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Semiconductor Assembly and Testing Services Market Analysis 2020: By KeyPlayers ASE Group, Powertech Technology Inc., Global Foundries Inc., Amkor Technology Inc., CORWIL Technology Corp., Integrated Microelectronics Inc. (Psi Technologies Inc.), STATS ch

03-11-2020 01:56 PM CET | IT, New Media & Software

Press release from: Coherent Market Insights

Semiconductor Assembly and Testing Service

Semiconductor Assembly and Testing Service

Market Overview

Semiconductors are special type of material that have value conductivity between a conductor and an insulator. Contrary to metals, a semiconductor material's resistance falls as its temperature increases. Semiconductor industry is highly volatile in nature. Major companies emphasize designing and utilization of their expertise to enhance performance of ICs or chipsets. Hence, most of the semiconductor assembly, packaging, and testing related services are outsourced by fabless companies to third party providers also called Outsourced Semiconductor Assembly and Test Service Provider.

The global semiconductor assembly and testing services market was valued for US$ 35,772.8 Mn in 2019.

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Competitive Section

Key companies operating in the global semiconductor assembly and testing services market are ASE Group, Powertech Technology Inc., Global Foundries Inc., Amkor Technology Inc., CORWIL Technology Corp., Integrated Microelectronics Inc. (Psi Technologies Inc.), STATS chipPAC Ltd. (JCET), Chipbond Technology Corporation, and Silicon Precision Industries Company Ltd.

Market Dynamics- Drivers

1. Increasing demand for mobility and connectivity in consumer electronic products is expected to drive growth of the global semiconductor assembly and testing services market during the forecast period
Growing requirement for connected and mobile devices namely tablets and smartphones has increased the demand for high-end packaging techniques. Furthermore, increasing demand for digital content has supported growth of home electronic products such as Wi-Fi chipsets and other semiconductor chips. For instance, in 2014, STATS chipPAC (JCET) launched encapsulated Wafer Level Chip Scale Package (eWLCSP) that provides augmented quality and a lower cost fan-in wafer level package for space constrained mobile devices. Moreover, increasing mobility and connectivity capabilities and growing digital content is expected to boost the global semiconductor assembly and testing services market growth during the forecast period.

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2. Additional features offered by SATS providers over in-house testing and packaging capabilities are expected to propel the global semiconductor assembly and testing services market growth over the forecast period

SATS providers have extended capabilities of offering additional features namely miniaturization, additional functionality, low power consumption, and improved thermal and electrical performance. This aids OSTAS providers to gain competitive advantage over Integrated Design Manufacturers (IDM) in-house testing capabilities. Moreover, increase in the semiconductor content within electronic products is expected provide better functionality and higher levels of performance. Hence, these factors are expected to support the global semiconductor assembly and testing services market growth in the near future.

Market Opportunities

1. Investments in advanced packaging solution to pose lucrative business opportunities

SATS providers are focused on increasing capacity utilization rates by expanding existing capabilities. Leading SATS providers are leveraging advanced packaging and test capabilities to create reasonably quick returns on investments made consumers seeking leading edge technologies. These organizations are also focused on advanced packaging technologies as well as a second wave of consumers who still prefer conventional packaging technologies, in order to fulfil capacity in case leading edge customers transition to newer packaging and test equipment and platforms.

High capacity utilization rates is expected to present lucrative business opportunities

SATS providers are focused on increasing capacity utilization rates by expanding existing capabilities. Any fluctuation in capacity utilization rates can significantly affect gross margins since the cost per unit usually decreases as fixed costs are distributed over a larger number of units.

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About Coherent Market Insights:
Coherent Market Insights is a prominent market research and consulting firm offering action-ready syndicated research reports, custom market analysis, consulting services, and competitive analysis through various recommendations related to emerging market trends, technologies, and potential absolute dollar opportunity.

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