Technavio expects global flip chip market to reach over $37 billion by 2019

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This industry research report presents a detailed study and segmentation of the global flip chip market by type (Cu pillar, lead free solder, gold stud and plated, and Sn/Pb eutectic solder) and geography (the Americas, APAC, and EMEA). The report provides an overview of the flip chip industry and its technology landscape and a corresponding detailed analysis of the top vendors in the market, including Amkor Technology, Intel Samsung Electronics, and TSMC.

Technavio’s market research analysts estimate the global flip chip market, to grow at a CAGR of 8% between 2015 and 2019. The demand for compact and high-performance ICs in smartphones, tablet PCs, smart TVs, automotive products, and heavy equipment will drive the growth of the market. There is an increasing demand for devices with high functionality APE, BB, and volatile memory, which has high storage capacity, fast processing speed, and multi-tasking abilities. This changes in consumer preference have prompted the manufacturers to integrate flip chip within their devices. APAC accounts for 53% of the total market share, owing to the existence of large number of manufacturers in consumer electronics, mobile devices, and automotive products in the region.

The new market research report from Technavio provides a breakdown and analysis of the flip chip segments by technology.

“One of the emerging trends in the global IC market is multi-chip packaging that allows more multiple transistors to be packed into a single IC. This type of packaging is necessary for memory-enhanced applications, because as it enables improved interaction between the memory and the processor. Multi-chip packaging is expected likely to be a promising approach for most applications in the future’” says Asif Ghani, Lead Analyst, Hardware & Semiconductor, Technavio Research.

Flip chip technology is used to interconnect semiconductor IC with substrate, other ICs, or external circuit boards in more efficient manner by solving the heat transfer problem of semiconductor devices, reducing the power consumption, and improving performance at higher frequency. Technical advancements in semiconductor packaging industry has led to the reduction of the size of overall semiconductor devices, which has significantly increased the demand for the flip chips, with controlled collapse chip connection (C4) technology, in the last half decade and this trend is expected to continue during the forecast period.

The key vendors in the global flip chip market include Amkor Technology, Intel Samsung Electronics, and TSMC. More collaboration between OSAT, IDMs, and OEMs is expected to bring down the cost of flip chips during the forecast period. These collaborations are likely to intensify the competition in the market, as currently some of the large foundries, for example, Samsung and TSMC, is able to attain economy of scale, which gives them cost advantage over their competitors.

A more detailed analysis is available in the Technavio report, Global Flip Chip Market 2015-2019

We can customize reports by other regions and specific segments upon request.

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