SEMICONDUCTOR ASSEMBLY AND TESTING SERVICES MARKET ANALYSIS

Semiconductor Assembly And Testing Services MarketSize and Trends

The global semiconductor assembly and testing services market is estimated at US$ 33.42 Billion in 2023, and is projected to reach US$ 48.81 Billion by 2030, exhibiting a CAGR of 5.6% over the forecast period (2023-2030). 

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 Opportunity:

Growing adoption of safety systems in automobile industry

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.

The consumer electronics segment is expected to drive the global semiconductor assembly and testing services market growth during the forecast period.

Among application, the consumer electronics segment is expected to hold a major market share and grow at a higher CAGR over the forecast period. It is attributed to the growing consumption of smartphones, tablets, and smart television sets, as well as the adoption of 5G technologies and others. Semiconductor assembly and test services play a significant role in the operational working of these devices, as they are being tested before usage. Additionally, portable electronics, smart homes, and other products are witnessing aggressive demand across the countries such as China, India and others.