Global Semiconductor Assembly and Testing Services Market 2017-2021
About Semiconductor Assembly and Testing Services
The number of electronic devices we use in our day-to-day life has been increasing in the past few decades. These devices range from simple media players, smartphones, laptops, and TVs to wearable smart watches and Internet of Things (IoT) devices such as connected thermostats, automated lighting, and remote health monitoring equipment. Semiconductor assembly and testing services (SATS) or outsourced semiconductor assembly and testing (OSAT) refers to the outsourcing of integrated circuit packaging and final product testing to third-party service providers.
Technavio’s analysts forecast the global semiconductor assembly and testing services market to grow at a CAGR of 5.68% during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the global semiconductor assembly and testing services market for 2017-2021. The report presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Semiconductor Assembly and Testing Services Market 2017-2021
Technavio recognizes the following companies as the key players in the global semiconductor assembly and testing services market: Amkor Technology, ASE Group, Jiangsu Changjiang Electronics Technology (JCET), Powertech Technology, and Siliconware Precision Industries (SPIL).
Other Prominent Vendors in the market are: Chipbond Technology, ChipMOS TECHNOLOGIES, FormFactor, Formosa Advanced Technologies, King Yuan ELECTRONICS, Lingsen Precision Industries, PSi Technologies, SIGNETICS, Tessolve Semiconductor, Tianshui Huatian Technology, Unisem, and UTAC.
Commenting on the report, an analyst from Technavio’s team said: “One trend in the market is growth of advanced system in package (SiP) modules. A system in a package refers to the technology that enables the integration of several integrated circuits (ICs) within a single package. These packages combine many of the functions performed by different ICs into a single module, which can perform all these operations single-handedly.”
According to the report, one driver in the market is growth of cloud-based servers and big data services. Cloud computing is an Internet-based computing technology that allows devices with limited processing or storage capabilities to store and process data and resources on remote servers; the processed information is delivered back to the original device in real time. With the information collected by various devices becoming increasingly large and complex, the demand for cloud computing applications is growing exponentially.
Further, the report states that one challenge in the market is highly cyclic nature of electronics industry. The sale of electronic goods and equipment is highly cyclic in nature and their demand varies greatly with the economic situation; this leads to wide fluctuations in unit demand for the services of the SATS industry. SATS companies have low per unit sale margins and are heavily dependent on high volume demand to maintain their growth. Since the cycle of technology and seasonal demand are largely unpredictable, it becomes a challenge for many SATS companies to adjust rapidly to the changes in the market conditions.
Amkor Technology, ASE Group, Jiangsu Changjiang Electronics Technology (JCET), Powertech Technology, Siliconware Precision Industries (SPIL), Chipbond Technology, ChipMOS TECHNOLOGIES, FormFactor, Formosa Advanced Technologies, King Yuan ELECTRONICS, Lingsen Precision Industries, PSi Technologies, SIGNETICS, Tessolve Semiconductor, Tianshui Huatian Technology, Unisem, and UTAC.
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