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May 29th, 2013
Mainstream flip chip bumping starts to move to copper pillars
Copper pillars and micro bumps will soon re-shape the flip chip market and supply chain, as mobile processors, memory, and non-mainstream CMOS devices start to require smaller geometries, higher I/O counts, higher bandwidth, and better thermal management. That will propel 9% growth for the flip chip packaging market through 2018, with most of that growth driven by the emerging copper technologies.
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The $20 billion flip chip market is poised for 9% CAGR to reach some $35 billion by 2018. The big growth driver will be the transition to copper pillar bumping, which will drive a 19% CAGR in flip chip wafers processed. That means a 3X jump in flip chipped (12” eq) wafers, to ~40 million a year in the next 6 years—and almost all of the growth --those 26 million additional wafers a year-- will use copper pillars or micro-bumps, as copper comes to increasingly dominate the flip chip market. Leadfree solder will see healthy growth for the next year or two as it replaces Sn/Pb solder, but demand will start to level off in 2015-2016.

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