Market Insight- Global Semiconductor Assembly and Testing Services Market

Market Overview

Semiconductors are special type of material that have value conductivity between a conductor and an insulator. Contrary to metals, a semiconductor material’s resistance falls as its temperature increases. Semiconductor industry is highly volatile in nature. Major companies emphasize designing and utilization of their expertise to enhance performance of ICs or chipsets. Hence, most of the semiconductor assembly, packaging, and testing related services are outsourced by fabless companies to third party providers also called Outsourced Semiconductor Assembly and Test Service Provider.

The global semiconductor assembly and testing services market was valued for US$ 35,772.8 Mn in 2019.

Market Dynamics- Drivers

  1. Increasing demand for mobility and connectivity in consumer electronic products is expected to drive growth of the global semiconductor assembly and testing services market during the forecast period

Growing requirement for connected and mobile devices namely tablets and smartphones has increased the demand for high-end packaging techniques. Furthermore, increasing demand for digital content has supported growth of home electronic products such as Wi-Fi chipsets and other semiconductor chips. For instance, in 2014, STATS chipPAC (JCET) launched encapsulated Wafer Level Chip Scale Package (eWLCSP) that provides augmented quality and a lower cost fan-in wafer level package for space constrained mobile devices. Moreover, increasing mobility and connectivity capabilities and growing digital content is expected to boost the global semiconductor assembly and testing services market growth during the forecast period.

  1. Additional features offered by SATS providers over in-house testing and packaging capabilities are expected to propel the global semiconductor assembly and testing services market growth over the forecast period

SATS providers have extended capabilities of offering additional features namely miniaturization, additional functionality, low power consumption, and improved thermal and electrical performance. This aids OSTAS providers to gain competitive advantage over Integrated Design Manufacturers (IDM) in-house testing capabilities. Moreover, increase in the semiconductor content within electronic products is expected provide better functionality and higher levels of performance. Hence, these factors are expected to support the global semiconductor assembly and testing services market growth in the near future.

Asia-Pacific region dominated the global 68.8% market in 2019, followed by North America, Europe and Middle East and Africa and Latin America, respectively.

Semiconductor Assembly & testing Services  | Coherent Market Insights

Source: Coherent Market Insights

Market Dynamics- Restraints

  1. Constant fluctuations in exchange rates is expected to hinder the global semiconductor assembly and testing services market growth during the forecast period

Since SATS providers offer services in all parts of the world, it makes the vulnerable to volatility of various currencies. As a result of this, their consolidated business results and financial condition including the sales volume in foreign currencies, materials costs in foreign currencies, and production costs at overseas manufacturing sites, are influenced if exchange rates change significantly. For instance, due to fluctuations in exchange rates (US$/NT$), Amkor Technologies recorded net foreign exchange losses of NT$ 276.2 Mn (US$ 8.46 Mn), and NT$1,222.0 Mn (US$37.43 Mn) (1 US$ = 32.64 NT$) in 2013 and 2014, respectively.

  1. High capital investment for high-end packaging solutions is expected to restrain growth of the global semiconductor assembly and testing services market over the forecast period

High-end semiconductor packaging and testing businesses require high capital investment for producing expensive equipment manufactured by a limited number of suppliers. Increasing demand for miniaturization and low thermal ratings have mandated adoption of advanced packaging solutions. However, as the capital required for offering these solutions is high, only few players are able to provide these services, thereby restraining the market growth.

Market Opportunities

  1. Investments in advanced packaging solution to pose lucrative business opportunities

SATS providers are focused on increasing capacity utilization rates by expanding existing capabilities. Leading SATS providers are leveraging advanced packaging and test capabilities to create reasonably quick returns on investments made consumers seeking leading edge technologies. These organizations are also focused on advanced packaging technologies as well as a second wave of consumers who still prefer conventional packaging technologies, in order to fulfil capacity in case leading edge customers transition to newer packaging and test equipment and platforms. For instance, in 2013 and 2014, STATchiPAC Inc. invested US$ 46.4 Mn and US$ 39.2 Mn respectively in R&D activities for improving its packaging solutions. This aided the company to increase its revenue from advanced packaging solutions by 1% from 2013, to account for 47.9% in 2014.

  1. High capacity utilization rates is expected to present lucrative business opportunities

SATS providers are focused on increasing capacity utilization rates by expanding existing capabilities. Any fluctuation in capacity utilization rates can significantly affect gross margins since the cost per unit usually decreases as fixed costs are distributed over a larger number of units. For instance, in November 2013, CORWIL Technology Corporation expanded its wafer thinning services by adding a Disco DAG 810 automatic grinder. It enhanced the company’s offerings by providing 300 mm wafer backgrinding to its current thinning core capabilities.

Semiconductor Assembly & testing Services  | Coherent Market Insights

Source: Coherent Market Insights

Market Trends

  1. Growing focus on mergers and acquisitions

Key companies in the market are focused on mergers and acquisitions, in order to gain competitive advantage in the market. For instance, in July 2015, GLOBALFOUNDRIES Inc. acquired IBM’s ‘Microelectronics’ business, which strengthened the company’s workforce by adding experience and expertise in semiconductor development, device expertise, design, and manufacturing. Furthermore, in March 2014, CORWIL Technology Corporation acquired the assets of VIKO Test Labs, a section of Infiniti Solutions. The addition of electrical, environmental, and mechanical test services enhanced CORWIL‘s market position as a provider for both assembly and testing services in the U.S.  

  1. Product innovation through technological advancements is a major trend in the market

Key participants in the market are constantly involved in product development and launching, in order to expand their product portfolio and enhance market presence. For instance, in June 2015, GLOBALFOUNDRIES Inc. developed new digital design flows for Register-transfer Level (RTL) to Graphic Design Database System (GDS) implementation in collaboration with Mentor Graphics, Cadence Design Systems Inc., and Synopsys Inc. Furthermore, in 2013, CORWIL Technology introduced a new FICO MMS-W Molding system. This addition, along with the introduction of the ASM extreme wire bonder, strengthened company’s capability for fine pitch and high density packaging for BGA, QFN, and CSP products.

Segment information:

In global semiconductor assembly and testing services market, by service type segment, the assembly and packaging services sub-segment dominated the global market in 2019, accounting for 80.1% share in terms of value, followed by testing services.

Semiconductor Assembly & testing Services  | Coherent Market Insights

Source: Coherent Market Insights

Competitive Section

Key companies operating in the global semiconductor assembly and testing services market are ASE Group, Powertech Technology Inc., Global Foundries Inc., Amkor Technology Inc., CORWIL Technology Corp., Integrated Microelectronics Inc. (Psi Technologies Inc.), STATS chipPAC Ltd. (JCET), Chipbond Technology Corporation, and Silicon Precision Industries Company Ltd.

Key Developments

  1. Key companies in the market are focused on mergers and acquisitions, in order to gain competitive edge in the market. For instance, in April 2019, ON Semiconductor acquired Global Foundries Inc. for US$ 430 million.
  2. Major market players are involved in mergers and acquisitions, in order to enhance their market presence. For instance, in May 2017, Amkor Technology Inc. acquired Nanium S.A, a semiconductor packaging firm.

The semiconductor industry is rapidly and unpredictably changing. Most of the companies in this industry are fabless companies, these companies leverage their resources and use their experience to improve the performance of the semiconductors chips. However, assembly and testing packaging services are outsourced to third parties. Semiconductor assembly and testing services offered to various industries such as communication, automobile sectors and in consumer electronics. A semiconductor material has conductivity value between conductor and insulator. Increasing adoption for mobile and connected services has increased the demand of smartphones and tablets with each internet can be accessed.

Market Dynamics

The ongoing demand for consumer electronics with the advancement in technology is driving the growth of global semiconductor assembly and testing services market. High development of cell phones and tablets are the potential markets for SATS. Increasing mobility and growing digital content is expected to drive the growth of global semiconductor assembly and testing services market growth during the forecast period. For instance, according to CMI analysis, the global semiconductor sectors  total revenue is  increased from USD483 billion in 2018 to USD517 billion in 2019.Increasing demand for automotive electronics in the upcoming generation cars built with electronic components, system to enhance car safety, and management system are driving the growth of global semiconductor assembly and testing services market. Rising adoption of latest technologies in navigation, hybrid electric driver, and in LED creates demand for this market.

Market Taxonomy

This report segments the global semiconductor assembly and testing services market on the basis of by service, by application, and region. On the basis of service, global semiconductor assembly testing and services market is segmented into assembly & packaging services and testing services. On the basis packaging solutions, the global semiconductor assembly and testing services market is segmented into Copper Wire and Gold Wire Bonding, Copper Clip, Flip Chip, Wafer Level Packaging and TSV. On the basis application, the global semiconductor assembly and testing services market is segmented into communication, computing & networking, consumer electronics, industrial and automotive electronics. On the basis of region, global semiconductor assembly and testing services market is segmented into North America, Latin America, Europe, Asia pacific, Middle East and Africa.

Key features of the study:

  • This report provides an in-depth analysis of the global semiconductor assembly and testing services market and provides market size (US$ million) and compound annual growth rate (CAGR %) for the forecast period (2019-2027), considering 2018 as the base year
  • It elucidates potential revenue opportunities across different segments and explains attractive investment proposition matrix for this market
  • This study also provides key insights about market drivers, restraints, opportunities, new product launches or approval, regional outlook, and competitive strategy adopted by leading players
  • It profiles leading players in the global boat steering system market based on the following parameters – regulatory landscape, company overview, financial performance, product portfolio, geographical presence, distribution strategies, key developments and strategies, and future plans
  • Key companies covered in the Global Semiconductor Assembly and Testing Services Market includes ASE Group, Powertech Technology Inc., Global Foundries Inc., Amkor Technology Inc., CORWIL Technology Corp., Integrated Microelectronics Inc. (Psi Technologies Inc.), STATS chipPAC Ltd. (JCET), Chipbond Technology Corporation, and Silicon Precision Industries Company Ltd.
  • These key market players are focusing on collaboration strategy with other market leaders to innovate and launch new products to meet the increasing needs and requirements of consumers.
  • Insights from this report would allow marketers and management authorities of companies to make informed decision regarding future product launches, technology upgradation, market expansion, and marketing tactics
  • The global semiconductor assembly and testing services market report caters to various stakeholders in this industry including investors, suppliers, distributors, new entrants, and financial analysts
  • Stakeholders would have ease in decision-making through the various strategy matrices used in analyzing the global boat steering system market.

Detailed Segmentation:

  • Global Semiconductor Assembly and Testing Services Market, By Service:
    • Assembly & Packaging Services
    • Testing Services
  • Global Semiconductor Assembly and Testing Services Market, By Packaging Solutions:
    • Copper Wire and Gold Wire Bonding,
    • Copper Clip,
    • Flip Chip,
    • Wafer Level Packaging
    •  TSV
  • Global, Semiconductor Assembly and Testing Services Market, By Application:
    • Communication
      • Computing & Networking
      • Consumer Electronics
      • Industrial
      • Automotive Electronics
  • Global Semiconductor Assembly and Testing Services Market, By Region:
    • North America
    • Europe
    • Asia Pacific
    • Latin America
    • Middle East and Africa
  • Company Profiles
    • ASE Group*
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Key Strategies
      • Recent Developments
      • Future Plans
    • Powertech Technology Inc.
    • Global Foundries Inc.
    • Amkor Technology Inc.
    • CORWIL Technology Corp.
    • Integrated Microelectronics Inc. (Psi Technologies Inc.)
    • STATS chipPAC Ltd. (JCET)
    • Chipbond Technology Corporation
    • Silicon Precision Industries Company Ltd.

*Browse all the market data tables and figures on “Global Semiconductor Assembly and Testing Services Market- Forecast to 2027”

Table of Contents

  1. Research Objectives and Assumptions
    • Research Objectives
    • Assumptions
    • Abbreviations
  2. Market Purview
    • Report Description
      • Market Definition and Scope
    • Executive Summary
      • Market Snippet, By Service
      • Market Snippet, By Packaging
      • Market Snippet, By Application
      • Market Snippet, By Region
    • Coherent Opportunity Map (COM)
  3. Market Dynamics, Regulations, and Trends Analysis
    • Market Dynamics
      • Drivers
      • Restraints
      • Market Opportunities
    • Regulatory Scenario
    • Industry Trend
    • Merger and Acquisitions
    • New system Launch/Approvals
  4. Global Semiconductor Assembly and Testing Services Market, By Service, 2017-2027  (US$ Million)
    • Introduction
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment Trends
    • Assembly & Packaging Services
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
    • Testing Services
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
  5. Global Semiconductor Assembly and Testing Services Market, By Packaging Solutions , 2017-2027  (US$ Million)
    • Introduction
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment Trends
    • Copper Wire and Gold Wire Bonding
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
    • Copper Clip
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
    • Flip Chip
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
    • Wafer Level Packaging
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
    • TSV
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
  6. Global Semiconductor Assembly and Testing Services Market, By Application, 2017-2027 (US$ Million)
    • Introduction
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment Trends
    • Communication
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment Trends
    • Computing & Networking
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment Trends
    • Consumer Electronics       
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment Trends
    • Industrial
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment Trends
    • Automotive Electronics
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment Trends
  7. Global Semiconductor Assembly and Testing Services Market, By Region, 2017-2027  (US$ Million)
    • Introduction
      • Market Share Analysis, By Region, 2017 and 2027 (%)
    • North America
      • Regional Trends
      • Market Size and Forecast, By Service, 2019–2027 (US$ Million)
      • Market Size and Forecast, By Packaging Solution, 2019–2027 (US$ Million)
      • Market Size and Forecast, By Application, 2019–2027 (US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • U.S.
        • Canada
    • Europe
      • Regional Trends
      • Market Size and Forecast, By Service, 2019–2027 (US$ Million)
      • Market Size and Forecast, By Packaging Solution, 2019–2027 (US$ Million)
      • Market Size and Forecast, By Application, 2019–2027 (US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • U.K.
        • Germany
        • Italy
        • France
        • Russia
        • Rest of Europe
    • Asia Pacific
      • Regional Trends
      • Market Size and Forecast, By Service, 2019–2027 (US$ Million)
      • Market Size and Forecast, By Packaging Solution, 2019–2027 (US$ Million)
      • Market Size and Forecast, By Application, 2019–2027 (US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • China
        • India
        • Japan
        • ASEAN
        • Australia
        • South Korea
        • Rest of Asia Pacific
    • Latin America
      • Regional Trends
      • Market Size and Forecast, By Service, 2019–2027 (US$ Million)
      • Market Size and Forecast, By Packaging Solution, 2019–2027 (US$ Million)
      • Market Size and Forecast, By Application, 2019–2027 (US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • Brazil
        • Argentina
        • Mexico
        • Rest of Latin America
    • Middle East and Africa
      • Regional Trends
      • Market Size and Forecast, By Service, 2019–2027 (US$ Million)
      • Market Size and Forecast, By Packaging Solution, 2019–2027 (US$ Million)
      • Market Size and Forecast, By Application, 2019–2027 (US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • GCC Countries
        • South Africa
        • Rest of the Middle East and Africa
  8. Competitive Landscape
    • Company Profiles
      • ASE Group
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Powertech Technology Inc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Global Foundries Inc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Amkor Technology Inc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • CORWIL Technology Corp.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Integrated Microelectronics Inc. (Psi Technologies Inc.)
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • STATS chipPAC Ltd. (JCET)
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Chipbond Technology Corporation
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Silicon Precision Industries Company Ltd.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
  9. Section
    • References
    • Research Methodology
    • About us and Sales Contact

*Browse market data tables and figures on “Global Semiconductor Assembly and Testing Services Market-forecast to 2027”.

Research Methodology

Coherent Market Insights followsa comprehensive research methodology focused on providing the most precise market analysis. The company leverages a data triangulation model which helps company to gauge the market dynamics and provide accurate estimates. Key components of the research methodologies followed for all our market reports include:

  • Primary Research (Trade Surveys and Experts Interviews)
  • Desk Research
  • Proprietor Data Analytics Model

In addition to this, Coherent Market Insights has access to a wide range of the regional and global reputed paid data bases, which helps the company to figure out the regional and global market trends and dynamics. The company analyses the industry from the 360 Degree Perspective i.e. from the Supply Side and Demand Side which enables us to provide granular details of the entire ecosystem for each study. Finally, a Top-Down approach and Bottom-Up approach is followed to arrive at ultimate research findings.


Data Triangulation Methodology | Coherent Market Insights

Coherent Market Insights desk research is based on a principle set of research techniques:

  • National level desk research: It Includes research analysis of regional players, regional regulatory bodies, regional trade associations, and regional organization.
  • Multinational level desk research: The research team keeps a track of multinational players, global regulatory bodies, global trade associations, and global organization.

Coherent Market Insights has a large amount of in-house repository of industry database. This is leveraged as a burner for initiating a new research study. Key secondary sources include:

  • Governmental bodies, National and international social welfare institutions, and organizations creating economic policies among others.
  • Trade association, National and international media and trade press.
  • Company Annual reports, SEC filings, Corporate Presentations, press release, news, and specification sheet of manufacturers, system integrators, brick and mortar - distributors and retailers, and third party online commerce players.
  • Scientific journals, and other technical magazines and whitepapers.

Market Analysis | Coherent Market Insights

Preliminary Data Mining

The raw data is obtained through the secondary findings, in house repositories, and trade surveys. It is then filtered to ensure that the relevant information including industry dynamics, trends, and outlook is retained for further research process.

Data Standardization

Holistic approach is used to ensure that the granular and uncommon parameters are taken into consideration to ensure accurate results. The information from the paid databases are further combined to the raw data in order to standardize it.

Coherent Statistical model

We arrive at our final research findings through simulation models. Coherent Data Analytics Model is a statistical tool that helps company to forecast market estimates. Few of the parameters considered as a part of the statistical model include:

  • Micro-economic indicators
  • Macro-economic indicators
  • Environmental indicators
  • Socio-political indicators
  • Technology indicators

Data Processing

Once the findings are derived from the statistical model, large volume of data is process to confirm accurate research results. Data analytics and processing tools are adopted to process large chunk of collected informative data. In case, a client customizes the study during the process, the research finding till then are benchmarked, and the process for new research requirement is initiated again.

Data Validation

This is the most crucial stage of the research process. Primary Interviews are conducted to validate the data and analysis. This helps in achieving the following purposes:

  • It provides first-hand information on the market dynamics, outlook, and growth parameters.
  • Industry experts validates the estimates which helps the company to cement the on-going research study.
  • Primary research includes online surveys, face-to face interviews, and telephonic interviews.

The primary research is conducted with the ecosystem players including, but not limited to:

  • Raw Material Suppliers
  • Manufacturers
  • System Integrators
  • Distributors
  • End-users