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The anisotropic conductive adhesive (ACA) is a promising solder alternative candidate that shows potential for further pitch reduction. Although much work has been published on ACA joint behavior, study on correlation of material properties with reliability performance is still lacking. The main objective in this study was to identify the impact of material properties on reliability, so as to engineer highly reliable microelectronics assemblies. Four representative ACA materials (both film and paste types) with diverse properties were selected. Material properties were characterized as close as possible to "stress test" conditions so as to allow more accurate correlation predictions. Reliability performance was obtained by assembling test chips of 200-μm pitch onto BT-substrates, then subjecting them to reliability tests. Correlation analysis was conducted and key material properties that contributed to good reliability performance were identified. Findings indicated that the best properties for high reliability assemblies were: high adhesion strength after subjecting to "stress aging", low coefficient of moisture expansion (CME) and low elastic modulus (E).