Outsourced Semiconductor Assembly and Test Services (OSAT) Market - Forecasts from 2024 to 2029

The outsourced semiconductor assembly and test services (OSAT) market is projected to rise at a compound annual growth rate (CAGR) of 15.93% to reach a market valuation of US$73,174.562 million by 2029, from US$25,999.486 million in 2022.

Outsourced semiconductor assembly and test services is the industry term for the provision of specialist manufacturing and testing services to semiconductor businesses. To assemble, package, and test integrated circuits (ICs) and other semiconductor devices, semiconductor manufacturers employ OSAT companies. The rising demand for cutting-edge electronic gadgets across a range of sectors is driving the OSAT market. OSAT suppliers conduct assembly and testing for semiconductor businesses to save money and expedite delivery. Furthermore, the need for specialized OSAT services is driven by complex semiconductor components such as SoC designs and improved packaging methods.

Growing demand for miniaturization propels the market.

Ongoing research and development has led to the creation of new products, manufacturing processes, and semiconductor designs, all of which have accelerated the industry's growth. In September 2023, for instance, the US National Science Foundation declared that it will provide $45.6 million in support for 24 research and teaching programs, including funds from the "CHIPS and Science Act of 2022." These programs aim to accelerate advancements in semiconductor technology, production, and workforce development. Furthermore, end-use semiconductor sales in 2021 experienced a significant rise as a result of the industry's persistent efforts to accommodate the rising demand for semiconductors. As more employment moved to remote work and home learning, sales of end-use categories like PCs saw notable growth. Other areas, including the automotive sector, had sharp rises all year long and eventually acquired market share in 2021, making it the third-largest semiconductor end-use market. This growth in the end-use of semiconductors significantly boosts the Outsourced semiconductor assembly and test services (OSAT) market expansion.

The market is projected to grow in the Asia Pacific region.

OSAT development is further aided by the globalization of the semiconductor sector, particularly in the Asia-Pacific region. China, Taiwan, and South Korea are becoming important centres for the assembly and production of semiconductors. OSAT suppliers shorten product time-to-market by providing experience in the assembly, packaging, and testing procedures. Furthermore, the Semiconductor Industry Association reports that China's semiconductor industries are spending a lot of money on capital expenditures (CAPEX), which are monies used by businesses to purchase, renovate, or maintain their assets. Chinese CAPEX firms invested US$ 12.3 billion in 2021 and US$ 15.3 billion in 2022. The semiconductor manufacturing is expected to be driven by the rising need for production facilities as well as the growing requirement for semiconductors in the automotive and consumer electronics industries which in turn upsurges the demand for OSAT globally.

Key Market Developments:

• December 2023, a reputable Outsourced Semiconductor Assembly and Test (OSAT) company placed an order with Camtek Ltd. for 25 systems for a range of advanced packaging applications.

Key Players:

• ASE Group is a leading provider of semiconductor testing services globally. The company is involved in various stages of the semiconductor manufacturing process, such as wafer probing, IC package design, front-end engineering test, and substrate design, among others. It offers advanced semiconductor supply chain services in collaboration with sister company, USI.
• Amkor Technology Inc. is one of the world's largest providers of outsourced semiconductor packaging, design, and test services. It offers an extensive array of test capabilities in device testing and is regarded as a top OSAT supplier for automotive and artificial intelligence processor testing as well.
• Powertech Technology Inc. is a major company delivering key OSAT solutions such as final testing, IC packaging, and module assembly among others. The company is building new strategic partnerships to deliver unique technological insights and solutions.

Segmentation:

By Service Type:

• Packaging
• Testing

By Packaging Type:

• 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
• Others

By Geography

• North America
• United States
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• United Kingdom
• Germany
• France
• Italy
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Others
• Asia Pacific
• Japan
• China
• India
• South Korea
• Taiwan
• Thailand
• Indonesia
• Others