Outsourced Semiconductor Assembly And Test Services (OSAT) Market - Forecasts from 2025 to 2030

The OSAT Market, valued at US$ 79.91 billion in 2030 from US$ 46.21 billion in 2025, is projected to grow at a CAGR of 11.57%.

Outsourced semiconductor assembly and test services (OSAT) is the industry term for providing specialist manufacturing and testing services to semiconductor businesses. To assemble, package, and test integrated circuits (ICs) and other devices, semiconductor manufacturers employ OSAT companies. The rising demand for cutting-edge electronic gadgets across various 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 these specialized services is driven by complex semiconductor components such as SoC designs and improved packaging methods.

OSAT refers to a third-party semiconductor package, assembly, and test outsourcing for IDMs (Integrated Device Manufacturers) and fabless companies. OSATs carry out important post-fabrication processes to guarantee chips of desired performance, reliability, and quality. With the growing need for advanced packaging (e.g., 2.5D/3D IC, fan-out), OSATs facilitate cost-saving scaling for AI, 5G, and automotive electronics markets.

Market Trends:

• Rising Demand for Miniaturization: The push for smaller, more compact technologies has sparked continuous research and innovation, leading to new products, manufacturing techniques, and semiconductor designs that propel industry growth. For example, in September 2023, the US National Science Foundation announced a $45.6 million investment to fund 24 research and education initiatives, supported in part by the "CHIPS and Science Act of 2022." These efforts focus on advancing semiconductor technology, production, and workforce training.
• Growing Government Initiatives: Governments worldwide are taking bold steps to bolster domestic semiconductor production. In March 2024, the Indian government launched three semiconductor projects valued at approximately Rs 1.25 lakh crore, aiming to position India as a global leader in semiconductor design, manufacturing, and technology. This includes establishing a semiconductor fabrication facility at the Dholera Special Investment Region (DSIR) in Gujarat, an Outsourced Semiconductor Assembly and Test (OSAT) facility in Morigaon, Assam, and another OSAT facility in Sanand, Gujarat.
• Asia Pacific: China, Taiwan, and South Korea are emerging as key hubs for semiconductor assembly and production. OSAT providers in the region enhance efficiency by offering specialized skills in assembly, packaging, and testing, helping to accelerate product launches and reduce time-to-market.

Some of the major players covered in this report include ASE Group, Amkor Technology Inc., Powertech Technology Inc., ChipMOS Technologies Inc., King Yuan Electronics Co. Ltd, Jiangsu Changjiang Electronics Technology Co. Ltd, UTAC Holdings Ltd, Lingsen Precision Industries Ltd, and Tongfu Microelectronics Co., among others.

Key Benefits of this Report:

• Insightful Analysis: Gain detailed market insights covering major as well as emerging geographical regions, focusing on customer segments, government policies and socio-economic factors, consumer preferences, industry verticals, and other sub-segments.
• Competitive Landscape: Understand the strategic maneuvers employed by key players globally to understand possible market penetration with the correct strategy.
• Market Drivers & Future Trends: Explore the dynamic factors and pivotal market trends and how they will shape future market developments.
• Actionable Recommendations: Utilize the insights to exercise strategic decisions to uncover new business streams and revenues in a dynamic environment.
• Caters to a Wide Audience: Beneficial and cost-effective for startups, research institutions, consultants, SMEs, and large enterprises.

What can businesses use this report for?

Industry and Market Insights, Opportunity Assessment, Product Demand Forecasting, Market Entry Strategy, Geographical Expansion, Capital Investment Decisions, Regulatory Framework & Implications, New Product Development, Competitive Intelligence.

Report Coverage:

• Historical data from 2022 to 2024 & forecast data from 2025 to 2030
• Growth Opportunities, Challenges, Supply Chain Outlook, Regulatory Framework, and Trend Analysis
• Competitive Positioning, Strategies, and Market Share Analysis
• Revenue Growth and Forecast Assessment of segments and regions including countries
• Company Profiling (Strategies, Products, Financial Information, and Key Developments among others)

OSAT Market Segmentation:

By Service Type

• Packaging
• Testing
• Other

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 Device Type

• Logic Devices
• Memory Devices
• Analog and Mixed-Signal Devices
• Others

By Application

• Communication
• Consumer Electronics
• Automotive
• Computing and Networking
• Industrial
• Others

By Region

• Americas
• USA
• Europe, Middle East, and Africa
• Germany
• Netherlandss
• Others
• Asia Pacific
• China
• Japan
• Taiwan
• South Korea
• Others