Semiconductor Assembly and Testing Services (SATS) Market Valuation is Likely to Touch USD 28 Bn by 2022 | Device Miniaturization to Boost Semiconductor Assembly & Test Services Demand

The reduction of the size of semiconductor and integrated chips coupled with changing preference of customers is expected to spur market growth.

Pune, Sept. 19, 2018 (GLOBE NEWSWIRE) -- Market Research Future’s in-depth market study on the Semiconductor Assembly and Testing Service Market, By Service (Assembly, Packaging, Testing), By Application (Consumer Electronics, Information Technology, Telecommunication, Automotive, Industrial) - Forecast till 2022

Semiconductor Assembly and Testing Services Market

The commoditization of consumer electronic devices coupled with its dire need in our day-to-day lives has created the need for semiconductor testers. The dumping of electronic devices from China has forced other manufacturers to reinforce quality standards with respect to customer expectations to gain more shares. Semiconductor assembly and testing service (SATS) companies offer highly rigorous tests to reach a benchmark set by clients. Development of solutions and debugging activities to expedite the time-to-market of the product are some of the services offered by these companies.

Market Scope

The global semiconductor assembly and test services market size is projected to touch USD 28 Bn by 2022, exhibiting a 4.5% CAGR from 2017 to 2022 (forecast period), according to a new report published by Market Research Future (MRFR). The integration of additional technologies in commercial vehicles is bound to drive the market demand during the forecast period. This can be credited to the inclusion of electronic control units for powering fuel, power, parking, airbag control, and telematics.

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The rise in semiconductor manufacturers in Asian countries coupled with the outsourcing of SATS to these nations is expected to fuel growth opportunities for the Semiconductor Assembly and Test Service Market in the coming years. Furthermore, the system-in-package (SiP) module can gain traction owing to the plethora of consumer electronic devices such as media players, solid state drives, smartphones, and wireless devices.

Industry Trend

Ease Production Process: Introduction of turnkey solutions to ease the production process of wafers and semiconductor chips is likely to bode well for chip manufacturers. This is exemplified by the launch of testing solutions by Chroma and Tektronix. The demand for PCI eXtensions for Instrumentation (PXI) testing has led to the launch of the Chroma 33010 PXIe digital card. It can even be used in checking temperature fluctuations and improve performance and efficiency of chips.

Novel Packaging: Fan-out wafer level packaging (FOWLP) is an advanced form of packaging which has gained traction owing to its number of interconnect points. The best instance includes the use of FOWLP by Taiwan Semiconductor Manufacturing Company (TSMC) in its production of iPhone 7. Applications of this type of packaging comprise application processor engines with high number of input/output (I/O) ports. Some of the notable providers of these packaging solutions include Amtek, Amkor, etc.

Segmentation Analysis

The Semiconductor Assembly and Testing Services Market is segmented by services, application, and packaging solution.

Services include assembly, packaging, and testing. The assembly segment is anticipated to reach a value of USD 15.7 billion by 2022. Manufacturers of wafers and semiconductor chips are collaborating with partners to understand the design and capabilities of the package. New processes are being implemented to streamline the production flow and accelerate the design phase.

Major Semiconductor Assembly and Testing Service Market applications include information technology, consumer electronics, telecommunications, industrial, and automotive. The telecommunications segment is projected to reach a size of USD 11.3 billion by 2022, growing at a 5.31% CAGR over the forecast period in the semiconductor assembly and testing services market.

Packaging solutions encompass through-solution via (TSV), wafer level packaging, flip chip, copper clip, and copper wire and gold wire bonding.

Regional Analysis

Regions covered with respect to the SATS market include North America, Asia Pacific (APAC), Europe, and Rest-of-the-World (RoW).

The APAC region accounted for 45% share of the SATS market in 2016. This can be credited to the presence of various players and constant demand for consumer electronic devices owing to expendable incomes of consumers. Japan has made huge strides in semiconductor and integrated chips. China as a hub for mass manufacturing of these components and the expanding telecommunication sector in India are other factors which can push the Semiconductor Assembly and Testing Service Market growth throughout the forecast period.

The North America region assumed the second position in the same year with 25% share, while Europe attained a 20% share and RoW occupied a 10% share respectively. High volume of manufacturing of consumer electronics equipment coupled with SATS players in the region is likely to bode well for the market.

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Competition Analysis

Well-known players in the market include Chipbond Technology Corporation, Powertech Technology Inc., Integrated Micro-Electronics, Inc., Siliconware Precision Industries Co., Ltd., Advanced Semiconductor Engineering, Inc., Global Foundries, Amkor Technology, Inc., CORWIL Technology, STATS ChipPAC Ltd., and others. Development of new testing methods and R&D investment are current strategies employed to gain a higher share of the SATS market.

In September 2018, Palomar Technologies decided to expand its laboratory to cater to the rising assembly and package solutions. The internet of things (IoT) and connected device ecosystem has pushed the need for devices with smaller designs and flawless performance.

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