Outsourced Semiconductor Assembly and Test (OSAT) Market
Outsourced Semiconductor Assembly and Test (OSAT) Market Size, Share & Industry Analysis, By Package Type (Ball Grid Array, Chip Scale Package, Multi-Package, Stacked Die, Quad Flat Package), By Application (Consumer Electronics, Automotive, Industrial, Aerospace & Defense, Healthcare), By Region (North America, Europe, Asia-Pacific, Latin America, Middle East & Africa) -- Share, Size, Outlook, and Opportunity Analysis, 2024-2031.
Market Overview:
“The Outsourced Semiconductor Assembly and Test (OSAT) market is projected to grow at a CAGR of 6.8% from 2024 to 2031.”
The market value is expected to reach XX USD by 2024 and YY USD by 2031. Asia-Pacific dominates the market, driven by the presence of major OSAT companies and increasing semiconductor demand. Key metrics include rising adoption of advanced packaging technologies, growing demand for miniaturization, and increasing investments in 5G and IoT technologies.
Outsourced Semiconductor Assembly and Test (OSAT) Market Dynamics:
Market Trend: Adoption of advanced packaging technologies reshapes OSAT industry landscape
The introduction of improved packaging technology represents a significant advancement in the OSAT sector. As semiconductor devices become increasingly complicated and miniaturized, old packaging methods are being replaced by innovative approaches such as 2.5D and 3D IC packaging, fan-out wafer-level packaging (FOWLP), and system-in-package (SiP). These technologies provide improved performance, increased power efficiency, and reduced form factors. For example, TSMC's InFO (Integrated Fan-Out) packaging technique, which is used in Apple's A-series processors, has resulted in considerable performance improvements while reducing package size.
The rise of heterogeneous integration, which combines multiple processor types into a single package, is fuelling innovation in OSAT services. This expansion encourages OSAT providers to invest in new equipment and capabilities to fulfill the needs of complicated packaging technologies.
Market Driver: Increasing semiconductor content in automotive and IoT devices fuels OSAT demand
The increased semiconductor content in autos and Internet of Things (IoT) devices is a significant driver of the OSAT market. As cars become more electric and self-driving, the need for semiconductor components in automotive applications rises. The automotive semiconductor market to expand from $35.7 billion in 2020 to $80.5 billion by 2026.
Similarly, the expansion of IoT devices across industries is driving up demand for specialized semiconductor packages. OSAT providers are receiving more requests for automotive-grade and IoT-specific packages that must meet stringent reliability and durability standards. Amkor Technology, for example, said that its automotive and industrial markets increased by 23% year on year in the first quarter of 2023, indicating strong demand in these industries.
Market Restraint: Geopolitical tensions and supply chain disruptions impact OSAT operations
Geopolitical problems and supply chain interruptions pose significant challenges to OSAT business growth. The current trade war between the United States and China has led to limitations on technology transfers and heightened scrutiny of semiconductor supply chains. These considerations have created concern among OSAT providers, especially those operating in China.
The COVID-19 outbreak compounded supply chain challenges, causing a lack of crucial supplies and components. For example, worldwide chip scarcity has hindered a variety of industries, including automakers, which are experiencing manufacturing delays. According to AlixPartners, semiconductor scarcity might cost the global auto sector $210 billion in lost sales by 2021. These limits have prompted OSAT firms to diversify their supply chains and explore delegating some tasks in order to mitigate risk.
Segment Overview:
The consumer electronics segment dominates the OSAT market, driven by the proliferation of smartphones, tablets, and wearable devices.
Consumer electronics dominate the Outsourced Semiconductor Assembly and Test (OSAT) business, owing to the huge number of semiconductor packages required for smartphones, tablets, smart home devices, and wearables. Continuous innovation in consumer electronics, along with shorter product lifecycles, increases need for smart packaging. For example, the adoption of 5G technology in smartphones has increased the complexity of RF modules, necessitating more advanced packaging techniques.
Mobile devices, in particular, have been a key driver of OSAT services. According to our research analysis, global smartphone shipments will reach 1.38 billion by 2025, with 5G devices accounting for 69%. This growth is fuelling demand for sophisticated packaging technologies including fan-out wafer-level packaging (FOWLP) and system-in-package (SiP).
The wearable technology industry is also making a big contribution to the OSAT market growth. Gartner predicts that global end-user spending on wearable devices will reach $81.5 billion in 2021, up 18.1% from 2020. This expansion is driving demand for compact, energy-efficient semiconductor packages that can fit into small form factor devices.
Regional Outlook:
Asia-Pacific leads the OSAT market, driven by a robust semiconductor ecosystem and strong manufacturing capabilities.
The Asia-Pacific region dominates the market for Outsourced Semiconductor Assembly and Testing (OSAT). This supremacy is due to the presence of large OSAT firms, a well-established semiconductor supply chain, and substantial investment in novel packaging technologies.
Taiwan, China, and South Korea all make important contributions to the region's market leadership. Taiwan is home to some of the world's largest OSAT manufacturers, including ASE Technology Holdings and Powertech Technology Inc. These businesses have been at the forefront in creating sophisticated packaging solutions to fulfill the needs of global semiconductor makers.
The region's role in the consumer electronics industry boosts OSAT demand. China, Vietnam, and India are important electronics assembly hubs, which boosts demand for semiconductor packaging and testing services.
Recent investment in semiconductor manufacturing has helped to boost the region's standing. For example, the Chinese government's "Made in China 2025" plan has resulted in greater investment in the domestic semiconductor industry, which includes OSAT services.
Asia-Pacific's automotive industry is also increasing OSAT demand, particularly for electrified vehicles and advanced driver assistance systems. Companies such as BYD and Hyundai are increasing their investments in automotive semiconductors, presenting potential for OSAT suppliers specializing in automotive-grade packaging.
Competitive Intelligence:
The Outsourced Semiconductor Assembly and Test (OSAT) industry is fiercely competitive among large players, with a focus on technology advancement and capacity development. Leading firms are making significant investments in sophisticated packaging technologies to fulfill the growing demand for complicated semiconductor devices.
ASE Technology Holding, the world's largest OSAT provider, is venturing into more complex packaging technologies including system-in-package (SiP) and fan-out wafer-level packaging (FOWLP). The company's recent merger with SPIL increased its market share.
Amkor Technology has focused on increasing its capacity for automotive and 5G applications. The company's recent investments in its factories in Korea and Portugal are intended to address the growing need for innovative packaging solutions in these industries.
The JCET Group has strengthened its position in the Chinese market while expanding internationally. The company's acquisition of STATS ChipPAC in 2015 increased its technological capabilities and global presence.
Powertech Technology Inc. (PTI) offers memory packaging and testing services for DRAM and NAND flash products. Strategic partnerships with key memory makers have helped the company maintain its dominant market position.
UTAC Holdings Ltd. has increased its portfolio of automotive-grade packaging solutions to meet the growing demand for semiconductors in the automotive industry.
Analyst Opinion:
The Outsourced Semiconductor Assembly and Test (OSAT) market is expected to grow fast and develop in the coming years. The growing complexity of semiconductor devices, combined with a tendency towards miniaturisation and heterogeneous integration, is driving demand for novel packaging approaches. We anticipate a shift towards more specialised OSAT services tailored to specific applications, notably in developing industries such as 5G, AI, and self-driving cars.
The use of advanced packaging methods, such as 2.5D and 3D IC packaging, is predicted to grow, resulting in higher performance and smaller semiconductor devices. This trend will most likely result in increased collaboration between OSAT providers, foundries, and integrated device makers (IDMs) to develop creative packaging solutions.
We also expect market interruptions owing to geopolitical concerns and supply chain challenges. Continued efforts to diversify semiconductor supply chains may result in additional investments in OSAT capabilities outside of Asia-Pacific, thereby changing the competitive environment.
Major Players:
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ASE Technology Holding Co., Ltd.
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Amkor Technology, Inc.
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JCET Group Co., Ltd.
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Powertech Technology Inc.
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UTAC Holdings Ltd.
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Tianshui Huatian Technology Co., Ltd.
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King Yuan Electronics Co., Ltd.
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ChipMOS TECHNOLOGIES INC.
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Tongfu Microelectronics Co., Ltd.
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Signetics Corporation
Key Developments:
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In June 2023, ASE Technology Holdings announced plans to invest $2 billion in Taiwan to expand its sophisticated packaging capabilities.
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Amkor Technology launched a new plant in Vietnam in March 2023, with a focus on complicated SiP solutions for 5G and automotive applications.
1. INTRODUCTION
1.1. Market Definitions & Study Assumptions
1.2. Market Research Scope & Segment
1.3. Research Methodology
2. EXECUTIVE SUMMARY
2.1. Market Overview & Insights
2.2. Segment Outlook
2.3. Region Outlook
3. COMPETITIVE INTELLIGENCE
3.1. Companies Financial Position
3.2. Company Benchmarking -- Key Players
3.3. Market Share Analysis -- Key Companies
3.4. Recent Companies Key Activities
3.5. Pricing Analysis
3.6. SWOT Analysis
4. COMPANY PROFILES (Key Companies list by Country) (Premium)
5. COMPANY PROFILES
5.1. ASE Technology Holding Co., Ltd.
5.2. Amkor Technology, Inc.
5.3. JCET Group Co., Ltd.
5.4. Powertech Technology Inc.
5.5. UTAC Holdings Ltd.
5.6. Tianshui Huatian Technology Co., Ltd.
5.7. King Yuan Electronics Co., Ltd.
5.8. ChipMOS TECHNOLOGIES INC.
5.9. Tongfu Microelectronics Co., Ltd.
5.10. Signetics Corporation (LIST NOT EXHAUSTIVE)
6. MARKET DYNAMICS
6.1. Market Trends
6.1.1. Adoption of advanced packaging technologies reshapes OSAT industry landscape
6.1.2. Increasing focus on heterogeneous integration in semiconductor packaging
6.1.3. Growing demand for specialized packaging solutions in emerging technologies
6.2. Market Drivers
6.2.1. Increasing semiconductor content in automotive and IoT devices fuels OSAT demand
6.2.2. Rising complexity of semiconductor devices drives outsourcing to OSAT providers
6.2.3. Expansion of 5G infrastructure creates new opportunities for OSAT services
6.3. Market Restraints
6.3.1. Geopolitical tensions and supply chain disruptions impact OSAT operations
6.3.2. High capital requirements for advanced packaging equipment and facilities
6.4. Market Opportunities
6.5. Porter's Five Forces Analysis
6.5.1. Threat of New Entrants
6.5.2. Bargaining Power of Buyers/Consumers
6.5.3. Bargaining Power of Suppliers
6.5.4. Threat of Substitute Products
6.5.5. Intensity of Competitive Rivalry
6.6. Supply Chain Analysis
6.7. Value Chain Analysis
6.8. Trade Analysis
6.9. Pricing Analysis
6.10. Regulatory Analysis
6.11. Patent Analysis
6.12. SWOT Analysis
6.13. PESTLE Analysis
7. BY PACKAGE TYPE (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
7.1. Ball Grid Array
7.1.1. Plastic Ball Grid Array (PBGA)
7.1.2. Ceramic Ball Grid Array (CBGA)
7.1.3. Tape Ball Grid Array (TBGA)
7.2. Chip Scale Package
7.2.1. Wafer-level Chip Scale Package (WLCSP)
7.2.2. Flip Chip CSP
7.2.3. Redistributed Chip Package (RCP)
7.3. Multi-Package
7.3.1. System-in-Package (SiP)
7.3.2. Package-on-Package (PoP)
7.3.3. Multi-Chip Module (MCM)
7.4. Stacked Die
7.4.1. Wire-bonded Stacked Die
7.4.2. Through-Silicon Via (TSV) Stacked Die
7.5. Quad Flat Package
7.5.1. Thin Quad Flat Package (TQFP)
7.5.2. Quad Flat No-Lead (QFN)
7.5.3. Quad Flat J-Lead Package (QFJ)
8. BY APPLICATION (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
8.1. Consumer Electronics
8.1.1. Smartphones
8.1.2. Tablets and Laptops
8.1.3. Wearable Devices
8.1.4. Smart Home Appliances
8.2. Automotive
8.2.1. Advanced Driver Assistance Systems (ADAS)
8.2.2. Infotainment Systems
8.2.3. Powertrain and Chassis Control
8.3. Industrial
8.3.1. Industrial Automation
8.3.2. Power Management
8.3.3. Industrial IoT Devices
8.4. Aerospace & Defense
8.4.1. Avionics
8.4.2. Radar and Communication Systems
8.4.3. Defense Electronics
8.5. Healthcare
8.5.1. Medical Imaging Devices
8.5.2. Patient Monitoring Systems
8.5.3. Implantable Medical Devices
9. REGION (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
9.1. North America
9.1.1. United States
9.1.2. Canada
9.1.3. Mexico
9.2. South America
9.2.1. Brazil
9.2.2. Argentina
9.2.3. Rest of South America
9.3. Europe
9.3.1. Germany
9.3.2. United Kingdom
9.3.3. France
9.3.4. Italy
9.3.5. Spain
9.3.6. Russia
9.3.7. Rest of Europe
9.4. Asia-Pacific
9.4.1. China
9.4.2. Japan
9.4.3. India
9.4.4. Australia
9.4.5. South Korea
9.4.6. Rest of Asia-Pacific
9.5. Middle-East
9.5.1. UAE
9.5.2. Saudi Arabia
9.5.3. Turkey
9.5.4. Rest of Middle East
9.6. Africa
9.6.1. South Africa
9.6.2. Egypt
9.6.3. Rest of Africa
*NOTE: All the regions mentioned in the scope will be provided with (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
Outsourced Semiconductor Assembly and Test (OSAT) Market Segmentation:
By Package Type:
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Ball Grid Array
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Chip Scale Package
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Multi-Package
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Stacked Die
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Quad Flat Package
By Application:
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Consumer Electronics
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Automotive
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Industrial
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Aerospace & Defense
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Healthcare
By Region:
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North America
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Europe
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Asia-Pacific
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Latin America
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Middle East & Africa
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