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Semiconductor Assembly and Testing Services (SATS) Market: Surging Adoption of Consumer Electronics Will Drive Demand for SATS Providers: Global Industry Analysis and Opportunity Assessment 2015-2021

Semiconductor Assembly and Testing Services (SATS) Market: Surging Adoption of Consumer Electronics Will Drive Demand for SATS Providers: Global Industry Analysis and Opportunity Assessment 2015-2021

The global semiconductor assembly and testing services market is value projected for a value worth US$ 24.72 Bn by the end of 2016. The market is likely to witness moderate growth over the next five years and is estimated to expand at a CAGR of 5.8% during a six-year forecast period 2015-2021.

Wafer Fabrication Technology Remains a Cost-intensive Affair for Semiconductor Companies

The semiconductor processing technology is rapidly shifting to larger wafer fabrication with smaller feature size; however, wafer fabrication involves higher CAPEX and operational costs for testing and packaging. Building and maintaining a state-of-the-art factory for wafer fabrication is an expensive affair. Swelling costs of advanced packaging solutions are also expected to favour the SATS market. Semiconductor companies thus prefer to remain fabless and concentrate on their core capabilities, employing a third party expert for testing, assembly, and packaging of semiconductor assembly. This will primarily continue to create the demand for semiconductor assembly and testing service providers over the forecast period 2015-2021.

Superiority of SATS Providers Continues to Push Adoption

SATS providers operate in an efficient supply chain that functions at a reduced turnaround policy. Furthermore, these providers enable in-house testing and packaging, which is why serve a majority of integrated device manufacturers. These will remain the primary factors propelling the adoption of semiconductor assembly and testing service providers by 2021 end.

Fabless Companies Continue to Outsource Semiconductor Assembly, Testing, and Packaging

As the key players are fabless companies, which have to focus more on the design part in order to enhance the performance of ICs and chipsets, they often prefer outsourcing of semiconductor assembly, testing, and packaging services to third party SATS providers. Over half of the market is occupied by outsourced semiconductor assembly and testing (OSAT) services. This will continue to fuel the demand for SATS during the next few years.

Soaring Demand for Consumer Electronics Escalates the Demand for SATS Providers

The ever-growing need for connectivity and mobility is in turn bolstering the manufacturing and sales of consumer electronic devices, such as smartphones, tablets, PCs, laptops, wearables, AV devices, and gaming consoles. This is likely to spur the demand for high quality SATS providers in market. Moreover, the advent of technology in next-gen cars and automotive electronics will also possibly create a host of opportunities for SATS providers through to 2021.

Market Segmentation

Consumer Electronics Drive the Assembly and Packaging Service Segment

By service, assembly and packaging segment is likely to remain dominant over testing segment, with a remarkable CAGR over 2015-2021. This growth is primarily attributed to the proliferation of consumer electronics sector. Emergence of advanced packaging solutions will also indirectly drive this segment further.

Flip Chip Segment Gathers Higher Momentum in Terms of Packaging Solution

Based on packaging solution, copper wire and gold wire bonding segment will witness declining growth despite retaining the market dominance throughout the forecast period. This segment’s revenues are predicted to reach over US$ 14 Bn by 2021 end, whereas the market share will see a decline from nearly 53% expected in 2016, to around 45% in 2021. However, the flip chip segment is anticipated to witness robust growth at a CAGR of 8.1% over 2015-2021, accounting for over 21% market share in 2021. Wafer level packaging segment will also exhibit a significant CAGR.

Communication Remains the Largest Application Segment

On the basis of application, communication segment is likely to maintain dominance over the forecast period. The consumer electronics application segment will however register stellar growth at the highest CAGR during 2015-2021.

Regional Segmentation

The global semiconductor assembly and testing services market is regionally segmented into four key markets:

North America
Europe
Asia Pacific
Middle East and Africa

Although APAC is expected to remain the leading market with over 86% share of the entire market, FMI indicates that this region will witness a moderate CAGR over the forecast period, registering a steady decline in the Y-o-Y growth by 2021 end. However, North America is projected to observe stable growth throughout the forecast period, accounting for over 28% share in 2021.

Key Market Players

The leading companies competing in the global semiconductor assembly and testing services market are ASE Group, Amkor Technologies Inc., Silicon Precision Industries Co. Ltd., Psi Technologies Inc. (IMI), STATS ChipPAC Ltd. (JCET), Global Foundries, Powertech Technology Inc., Chipbond Technology Corporation, and CORWIL Technology corporation. A majority of the low-end service providers are currently competing on price-effective products. Key players are increasingly investing in R&D of innovative, cost-effective packaging solutions.


1. Global Semiconductor Assembly and Testing Services Market- Executive Summary
2. Assumptions & Acronyms Used
3. Research Methodology
4. Market Overview
4.1. Introduction
4.1.1. Global Semiconductor Assembly and Testing Services Market Definition
4.1.2. Global Semiconductor Assembly and Testing Services Market Taxonomy
4.2. Global Semiconductor Assembly and Testing Services Market Dynamics
4.2.1. Drivers
4.2.2. Restraints
4.3. Value Chain
4.4. Global Semiconductor Assembly and Testing Services Market Forecast, 2015-2021
4.4.1. Global Semiconductor Assembly and Testing Services Market Size (Value) Forecast
4.4.1.1. Y-o-Y Growth Projections
4.4.1.2. Absolute $ Opportunity
4.5. Global Semiconductor Assembly and Testing Services Market Trends
4.6. Global Semiconductor Assembly and Testing Services Market Snapshot (2014)
4.6.1. Market Share By Services
4.6.2. Market Share By Packaging Solutions
4.6.3. Market Share By Applications
4.6.4. Market Share By Regions
5. Global Semiconductor Assembly and Testing Services Market Analysis, By Services
5.1. Introduction
5.2. Global Semiconductor Assembly and Testing Services Market Forecast By Services
5.2.1. Assembly & Packaging services (Interconnecting technologies)
5.2.1.1. Copper and gold wire bonding
5.2.1.2. Copper clip
5.2.1.3. Flip Chip
5.2.1.4.Wafer Level Packaging
5.2.1.5. TSV
5.2.2. Testing Services
5.3. Basis Point Share (BPS) Analysis, By Services
5.4. Y-o-Y Growth Comparison, By Services
5.5. Market Absolute $ Opportunity, By Services
5.6. Global Semiconductor Assembly and Testing Services Market Attractiveness Analysis, By Services
5.7. Qualitative Analysis
6. Global Semiconductor Assembly and Testing Services Market Analysis, By Packaging Solutions
6.1. Introduction
6.2. Global Semiconductor Assembly and Testing Services Market Forecast By Packaging Solutions
6.2.1. Copper/gold Wire Bonding
6.2.2. Copper Clip
6.2.3. Flip Chip
6.2.4. Wafer Level Packaging
6.2.5. 3D TSV
6.3. Basis Point Share (BPS) Analysis, By Packaging Solutions
6.4. Y-o-Y Growth Comparison, By Packaging Solutions
6.5. Absolute $ Opportunity, By Packaging Solutions
6.6. Global Semiconductor Assembly and Testing Services Market Attractiveness Analysis, By Packaging Solutions
6.7. Qualitative Analysis
7. Global Semiconductor Assembly and Testing Services Market Analysis, By Applications
7.1. Introduction
7.2. Global Semiconductor Assembly and Testing Services Market Forecast By Applications
7.2.1. Communications
7.2.2. Computing & Networking
7.2.3. Consumer Electronics
7.2.4. Industrial
7.2.5. Automotive Electronics
7.3. Basis Point Share (BPS) Analysis, By Applications
7.4. Y-o-Y Growth Comparison, By Applications
7.5. Absolute $ Opportunity
7.6. Global Semiconductor Assembly and Testing Services Market Attractiveness Analysis, By Packaging Solutions
7.7. Qualitative Analysis
8. Global Semiconductor Assembly and Testing Services Market Analysis, By Region
8.1. Introduction
8.2. Global Semiconductor Assembly and Testing Services Market Forecast By Region
8.2.1. North America Market Value Forecast
8.2.2. Asia Pacific (Excluding Taiwan) Market Value Forecast
8.2.3. Taiwan Market Value Forecast
8.2.4. Europe Market Value Forecast
8.2.5. Middle East & Africa Market Value Forecast
8.2.6. Latin America Market Value Forecast
8.3. Y-o-Y Growth Projections, By Region
8.4. Basis Point Share (BPS) Analysis, By Region
8.5. Market Attractiveness Analysis, By Region
9. North America North America Semiconductor Assembly and Testing Services Market Analysis
9.1. Market overview
9.2. Introduction
9.2.1. Semiconductor Assembly and Testing Services Market Absolute $ Opportunity
9.3. North America Semiconductor Assembly and Testing Services Market Forecast
9.3.1. Market Value Forecast By Services
9.3.1.1. Assembly & Packaging services
9.3.1.2. Testing services
9.3.1.2.1. Y-o-Y Growth Comparison, By Services
9.3.1.2.2. Basis Point Share (BPS) Analysis, By Services
9.3.2. Market Value Forecast By Packaging Solutions (Interconnecting technologies)
9.3.2.1. Copper/gold wire bonding
9.3.2.2. Copper Clip
9.3.2.3. Flip Chip
9.3.2.4. Wafer level Packaging
9.3.2.5. 3D TSV
9.3.2.5.1. Y-o-Y Growth Comparison, By Packaging solutions
9.3.2.5.2. Basis Point Share (BPS) Analysis, By Packaging solutions
9.3.3. Market Value Forecast By Applications
9.3.3.1. Communications
9.3.3.2. Computing and Networking
9.3.3.3. Consumer Electronics
9.3.3.4. Industrial
9.3.3.5. Automotive Electronics
9.3.3.5.1. Y-o-Y Growth Comparison, By Applications
9.3.3.5.2. Basis Point Share (BPS) Analysis, By Applications
9.3.4. Semiconductor Assembly and Testing Services Market Attractiveness Analysis
9.3.4.1. By Services
9.3.4.2. By Packaging Solutions
9.3.4.3. By Applications
9.3.5. Drivers & Restraints: Impact Analysis
10. APAC (Excluding Taiwan) Semiconductor Assembly and Testing Services Market Analysis
10.1. Market overview
10.2. Introduction
10.2.1. Y-o-Y Growth Projections, By Country
10.2.2. Basis Point Share (BPS) Analysis, By Country
10.3. APAC (Excluding Taiwan) Semiconductor Assembly and Testing Services Market Forecast
10.3.1. Market Value Forecast By Country
10.3.1.1. China Absolute $ Opportunity
10.3.1.2. Japan Absolute $ Opportunity
10.3.1.3. Singapore Absolute $ Opportunity
10.3.1.4. Thailand Absolute $ Opportunity
10.3.1.5. Philippines Absolute $ Opportunity
10.3.1.5.1. Y-o-Y Growth Comparison, By Countries
10.3.1.5.2. Basis Point Share (BPS) Analysis, By Countries
10.3.2. Market Value Forecast By Services
10.3.2.1. Assembly & Packaging services
10.3.2.2. Testing services
10.3.2.2.1. Y-o-Y Growth Comparison, By Services
10.3.2.2.2. Basis Point Share (BPS) Analysis, By Services
10.3.3. Market Value Forecast By Packaging Solutions (Interconnecting technologies)
10.3.3.1. Copper/gold wire bonding
10.3.3.2. Copper Clip
10.3.3.3. Flip Chip
10.3.3.4. Wafer level Packaging
10.3.3.5. 3D TSV
10.3.3.5.1. Y-o-Y Growth Comparison, By Packaging solutions
10.3.3.5.2. Basis Point Share (BPS) Analysis, By Packaging solutions
10.3.4. Market Value Forecast By Applications
10.3.4.1. Communications
10.3.4.2. Computing and Networking
10.3.4.3. Consumer Electronics
10.3.4.4. Industrial
10.3.4.5. Automotive Electronics
10.3.4.5.1. Y-o-Y Growth Comparison, By Applications
10.3.4.5.2. Basis Point Share (BPS) Analysis, By Applications
10.3.5. Semiconductor Assembly and Testing Services Market Attractiveness Analysis
10.3.5.1. By countries
10.3.5.2. By Services
10.3.5.3. By Packaging Solutions
10.3.5.4. By Applications
10.3.6. Drivers & Restraints: Impact Analysis
11. Taiwan Semiconductor Assembly and Testing Services Market Analysis
11.1. Market overview
11.2. Introduction
11.2.1. Semiconductor Assembly and Testing Services Market Absolute $ Opportunity
11.3. Taiwan Semiconductor Assembly and Testing Services Market Forecast
11.3.1. Market Value Forecast By Services
11.3.1.1. Assembly & Packaging services
11.3.1.2. Testing services
11.3.1.2.1. Y-o-Y Growth Comparison, By Services
11.3.1.2.2. Basis Point Share (BPS) Analysis, By Services
11.3.2. Market Value Forecast By Packaging Solutions (Interconnecting technologies)
11.3.2.1. Copper/gold wire bonding
11.3.2.2. Copper Clip
11.3.2.3. Flip Chip
11.3.2.4. Wafer level Packaging
11.3.2.5. 3D TSV
11.3.2.5.1. Y-o-Y Growth Comparison, By Packaging solutions
11.3.2.5.2. Basis Point Share (BPS) Analysis, By Packaging solutions
11.3.3. Market Value Forecast By Applications
11.3.3.1. Communications
11.3.3.2. Computing and Networking
11.3.3.3. Consumer Electronics
11.3.3.4. Industrial
11.3.3.5. Automotive Electronics
11.3.3.5.1. Y-o-Y Growth Comparison, By Applications
11.3.3.5.2. Basis Point Share (BPS) Analysis, By Applications
11.3.4. Semiconductor Assembly and Testing Services Market Attractiveness Analysis
11.3.4.1. By Services
11.3.4.2. By Packaging Solutions
11.3.4.3. By Applications
11.3.5. Drivers & Restraints: Impact Analysis
12. Europe Semiconductor Assembly and Testing Services Market Analysis
12.1. Market overview
12.2. Introduction
12.2.1. Semiconductor Assembly and Testing Services Market Absolute $ Opportunity
12.3. Europe Semiconductor Assembly and Testing Services Market Forecast
12.3.1. Market Value Forecast By Services
12.3.1.1. Assembly & Packaging services
12.3.1.2. Testing services
12.3.1.2.1. Y-o-Y Growth Comparison, By Services
12.3.1.2.2. Basis Point Share (BPS) Analysis, By Services
12.3.2. Market Value Forecast By Packaging Solutions (Interconnecting technologies)
12.3.2.1. Copper/gold wire bonding
12.3.2.2. Copper Clip
12.3.2.3. Flip Chip
12.3.2.4. Wafer level Packaging
12.3.2.5. 3D TSV
12.3.2.5.1. Y-o-Y Growth Comparison, By Packaging solutions
12.3.2.5.2. Basis Point Share (BPS) Analysis, By Packaging solutions
12.3.3. Market Value Forecast By Applications
12.3.3.1. Communications
12.3.3.2. Computing and Networking
12.3.3.3. Consumer Electronics
12.3.3.4. Industrial
12.3.3.5. Automotive Electronics
12.3.3.5.1. Y-o-Y Growth Comparison, By Applications
12.3.3.5.2. Basis Point Share (BPS) Analysis, By Applications
12.3.4. Semiconductor Assembly and Testing Services Market Attractiveness Analysis
12.3.4.1. By Services
12.3.4.2. By Packaging Solutions
12.3.4.3. By Applications
12.3.5. Drivers & Restraints: Impact Analysis
13. Middle East & Africa (MEA) Semiconductor Assembly and Testing Services Market Analysis
13.1. Market overview
13.2. Introduction

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