Abstract: A method and apparatus for positioning semiconductor flip chips onto one end of a transfer probe which automatically magnetically aligns the chips with an overlying lead frame structure for bonding thereto. The flip chips are placed into one end of an elongated groove in a positioning apparatus and conveyed between guide rails thereof to successively locate the chips over an opening at the opposite end of the groove. A magnetic force is transmitted through a soft ferromagnetic probe which extends through the opening to engage the back side of the chip thereover. The probe raises the chip from the positioning apparatus and carries it into close proximity with overlying corresponding fingers of a conductive lead frame structure. The magnetic force automatically orients the flip chip contact bumps with their corresponding fingers and simultaneously raises the chip up from the probe into precisely aligned engagement with the lead frame fingers so that it can be bonded thereto.