A theoretical investigation is performed into the bending behavior of FOF-ACF (Flex-On-Flex bonded by Anisotropic Conductive Film) packages bonded at different positions relative to the neutral surface position. The stresses and strains produced in the upper and lower regions of the ACF layer are investigated using Mode I fracture mechanics theory. The results show that the region of the ACF layer beneath the neutral surface of the FOF-ACF package experiences a negative stress, which prevents pre-existing cracks in the conductive particles from propagating further. However, at larger distances from the neutral surface, the compressive stress increases to such an extent that it may result in crumbling of the conductive particles. By contrast, the region of the ACF layer above the neutral surface experiences a positive stress, which promotes crack tip propagation. Moreover, the tension stress (i.e., the crack propagation effect) increases with an increasing distance from the neutral surface. The optimum bonding position for the ACF layer is found to be coincident with the neutral surface since, under this condition, the stresses and strains acting on the compressed particles present their minimum values. Consequently, the risk of fracture failure is reduced and the reliability of the ACF package is correspondingly improved.