Solder bumping technology (the process of joining a chip to a substrate without shorting using solder) was first conceived and implemented by IBM in the early 1960s.  Three versions of this type of solder joining were developed.  The first was to embed copper balls in the solder bumps to provide a positive stand-off.  The second solution, developed by Delco Electronics (General Motors) in the late 1960s, was similar to embedding copper balls except that the design employed a rigid silver bump. The bump provided a positive stand-off and was attached to the substrate by means of solder that was screen-printed onto the substrate. The third solution was to use a screened glass dam near the electrode tips to act as a ‘‘stop-off’’ to prevent the ball solder from flowing down the electrode. By then the Ball Limiting Metallurgy (BLM) with a high-lead (Pb) solder system and a copper ball had proven to work well. Therefore, the ball was simply removed and the solder evaporation process extended to form pure solder bumps that were approximately 125μm high. This system became known as the controlled collapse chip connection (C3 or C4).
Until the mid-1990s, this type of flip-chip assembly was practiced almost exclusively by IBM and Delco.  Around this time, Delco sought to commercialize its technology and formed Flip Chip Technologies with Kulicke & Soffa Industries as a partner.  At the same time, MCNC (which had developed a plated version of IBM’s C4 process) received funding from DARPA to commercialize its technology. These two organizations, along with APTOS (Advanced Plating Technologies on Silicon), formed the nascent out-sourcing market.
During this same time, companies began to look at reducing or streamlining their packaging, from the earlier multi-chip-on-ceramic packages that IBM had originally developed C4 to support, to what were referred to as Chip Scale Packages (CSP).  There were a number of companies developing products in this area.  These products could usually be put into one of two camps: either they were scaled down versions of the multi-chip on ceramic package (of which the Tessera package would be one example); or they were the streamlined versions developed by Unitive Electronics, et al. (where the package wiring had been transferred to the chip, and after bumping, they were ready to be placed).
One of the issues with the CSP type of package (which was intended to be soldered directly to an FR4 or flex circuit) was that for high-density interconnects, the soft solder bump provided less of a stand-off as the solder bump diameter and pitch were decreased.  Different solutions were employed including one developed by Focus Interconnect Technology (former APTOS engineers), which used a high aspect ratio plated copper post to provide a larger fixed standoff than was possible for a soft solder collapse joint.
Today, flip chip is a well established technology and collapsed soft solder connections are used in the vast majority of assemblies.  The copper post stand-off developed for the CSP market has found a home in high-density interconnects for advanced micro-processors and is used today by IBM for its CPU packaging.