Flip Chip Technology Market – Growth, Trends, Impact of COVID-19 and Forecast (2022)
The flip chip technology market is expected to register a CAGR of 5.91% over the forecast period 2022-2027. Being a technology-driven market, manufacturers mainly focus on innovations and new technologies for the knocking process, which in turn increases the demand for raw materials required for manufacturing.
New York, Feb. 18. 2022 (GLOBE NEWSWIRE) — Reportlinker.com announces the publication of the report “Flip Chip Technology Market – Growth, Trends, COVID-19 Impact, and Forecasts (2022 – 2027)” – https://www.reportlinker.com/p06231640 /?utm_source=GNW
This leads to rapid growth of this industry among raw material suppliers. Its major advantages over other packaging methods i.e. 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 over the forecast period.
Moreover, the growth of the market is attributed to its numerous advantages, such as smaller size, superior performance, and improved I/O flexibility over its competing methodologies. Flip-chip demand is expected to increase in mobile and wireless, consumer, and other high-performance applications such as networks, servers, and data centers. In terms of 3D integration and more than Moore’s approach, flip-chip is one of the main driving factors and enables sophisticated SoCs (System on Chip).
Due to the strong growth of MMICs (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.
Wafer-level packaging and embedded chip are among the fastest emerging technologies for the flip chip market. Additionally, some of the leading vendors are increasing their investments in these technologies, thereby expanding their reach.
For example, in March 2021, Samsung Electronics partnered with Marvell to jointly develop a new system-on-chip to deliver improved 5G network performance. The newly launched chip finds use in Samsung’s Massive MIMO and is expected to see its presence among Tier 1 carriers by Q2 2021. Similarly, Mediatek, Inc. in November 2020 signed an agreement to acquisition of about 85 million dollars to buy the power management chip. Intel Enpirion assets.
COVID-19 has severely affected the growth of the market. This is due to the shift in consumer purchasing behavior towards essential goods such as groceries from luxury goods such as consumer electronics and vehicles. The supply chain has also been affected, thus slowing down the growth of the market.
Main market trends
Military and defense industry to drive market growth
Modern military and defense environments require proven, reliable and scalable technologies. Sensors are an essential part of technologies as they provide solutions to the entire defense ecosystem, including complex controls, measurements, monitoring and execution.
For military needs, the need to cool components down to 50 K has led to the development of technology based on indium micropumps. The sensor content of military systems continues to grow, driving requirements for flip chip technology in military computing platforms.
For any radar, packaging and assembly are the keys to a successful implementation. As radar applications proliferate, cost becomes critical. For millimeter wave automobile and drones, the cost and package are being processed. Single-chip radars and multi-channel T/R modules become feasible.
For example, a SiGe transmit-receive phased array chip for 76-84 GHz automotive radar applications has been developed. The chip uses a controlled collapse (C4) chip bond bump process and is flipped onto a low cost printed circuit board, achieving 50 dB isolation between the transmit and receive chains. This work represents state-of-the-art complexity for a high-performance FMCW radar at millimeter wave frequencies, with simultaneous transmit and receive operation.
Due to the increasing complexity and increasing performance, pin count, power and cost requirements of military applications, the packaging industry is moving towards high performance packaging, such as flip-chip or wafer-level fan-out packaging, for military and defense. by deploying GPS and radar applications. The use of flip-chip technology for this type of application has proven, in many applications, to be a reliable packaging technology for making high-density electronics.
Recently, Qorvo, a leading provider of innovative RF solutions, was awarded a three-year contract to advance the development of copper-pillar flip-chip technology on GaN. This Department of Defense (DoD) program will create a national high-efficiency smelter to mature the copper flip assembly process, which enables the vertical stacking of dies in space-constrained phased array radar systems and d other electronic defense devices.
China occupies a large market share
The packaging industry in China is expected to register potential growth over the forecast period. There is a strong demand for IC components, which has broadened the deployment of advanced packaging solutions that offer higher levels of integration and a greater number of I/O connections.
The Chinese government’s “Made in China 2025” initiative aims to ensure that its semiconductor industry will reach $305 billion in output by 2030 and meet 80% of domestic demand. China is ramping up its chip industry amid a brewing tech war. The trade war between the United States and China and the threat that Chinese companies could be cut off from American technology (such as big companies like Huawei) are boosting China’s efforts for its semiconductor industry.
The flip chip market includes bumping and assembly, and there is a huge surge in bumping capability by Chinese players, especially in the 12-inch Cu pillar. Over 90% of advanced packaging players have 300mm wafer bumping capacity. In 2019, Chinese electronics company Jiangsu Changjiang Electronics Technology (JCET) began manufacturing high-volume wafers. The company has moved into mass production with its new 12-inch wafer knockout line. Production volumes are already shipping to China-based JCET customers, with several additional device manufacturers qualifying the line for shipments.
Automotive, wireless, computing and other devices have already been qualified on this new replacement line which is now an integral part of JCET’s advanced flip chip packaging offerings. Recently, iPhone maker Foxconn announced that it would invest in on-chip development in China. Foxconn is a major iPhone producer in China and is setting up a chip development factory in the country by investing a total of 60 billion yuan ($8.6 billion) in the project.
Due to the Covid-19 pandemic, all industries and manufacturing bases are affected in China due to the country’s long-term shutdown, thus affecting the flip-chip technology market. Additionally, Chinese testing and packaging companies continue to gain processing capacity for high-end (e.g., flip-chip and bumping) and more advanced (e.g., fan-in, fan-out) packaging technologies. -out, 2.5D interposer and SiP).
Due to progress in both technology development and mergers and acquisitions, Chinese service providers, such as JCET, TSHT and TFME, are expected to outperform the industry average in their revenue performance this year with double digit growth.
The flip chip technology market is fragmented due to the growing number of end users in automotive, industrial and consumer electronics. The market is expected to grow at a fairly steady rate over the forecast period. The existing players in the market are striving to maintain a competitive edge by addressing new technologies, such as 5G telecommunication, high performance data centers, compact electronic devices, etc. Some of the recent developments in the market are –
November 2021 – Amkor Technology Inc. (NASDAQ: AMKR), a leading provider of semiconductor packaging and testing services, may plan to build a state-of-the-art smart factory in Bac Ninh, Vietnam . The first phase of the new plant would focus on providing advanced system-in-package (SiP) assembly and test solutions to the world’s leading semiconductor and electronics manufacturing companies.
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