Semiconductor Assembly and Testing Services Market Overview:
The semiconductor sector is notoriously volatile. Fabless firms who focus on leveraging their resources in designing and exploiting their knowledge in improving the performance of chipsets or ICs are major value market participants in this industry. As a result, fabless firms outsource the majority of semiconductor assembly, testing, and packaging services to third-party providers known as Outsourced Semiconductor Assembly and Test Service Providers. Semiconductor Assembly and Testing Service Market is poised to touch an approximate valuation of USD 36.65 Billion by 2022, registering a 4.5% CAGR during the review period (2016 to 2022).
Covid 19 Analysis:
Assembly & Packaging, one of the report's segments, is expected to grow at a rate of 4.3 percent per year and reach US$34.3 billion by the end of the forecast year. Following an early assessment of the pandemic's commercial effects and the resulting economic crisis, the Testing segment's growth is revised to a revised 5.3 percent CAGR for the following seven years.
Semiconductor assembly and testing services provide a variety of benefits, including flexibility for variable performance needs using multilayer organic build-up substrates, well-established process equipment expertise, proven construction, and decreased stress on the active region. Because it employs the whole surface area of the die, and occasionally the perimeter as well, a flip chip allows for a greater number of interconnects than packaging options that use wire bonding technology.
The semiconductor assembly and testing services market is growing due to the dependability of such characteristics. Sensors, actuators, alternators, batteries, oxygen sensors, generators, starter solenoids, starter drives, and high-power electric systems are among the electric and electronic systems found in automobiles.
For safe and simple operation, these systems require semiconductor assembly and testing equipment. During the forecast period, this factor is expected to drive the worldwide SATS market. To ensure vehicle safety and best performance on roadways, improvements in 3-D mapping applications, EV batteries, and augmented-reality technologies, such as heads-up displays, must be tested before being implemented. Semiconductor chips are the source of these requirements and ongoing advances.
While numerous low-cost vendors compete on pricing, the top four suppliers (ASE, AMKOR, STATS, and SPIL) are pursuing massive, expensive packages that need significant investment and new technology. Indeed, packaging has evolved to match the complexity and cost of silicon technology. As the industry transitions to 3D packaging, there will be many instances where the package cost exceeds the silicon cost.
Complex processes, high-tech equipment, and significant expenses are all involved with wafer production. Despite the fact that silicon is the second most abundant element on the planet, wafer production is expensive. This is due to the fact that silicon must be completely purified in order to fabricate semiconductor wafers and chips, which is a time-consuming procedure that eventually raises the cost.
The Semiconductor Assembly and Testing Services market has a number of challenges, including a high capital required for high-end packaging solutions and market instability. The human world contains a variety of demanding activities that robots cannot regulate. The most difficult task for robots is to perceive the unstructured human environment.
The final product's pricing is heavily influenced by the assembling of semiconductor products. The semiconductors must be tested after they have been assembled. It has to do with quality, dependability, and affordability. The cost of wafer manufacture has increased due to advancements in semiconductor processing technology for larger wafers and smaller circuits. The SATS market is being hampered by this problem.
Cumulative Growth Analysis:
In the United States, the Semiconductor Assembly and Testing Services (SATS) market is expected to reach $9.1 billion by 2020. China, the world's second largest economy, is expected to reach a projected market size of US$7.5 billion by 2027, representing a 4.2 percent CAGR from 2020 to 2027. Japan and Canada are two more important geographic markets, with forecasted growth rates of 4.1 percent and 3.7 percent, respectively, from 2020 to 2027.
Value Chain Analysis:
Automobile electrification and automation are increasing the demand for semiconductor assemblies and testing. This is due to a number of concurrent advances in the automotive industry. Various technologies, including as matrix LED lights, improved camera-based sensors, and enhanced LIDAR sensors that use lasers to determine distance from a target, have progressively been included into mass production of cars in recent years.
The global Semiconductor Assembly and Testing Services (SATS) market is divided into different segments as by the application. Here the largest market share and sub-segments are given below.
The global semiconductor assembly and testing services (SATS) market is divided into five categories based on application: communication, computing and networking, consumer electronics, industrial electronics, and automotive electronics. During the projection period, the consumer electronics segment is expected to rise at a value CAGR of 6.2 percent.
Due to several factors such as growing smartphone and solid-state drive (SSD) penetration, and increasing adoption of semiconductor assembly & testing services to meet customer expectations, the consumer electronics segment is expected to lead the global market with a high market valuation during the forecast period.
The Asia Pacific region's semiconductor assembly and testing services industry is booming, thanks to the growing popularity of tablets and wearable gadgets. Because of the growing demand for consumer electronics and the massive expansion of electronic industries in these nations, semiconductor assembly and testing services market providers are attempting to extend their operations in China, South Korea, and India in order to open new growth avenues.
This study offers unique company-level insights into service innovation in the SATS market, as well as emerging market players' business and marketing strategies. ASE Technology Holding Co., Ltd., Amkor Technology, Inc., Siliconware Precision Industries Co., Ltd., Powertech Technology, Inc., Jiangsu Changjiang Electronics Tech Co., Ltd., and ChipMOS Technologies Inc. are some of the industry competitors profiled in the study.
List of Competitive Companies:
Oracle announced in October 2018 that it would collaborate with NVIDIA on Oracle Cloud Infrastructure. Oracle would gain the ability to execute and address challenges in the disciplines of AI (artificial intelligence) and high-performance computing (HPC) as a result of this agreement (high-performance computing). NVIDIA HGX-2 would have a platform on Oracle Cloud Infrastructure as a result of this agreement, giving clients access to a unified HPC and AI computing architecture.
The UTAC Group established a partnership with AT&S, one of the world's leading producers of high-end printed circuit boards (PCBs), headquartered in Leoben, Austria, in April 2016 to provide comprehensive turnkey supply chain solutions for three-dimensional system-in-package (3D SiP) requirements.
This report provides all the information about the growth of the global Semiconductor Assembly and Testing Services (SATS) market in the forecast period. There are different sections available that help to get in-depth information such as opportunities, challenges, drivers, COVID 19 analysis, regional analysis, competitive landscape, and others. All of the information is gathered from primary and secondary sources to provide the expected market growth of Semiconductor Assembly and Testing Services (SATS) by 2022.
|Market Size||USD 28 Billion|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Service, Application|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Amkor Technology, Inc. (U.S.), Advanced Semiconductor Engineering, Inc. (U.S.), Siliconware Precision Industries Co., Ltd. (Taiwan), Powertech Technology Inc. (Taiwan), STATS ChipPAC Ltd (Singapore), CORWIL Technology (U.S.), Integrated Micro-Electronics, Inc. (U.S.), Chipbond Technology Corporation (U.S.), and Global Foundries (U.S.)|
|Key Market Opportunities||
|Key Market Drivers||
Frequently Asked Questions (FAQ) :
Increasing demand for consumer electronics is supposed to expand the market exponentially in the coming years.
The segments based on services are assembly, testing, and packaging.
The assembly segments are projected to dominate the market and thrive at 4.6% CAGR.
the telecommunication segment is assessed to earn revenues worth USD 11.3 Bn by 2022.
Asia Pacific held around 45% share in 2016.
The growth of the consumer electronics industry is supposed to drive the proliferation of the regional market.
The major players profiled are Amkor Technology Inc., Advanced Semiconductor Engineering Inc., and Silicon Precision Industries Co. Ltd.