Increasing semiconductor goods per automobile and developments such as autonomous and electric vehicles are the primary drivers for semiconductor manufacturers and OSAT suppliers.
New York, United States, Sept. 28, 2023 (GLOBE NEWSWIRE) — The term “outsourced semiconductor assembly and testing” refers to services supplied by third-party vendors. Such companies’ fundamental market offerings include wafer processing capacity, package redesign, characterization including thermal analysis and certification, burn-in and life-testing, and several other approaches. “The global outsourced semiconductor has presumed to reach USD 72.90 billion, expanding at a CAGR of 8.5% during the forecast period,” quoted by Seema, Research Manager at Straits Research P. Ltd.
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Rising Trends
Even though the global automobile industry has experienced a downturn and fluctuating demand in recent years, it continues to be one of the most significant drivers and opportunities for semiconductor and OSAT vendors. Increasing semiconductor goods per automobile and developments such as autonomous and electric vehicles are the primary drivers for semiconductor manufacturers and OSAT suppliers. As more semiconductor components, such as microcontrollers, sensors, and radar chips, are utilized in the automotive industry, the potential for OSAT and semiconductor foundries increases.
For instance, a centralized automotive-specific SoC is required to enable level 5 autonomy or improve hybrid efficiency. The centralized automobile system based on semiconductors continues to rely on individual semiconductor components. It results in innovative work from established automotive companies and emerging semiconductor fabless and OSAT firms targeting the automotive industry. In addition, emerging infotainment systems are increasing the demand for large displays and touch screens in the automotive industry, which drives demand among OSAT and semiconductor suppliers.
Growth Opportunities
Foldable display and flexible wearable device technologies are gaining prominence. Huawei and Samsung, for example, exhibited their flexible flagship products in February 2019. The tendency for a growing number of devices to become loose and to be employed in testing situations may contribute to the growth of the OSAT industry. It is anticipated that the penetration rate of high-end and advanced packaging systems such as WLCSP (Fan-in and Fan-out), which is driven by high I/Os and high integration, will continue to increase over the forecast period, compelling OSAT vendors to develop new products and technologies to meet the rising demand.
Regional Insights
The Asia Pacific will command the market with the largest share during the forecast period. During the predicted time, it is expected that the rising demand for advanced semiconductor chip package solutions in the global automotive industry will accelerate the growth of outsourced semiconductor assembly and testing in Asia-Pacific. This is primarily attributable to rising purchasing power, robust economic growth, the presence of sizeable electronic manufacturing companies, and an increase in the number of people using smartphones. China, Taiwan, South Korea, and Japan are significant contributors to the OSAT market in the region, which has a substantial consumer electronics clientele, thereby promoting the region’s growth.
The IC testing and packaging market is anticipated to increase in Asia-Pacific throughout the forecast period. The rising demand for IC components in mobile devices has been the primary growth driver. In addition, there is an increasing focus on improved packaging among the region’s foundries. The expansion of the OSAT market can be attributed to the growing emphasis on enhanced packaging.
Key Highlights
- The global OSAT or outsourced semiconductor assembly and test services market size has presumed to reach USD 72.90 billion, expanding at a CAGR of 8.5% during the forecast period.
- Based on service, the packaging section is envisioned to grow at a CAGR of 8.3% and hold the largest market share.
- Based on the type of packaging, the BGA or Ball Grid Array is envisioned to hold a significant share during the forecast period.
- Based on the application, the communication section is envisioned to grow at a CAGR of 8.8% and hold the largest share.
- Based on regional analysis, the Asia Pacific will command the market with the largest share during the forecast period.
Competitive Players in the Market
- ASE Group
- Amkor Technology Inc.
- Powertech Technology Inc.
- Chipmos Technologies Inc.
- King Yuan Electronics Co. Ltd
- Formosa Advanced Technologies Co. Ltd
- Jiangsu Changjiang Electronics Technology Co. Ltd
- UTAC Holdings Ltd
- Lingsen Precision Industries Ltd
- Tongfu Microelectronics Co.
- Chipbond Technology Corporation
- Hana Micron Inc.
- Integrated Microelectronics Inc.
- Tianshui Huatian Technology Co. Ltd
Market News
- In 2022, ASE Group launched VIPackä, an innovative packaging platform that enables vertically integrated package solutions. The VIPackä is the next version of ASE’s 3D heterogeneous integration architecture, which expands design principles and attains ultra-high density and performance.
Global Outsourced Semiconductor Assembly and Test Services (OSAT) Market: Segmentation
By Service
By Type Of Packaging
- Ball grid array (bga) packaging
- Chip scale packaging (csp)
- Stacked die packaging
- Multi-chip packaging
- Quad flat and dual-inline packaging
By Application
- Communication
- Consumer electronics
- Automotive
- Computing and networking
- Industrial
- Other applications
By Region
- North america
- Asia pacific
- Europe
- LAMEA
About Straits Research Pvt. Ltd.
Straits Research is a market intelligence company providing global business information reports and services. Our exclusive blend of quantitative forecasting and trends analysis provides forward-looking insight for thousands of decision-makers. Straits Research Pvt. Ltd. provides actionable market research data, specially designed and presented for decision making and ROI.
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Originally published at https://www.einpresswire.com/article/658368944/outsourced-semiconductor-assembly-and-test-services-market-set-for-steady-growth-at-an-8-5-growth-rate-through-2030-as-per-straits-research
