Press release
Semiconductor Assembly and Testing Services Market: Present Scenario and the Growth Prospects with Forecast 2021
Semiconductor Assembly and Testing Services (SATS) market are witnessing increased demand for outsourced SATS services. Presently, around half of the market is exploiting the Outsourced Semiconductor Assembly and Test (OSAT) services, and the trend is expected to continue in the long run. With increasing competition from the leading and regional players, the market is witnessing consolidation. This helps market participants in utilizing resources of other players to meet increasing technological demands.
Currently, the semiconductor assembly & testing services market across the world is mainly driven by factors such as increasing demand for mobility and connectivity in the consumer electronic products.
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An increasing demand for connected devices worldwide including smartphones and tablets having connectivity and multimedia capabilities are fuelling the demand for higher packaging technologies, setting up potential revenue opportunity for the SATS market. Additional features offered by SATS providers over in-house testing and packaging capabilities is also one of the primary reasons for the market growth. Additionally, SATS providers facilitate a more efficient supply chain and in-turn reduces time-to-market for a product, therefore SATS providers are becoming the primary choice of integrated design manufacturers.
Increased use of safety systems in the automobile industry is also one of the factors contributing to the growth of the SATS market. . However, factors such as the high capital requirement for offering higher end packaging solutions, fluctuations in exchange rates, and volatility in the market are expected to constrain the growth of the SATS market.
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On the basis of services, the semiconductor assembly & testing services market has been segmented into assembly & packaging services and testing services. The assembly & packaging services segment is expected to account for 79.4% share of the global Semiconductor assembly & testing services market by 2015 end and is anticipated to increase at a CAGR of 4.9%, during the forecast period (2015–2021).
The Assembly and Packaging services segment is further classified on the basis of packaging solutions (interconnecting technologies) which includes copper and gold wire bonding, copper clip, flip chip, wafer level packaging, and TSV. Copper and gold wire bonding accounted for the 55.5%share of the assembly and packaging services segment in 2014. The wafer level packaging (interconnecting technology) segment in the global SATS market is anticipated to expand at a CAGR of 9.2% during the forecast period.
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On the basis of application, the semiconductor assembly & testing services market is segmented into communications, computing & networking, consumer electronics, industrial and automotive electronics. Among these, communication segment dominated the market in 2014 and is expected to account for 49.4% share of the global semiconductor assembly & testing services market by 2015 end. This segment is expected to expand at CAGR of 5.9% during the forecast period.
Increasing adoption of tablets and wearable devices globally, is expected to drive the market growth of consumer electronics segment during the forecast period. Consumer electronics segment is analyzed to increase at a CAGR of 6.6% during the forecast period.
The report provides detailed information about various trends driving each segment and offers analysis and insights about the potential of the semiconductor assembly & testing services market in specific regions. On the basis of region, the semiconductor assembly & testing services market is segmented into six regions; among these, Taiwan is expected to dominate the market representing 46.5% share by the end of 2015. The market in the region is analyzed to represent largest market share by 2021 expanding at a CAGR of 5.8% during the forecast.
Key players in global semiconductor assembly & testing services market include ASE Group, Amkor Technologies Inc., STATS ChipPAC Ltd. (JCET), Silicon Precision Industries Co. Ltd., Powertech Technology Inc., CORWIL Technology corporation, Psi Technologies Inc. (IMI), GlobalFoundries and Chipbond Technology Corporation.
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