In the preparation process of Microwave Multi-Chip Module (MMCM), it is necessary to simultaneously sinter both microwave medium (ferrite) and silver electrodes. Hence, this necessitates keeping the sintering temperature below the melting point of silver (961 °C). An excessively low sintering temperature would significantly impair the electromagnetic properties of the ferrite material. To address this concern, this study synthesizes Bi-YIG (Y3-xBixFe5O12, x = 0–1.0) ferrites with optimized characteristics, including low ferromagnetic resonance line-width (ΔH) and high saturation magnetization (Ms), at 945 °C using Low Temperature Co-fired Ceramic (LTCC) technology. The mechanism of low-temperature liquid phase sintering, facilitated by a fluxing agent, was investigated using a theoretical model. The addition of Bi2O3 fluxing agent was found to reduce the reaction activation energy, disrupt the chemical reaction equilibrium, and promote low-temperature liquid phase sintering, thus lowering the critical sintering temperature below the melting point of silver. Furthermore, optimal bismuth content was identified to regulate the dynamic balance between grain growth and boundary diffusion, suppressing abnormal grain growth and enhancing the electromagnetic properties of the ferrite. This exploration, leveraging LTCC technology, may offer valuable insights for enhancing the overall performance of MMCMs.