Outsourced Semiconductor Assembly and Test Services

Global Outsourced Semiconductor Assembly and Test Services Market to Reach US$68.1 Billion by 2030

The global market for Outsourced Semiconductor Assembly and Test Services estimated at US$46.8 Billion in the year 2024, is expected to reach US$68.1 Billion by 2030, growing at a CAGR of 6.5% over the analysis period 2024-2030. Assembly & Packaging Services, one of the segments analyzed in the report, is expected to record a 5.4% CAGR and reach US$45.7 Billion by the end of the analysis period. Growth in the Testing Services segment is estimated at 8.8% CAGR over the analysis period.

The U.S. Market is Estimated at US$12.3 Billion While China is Forecast to Grow at 6.4% CAGR

The Outsourced Semiconductor Assembly and Test Services market in the U.S. is estimated at US$12.3 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$11.0 Billion by the year 2030 trailing a CAGR of 6.4% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 5.8% and 5.6% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 5.3% CAGR.

Global Outsourced Semiconductor Assembly and Test Services Market – Key Trends & Drivers Summarized

Why Is the Outsourced Semiconductor Assembly and Test (OSAT) Market Expanding Rapidly?

The OSAT market is experiencing strong growth as semiconductor manufacturers increasingly rely on third-party specialists to handle assembly, packaging, and testing. With the rising complexity of semiconductor designs, including advanced node chips, 3D packaging, and heterogeneous integration, companies are outsourcing these critical processes to OSAT providers to reduce costs and focus on core innovations.

Additionally, the global chip shortage and increasing demand for consumer electronics, automotive semiconductors, and IoT devices are fueling OSAT market expansion. As semiconductor fabrication processes become more advanced, manufacturers are partnering with OSAT firms to ensure efficient production, faster time-to-market, and compliance with stringent quality standards.

How Are Advanced Packaging and AI-Driven Testing Enhancing OSAT Capabilities?

The OSAT industry is undergoing a major transformation with the adoption of advanced packaging technologies. Fan-out wafer-level packaging (FOWLP), 2.5D and 3D chip stacking, and system-in-package (SiP) solutions are enabling higher performance and miniaturization, particularly in AI, 5G, and high-performance computing applications. These innovations allow OSAT providers to offer cutting-edge packaging solutions that enhance power efficiency and chip functionality.

AI-driven automated testing is also revolutionizing the industry by improving fault detection and increasing test accuracy. Machine learning algorithms are being integrated into semiconductor testing processes to analyze vast amounts of data, predict failures, and optimize quality control. This trend is helping semiconductor companies improve yield rates and reduce manufacturing defects.

Is the Shift Toward Automotive, AI, and 5G Driving OSAT Growth?

The increasing demand for semiconductors in automotive applications, including advanced driver-assistance systems (ADAS), electric vehicles (EVs), and autonomous driving, is driving OSAT market expansion. Automakers require specialized chip packaging and testing services to meet the stringent reliability and safety standards of automotive electronics.

Additionally, the rapid growth of AI-driven edge computing and 5G infrastructure is increasing demand for high-performance semiconductor packaging solutions. OSAT firms are investing in new facilities and expanding their capabilities to support the growing need for ultra-fast, energy-efficient chips used in telecommunications, AI accelerators, and data centers.

What’s Driving the Growth of the OSAT Market?

The growth in the OSAT market is driven by several factors, including rising semiconductor complexity, the need for cost-efficient chip assembly and testing, and the increasing adoption of advanced packaging technologies. The expansion of automotive electronics, AI, and 5G applications is further fueling market demand.

Additionally, the globalization of semiconductor manufacturing, combined with supply chain disruptions, is encouraging companies to diversify their OSAT partners. As semiconductor demand continues to soar, OSAT providers are expected to play a critical role in enabling next-generation electronics, ensuring sustained market growth.

SCOPE OF STUDY:

The report analyzes the Outsourced Semiconductor Assembly and Test Services market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Service Type (Assembly & Packaging Services, Testing Services); Application (Telecommunication Application, Consumer Electronics Application, Industrial Electronics Application, Automotive Application, Aerospace & Defense Application, Other Applications)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; and Rest of Europe); Asia-Pacific; Rest of World.

Select Competitors (Total 41 Featured) -

• Amkor Technology, Inc.
• ASE Technology Holding Co., Ltd.
• Chipbond Technology Corporation
• ChipMOS Technologies Inc.
• Hana Microelectronics Public Co., Ltd.
• Integrated Micro-Electronics, Inc. (IMI)
• Jiangsu Changjiang Electronics Technology (JCET)
• King Yuan Electronics Co., Ltd. (KYEC)
• Lingsen Precision Industries, Ltd.
• Nepes Corporation
• Powertech Technology Inc. (PTI)
• Shenzhen Changdian New Energy Technology Co., Ltd.
• Signetics Corporation
• Siliconware Precision Industries Co., Ltd. (SPIL)
• Stats ChipPAC
• Tianshui Huatian Technology Co., Ltd.
• Tongfu Microelectronics Co., Ltd. (TFME)
• Unisem Group
• UTAC Holdings Ltd.
• Walton Advanced Engineering, Inc.

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

We are diligently following expert opinions of leading Chief Economists (14,949), Think Tanks (62), Trade & Industry bodies (171) worldwide, as they assess impact and address new market realities for their ecosystems. Experts and economists from every major country are tracked for their opinions on tariffs and how they will impact their countries.

We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.

As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.

To our valued clients, we say, we have your back. We will present a simplified market reassessment by incorporating these changes!

APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

JULY 2025 FINAL TARIFF RESET

Complimentary Update: Our clients will also receive a complimentary update in July after a final reset is announced between nations. The final updated version incorporates clearly defined Tariff Impact Analyses.

Reciprocal and Bilateral Trade & Tariff Impact Analyses:

USA
CHINA
MEXICO
CANADA
EU
JAPAN
INDIA
176 OTHER COUNTRIES.

Leading Economists - Our knowledge base tracks 14,949 economists including a select group of most influential Chief Economists of nations, think tanks, trade and industry bodies, big enterprises, and domain experts who are sharing views on the fallout of this unprecedented paradigm shift in the global econometric landscape. Most of our 16,491+ reports have incorporated this two-stage release schedule based on milestones.

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