FOWLP and Flip Chip Cost Comparison: Impact of the Supply Chain Crunch

Abstract

The impact of the pandemic on the semiconductor and electronics packaging supply chains has been in the news for over a year now. Current projections suggest the supply chain crunch could impact various industries through 2022 and 2023. While there are many ramifications of this shortage, one is certainly the impact on cost. Pricing for packages built with more mature technologies, such as wire bond and flip chip, has changed dramatically. Both of these mature technologies have typically been seen as lower cost options than newer technologies, such as fan-out wafer level packaging (FOWLP). Due to the recent shortages, the cost comparison is no longer as straight-forward as it was before. This paper will analyze the cost of building various packages using flip chip, wire bond, and FOWLP technologies. Factory overhead, indirect costs, and profit margins will be taken into account to turn this into a price comparison, rather than just a comparison of direct costs. The analyses will include the price of a package built using FOWLP technology, the price of flip chip and wire bond packages built before recent supply chain disruptions, and the new expected prices of flip chip and wire bond packages. Activity based cost modeling will be used for this analysis. This is a bottom-up, detailed approach to cost that accounts for the many cost components associated with every step of the process flow, such as material, labor, and capital depreciation. The goal of this analysis is to understand how supply chain disruptions have changed the cost parity points of wire bond, flip chip, and FOWLP packages.