Flip Chip Technology Market Size

Flip Chip Technology Market Analysis

The flip chip technology market is expected to register a CAGR of 5.91% over the forecast period. Being a technologically driven market, manufacturers are mainly focusing on innovations and on new technologies for the bumping process, which, in turn, is increasing the demand for raw materials required for manufacturing.

• This leads to rapid growth in this industry among raw material suppliers. Its primary advantages over other packaging methods, namely, reliability, size, flexibility, performance, and cost, are the factors driving the growth of the flip-chip market. The availability of flip-chip raw materials, equipment, and services is further expected to drive the market lucratively during the forecast period.
• Moreover, the growth of the market is attributed to its numerous advantages, such as smaller size, higher- performance, and enhanced I/O flexibility over its competitive methodologies. The demand for flip-chip is expected to rise in mobile and wireless, consumer applications, and other high-performance applications such as networks, servers, and data centers. In terms of 3D integration and more than the Moore approach, the flip-chip is one of the key driving factors and helps enable sophisticated SoC (system on chip).
• Due to the strong growth in MMIC (monolithic microwave IC), the market is growing, as MMICs 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.
• Fan-out wafer-level packaging and embedded die are some of the fastest emerging technologies for the flip-chip market. Also, some of the prominent vendors are increasing their investment in these technologies, thereby expanding their scope.
• For instance, in March 2021, Samsung Electronics partnered with Marvell to jointly develop a novel system-on-a-chip to offer enhanced 5G network performance. The newly launched chip finds usage in Samsung's massive MIMO and is anticipated to see its presence among Tier One operators by Q2 2021. Similarly, Mediatek, Inc., in November 2020, inked an acquisition deal of approximately USD 85 million to purchase the power management chip assets of Intel Enpirion.
• COVID-19 has severely affected the market growth. This is due to the shifting of consumer purchasing behavior towards essential goods such as groceries from luxury goods such as consumer electronics and vehicles. The supply chain was also affected, thus slowing down the market growth.