Outsourced Semiconductor Assembly and Testing (OSAT)

Global Outsourced Semiconductor Assembly and Testing (OSAT) Market to Reach US$104.2 Billion by 2030

The global market for Outsourced Semiconductor Assembly and Testing (OSAT) estimated at US$63.8 Billion in the year 2024, is expected to reach US$104.2 Billion by 2030, growing at a CAGR of 8.5% over the analysis period 2024-2030. Assembly & Packaging Service, one of the segments analyzed in the report, is expected to record a 10.1% CAGR and reach US$70.9 Billion by the end of the analysis period. Growth in the Testing Service segment is estimated at 5.6% CAGR over the analysis period.

The U.S. Market is Estimated at US$17.4 Billion While China is Forecast to Grow at 13.5% CAGR

The Outsourced Semiconductor Assembly and Testing (OSAT) market in the U.S. is estimated at US$17.4 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$23.0 Billion by the year 2030 trailing a CAGR of 13.5% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 4.2% and 8.2% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 5.7% CAGR.

Global Outsourced Semiconductor Assembly and Testing (OSAT) Market - Key Trends & Drivers Summarized

Why Is OSAT Playing a Critical Role in the Semiconductor Supply Chain?

Outsourced Semiconductor Assembly and Testing (OSAT) providers play a pivotal role in packaging, assembling, and testing integrated circuits (ICs) after wafer fabrication. As chip designs grow more advanced and diverse, semiconductor companies are increasingly outsourcing these back-end operations to specialized OSAT firms that offer scalable, cost-effective, and technologically advanced packaging solutions.

OSAT services are essential for transforming processed silicon wafers into functional, test-verified chips ready for system integration. They support a wide range of applications from mobile and computing to automotive, consumer electronics, and 5G infrastructure. As fabless models dominate and integrated device manufacturers (IDMs) shift focus to core design and front-end processing, OSAT providers are taking on greater responsibility in final product quality, performance, and reliability assurance.

How Are Packaging Technologies and Testing Capabilities Advancing?

Advanced packaging technologies such as system-in-package (SiP), wafer-level packaging (WLP), flip chip, and 2.5D/3D stacking are redefining the capabilities of OSAT providers. These methods offer reduced form factors, improved thermal management, and enhanced electrical performance for high-density and high-speed applications. Heterogeneous integration and chiplet-based architectures are increasing the complexity of assembly, requiring precision alignment, bonding, and interconnect techniques.

On the testing side, OSAT firms are enhancing capabilities to accommodate high-speed I/O, mixed-signal, and RF functionalities. Automated test equipment, burn-in systems, and AI-driven defect analysis tools are helping ensure high yield and compliance with customer specifications. Increased adoption of high-bandwidth memory (HBM) and advanced driver-assistance systems (ADAS) is pushing OSAT firms to invest in reliability testing, thermal cycling, and mechanical stress simulation platforms.

Where Is Capacity Expansion Happening and What End-Uses Are Driving Demand?

Asia-Pacific leads the OSAT market, with Taiwan, China, South Korea, and Malaysia serving as key manufacturing centers due to their proximity to foundries, strong infrastructure, and experienced labor pools. Major OSAT companies are expanding capacity to meet demand from advanced node designs, automotive electronics, and AI/ML-enabled chips. In response to global supply chain disruptions, geographic diversification and onshoring trends are emerging, especially in North America and Southeast Asia.

End-use sectors such as smartphones, wearables, high-performance computing, data centers, and electric vehicles are major demand drivers. The growing complexity of automotive semiconductors, especially with electric powertrains and autonomous navigation systems, is reinforcing the need for robust, high-reliability OSAT capabilities. Additionally, expansion of edge computing and IoT devices is fueling demand for compact, power-efficient package designs.

Growth in the OSAT market is driven by several factors…

Growth in the OSAT market is driven by factors such as rising demand for advanced packaging technologies, increasing complexity of semiconductor devices, and the expanding base of fabless chip designers. Strong demand from AI, 5G, electric vehicles, and high-performance computing applications is accelerating investment in heterogeneous integration and multi-chip packaging.

Global supply chain shifts, rising wafer fabrication volumes, and the trend toward modular chiplet designs are increasing reliance on OSAT providers for assembly and system-level testing. Growing capital investment in automation, defect analytics, and thermal management solutions is enhancing service value. As semiconductor miniaturization continues, OSAT firms are becoming key enablers of innovation, bridging front-end fabrication with system-level performance in a cost-efficient manner.

SCOPE OF STUDY:

The report analyzes the Outsourced Semiconductor Assembly and Testing (OSAT) market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Service (Assembly & Packaging Service, Testing Service); End-Use (Telecommunication End-Use, Consumer Electronics End-Use, Industrial Electronics End-Use, Automotive End-Use, Other End-Uses)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 44 Featured) -

• Amkor Technology Inc.
• ASE Technology Holding Co., Ltd.
• ChipMOS Technologies Inc.
• CITC (Center for Integrated Technology and Cleanroom)
• Formosa Advanced Technologies Co., Ltd.
• Fremont Micro Devices Ltd.
• HANA Micron Inc.
• Hua Tian Technology (HT-Tech)
• Integrated Micro-Electronics, Inc. (IMI)
• JCET Group Co., Ltd.
• King Yuan Electronics Co., Ltd. (KYEC)
• Kulicke and Soffa Industries, Inc.
• Nepes Corporation
• Orient Semiconductor Electronics, Ltd. (OSE)
• Powertech Technology Inc. (PTI)
• Sigurd Microelectronics Corporation
• Siliconware Precision Industries Co., Ltd. (SPIL)
• STATS ChipPAC Ltd.
• Tianshui Huatian Technology Co., Ltd.
• UTAC Holdings Ltd.

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