Outsourced Semiconductor Assembly And Test (OSAT) Market Geographical Analysis, Segment Analysis And Key Developments

Global Outsourced Semiconductor Assembly And Test (OSAT) Market Overview

OSAT (Outsourced semiconductor assembly and test) are the companies which offer third-party IC-packaging and test services. These companies provide packaging to silicon devices that are made by foundries and test devices prior to shipping to market. It mainly focuses on offering innovative packaging and test solutions for semiconductor companies in well-established markets such as communications, consumer & computing in addition to emerging markets in automotive electronics, Internet of Things (IoT) and wearable devices. It offers cost-effective and innovative solutions that deliver higher performance, processing speeds and functionality with a reduction in space in an electronic device.

OSAT companies come into major play at the end stage of the semiconductor manufacturing process after the wafer fabrication and wafer probe stages. These companies offer to package or assembling solutions that involve the processing of bare semiconductors into finished semiconductors and helps in protecting the die as well as facilitating electrical connections and heat dissipation.

After packaging, it conducts final testing in order to ensure that the packaged semiconductor meets performance specifications. It offers wide range of semiconductor test services that includes various types of final, system level, wafer, and strip testing along with complete end of line services up to and including final shipping. This stage of the manufacturing process is most labor-intensive and is often performed in countries that have lower labor costs such as China and Malaysia.

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Factors Influencing The Outsourced Semiconductor Assembly And Test (OSAT) Market
There are various factors that are driving the growth of the market, which include factors such as growing demand for consumer electronics and the rise in the degree of urbanization globally. Factors that are acting as an opportunity for the market include the increasing transformation in emerging economies as well as the rise in the adoption of smartphones.

Growing Demand For Consumer Electronics

The growth of the semiconductor industry is driven by the increasing demand for semiconductor chips from consumer electronic devices, medical devices, and sensor systems manufacturers. In the previous years, the cyclical nature of the semiconductor industry along with macro-economic factors such as declining Chinese economy and the Brexit crisis in Europe, has affected the semiconductor industry. The declining ASP of smartphones, and declining sales of tablets and PCs, also hindered the growth of the semiconductor industry.

FORECASTED GLOBAL CONSUMER ELECTRONICS REVENUE (USD BILLION)Outsourced Semiconductor Assembly And Test forecasted modelGrowing Demand For Consumer Electronics

With the middle class growing globally, there is a growth of the urbanization throughout emerging economies. These emerging economies such as China and India are therefore playing a big role in the opportunities that are faced by the Outsourced Semiconductor Assembly and Test (OSAT) market. With the progression in technology, this period of digital transformation and innovative measures are becoming more developed.
Digital disruptors and competitive dynamics that are influencing the economy are very similar across geographies. Although it may seem that digital expectations of various economies are the same, when taking a look at the infrastructure and the requirements of the individual areas, there is much variation. For companies when it comes to digital transformation, the emphasis is on the promotion of solutions in order to underline specific competitive dynamics.

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Global Outsourced Semiconductor Assembly And Test (OSAT) Market Geographical Analysis
According to Verified Market Research, The Global Outsourced Semiconductor Assembly And Test (OSAT) Market was valued at USD 30,679.0 Million in 2018 and is projected to reach USD 44,047.6 Million by 2026, growing at a CAGR of 4.65% from 2019 to 2026. The North American Market is expected to participate heavily in the implementation of Outsourced Semiconductor Assembly And Test (OSAT) services due to the advancements in technology that the market faces. This position can be attributed to the large base of vendors that are present in the region Asia Pacific is however considered as the largest player in the market and is expected to contribute significantly to the overall revenue in the near future. As technical awareness in the Asia Pacific is broadening, the market for consumer electronics increases and as a result the Outsourced Semiconductor Assembly And Test (OSAT) Market is growing.

Global Outsourced Semiconductor Assembly And Test (OSAT) Market Segment Analysis
The Global Outsourced Semiconductor Assembly And Test (OSAT) Market can be segmented into type and application. The Type segment is further broken down into Test service and Assembly service. Semiconductor makers are moving forward and faster now to outsource their testing to different Outsourced Semiconductor Assembly and Test (OSATs). This shift has happened because manufacturers are looking for more and better ways to cut operational costs and speed up their new product designs to market. Assembly is the processing of basic semiconductors into finished semiconductors. It helps to protect the die and enable electrical connections and heat dissipation. The assembly or packaging segment includes list of services fan-out wafer-level packaging (FO-WLP), wafer-level chip-scale packaging (WL-CSP), flip chip, 2.5D and 3D packaging, system in package (SiP) and copper wire bonding among many others.

The application sector involves Communication, Consumer electronics, Computing & networking and Others. For wired applications such as routers, servers, logic, switches, memory, PHY, network processors, and security processors, OSATs like Amcor, ASE, STATS ChipPAC, etc. usually have a comprehensive list of solutions like FCBGA, fcCSP, SiP, SSOP, SOIC, PBGA, QFP, and CABGA. The computing segment is one of the significant and most mature market among all other major semiconductor market segments. About half of the revenue from the computing segment comes from data storage and processing. The consumer market has become increasingly diversified, with the convergence of voice, video and data to meet the growing demand for higher performance and data handling. In recent years, emerging “lifestyle connectivity” such as digital home networking has driven the segment to grow rapidly.

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Some of the major players involved in the Global Outsourced Semiconductor Assembly And Test (OSAT) Market are ASE Group , Amkor, JCET, Siliconware Precision Industries Co., Ltd., KYEC, Hana Micron, Signetics, Unisem Group, Walton Advanced Engineering, Powertech Technology Inc. These companies will be profiled on the basis of their financials, their geographic and business segment breakdown, as well as product benchmarking. The competitive landscape section includes key development strategies and market ranking analysis of the above mentioned players globally.

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