SEMICONDUCTOR ASSEMBLY AND TESTING SERVICES MARKET ANALYSIS

Market Challenges And Opportunities

Market Restraint:

Constant fluctuations in order levels and service fees

The majority of consumers of SATS providers are part of the semiconductor industry. Constant fluctuations in order levels and service fees have resulted in volatility in the revenues and net incomes. Frequently, semiconductor and electronics industries have experienced significant and sometimes extended downturns. Since semiconductor industry is significantly reliant on independent packaging, testing, and electronic manufacturing services, and a downturn in the near future would decrease the demand for these services.

Market Driver:

Capabilities of high-quality SATS providers to let OEMs and ODMs to focus on their core business

Semiconductor process technology is migrating to larger wafers and smaller feature sizes. As a result of this, building state-of-the-art wafer fabrication factories has become significantly expensive, costing several billions of dollars. High initial investment required for next-generation technology and equipment has compelled various semiconductor enterprises to maintain or adopt a fab-lite or fabless strategy to reduce or remove their investment in wafer fabrication and associated packaging and test operations. This, in turn, has aided Original Design Manufacturer (ODMs) in focusing on their core businesses and increasing their dependence on outsourced providers of semiconductor manufacturing services such as testing and packaging. Thus, these factors are expected to boost the global semiconductor assembly and testing services market growth over the forecast period.

Market Challenge:

Penetration of semiconductor devices in well-established end products such as automotive systems has increased, owing to the rising utilization of electronics for safety, navigation, fuel efficiency, emission reduction, and entertainment systems. Growing safety concerns and proactive initiatives by government to support safety systems are expected to drive the market growth in the near future. This, in turn, is expected to present excellent growth opportunities for market players in the near future to capitalize on untapped market potential.

Market Opportunity:

Penetration of semiconductor devices in well-established end products such as automotive systems has increased, owing to the rising utilization of electronics for safety, navigation, fuel efficiency, emission reduction, and entertainment systems. Growing safety concerns and proactive initiatives by government to support safety systems are expected to drive the market growth in the near future. This, in turn, is expected to present excellent growth opportunities for market players in the near future to capitalize on untapped market potential.