Outsourced Semiconductor Assembly & Test Services (OSAT) Market Projected to Reach USD 60.19 Billion Revenues by 2027 – Exclusive Report by Mordor Intelligence

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Outsourced Semiconductor Assembly & Test Services (OSAT) Market Projected to Reach USD 60.19 Billion Revenues by 2027 – Exclusive Report by Mordor Intelligence

Outsourced Semiconductor Assembly & Test Services (OSAT) Market Projected to Reach USD 60.19 Billion Revenues by 2027 - Exclusive Report by Mordor Intelligence
Mordor Intelligence
With rising trends like autonomous vehicles and V2X, advanced-level semiconductor packaging is required. For instance, to achieve level 5 autonomy or increase hybrid efficiency, a centralized automotive-specific SoC is needed. The centralized automotive semiconductor-based solution still relies on individual semiconductor components. It leads to innovative work from both the established automotive firms and the new semiconductor fabless and OSAT companies targeting the automotive market.

Outsourced Semiconductor Assembly and Test Services (OSAT) Market Overview

The outsourced semiconductor assembly and test services (OSAT) market was valued at USD 37.95 billion in 2021, and it is projected to be worth USD 60.19 billion by 2027, registering a CAGR of 7.47% during the period, 2022-2027. According to the Semiconductor Industry Association (SIA), global semiconductor industry sales were USD 43.6 billion in May 2021, an increase of 26.2% over May 2020, a total of USD 4.6 billion, and 4.1% more than the April 2021 total of USD 41.9 billion. Further, the sales of semiconductors in April 2021 witnessed an increase of 1.9% from March 2021 at USD 41.0 billion and an increase of 21.7% compared to April 2020 at USD 34.4 billion.

The rising commercialization of applications like AI and 5G is also fueling advancements in packaging platforms, like Fan-Out Packaging and the 3D Flip Chip technology, to address the high-power consumption need and provide benefits such as greater chip connectivity. This forces many companies to collaborate with OSAT vendors; hence, many OSATs such as ASE/SPIL, Amkor, and JCET invest in various advanced SiPs and fan-out technology to gauge their competition. OSAT providers are third-party service providers of semiconductor assembly, packaging, and testing of semiconductor ICs. OSAT has been playing a crucial role in the semiconductor industry by bridging the gap between the design and availability of ICs.

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Rising Semiconductor Demand in the Auto Industry

  • The increasing number of semiconductor products per vehicle and trends like autonomous and electric vehicles are becoming the primary drivers for semiconductor manufacturers and OSAT vendors.
  • To make electric, hybrid, autonomous, and alternate-fuel vehicles, semiconductor products form the base for the hardware required to run the software. In 2021-2022, automotive production may be affected by the shortage of semiconductor chips, which shows the automotive industry’s dependency on the semiconductor industry.
  • The evolving infotainment systems are increasingly creating the demand for large displays and touch screens in the automotive industry, which are also fueling the demand among OSAT and semiconductor vendors.

OSAT Market – Geographical Overview

  • The United States is one of the most significant markets for the OSAT industry. High investments, technological advancements, and innovation of new applications are some of the major factors driving the country’s OSAT market growth.
  • Though China dominates the global OSAT and semiconductor market, a significant portion of the technology patents is from the United States, which gives the country a strong position. Its healthy innovation rate in the OSAT market has also attracted several Asian vendors in the past.
  • For instance, in April 2021, Boston Semi Equipment (BSE), a prominent semiconductor test floor services and test automation company, announced that its Zeus gravity test handlers had been successfully purchased by the OSAT provider. The equipment was purchased post-evaluation based on first-pass yield, jam rate, output, and OEE performance in production. This purchase demonstrates the continued strong market demand for the country’s testing equipment, given the handler’s ability to achieve cold temperature testing of semiconductors with high uptime, ease of maintenance, and support.

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Recent Developments in the OSAT Market

  • November 2021 – Jiangsu Changjiang Electronics Technology Co. Ltd (JCET) announced the opening of the second phase of its IC packaging and testing facility in Suqian. This facility enables the company to enhance the company’s capabilities further to meet the rising demand for semiconductors.
  • September 2021 – UTAC Holdings Ltd added new advanced wafer process solutions, which include plasma dicing and multi-project wafer (MPW) capabilities to its semiconductor manufacturing solutions.

Related Research and Links

List of Key Players in the OSAT Market

  • ASE Group
  • 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 Co.
  • Chipbond Technology Corporation
  • Hana Micron Inc.
  • Integrated Micro-electronics Inc.
  • Tianshui Huatian Technology Co. Ltd

*List Not Exhaustive

Mordor Intelligence has segmented the OSAT Market based on service type, type of packaging, application, and geography:

  • Service Type (Market Size & Forecast based on Value (USD billion), 2020-2027)
    • Packaging
    • Testing
  • Type of Packaging (Market Size & Forecast based on Value (USD billion), 2020-2027)
    • Ball Grid Array (BGA) Packaging
    • Chip-scale Packaging (CSP)
    • Stacked Die Packaging
    • Multi-chip Packaging
    • Quad Flat and Dual-inline Packaging
  • Application (Market Size & Forecast based on Value (USD billion), 2020-2027)
    • Communication
    • Consumer Electronics
    • Automotive
    • Computing and Networking
    • Industrial
    • Other Applications
  • Geography (Market Size & Forecast based on Value (USD billion), 2020-2027)
    • United States
    • China
    • Taiwan
    • South Korea
    • Malaysia
    • Singapore
    • Japan
    • Rest of the World

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