This paper presents the assembly process using next generation electroformed stencils and Isotropic Conductive Adhesives (ICAs) as interconnection material. The utilisation of ICAs in flip-chip assembly process is investigated as an alternative to the lead and lead-free solder alloys and aims to ensure a low temperature (T < 100 °C) assembly process. The paper emphasizes and discusses in details the assembly of a flip-chip package based on copper columns bumped die and substrate with stencil printed ICA deposits at sub-100 µm pitch. A computational modelling approach is undertaken to provide comprehensive results on reliability trends of ICA joints subject to thermal cycling of the flip-chip assembly based on easy to use damage criteria and damage evaluation. Important design parameters in the package are selected and investigated using numerical modelling techniques to provide knowledge and understanding of their impact on the thermo-mechanical behaviour of the flip-chip ICA joints. Sensitivity analysis of the damage in the adhesive material is also carried out. Optimal design rules for enhanced performance and improved thermo-mechanical reliability of ICA assembled flip-chip packages are finally formulated. © 2006 Elsevier Ltd. All rights reserved.