Semiconductor Assembly and Testing Services (SATS) Market Research Report- Global Forecast 2030

Semiconductor Assembly and Testing Service Market, By Service (Assembly, Packaging, Testing), By Application (Consumer Electronics, Information Technology, Telecommunication, Automotive, Industrial) - Forecast till 2030

ID: MRFR/SEM/1785-CR | 100 Pages | Published By Aarti Dhapte on February 2020         

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Semiconductor Assembly and Testing Service Market

Semiconductor Assembly and Testing Service Market will reach USD 45 Billion by 2027, enlisting a 5.5% CAGR during the survey time frame (2022 to 2030).

By Service Assembly Packaging Testing
By Application Consumer Electronics Information Technology Telecommunication Automotive Industrial
Key Players
Companies Profiled   ASE Technology Holding Co.Ltd.   Amkor TechnologyInc.   Siliconware Precision Industries Co.Ltd.   Powertech TechnologyInc.   Jiangsu Changjiang Electronics Tech Co.Ltd   ChipMOS Technologies Inc.
Market Driving Forces   Growing demand for semiconductors from the consumer electronics industry    The rapid growth in the semiconductor industry.
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Semiconductor Assembly & Testing Services Market Size and Overview:

Globally, the semiconductor assembly & testing services market size is ready to contract a surmised valuation of USD 45 Billion by 2030, enlisting a 5.5% CAGR during the survey time frame (2022 to 2030) driven by the rapid growth in the semiconductor industry.  The semiconductor area is famously unstable. Fabless firms that utilise their assets in planning and taking advantage of their insight in working on the exhibition of chipsets or ICs are significant market members in this industry. Subsequently, fabless firms re-evaluate most semiconductors get together, testing, and bundling administrations to outsider suppliers known as Outsourced Semiconductor Assembly and Test Service Providers. 

In the United States, the Semiconductor Assembly and Testing Services (SATS) market will reach $9.1 billion. China, the world's second-biggest economy, is supposed to arrive at a projected market size of US$7.5 billion by 2027, addressing a 4.2% CAGR from 2020 to 2027. Japan and Canada are two additional significant geographic business sectors, with anticipated development paces of 4.1% and 3.7%, separately, from 2020 to 2027.

The Asia Pacific locale's semiconductor industry is getting together, and the testing administration industry is blasting on the developing fame of tablets and wearable gadgets. Because of the developing interest for customer gadgets and the monstrous extension of electronic businesses in these countries, semiconductor gathering and testing administrations market suppliers endeavour to expand their tasks in China, South Korea, and India to open new development roads.

Covid 19 Analysis:

Assembly & Packaging, one of the report's segments, is expected to grow at a rate of 4.3% 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 & Testing Services Market Dynamics:

Market Drivers:

Semiconductor assembly & testing services market 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 & testing services market trends are 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.

Market Opportunities:

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.

Market Restraints:

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.

Market Challenges:

The Semiconductor Assembly & 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.

Market Cumulative Growth Analysis:

In the United States, the Semiconductor Assembly & Testing Services market share is expected to reach $9.1 billion by 2020. China, the world's second largest economy, is expected to reach a projected Semiconductor Assembly & Testing Services Industry 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% and 3.7%, 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.

Semiconductor Assembly & Testing Services Market Segment Overview:

The global Semiconductor Assembly & Testing Services market is divided into different segments as by the application. Here the largest market share and sub-segments are given below.

By Application Insights:

The global semiconductor assembly & testing services 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.

  • Communications

  • Computing & Networking

  • Consumer Electronics

  • Industrial

  • Automotive Electronics

Regional Analysis:

The Asia Pacific region's semiconductor assembly & testing services market 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 & testing services market providers are attempting to extend their operations in China, South Korea, and India in order to open new growth avenues.

Key Players and Market Share Insights

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:

Recent Developments:

October 2018

Prophet reported in October 2018 that it would team up with NVIDIA on Oracle Cloud Infrastructure. Prophet would acquire the capacity to execute and address difficulties in the disciplines of AI (man-made reasoning) and superior execution figuring (HPC) because of this understanding (elite execution processing). NVIDIA HGX-2 would have a stage on Oracle Cloud Infrastructure because of this understanding, giving clients admittance to abound together HPC and AI processing design.

The UTAC Group laid out an association with AT&S, one of the world's driving makers of top-of-the-line printed circuit sheets (PCBs), settled in Leoben, Austria, in April 2016 to give complete turnkey inventory network answers for a three-layered framework in-bundle (3D SiP) necessities.

Report Overview:

This report provides all the information about the growth of the global Semiconductor Assembly & Testing Services 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 Semiconductor Assembly & Testing Services Market Growth by 2022.

Report Detail:

  • Historic Period: 2020

  • Base Year: 2021

  • Forecast Period: 2022-2030

By Geographically Outlook:

  • Europe

  • Asia-Pacific

  • Middle East & Africa

  • Americas

Report Scope:

Report Attribute/Metric Details
  Market Size   USD 45 Billion
  CAGR   5.5% (2022-2030)
  Base Year   2021
  Forecast Period   2022-2030
  Historical Data   2020
  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

  • The demand for higher packaging technologies has raised with the high growth of smartphones and tablet with multimedia capabilities.
  • The increase in the use of automated control system technology in various industries.
  •   Key Market Drivers

  • Growing demand for semiconductors from the consumer electronics industry.
  • The rapid growth in the semiconductor industry.

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    Frequently Asked Questions (FAQ) :

    The assembly segments are projected to dominate the market and thrive at a 5.5% CAGR.

    The major players profiled are Amkor Technology Inc., Advanced Semiconductor Engineering Inc., and Silicon Precision Industries Co. Ltd.

    The telecommunication segment is assessed to earn revenues worth USD 45 Billion by 2030.

    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 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.