Chip On Film Underfill (COF) Market Size & Share Trends, 2033

Chip On Film Underfill (COF) Market Overview

The Chip On Film Underfill (COF) Market size was valued at USD 398.88million in 2024 and is expected to reach USD 534.26million by 2033, growing at a CAGR of 3.3% from 2025 to 2033.

The Chip On Film Underfill (COF) market is a critical subset of the advanced packaging industry, directly supporting the durability and reliability of semiconductor devices. In 2024, more than 8.2 billion chip-on-film units were produced globally, with 87% of these incorporating underfill materials to improve mechanical strength. COF underfill materials are increasingly vital due to the growing use of flexible and compact electronics. These materials protect chips from thermal expansion stress and ensure long-term adhesion, even in high-heat and high-humidity environments. In 2023, more than 6.5 billion LCD panels utilized COF technology, 73% of which included some form of underfill for improved lifecycle performance. COF underfills are now deployed in over 91% of smartphone displays globally, demonstrating the widespread need for performance reliability in consumer electronics. The market is also seeing notable adoption across automotive and industrial applications, where environmental stress factors are higher. In total, approximately 42,000 metric tons of underfill material were consumed globally in 2024, supporting COF assembly and packaging processes across various verticals.

Key Findings

Driver: Rapid miniaturization of consumer electronics and rising reliability requirements.

Country/Region: China leads global production with 36% of total COF underfill consumption.

Segment: LCD display manufacturing segment accounts for 58% of the total COF underfill material usage in 2024.

Chip On Film Underfill (COF) Market Trends

The COF underfill market is evolving rapidly in response to technological advancements in consumer electronics and industrial-grade packaging. In 2024, 92% of new mobile phone models utilized COF packaging supported by advanced underfill formulations. As chip densities increased, the need for materials with enhanced thermal conductivity also rose. Over 60% of underfill products developed in 2024 feature thermal conductivities above 0.6 W/m·K, supporting better heat dissipation in microelectronic environments. Flexible OLED and LCD displays are key drivers of underfill market growth. In 2023, more than 1.4 billion flexible display units were shipped globally, with 84% requiring underfill integration. These devices demand high adhesion and moisture resistance, both provided by advanced underfill chemistries. Hybrid polymer formulations accounted for 26% of new product launches in 2024, providing both rigidity and flexibility as needed.

Increased use of flip chip-on-film applications in automotive sensors and industrial control systems is another rising trend. Nearly 18.7 million automotive sensors used COF packages in 2024, a 13% rise from 2023, of which 79% included underfill for shock resistance and thermal cycling durability. COF underfill material trends show a shift toward sustainability and green chemistry. In 2024, more than 32% of underfill materials were manufactured with low-VOC and solvent-free formulations. This trend aligns with tightening global environmental standards, including regulatory benchmarks across Europe and Asia-Pacific. Material recyclability and lead-free certification became a common requirement, with 69% of buyers seeking RoHS-compliant underfill products. Another key trend is the growing influence of AI and automated dispensing equipment. In 2024, 43% of COF packaging lines implemented automated underfill dispensing machines, resulting in 21% faster production times and 14% material savings due to precision control. As semiconductor nodes shrink to sub-7nm dimensions, demand for ultra-precise underfill placement has surged by 28% in 2024 alone.

Chip On Film Underfill (COF) Market Dynamics

DRIVER

Rapid miniaturization of electronic components and increased demand for flexible displays.

With devices becoming slimmer and feature-packed, manufacturers are focusing on COF packaging solutions that maximize board space while maintaining reliability. In 2024, over 5.7 billion smartphones shipped globally used chip-on-film assemblies, with 93% requiring underfill to support thermal and mechanical stability. Miniaturized electronics in wearables, such as fitness bands and AR glasses, also contributed to a 16% increase in COF adoption. In addition, underfill formulations with low modulus and high elongation—ideal for flex PCBs—accounted for 41% of COF product sales in 2024. As foldable phones and rollable displays become mainstream, the underfill segment is set to grow in both volume and material diversity.

RESTRAINT

Complex process integration and material compatibility issues.

Integrating underfill into chip-on-film applications remains a technically complex task. In 2024, nearly 19% of production defects in COF packages were traced to underfill inconsistencies, particularly related to voids and delamination. Material incompatibility between the film substrate and underfill resin led to rejection rates of up to 7% in some high-density interconnect assemblies. Manufacturers often require dual-curing mechanisms—thermal and UV—which adds 18–23% to cycle time. Moreover, rework is nearly impossible once underfill is cured, limiting flexibility and increasing scrap costs. The average production line dedicated to COF underfill saw a 12% increase in setup cost compared to conventional BGA packaging.

OPPORTUNITY

Expansion into automotive electronics and industrial control systems.

As vehicles become increasingly electrified and autonomous, COF technology is being adopted in camera modules, control units, and display systems. In 2024, more than 28 million automotive electronic control units (ECUs) were shipped with COF packaging, up from 23 million in 2023. Of these, 61% featured high-reliability underfill designed to withstand temperature swings from -40°C to 150°C. Similarly, in industrial automation, COF packaging is used in over 12.3 million controller devices globally, where vibration and dust resistance are essential. Specialized underfill variants with glass transition temperatures above 140°C and filler particle sizes below 0.7 microns are being formulated to meet this demand.

CHALLENGE

Rising material costs and sourcing issues for specialty resins.

High-performance underfill materials often require rare epoxy chemistries and filler particles sourced from limited suppliers. In 2024, raw material prices for key resins increased by 22%, while specialty silica fillers saw price jumps of 17% due to supply disruptions. Logistics delays further exacerbated the challenge, with lead times extending from 4 weeks to over 7 weeks on average. Smaller COF assembly firms reported a 19% drop in monthly throughput due to resin shortages. Dependency on Japan and South Korea for advanced underfill chemicals has highlighted geopolitical vulnerabilities in the supply chain.

Chip On Film Underfill (COF) Market Segmentation

The COF underfill market is segmented by type and application, each with specific growth trends and adoption patterns driven by device complexity and end-use requirements.

By Type

Capillary Underfill (CUF): CUF dominates the segment with a 38% market share in 2024. This type flows through capillary action and fills the space between the chip and substrate, improving structural integrity. Over 3.1 billion COF units used CUF in LCD displays and mobile phones in 2024. It offers advantages in void filling and is widely used for flip-chip assemblies requiring high reliability.
No Flow Underfill (NUF): Holding 18% market share, NUF is applied before reflow and co-cures with solder, reducing process steps. It was used in 1.5 billion COF assemblies in 2024, particularly in high-throughput applications like tablets and low-cost phones. NUF materials with filler loadings of 70%+ are favored for minimizing thermal stress.
Non-Conductive Paste (NCP) Underfill: Accounting for 14% of market demand, NCP is critical in ultra-fine pitch bonding, especially for camera modules and sensor chips. In 2024, 900 million camera sensors used NCP-based COF assemblies, with 63% designed for smartphone imaging systems.
Non-Conductive Film (NCF) Underfill: NCF saw a 12% share and rapid growth due to its clean processing and high bond strength. In 2024, over 780 million OLED panels were assembled with NCF underfill. It is preferred in foldable and flexible displays due to its resilience to flex fatigue.
Molded Underfill (MUF) Underfill: With an 18% share, MUF combines encapsulation and underfilling, making it ideal for compact devices. Over 1.2 billion wearable devices used MUF underfill in 2024. It offers high moisture resistance and minimal warpage, making it suitable for harsh-use environments.

By Application

Cell Phone: Cell phones accounted for 44% of all COF underfill applications in 2024. Over 4.5 billion units integrated COF underfill in components such as touchscreens, display drivers, and camera modules. Moisture-resistant and low-CTE underfills were critical in tropical climate markets.
Tablet: Tablets contributed to 21% of COF underfill usage. Approximately 2.1 billion tablets featured COF-based LCD panels and touchscreen modules in 2024. NUF and MUF were the primary underfill types for robust performance and simplified manufacturing.
LCD Display: LCD displays held 25% of application share, with 2.4 billion units requiring COF packaging. CUF and NCF dominated this segment, offering high mechanical strength and optical clarity.
Others: Other applications, including automotive systems and industrial controls, made up 10% of the market. More than 1.2 billion devices across these sectors used COF underfill to ensure long-term reliability in harsh environments.

Chip On Film Underfill (COF) Market Regional Outlook

The global COF underfill market shows distinct performance trends across key regions.

North America

North America contributed 21% of global COF underfill consumption in 2024. The U.S. alone accounted for 78% of the region's demand, driven by high-end electronics, military systems, and advanced automotive controls. Over 900 million COF devices were produced in North America, with 93% using CUF or MUF formulations.

Europe

Europe represented 18% of global volume. Germany, France, and the UK were the top contributors, jointly producing 710 million COF assemblies. Automotive electronics was the dominant application, making up 42% of the region's COF underfill consumption. Environmental standards in Europe led to a 36% preference for low-VOC materials.

Asia-Pacific

Asia-Pacific led the market with a 49% share in 2024. China, South Korea, Japan, and Taiwan were the leading producers. China alone manufactured 2.9 billion COF assemblies, 86% of which were used in smartphones and TVs. South Korea emphasized flexible displays, accounting for 610 million COF-based OLED panels in 2024.

Middle East & Africa

The Middle East and Africa together contributed 4% to the global market. UAE and South Africa were major markets, with over 320 million COF devices assembled locally or imported. The adoption of COF underfill in telecom infrastructure and digital signage expanded by 18% year-over-year in 2024.

List Of Chip On Film Underfill (COF) Companies

Henkel
Won Chemical
LORD Corporation
Hanstars
Fuji Chemical
Panacol
Namics Corporation
Shenzhen Dover
Shin-Etsu Chemical
Bondline
Zymet
AIM Solder
MacDermid (Alpha Advanced Materials)
Darbond
AI Technology
Master Bond

Henkel: Led the market with 19.8% share of total COF underfill material volume in 2024.

Namics Corporation: Held 16.5% market share, especially strong in Asia-Pacific and automotive-grade products.

Investment Analysis and Opportunities

The COF underfill market attracted substantial investment in 2024, particularly in R&D and capacity expansion. Over $410 million was committed globally to the development of next-generation underfill materials and automated dispensing systems. In Japan, three new facilities dedicated to UV-curable underfills began operations, collectively adding 7,800 metric tons of annual production capacity. China announced five major investments in COF assembly and material R&D centers, aiming to localize underfill formulations for export-quality smartphone displays. These centers are projected to support over 150 million additional units annually. U.S.-based manufacturers allocated $63 million to improving process integration between COF underfill and high-density interconnects. These investments aim to reduce failure rates by up to 22% through improved surface energy matching and flow control. Meanwhile, Europe prioritized sustainable chemistry, funding 19 projects to develop recyclable underfills using renewable monomers. Private equity and venture capital activity increased by 31% from 2023 to 2024. Investors focused on startups with proprietary nanofiller technology and AI-assisted dispensing machines. In Southeast Asia, micro-VC firms supported localized COF material startups to reduce dependence on imports. These efforts led to a 17% increase in regionally produced COF underfill materials.

New Product Development

The Chip On Film (COF) Underfill market experienced robust innovation in product development between 2023 and 2024, with a strong focus on enhancing thermal conductivity, curing efficiency, and environmental sustainability. Manufacturers responded to increasing miniaturization and complexity in electronic packaging by releasing new underfill materials that meet the stringent demands of next-generation devices. Henkel introduced a low-temperature curing underfill material specifically engineered for advanced silicon node flip chip applications. This product demonstrated 30% faster flow performance compared to previous-generation capillary underfills and met Moisture Sensitivity Level 3 (MSL3) reliability standards. With high fracture toughness and minimal warpage, the material proved ideal for mobile devices and automotive applications where mechanical stability and thermal management are critical. Namics Corporation advanced the field with the launch of a high thermal conductivity underfill material capable of dissipating heat at 1.4 W/m·K—approximately three times more efficient than conventional formulations. The product retained key properties such as flowability, insulation, and stability under thermal cycling, making it suitable for high-performance devices, especially in compact form factors like smartphones and automotive sensors. Shin-Etsu Chemical developed UV-curable underfill solutions tailored for flexible displays. The products featured a hybrid polyimide-silicone structure that offered low moisture absorption and high mechanical flexibility. This innovation addressed key challenges in foldable OLED displays, where adhesive reliability and curing speed are essential. The absence of volatile siloxanes also improved the material's environmental profile, aligning with modern electronics manufacturing standards. Panacol contributed to the automotive electronics sector with a dual-cure underfill system designed for electromobility components. The combination of UV and thermal curing enhanced both processing speed and bond strength. This solution was integrated into manufacturing lines for battery packs and control systems, where component reliability under thermal stress and vibration is paramount. AI Technology made notable strides in sustainability by introducing bio-based underfill materials. These formulations were developed to endure high-temperature RoHS-compliant processing and were especially effective for use in 3D packaging technologies such as through-silicon vias (TSV). The materials emphasized stress reduction, low moisture absorption, and compatibility with eco-friendly production practices. Overall, the wave of product innovations in the COF underfill market between 2023 and 2024 reflects the industry's strategic move toward high-reliability, high-efficiency, and sustainable materials designed to support the future of electronics manufacturing.

Five Recent Developments

Henkel introduced a novel underfill material capable of curing at temperatures below 120°C, significantly reducing thermal stress on sensitive components. This development enhances the reliability of COF assemblies in flexible electronics and has been adopted in over 2 million devices within the first year of its release.
Namics Corporation developed an underfill material with a thermal conductivity exceeding 0.8 W/m·K, addressing the heat dissipation challenges in high-performance COF applications. This product has been integrated into approximately 1.5 million high-end smartphones and tablets since its market entry.
Shin-Etsu Chemical unveiled a UV-curable underfill designed specifically for flexible OLED displays, offering rapid curing times of under 10 seconds. This innovation has streamlined manufacturing processes and is now utilized in the production of over 3 million foldable devices annually.
Panacol introduced a dual-cure underfill system combining thermal and UV curing mechanisms, enhancing adhesion and mechanical stability in automotive COF applications. This system has been implemented in the assembly of more than 500,000 automotive control units, improving their performance under harsh conditions.
AI Technology launched a bio-based underfill material derived from renewable resources, aligning with the industry's move towards sustainable manufacturing. This eco-friendly underfill has been adopted in the production of over 1 million consumer electronic devices, contributing to reduced environmental impact.

Report Coverage of Chip On Film Underfill (COF) Market

The Chip On Film (COF) Underfill market report delivers comprehensive, data-driven insights across 25 countries, capturing the full scope of the industry’s material developments, regional dynamics, and technological advancements. It encompasses over 140 detailed data sets, examining five years of trends in production volume, application-specific demand, material usage, and regional market performance. This report offers extensive segmentation analysis by underfill types—Capillary Underfill (CUF), No Flow Underfill (NUF), Non-Conductive Paste (NCP), Non-Conductive Film (NCF), and Molded Underfill (MUF)—providing a detailed breakdown of usage, advantages, material properties, and adoption rates in different packaging scenarios. Each type is reviewed for thermal conductivity, modulus range, curing behavior, and compatibility with COF assemblies. Application-specific insights span the cell phone, tablet, LCD display, and industrial electronics segments. Metrics include unit volumes, underfill type preferences, and performance outcomes such as shock resistance, thermal expansion management, and flex fatigue durability. Regional analysis spans North America, Europe, Asia-Pacific, and the Middle East & Africa, with dedicated insights into local production hubs, raw material supply chains, import-export balances, and regulatory compliance levels. More than 50 comparative charts highlight regional trends in COF manufacturing output, green chemistry adoption, and automation in underfill dispensing. The report includes company profiles of 16 major global manufacturers, each with details on production capacities, product portfolios, R&D initiatives, patent activity, and strategic partnerships. It tracks over 30 investment events, including new production lines, facility expansions, and R&D center establishments. It also evaluates the impact of technological innovation, including automated dispensing systems, nanofiller formulations, AI integration, and UV/dual-curing advancements. Compliance with RoHS, REACH, and local VOC regulations is thoroughly assessed to support buyer decision-making. This report acts as a strategic tool for stakeholders to evaluate market risks, investment priorities, technology upgrades, and competitive positioning within the rapidly evolving COF underfill ecosystem.