Market Overview:
The Outsourced Semiconductor Assembly and Test Services Market size is expected to grow from USD 43.15 Billion in 2022 to USD 74.14 Billion by 2030, at a CAGR of 7% during the forecast period.
Outsourced Semiconductor Assembly and Test (OSAT) can be explained as a third-party service that is supplied by several suppliers around the world. Such Service, as the name implies consists, of semiconductor assembly, packaging, and testing of ICs (Integrated Circuits) and other related functions. The Business of Semiconductors is booming with the surge in the use of semiconductors across various industries like consumer electronics, automotive, and telecommunication, among others. Due to this OSAT services are gaining a lot of importance in today’s developing world. The workflow starts when OSAT companies are contracted by semiconductor design companies, such as Intel, AMD, and Nvidia.
Top Key Players in Outsourced Semiconductor Assembly and Test Services Market:
ASE Technology Holding Co. Ltd (China), Amkor Technology (US), Walton Advanced Engineering Inc. (China), STATS ChipPAC (Singapore), Unisem Group (Malaysia), Siliconware Precision Industries (SPIL) (China), Powertech Technology Inc. (China), TongFu Microelectronics Co. Ltd. (China), Hana Micron (South Korea) and Other Major Players
Market Dynamics and Factors for Outsourced Semiconductor Assembly and Test Services Market:
Drivers:
High Demand for Automotive and Consumer Electronics Wherein Semiconductors Are Highly Used
The high demand for automotive and consumer electronics products, wherein semiconductors play a crucial role, is a significant driver for the outsourced semiconductor assembly and test services (OSAT) market. Semiconductors serve as the core components in various electronic devices, powering the automotive industry's advanced driver assistance systems, infotainment systems, and electric vehicles, as well as consumer electronics like smartphones, laptops, and smart appliances. The increasing complexity and miniaturization of these electronic products require specialized expertise and state-of-the-art facilities for semiconductor assembly and testing.
Opportunities:
Growing Disposable Income of Customers and Growing Middle-Class Population Along With The Continuous Fall in The Prices Of Electronics
The growing disposable income of customers and the expanding middle-class population, along with the continuous fall in the prices of electronics, present several opportunities for the outsourced semiconductor assembly and test services (OSAT) market. As the demand for consumer electronics surges, semiconductor companies are faced with the challenge of meeting the increasing requirements for advanced semiconductor packaging and testing. This dynamic environment offers various opportunities for OSAT providers to play a pivotal role in the semiconductor industry. With growing disposable income and a rising middle-class population, there is a higher demand for consumer electronics, including smartphones, laptops, wearables, and smart home devices.
Segmentation Analysis of the Outsourced Semiconductor Assembly and Test Services Market:
By Service Type, the testing segment is Anticipated to Dominate the Market Over the Forecast period. Testing is a critical process to ensure the quality and reliability of semiconductor components. As the demand for advanced and high-performance electronics increases, semiconductor companies require rigorous testing procedures to identify and rectify any defects or issues in the manufactured chips.
By Application, the automotive segment is Anticipated to Dominate the Market Over the Forecast period. The automotive industry is experiencing a significant shift towards electrification, connectivity, and autonomous driving. As a result, modern vehicles are equipped with a wide array of electronic components, including microcontrollers, sensors, and power management chips.
Regional Analysis of the Outsourced Semiconductor Assembly and Test Services Market:
Asia Pacific region dominates the Global Market for Global Outsourced Semiconductor Assembly and Test Services with the largest recorded sales and providers. Asian Countries like China and India are the largest producers of Semiconductors in the world which also makes the region have a well-established Outsourced Semiconductor Assembly and Test Services industry. The share of China and India account for nearly half of the total share of Asia Pacific. China leads the entire market of semiconductors by being the home of several giant semiconductor manufacturing, testing, and packaging companies.
Key Industry Development:
In June 2022, Advanced Semiconductor Engineering, a member of ASE Technology Holding Co., Ltd. introduced its latest VIPack. VIPack is an advanced packaging platform designed to enable vertically integrated package solutions. The platform is ASE’s next generation of 3D heterogeneous integration architecture that extends design rules with ultra-high density and performance.
In January 2021, Sigurd Microelectronics, a Taiwan-based Outsourced Semiconductor Assembly and Testing (OSAT) firm acquired UTAC Taiwan, for $165 million. The acquisition will help the company in increasing its production capacity and annual revenue while expanding its global footprint.
