency, low inductance, and space-saving attributes, flip chip technology is integral to the design of electronic equipment. According to estimates by Gartner, a prominent US-based consulting firm, the global installed base of electronic devices is projected to reach 6.4 billion units in 2022, indicating a 3.2% increase from the previous year. This surge in electronic product sales significantly contributes to the growth of the flip chips market.

The growing demand for wearable devices is anticipated to drive the expansion of the flip chips market in the coming years. Wearable devices are small electronic gadgets designed to be worn on the body, often featuring sensors and connectivity capabilities for a variety of functions. Flip chip technology plays a crucial role in these devices by enabling data processing, sensor integration, and wireless communication in products like smartwatches and fitness trackers. For example, in March 2022, Deloitte Touche Tohmatsu Limited, a UK-based consulting firm, reported that there were 320 million consumer health and wellness wearable devices in 2022, with projections indicating an increase to nearly 440 million by 2024. This category encompasses devices such as watches, hearing aids, and other assistive technologies. Thus, the rising demand for wearable devices is significantly contributing to the growth of the flip chips market.

Technological advancements are emerging as a significant trend in the flip chip market. Companies in this sector are actively developing innovative technologies to enhance their competitive position. For instance, in September 2023, Dahua, a China-based company specializing in video surveillance solutions, launched its new Flip Chip on Board (COB) LED display, known as the CH II. This display leverages flip chip technology to improve visual quality, offering softer, pixel-free illumination that helps reduce digital visual fatigue. Such innovations not only enhance user experience but also underscore the growing importance of flip chip technology in various applications, particularly in the realm of display solutions.

Major companies in the flip chip market are focusing on advanced technologies, such as Flip-Chip COB (Chip On Board) LED technology, which offers enhanced performance through higher thermal efficiency, improved light output, and increased durability compared to traditional LED packaging methods. For example, in May 2024, Daktronics Inc., a US-based manufacturer of digital LED display technology, launched its Flip-Chip COB LED technology. This innovative design aims to enhance the reliability and performance of LED displays by minimizing heat on the display surface, thereby extending longevity. Additionally, the Flip-Chip COB technology allows for tighter pixel spacings, ranging from 1.8 millimeters to 0.9 millimeters, which significantly improves durability, reliability, and energy efficiency. Such advancements reflect the ongoing evolution of flip chip technology in the LED display market, catering to the increasing demand for high-quality visual experiences.

In September 2024, TATA Electronics Private Limited, an India-based manufacturer of precision components and flip chips, announced a partnership with ASMPT Ltd., a Singapore-based supplier of hardware and software solutions for semiconductor and electronics manufacturing. This collaboration aims to strengthen the semiconductor supply chain ecosystem in India. As part of the partnership, both companies will work together on workforce training initiatives and advance research and development in critical areas, including wirebond technology, flip chip technology, and advanced packaging solutions. This strategic alliance is expected to enhance capabilities within the semiconductor industry, promoting innovation and skill development in the region.

Major companies operating in the flip chip market include 3M Company, Advanced Micro Devices Inc., Amkor Technology Inc., Apple Inc., Fujitsu Limited., Intel Corporation, International Business Machines Corporation, Samsung Electronics Co. Ltd., Texas Instruments Incorporated, ASE Technology Holding Co. Ltd., Chipbond Technology Corporation, Jiangsu Changjiang Electronics Technology Co. Ltd, Siliconware Precision Industries Co. Ltd., Unimicron Technology Corporation, Ibiden Co. Ltd., Nan Ya Printed Circuit Board Corporation, Shiko Electric Industries Co. Ltd., Austria Technologie & Systemtechnik AG, Kinsus Interconnect Technology Corporation, STATS ChipPAC Pte. Ltd., Powertech Technology Inc., UTAC Holdings Ltd, Taiwan Semiconductor Manufacturing Co., TF-AMD Microelectronics Sdn Bhd., Zhen Ding Technology Holding Ltd., Engent Inc., Masterwork Electronics, Advotech Company Inc., First Level Inc., Flipchip International LLC, Cormetech Inc.

Flip chips, also referred to as direct chip attach, involve the process of attaching interconnecting dies, such as semiconductor devices, integrated circuit (IC) chips, integrated passive devices, and microelectromechanical systems (MEMS), directly to a substrate or carrier with the bond pad side facing down. This method offers several advantages, including reduced costs, high packaging density, enhanced circuit reliability, and compact dimensions. In the flip-chip packaging process, the chip is connected to the substrate of the package carrier. Any surface of a flip chip can be interconnected, typically using materials such as copper, nickel, or soldered metal bumps. These bumps, placed on the die surface, facilitate the electrical connection between the device and the substrate of the package.

The main types of flip chip packaging technologies include 3D IC, 2.5D IC, and 2D IC. 3D ICs involve creating an integrated circuit (IC) in three dimensions by stacking various chips or wafers vertically into a single package. Different flip chip bumping technologies include copper pillar, solder bumping, tin-lead eutectic solder, and lead-free solder. Flip chips find applications across various industries such as electronics, heavy machinery and equipment, IT and telecommunications, automotive, and others.

The flip chip market research report is one of a series of new reports that provides flip chip market statistics, including flip chip industry global market size, regional shares, competitors with a flip chip market share, detailed flip chip market segments, market trends and opportunities, and any further data you may need to thrive in the flip chip industry. This flip chip market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Asia-Pacific was the largest region in the flip chip market in 2024 and is expected to be the fastest-growing region in the forecast period. The regions covered in flip chip market analysis report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The countries covered in the flip chip market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.

The flip chips market consists of revenues earned by entities by providing flip chip services such as interconnecting semiconductor devices, IC chips, and integrated passive devices. The market value includes the value of related goods sold by the service provider or included within the service offering. The flip chip market also includes sales of integrated circuits (ICs), infrared sensors, large-area pixelated detector arrays, optical devices, micro-electrical mechanical systems (MEMS), and surface acoustic wave (SAW) devices. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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