This paper reports the research performed on using computer vision for the control of the chip-bonding process in the manufacture of micro-electronic IC devices. The ultimate purpose is to develop an automated system to identify and classify the defects during the process of bonding the IC chip to its carrier. Vision algorithms have been developed for identifying defects, such as missing chip, misregistration of the chip, scratches, edge cracks, surface contamination, misorientation, poor eutectic flow, carrier damage. Dark-field as well as bright-field illumination are used separately to create images accentuating the defects. We comment on the limitations of the algorithms regarding their capability and robustness. A prototype production system which implemented the optics, illumination and the algorithms for identification and reporting of the defects for process control is briefly described.