Outsourced Semiconductor Assembly and Testing Market Size is projected to reach USD 50.9 Billion by 2028, growing at a CAGR of 4.8%: Zion Market Research

[187+ Pages Study] According to Zion Market Research, the global outsourced semiconductor assembly and testing market size & share was valued at around USD 34.85 billion in 2021 and is estimated to grow around USD 50.9 billion by 2028, at a CAGR of approximately 4.8% during 2022 to 2028. The key market players are listed in the report with their sales, revenues and strategies are JCET, ASE Group, Amkor, Hana Micron, Siliconware Precision Industries Co., Ltd., KYEC, Signetics, Unisem Group, Powertech Technology Inc., Walton Advanced Engineering., and others.


NEW YORK, United States, April 13, 2023 (GLOBE NEWSWIRE) -- According to Zion Market Research has published a new research report titled “Outsourced Semiconductor Assembly And Testing Market By Process (Sawing, Sorting, Testing, And Assembly), By Packaging Type (Ball Grid Array, Chip Scale Package, Multi Package, Stacked Die, And Quad & Dual), By Application (Consumer Electronics, Industrial, Telecommunication, Automotive, Aerospace & Defense, Medical & Healthcare, And Logistics & Transportation) And By Region – Global And Regional Industry Overview, Market Intelligence, Comprehensive Analysis, Historical Data And Forecasts 2022 – 2028” in its research database.

“According to the latest research study, the demand of global Outsourced Semiconductor Assembly and Testing Market size & share in terms of revenue was valued at USD 34.85 billion in 2021 and it is expected to surpass around USD 50.9 billion mark by 2028, growing at a compound annual growth rate (CAGR) of approximately 4.8% during the forecast period 2022 to 2028.”

What are Outsourced Semiconductor Assembly and Testing? How big is the Outsourced Semiconductor Assembly and Testing Industry?

Report Overview:

Outsourced Semiconductor Assembly and Test refers to businesses that offer IC packaging and testing services to outside parties (OSAT). Before silicon devices created by foundries may be released on the market, OSAT service businesses package and inspect the devices.

It primarily focuses on providing innovative test and packaging solutions to semiconductor businesses in well-established markets like consumer and computer, wearables, automotive, and the Internet of Things (IoT).

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Global Outsourced Semiconductor Assembly and Testing Market: Growth Dynamics

People are using electronics more frequently as a result of growing transformation in industrialized countries and a surge in smartphone adoption, which is driving demand for outsourced semiconductor assembly and testing globally. Additionally, the development of technology and the growing purchasing power of emerging nations both contribute to the OSAT expansion. Furthermore, as OSAT companies dominate IC assembly and testing, industry players have numerous options to strengthen their market position.

Automotive applications are one of the fastest-growing income streams for the global outsourced semiconductor assembly and testing market. The complexity of automotive chips is rapidly rising, along with the complexity of automotive chip packaging, with the advent of electric cars, driverless cars, and ADAS systems. OSAT vendors are required because in-cabin applications such as entertainment systems and advanced driving assistance systems (ADAS) have stringent mission-critical test specifications.

However, the majority of printed circuit boards and other electronic devices are made by third-party companies. However, a lot of unanticipated costs and risks are sometimes overlooked in an effort to boost profitability and appease shareholders. Furthermore, a lot of third-party service providers do not meet the high standards of assembly or testing requirements for semiconductor goods. Additionally, the majority of outsourcing took place in Asian nations like China, where many service providers do not respect intellectual property laws, putting OEMs at risk of losing crucial procedures.

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Report Scope

Report Attribute Details
Market Size in 2021 USD 34.85 billion
Projected Market Size in 2028 USD 50.9 billion
CAGR Growth Rate 4.8% CAGR
Base Year 2021
Forecast Years 2022-2028
Key Market Players JCET, ASE Group, Amkor, Hana Micron, Siliconware Precision Industries Co., Ltd., KYEC, Signetics, Unisem Group, Powertech Technology Inc., Walton Advanced Engineering.
Key Segment By Process, By Packaging Type, By Application and By Region
Major Regions Covered North America, Europe, Asia Pacific, Latin America, and the Middle East &, Africa
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Outsourced Semiconductor Assembly and Testing Market: Segmentation Analysis

The global outsourced semiconductor assembly and testing market is segmented based on process, application, and region.

Based on process, the market is segmented into sawing, sorting, testing, and assembly. Now that testing is being outsourced to several Outsourced Semiconductor Assembly and Test facilities, semiconductor manufacturers are moving more quickly. This change has occurred as a result of manufacturers looking for more and better ways to reduce operating expenses and hasten the launch of their new product ideas.

Basic semiconductors are assembled to create completed semiconductors. It facilitates electrical connections, heat dissipation, and die protection. The fan-out wafer-level packaging (FO-WLP), wafer-level chip-scale packaging (WL-CSP), flip chip, 2.5D, and 3D packaging, system in package (SiP), and copper wire bonding are only a few of the services offered in the assembly or packaging industry.

The global outsourced semiconductor assembly and testing market is segmented as follows:

By Process

  • Sawing
  • Sorting
  • Testing
  • Assembly

By Packaging Type

  • Ball Grid Array
  • Chip Scale Package
  • Multi Package
  • Stacked Die
  • Quad & Dual

By Application

  • Consumer electronics
  • Industrial
  • Telecommunication
  • Automotive
  • Aerospace and defense
  • Medical and Healthcare
  • Logistics and Transportation

Browse the full “Outsourced Semiconductor Assembly And Testing Market By Process (Sawing, Sorting, Testing, And Assembly), By Packaging Type (Ball Grid Array, Chip Scale Package, Multi Package, Stacked Die, And Quad & Dual), By Application (Consumer Electronics, Industrial, Telecommunication, Automotive, Aerospace & Defense, Medical & Healthcare, And Logistics & Transportation) And By Region – Global And Regional Industry Overview, Market Intelligence, Comprehensive Analysis, Historical Data And Forecasts 2022 – 2028.”- Report at https://www.zionmarketresearch.com/report/outsourced-semiconductor-assembly-and-testing-market

Competitive Landscape

Some of the main competitors dominating the global Outsourced Semiconductor Assembly and Testing market include - 

  • ASE Group
  • Amkor
  • JCET
  • Siliconware Precision Industries Co., Ltd.
  • KYEC
  • Hana Micron
  • Signetics
  • Unisem Group
  • Walton Advanced Engineering
  • Powertech Technology Inc.
  • Others 

 Key Insights from Primary Research:

  • According to the analysis shared by our research forecaster, the Outsourced Semiconductor Assembly and Testing market is likely to expand at a CAGR of around 4.8% during the forecast period (2022-2028).                                                              
  • In terms of revenue, the Outsourced Semiconductor Assembly and Testing market size was valued at around US$ 34.85 billion in 2021 and is projected to reach US$ 50.9 billion by 2028.
  • Based on Process segmentation, The assembly segment was the highest revenue contributor to the market in 2021.
  • The consumer electronics segment was the highest revenue contributor to the market in 2021.
  • On the basis of geography/region, the “North America was the highest revenue contributor in 2021.

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Key questions answered in this report:

  • What is the market size and growth rate forecast for Outsourced Semiconductor Assembly and Testing industry?
  • What are the main driving factors propelling the Outsourced Semiconductor Assembly and Testing Market forward?
  • What are the leading companies in the Outsourced Semiconductor Assembly and Testing Industry?
  • What segments does the Outsourced Semiconductor Assembly and Testing Market cover?
  • How can I receive a free copy of the Outsourced Semiconductor Assembly and Testing Market sample report and company profiles?

Key Offerings:

  • Market Size & Forecast by Revenue | 2022−2028
  • Market Dynamics – Leading Trends, Growth Drivers, Restraints, and Investment Opportunities
  • Market Segmentation – A detailed analysis By Process, Packaging Type, Application and Region
  • Competitive Landscape – Top Key Vendors and Other Prominent Vendors

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Regional Analysis:

With about 55% of the market share, Asia Pacific dominated the global outsourced semiconductor assembly and testing market. China has a monopoly on the regional market among all the nations in the area. In addition, compared to other countries, China has a very large market share.

This is attributed to the country's robust economic growth, consumer spending power, the presence of significant electronic manufacturing companies, and the growing use of smartphones. The United States is one of the most significant markets for the OSAT industry. OSAT business in the nation is expanding as a result of significant investments, technical advancements, and the creation of new applications.

By Region

  • North America
    • U.S.
    • Canada
    • Rest of North America
  • Europe
    • France
    • UK
    • Spain
    • Germany
    • Italy
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Rest of Asia Pacific
  • The Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • Latin America
    • Brazil
    • Argentina
    • Rest of Latin America

Recent Developments

  • In November 2021, Tata Group revealed that in India, it aims to build a $300 million semiconductor manufacturing and testing facility. Tata's initial foray into the burgeoning chip business would be through the outsourced semiconductor assembly and test (OSAT) factory.
  • In February 2021, Siemens Digital Industries Software has announced the release of two new enablement solutions developed in collaboration with Advanced Semiconductor Engineering, Inc. (ASE) to assist mutual customers in creating and evaluating multiple complex integrated circuit (IC) package assemblies and interconnect scenarios in an incredibly simple, data-robust graphical environment before and during physical execution of the design.

To know an additional revised 2022 list of market players, request a brochure of the report: https://www.zionmarketresearch.com/requestbrochure/outsourced-semiconductor-assembly-and-testing-market

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