Outsourced Semiconductor Assembly and Test (OSAT) Market

SKU: DMICT2063 | Last Updated On: Aug 08 2022 | Available Formats

Outsourced Semiconductor Assembly and Test (OSAT) Market Expected to reach a high CAGR of 3.6% By 2029 : DataM Intelligence

Outsourced Semiconductor Assembly and Test (OSAT) Market is segmented By Service(Packaging, Testing), By Types of Packaging (Ball Grid Array, Chip-Scale Package, Stacked Die, Multi-Package, Quad and Dual), By Application (Automotive, Networking and communication, Consumer Electronics and others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2022-2029

The global outsourced semiconductor assembly and test (OSAT) market size was worth US$ 35.1 billion in 2021 and is estimated to reach US$ XX million by 2029, growing at a CAGR of 3.6% during the forecast period (2022-2029).

Outsourced Semiconductor Assembly and Test are known as OSAT. This third-party service is provided by vendors worldwide and includes, as the name suggests, semiconductor assembly, packaging and IC testing (Integrated Circuits). Because they serve as the link between semiconductor foundries and consumers, OSAT providers are more crucial in the semiconductor business than ever.

OSATs are business vendors. Integrated device manufacturers (IDMs) and foundries with internal packaging operations also contract with OSATs for a portion of their IC packaging needs. The OSATs and foundries handle packaging for the fabless firms. OSAT firms are hired by semiconductor design firms like Intel, AMD, Nvidia, etc. and carry out those companies’ designs.

 Outsourced Semiconductor Assembly and Test (OSAT) Market Scope

Metrics

Details

Market CAGR

3.6%

Segments Covered

By Service, By Type of Packaging, By Application, and By Region

Report Insights Covered

Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other key insights.

Fastest Growing Region

Asia Pacific

Largest Market Share 

North America

To know more insights into the Market, Get Our Sample Brochure

Market Dynamics

The growing use of Outsourced Semiconductor Assembly and Test (OSAT) in the consumer electronics and automotive industries is driving the market. However, the high OSAT expenses and the scarcity of competent workers may limit growth.

The growing consumer electronics sector

The rising demand for consumer electronics like TVs, smartphones, tablets and other devices is the main factor fueling the growth of the worldwide OSAT market. The main driver of the increase in consumer electronics sales is the rising standard of living of people everywhere. The OSAT market will be driven mostly by the rise in smart device penetration, which includes smartphones, smartwatches, smart cameras and other gadgets. The evolution of consumer electronics, such as laptops, tablets, fitness bands, smartwatches and other electronic devices that need challenging semiconductor integration, is predicted to support the growth of the outsourced semiconductor assembly and test (OSAT) business.

Electronic packaging serves as the connection between the integrated circuit and printed circuit board (PCB). Giving the proper mechanical and environmental protection serves another aim of ensuring reliability and performance. In addition, a rise in the adoption of artificial intelligence (AI) and the Internet of Things (IoT) in the electronics, telecommunication, robotics, aerospace & defense and other industries is projected to encourage the widening of the outsourced semiconductor assembly and test (OSAT) market size in the forecast period.

The rising usage of outsourced semiconductor assembly and test (OSAT) in automotive

The Human Machine Interface is receiving more attention and value due to increased technological developments like improved connection and vehicle automation. Therefore, automakers are progressively creating vehicles with integrated infotainment systems that offer a balance of entertainment and information for an improved in-vehicle experience to create comfortable, safe and smart vehicles. The market for OSAT will be driven by rising vehicle production during the ensuing few years.

The use of safety-related electronics systems in the automotive industry has increased significantly. Microcontrollers (MCUs), sensors and memory are a few of the semiconductor components that will increase demand in the automotive industry. In the coming 10 years, automotive electronics and subsystems will contain more semiconductors due to automation, electrification, digital connection and security. Consequently, fostering expansion in the global OSAT market during the anticipated period.

High costs and lack of skilled labor

The high upfront costs involved in designing, developing and establishing semiconductor packaging units to satisfy the demands of various industries, including consumer electronics, automotive, healthcare, IT & telecommunication, aerospace & defense and others, may restrain the growth of the semiconductor packaging market. Furthermore, it is anticipated that the absence of technical expertise in semiconductor packaging will restrain the market growth.

The OSAT market is under a lot of pressure from suppliers, new competitors, customers and potential replacements. The market for semiconductors is incredibly cutthroat. The OSAT suppliers are compelled to introduce new products quickly. However, the need for professional labor limits market expansion because OSAT makers pack as many components as possible into a single chip, making the job more challenging and complex.

COVID-19 Impact Analysis

A pandemic like COVID-19 is anticipated to spur the development of cutting-edge medical methods and technology to handle such emergencies. During the pandemic, businesses in the semiconductor industry employed AI-supported technologies to monitor product demand levels and adjust production schedules to meet urgent needs. Because of the increased attention being given to ways to lessen the effect of COVID-19 on the market for Outsourced Semiconductor Assembly and Test (OSAT), the market may make up the losses soon.

An increase in medical device production will also fuel the market. For instance, GE Consumer Electronics announced that it would increase its production capabilities for medical equipment, including CTs, ultrasound devices, mobile X-ray systems, patient monitors and ventilators, to address the ongoing challenge of treating COVID-19 patients. However, the COVID-19 outbreak is projected to significantly impact electrical gadgets because China is one of the major producers of raw materials and finished goods.

Segment Analysis

By application, the outsourced semiconductor assembly and test (OSAT) market is segmented into automotive, networking and communication, consumer electronics and others.

The rising usage of semiconductors in the automotive industry

For semiconductor producers and OSAT suppliers, developments like autonomous and electrified vehicles and the rising number of semiconductor components per vehicle are now the main driving forces. The OSAT and semiconductor foundries market is growing as more semiconductor components, including microcontrollers, sensors and radar chips, are utilized in automobiles. Semiconductor devices are the foundation for the hardware needed to run the software to create electric, hybrid, autonomous and alternative fuel vehicles. The scarcity of semiconductor chips in 2021–2022 may impact vehicle manufacturing, demonstrating how dependent the automotive sector is on the semiconductor industry.

Additionally, the need for advanced-level semiconductor packaging increases the market's potential due to developments like driverless vehicles and V2X. The demand for large displays and touch screens in the car industry is also rising due to the development of infotainment systems, further boosting demand among OSAT and semiconductor providers. Since modern touchscreen displays rather than conventional dials are thought to offer futuristic looks, better reaction and permit many operations in a compact space, creating a minimalistic design, this demand is unusually strong from the manufacturers of electric cars.

Geographical Analysis

The growing demand for consumer electronics in Asia-Pacific

Due to several businesses, increased demand for consumer electronics like smartphones and tablets and rising demand for automobiles from nations like China, Japan, South Korea and India, Asia-Pacific OSAT market is anticipated to dominate the worldwide OSAT market in 2021. Another factor contributing to this region's growth is the increase in investments made by different businesses to expand their product lines.

Asia-Pacific's transformation into a global production hub over the past twenty to thirty years has impacted most semiconductor manufacturing businesses. Due to rising consumer knowledge of cutting-edge technology items and rising levels of consumer disposable income, the demand for smartphones is rising quickly in emerging nations like India and China. All the factors are expected to drive the region’s OSAT market growth.

Competitive Landscape

Several international and local businesses compete in the somewhat fragmented worldwide OSAT market. Commercial foundries once controlled the semiconductor production industry, while Outsourced Semiconductor Assembly and Test (OSAT) companies controlled the IC packaging and testing industries. However, large foundries want to increase their global presence when the industry transitions to stacked die over the following few years.

The Automotive Electronics Business Center and the Design Services Business Center will formally open in April 2021, according to JCET. These facilities are intended to take advantage of Zhangjiang Science City's industrial clustering effect to improve the effective interaction and synergistic growth with the industrial supply chain and boost JCET's services to its clients throughout the product lifecycle.

The Japanese Ministry of Economy, Trade & Industry invited TSMC to establish a combined advanced integrated circuit packaging and testing facility in Japan, which the company did in January 2021. (METI). The transition to high-end IC testing and packaging enables TSMC to offer clients that need chips and packaging and testing technology one-stop shopping services.

Major global outsourced semiconductor assembly and test (OSAT) market companies include ASE Technology Holding Co., Ltd, Amkor Technology, Inc., Powertech Technology Inc., ChipMOS TECHNOLOGIES INC., King Yuan Electronics Co Ltd., Formosa Advanced Technologies Co., Ltd., Jiangsu Changjiang Electronics Technology Co., Ltd., UTAC Holdings Ltd., Lingsen Precision Industries Ltd., TongFu Microelectronics, Hana Micron and Tianshui Huatian Technology Co., Ltd.

Powertech Technology Inc.

Overview: The premier OSAT in the world, Powertech Technology Inc., was established in 1997. The company provides services such as chip bumping, chip probing, IC assembly, final testing, burn-in and system-level assembly to our international clients. To better service the regional automotive electronics and IoT industry, PTI expanded its production base to Japan in 2017. And in Hsinchu Science Park, PTI started building the newest Fan Out Panel Level Package production facility in 2018. It employs more than 18,000 people globally and its factories are in Taiwan, China, Singapore and Japan.

Product Portfolio: Taiwanese corporation Powertech Technology Inc. specializes in testing, packaging and assembly of semiconductors. Chip probing, bumping, WLP, packaging, final test and module assembly are among the company's key offerings.

Key Development: On March 20, 2021, Yield Engineering Systems, Inc., a renowned provider of process equipment for advanced semiconductor packaging, health sciences and AR/VR applications, stated that OSAT Powertech Technology, Inc. of Taiwan had placed a bulk purchase order for the VertaCureTM XP. The equipment will be delivered in the first half of 2021 to meet rising production demands and will be used for flip chip and wafer-level packaging in high-volume manufacturing. OSATs will continue to play a significant role in the supply chain as the requirements for sophisticated packaging technologies change.

Report suggestion:

  • Global Semiconductors Market
  • Global Power Semiconductor Market
  • Global Automotive Semiconductor Market

Trending Topics

Semiconductors Market

Power Semiconductor Market

Automotive Semiconductor Market

Did not find what you were looking for?Every 7 out of 10 customers request tailored reports. Get yours today!
We collate your requirements.
Our global research team is put into action.
We deliver, and make sure your endeavour is a success!

Buy This Report



Note*: For "Bundle/Bulk" Subscription of Reports,
please contact: [email protected]

Get your free sample proposal with a single click!

linkedinpinterest