The global outsourced semiconductor assembly and test services market size is expected to reach USD 67.92 billion by 2030, registering a CAGR of 7.9% from 2023 to 2030.
outsourced semiconductor assembly and test (OSAT) vendors are third-party service providers offering testing, packaging, and assembly of integrated circuit devices, which ultimately helps bridge the gap between semiconductor foundries and consumers. The market growth is driven by the use of OSAT packaging and test services by semiconductor device manufacturers worldwide. The significant increase in the number of connected devices and consumer electronics, along with an increasing focus of the companies on quality improvement and end-to-end testing solutions, is expected to further drive the market growth. Furthermore, the growing dominance of fabless market players in the sales of ICs is expected to contribute to the growth of the OSAT market.
The semiconductor industry is evolving continuously in line with the continued advances in technology and integration of the latest technologies in the overall digital ecosystem. The growing demand for having maximum functionalities on a system on a chip (SOC) and ensuring optimal performance of the memory system is, particularly increasing the semiconductor intellectual property (IP) cores. As such, the growing need for more effective memory solutions is driving the development of increasingly sophisticated semiconductors capable of performing intensive memory operations.
Semiconductors are evolving continuously in line with the advances in the latest technologies, such as artificial intelligence (AI) and the Internet of Things (IoT), in particular, thereby prompting key providers of semiconductor chips to focus continuously on addressing the needs of both AI and IoT deployments and offer new, improved chips. At the same time, the continued rollout of 5G networks is driving the demand for faster, high-performance computing systems. All these trends are anticipated to open lucrative opportunities for the growth of the OSAT services market over the forecast period.
Following the continuing COVID-19 epidemic, businesses involved in manufacturing activities particularly opted for manufacturing and production solutions based on IoT technology and smart devices to facilitate remote operations and monitoring. The demand for healthcare and medical devices had already been rising in the wake of the outbreak of the pandemic; but the demand for advanced consumer electronics, such as smartphones, smartwatches, and other smart wearables, also started skyrocketing in line with the continued recovery of the market following the easing of lockdowns and other restrictions.
Several major OSAT services market players, such as Powertech Technology Inc., ASE Technology Holding Co., and Amkor, reported gains in their quarterly and annual numbers for 2020 and 2021. For instance, revenues of Powertech Technology Inc. increased 29% y/y in Q1/2020 in line with the growing demand for semiconductor chips from the incumbents of various end-use industries and industry verticals.
ASE Technology Holding Co. also reported a 9.56% year-on-year increase in revenues for Q1/2020. ASE Technology Holding Co.’s consolidated revenues grew over the year by 15.4% or by USD 2.12 billion to USD 16.96 billion in 2020. With the growing demand for 5G network equipment and high-performance servers and the continued launch of new, innovative electric vehicles globally, the demand for semiconductor components is poised for a remarkable upsurge, which bodes well for the growth of the OSAT services market over the forecast period.
outsourced semiconductor assembly and test (OSAT) vendors are third-party service providers offering testing, packaging, and assembly of integrated circuit devices, which ultimately helps bridge the gap between semiconductor foundries and consumers. The market growth is driven by the use of OSAT packaging and test services by semiconductor device manufacturers worldwide. The significant increase in the number of connected devices and consumer electronics, along with an increasing focus of the companies on quality improvement and end-to-end testing solutions, is expected to further drive the market growth. Furthermore, the growing dominance of fabless market players in the sales of ICs is expected to contribute to the growth of the OSAT market.
The semiconductor industry is evolving continuously in line with the continued advances in technology and integration of the latest technologies in the overall digital ecosystem. The growing demand for having maximum functionalities on a system on a chip (SOC) and ensuring optimal performance of the memory system is, particularly increasing the semiconductor intellectual property (IP) cores. As such, the growing need for more effective memory solutions is driving the development of increasingly sophisticated semiconductors capable of performing intensive memory operations.
Semiconductors are evolving continuously in line with the advances in the latest technologies, such as artificial intelligence (AI) and the Internet of Things (IoT), in particular, thereby prompting key providers of semiconductor chips to focus continuously on addressing the needs of both AI and IoT deployments and offer new, improved chips. At the same time, the continued rollout of 5G networks is driving the demand for faster, high-performance computing systems. All these trends are anticipated to open lucrative opportunities for the growth of the OSAT services market over the forecast period.
Following the continuing COVID-19 epidemic, businesses involved in manufacturing activities particularly opted for manufacturing and production solutions based on IoT technology and smart devices to facilitate remote operations and monitoring. The demand for healthcare and medical devices had already been rising in the wake of the outbreak of the pandemic; but the demand for advanced consumer electronics, such as smartphones, smartwatches, and other smart wearables, also started skyrocketing in line with the continued recovery of the market following the easing of lockdowns and other restrictions.
Several major OSAT services market players, such as Powertech Technology Inc., ASE Technology Holding Co., and Amkor, reported gains in their quarterly and annual numbers for 2020 and 2021. For instance, revenues of Powertech Technology Inc. increased 29% y/y in Q1/2020 in line with the growing demand for semiconductor chips from the incumbents of various end-use industries and industry verticals.
ASE Technology Holding Co. also reported a 9.56% year-on-year increase in revenues for Q1/2020. ASE Technology Holding Co.’s consolidated revenues grew over the year by 15.4% or by USD 2.12 billion to USD 16.96 billion in 2020. With the growing demand for 5G network equipment and high-performance servers and the continued launch of new, innovative electric vehicles globally, the demand for semiconductor components is poised for a remarkable upsurge, which bodes well for the growth of the OSAT services market over the forecast period.
Outsourced Semiconductor Assembly And Test Services Market Report Highlights
- The OSAT services market’s growth is majorly driven by the growing demand for consumer electronics, continued electrification enhancements in next-generation electric vehicles, and the crucial role of semiconductor devices in industrial automation and smart manufacturing
- The assembly & packaging segment held the largest market share in 2022. The growth can be attributed to the crucial role played by assembly & packaging in the automobile industry. The increasing sale of vehicles post-COVID-19 pandemic setback is expected to drive the demand for assembly & packaging
- The telecommunication segment accounted for the largest revenue share of 25.2% in 2022. The increasing demand for outsourced semiconductor assembly and test services for manufacturing equipment such as analog and digital equipment, base transceiver stations, satellites, and multiplexers is expected to propel the market growth
- Asia Pacific dominated the market with a revenue share of 60.2% in 2022. Government initiatives encouraging the establishment of electronic component manufacturing facilities and rapid industrialization in India, South Korea, Vietnam, and China, among other economies, are expected to propel the regional market growth
- Some of the prominent industry players include ASE Technology Holding Co.; Amkor Technology Inc; Jiangsu Changdian Technology Co.; Powertech Technology Inc; and Siliconware Precision Industries Co., Ltd. The market is relatively fragmented, with outsourced semiconductor assembly and test services providers in the regional market
Table of Contents
Chapter 1. Methodology and Scope
Chapter 2. Executive Summary
Chapter 3. Market Variables, Trends & Scope
Chapter 4. Outsourced Semiconductor Assembly and Test (OSAT) Services Market: Service Type Estimates & Trend Analysis
Chapter 5. Outsourced Semiconductor Assembly and Test (OSAT) Services Market: Application Estimates & Trend Analysis
Chapter 6. Outsourced Semiconductor Assembly and Test (OSAT) Services Market: Regional Estimates & Trend Analysis
Chapter 7. Outsourced Semiconductor Assembly and Test (OSAT) Services Market Competitive Landscape
List of Tables
List of Figures
Companies Mentioned
- Adobe
- Alibaba Group Holding Limited
- Amazon.com, Inc.
- Criteo
- Facebook Incorporation
- Google Incorporation
- Microsoft Incorporation
- SpotX
- Twitter Incorporation
- Verizon
Methodology
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 80 |
| Published | May 2023 |
| Forecast Period | 2022 - 2030 |
| Estimated Market Value ( USD | $ 37.22 Billion |
| Forecasted Market Value ( USD | $ 67.92 Billion |
| Compound Annual Growth Rate | 7.9% |
| Regions Covered | Global |
| No. of Companies Mentioned | 10 |
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