Yahoo Finance The Global Outsourced Semiconductor Assembly and Testing Market size is expected to reach $47.3 billion by 2028, rising at a market growth of 4.9% CAGR during the forecast period
Companies that offer third-party IC-packaging, as well as test services, are known as OSAT (Outsourced semiconductor assembly and test). These businesses package silicon products created by foundries & test them before they are released onto the market.
New York, Sept. 28, 2022 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Global Outsourced Semiconductor Assembly and Testing Market Size, Share & Industry Trends Analysis Report By Application, By Packaging Type, By Process, By Regional Outlook and Forecast, 2022 – 2028" - https://www.reportlinker.com/p06322235/?utm_source=GNW
It primarily focuses on providing cutting-edge packaging and test solutions for semiconductor companies in emerging markets like automotive, electronics, wearable technology, and the Internet of Things (IoT), in addition to well-established markets like communications, consumer, and computing.
It offers creative, affordable solutions that increase functionality, processing speed, & performance while taking up less space in an electronic device. After the wafer fabrication & wafer probe stages of the semiconductor manufacturing process, OSAT companies play a significant role in the final stage. These businesses provide packaging or assembling solutions that entail turning bare semiconductors into finished semiconductors. This protects the die and makes it easier for electrical connections and heat dissipation while also assisting in die protection.
It performs final testing after packaging to make sure the packaged semiconductor satisfies performance requirements. The company provides a wide range of semiconductor test services, such as different types of final, wafer, system-level, and strip testing in addition to full end-o f-line services, including final shipping. Since this stage of the production process requires the most labor, it is frequently carried out in nations with lower labor costs, like China and Malaysia.
OSAT semiconductor firms that provide IC-packaging and test services to outside parties. Before putting them on the market, these vendors test and package semiconductor devices produced by foundries. Market players provide cutting-edge and reasonably priced solutions that increase functionality, performance, and processing speed while taking up less space in an electronic device.
COVID-19 Impact Analysis
The COVID-19 disease outbreak has had a significant impact on manufacturing and production operations, which has slowed the growth of the OSAT market. The market for outsourced semiconductor assembly & test is anticipated to experience a strong recovery as a result of the substantial demand for Internet of Things device installation across numerous industries, the rapidly expanding initiatives for smart cities, and the quick uptake of smart device technologies. However, the negative effects of COVID-19 on the market are only anticipated to last for a brief period of time.
Market Growth Factors
Increasing Demand For Consumer Electronics Across The World
The rising demand for semiconductor chips from manufacturers of medical devices, consumer electronics, and sensor systems is what fuels the semiconductor industry’s expansion. The market is expanding due to the constantly expanding use of consumer electronics, such as smartphones, computers, televisions, and other devices. Since semiconductors are essential to many industries related to consumer electronic appliances, including telecommunications, information technology, machine automation, power & solar photovoltaic, and others, it is anticipated that the demand for OSAT would increase.
The Use Of Semiconductors Has Increased In The Automotive Industry
Despite recent recessions and demand fluctuations, the automotive industry continues to be a major source of demand and a source of opportunity for semiconductor & OSAT vendors. For semiconductor producers and OSAT vendors, trends such as autonomous and electric vehicles as well as the rising number of semiconductor components per vehicle are the main driving forces. The market for OSAT and semiconductor foundries is growing as more semiconductor components, including sensors, microcontrollers, and radar chips, among others, are used in automobiles.
Market Restraining Factors
Huge Investments In Packaging Solutions Are Impeding Demand
High capital expenditures are needed in the high-end semiconductor testing and assembly industry to produce pricey equipment. Higher demand for low thermal ratings necessitates the use of innovative packaging techniques. Leading market players are knowledgeable about these investments. Small and medium-sized businesses struggle to provide premium services, which restrains the expansion of the market. Major businesses are also dealing with a chip shortage and exchange rate fluctuations at the moment because of the COVID-19 pandemic situation.
Process Outlook
Based on process, the outsourced semiconductor assembly & testing market is segmented into sawing, sorting, testing, and assembly. The testing segment dominated the outsourced semiconductor assembly & testing market by generating the maximum revenue in 2021. This is because the product’s quality can be verified through physical, functional, and electrical testing of the product. The demand for electronic products is increasing across industries, necessitating quality testing like inspection, X-ray, lead frame fabrication, and others.
Packaging Type Outlook
On the basis of packaging type, the outsourced semiconductor assembly & testing market is fragmented into ball grid array, chip scale package, multi-package, stacked die, and quad & dual. In 2021, the multi-package segment generated a substantial revenue share in the outsourced semiconductor assembly and testing market. The earliest type of system-in-package is a multi-chip module, which combines two or more integrated circuits with a common base & a single package.
Application Outlook
By application, the outsourced semiconductor assembly & testing market is divided into automotive, consumer electronics, industrial, telecommunication, aerospace and defense, medical & healthcare, and logistics & transportation. In 2021, the industrial segment covered a substantial revenue share in the outsourced semiconductor assembly and testing market. Integrated circuit chips are created using assembly services, which are then used to test the product before it is shipped. These services are therefore in great demand across industrial applications. T
Regional Outlook
Region wise, the outsourced semiconductor assembly & testing market is analyzed across North America, Europe, Asia Pacific and LAMEA. In 2021, the Asia Pacific segment led the outsourced semiconductor assembly and testing market with the largest revenue share. During the forecast period, a surge in demand for advanced semiconductor chip package solutions in the automotive sector is anticipated to fuel the expansion of the outsourced semiconductor assembly and testing market in the region.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Amkor Technology, Inc., Advanced Silicon S.A, Alphacore, Inc., Device Engineering, Inc., HiDensity Group, Luminar Technologies, Inc., Presto Engineering, Sencio BV, Shortlink AB, and SiFive, Inc.
Scope of the Study
Market Segments covered in the Report:
By Application
• Consumer Electronics
• Industrial
• Telecommunications
• Medical & Healthcare
• Automotive
• Aerospace & Defense
• Logistics & Transportation
By Packaging Type
• Ball Grid Array
• Quad & Dual
• Multi-package
• Chip Scale Package
• Stacked Die
By Process
• Testing
• Sorting
• Sawing
• Assembly
By Geography
• North America
o US
o Canada
o Mexico
o Rest of North America
• Europe
o Germany
o UK
o France
o Russia
o Spain
o Italy
o Rest of Europe
• Asia Pacific
o China
o Japan
o India
o South Korea
o Singapore
o Malaysia
o Rest of Asia Pacific
• LAMEA
o Brazil
o Argentina
o UAE
o Saudi Arabia
o South Africa
o Nigeria
o Rest of LAMEA
Companies Profiled
• Amkor Technology, Inc.
• Advanced Silicon S.A
• Alphacore, Inc.
• Device Engineering, Inc.
• HiDensity Group
• Luminar Technologies, Inc.
• Presto Engineering
• Sencio BV
• Shortlink AB
• SiFive, Inc.
Unique Offerings
• Exhaustive coverage
• Highest number of market tables and figures
• Subscription based model available
• Guaranteed best price
• Assured post sales research support with 10% customization free
Read the full report: https://www.reportlinker.com/p06322235/?utm_source=GNW
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