Semiconductor Assembly Test Services Market

Global Market Study on Semiconductor Assembly and Testing Services (SATS): Automobile Electronics to Be Lucrative End-use Industry

Market Snapshot

Newly released data from the semiconductor assembly and testing services (SATS) market analysis shows that the market is currently valued at US$ 32.5 Bn, and is projected to expand steadily at a CAGR of close to 6% to reach US$ 58 Bn in the next 10 years. APAC is expected to account for more than 1/3 of the global market share.

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Companies

  • ASE Group, Inc.  
  • Amkor Technology, Inc.
  • Siliconware Precision Industries Co., Ltd. 
  • Powertech Technology, Inc. 
  • United Test and Assembly Center Ltd. 
  • JCET Group Co Ltd 
  • Chips Technologies, Inc. 
  • Chipbond Technology Corporation.
  • King Yuan Electronics Co Ltd
  • Unisem

Key Points Covered in Semiconductor Assembly and Testing Services Industry Survey:

  • Market estimates and forecast 2016-2031
  • Key drivers and restraints impacting market growth
  • Segment-wise, country-wise, and region-wise analysis
  • Competition mapping and benchmarking
  • Brand share and market share analysis
  • Key product innovations and regulatory climate
  • COVID-19 Impact on semiconductor assembly and testing services and how to navigate
  • Recommendation on key winning strategies

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Recent Developments in Semiconductor Assembly and Testing Services

Ever-growing demand for semiconductors and chips on the back of technological advancements made in recent times has propelled the SATS market in the growth direction. India, in the APAC region, has gained some attention in the past year from semiconductor giants as these companies look to set up their manufacturing plants in the country.

ASE Technology, Powertech Technology, SPIL, and Amkor Technology have shown interest in doing so. With the potential of the APAC region for semiconductor assembly and testing services rising, the market will be seeing some major advancements in this region.

Digi-Key Electronics, a leading provider of electronic components is proud of its ever-growing partnership with Rochester Electronics, which is known for semiconductors. The partnership has enabled easy access to many electronic components for end users. With such partnerships delivering advanced electronic components and semiconductors to end users, demand for these components is expected to increase in the near future.

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Industry Analysis

Increasing demand for semiconductor assembly and testing services in communication and packaging solutions, limitations of electronics outsourcing services, and rapid growth of semiconductor packaging landscape are expected to propel growth of semiconductor assembly and testing market in the forecast period of 2021 - 2031.

The market is projected to witness significant growth over the forecast period, due to several factors such as growing penetration of smartphones and solid-state drives (SSDs), and increasing adoption of SATS to meet customer expectations.

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Increasing Preference for (WLP) Interconnecting Technology

Wafer-level packaging (WLP) interconnecting technology is an advanced packaging technology wherein die interconnects are manufactured and tested on the wafer. These interconnects have wider pitch and larger ball structures as compared to associated flip chip structures.

WLP is rapidly replacing traditional packaging technologies with growing adoption of wireless portable applications that demand small form factor, low thermal and power ratings, and light weight. Expanding assembly & packaging services and the gradual increase in demand from end use industries such as consumer electronics and communication and automotive, especially in developing regions such as Asia Pacific, Latin America, and the MEA is projected to boost demand for SATS.

Advantageous Features Over In-house Testing and Packaging Capabilities

SATS offers different features such as flexibility for varying performance requirements utilizing multilayer organic build-up substrates, well-established process equipment expertise, proven construction, and lower stress on active area.

Flip chip facilitates a higher number of interconnects as compared to packaging solutions employing wire bonding technology, as it uses the entire surface area of the die, and sometimes the perimeter as well. The reliability of such features drive growth of the semiconductor assembly and testing services market.

Increasing Application in Automobile Electronics Sector

Advancements in automotive electronics in next-generation cars equipped with electronic components and systems to enhance car safety and management systems are a prime factor driving the growth of the SATS market.

Rising adoption of advanced electronics in sophisticated engine and safety controls, navigation, audio/video systems, hybrid electric drives, and LED lighting creates significant opportunities for players in the semiconductor assembly and testing services market.

Lucrative Growth Opportunities Abound in Asia Pacific

The SATS market is witnessing rapid growth in the Asia Pacific region due to increasing adoption of tablets and wearable devices.

Semiconductor assembly and testing services market providers strive to expand their operations in China, South Korea, and India to unlock new growth avenues, attributable to growing demand for consumer electronics and vast expansion of electronic industries in these countries.

Semiconductor Assembly and Testing Services Market – Competition Landscape

Introduction of new services and partnerships & collaborations are key strategies followed by top players in the market to increase their business revenue. Semiconductor assembly and testing service providers focus on innovation in products/services to improve their market positions.

Some leading players in the SATS market are Powertech Technology Inc., STATS ChipPAC Ltd. (JCET), ASE Group, Silicon Precision Industries Co. Ltd., Amkor Technologies Inc., and Chipbond Technology Corporation.

Analyst’s Viewpoint

Over the last few years, emergence of 3D semiconductor assemblies and increased demand for outsourced SAT (OSATS) are creating significant growth opportunities for players in the semiconductor assembly and testing services market.

Among the various regions, Asia Pacific is the most prominent region and is expected to account for majority of the global market share, of around 34.5%in 2021.

Market Segmentation

Persistence Market Research’s report on the global semiconductor assembly and testing services market offers a detailed market segmentation, wherein key segments have been discussed in detail.

This report by Persistence Market Research carefully examines the semiconductor assembly and testing services market at a global as well as regional level, through market segmentation on the basis of multiple parameters such as service, application, and region.

Every segment has been analyzed in detail, and data pertaining to the growth of each segment has been included in the report.

By Service

  • Assembly & Packaging Services
    • Copper Wire & Gold Wire Bonding
    • Flip Chip
    • Wafer Level Packaging
    • TSV
    • Others
  • Testing Services

By Application

  • Communication
  • Computing & Networking
  • Consumer Electronics
  • Industrial
  • Automotive Electronics

Region

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • Asia Pacific
  • Excluding Japan
    • Japan
    • Middle East & Africa

FAQs Answered in Market Study

  • What will be the estimated value of the semiconductor assembly and testing services?

    The global semiconductor assembly and testing services market is estimated to be valued at US$ 32.5 Bn in 2021.

  • At what rate is the SATS market projected to expand through 2031?

    The global SATS market is projected to expand at a CAGR of close to 6%and reach a value of US$ 58 Bn in 2031.

  • How did the market expand in the past 5 years?

    The semiconductor assembly and testing services industry steadily expanded at a CAGR of 4.3% over the past 5 years.

  • What is the market share of the top semiconductor assembly and testing service providers?

    ASE holds 19%, Amkor Technology holds 14%, SPIL holds 12%, and Powertech Technology Inc. holds 11% share in the global market.

  • What is driving demand for semiconductor assembly and testing services?

    The semiconductor assembly and testing services industry research suggests that the ability of SATS providers to facilitate efficient supply chain and reduced time-to-market will augment market growth.

  • Which countries account for most of the demand for SATS?

    The U.S., Japan, Germany, India, and China are leading the demand for semiconductor assembly and testing services.

  • What are the market statistics for the U.K. for semiconductor assembly and testing services?

    The U.K. market held the largest market share in the European region in 2020, and is anticipated to expand at over 9.1% CAGR over the next ten years.

  • What are the market statistics for Japan and South Korea?

    The market in Japan is expected to expand at a CAGR of around 4% and South Korea faster at a CAGR of 6.5%.

  • Who are the key semiconductor assembly and testing service providers?

    Jiangsu Changjiang Electronics Technology Co., Ltd. and UTAC Holdings Ltd. are key semiconductor assembly and testing service providers.

  • Which are the key countries in the semiconductor assembly and testing services space?

    Key countries in the SATS markets are the U.S., China, and Japan.

  • What is the key trend shaping semiconductor assembly and testing services?

    The market is majorly driven by silicon-via-interconnection technology, which is expected to create more growth opportunities over the coming years.

  • What are the market statistics for the APAC region for SATS?

    The APAC region is expected to dominate the global market and account for 1/3 market share.

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