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Outsourced Semiconductor Assembly And Testing: Critical Driver Shaping the Surging Demand For Consumer Electronics Boosts Outsourced Semiconductor Assembly And Testing Market Market in 2025
Outsourced Semiconductor Assembly And Testing
Outsourced Semiconductor Assembly And Testing Market Size Valuation Forecast: What Will the Market Be Worth by 2025?
The market size for outsourced assembly and testing of semiconductors has experienced robust growth in the last few years. Projections indicate that the market will expand from $42.84 billion in 2024 to $46.87 billion in 2025, with a Compound Annual Growth Rate (CAGR) of 9.4%. Factors contributing to this growth during the historical period include the demand for integrated circuits, the miniaturization of semiconductors, cost-effectiveness, the expansion of consumer electronics, and compliance with regulatory norms.
Outsourced Semiconductor Assembly And Testing Market Size Forecast: What's the Projected Valuation by 2029?
The market size for outsourced semiconductor assembly and testing is projected to experience significant expansion in the coming years. It is predicted to reach $67.96 billion by 2029 with a Compound Annual Growth Rate (CAGR) of 9.7%. This projected growth during the forecast period can be linked to factors such as the automotive industry, cybersecurity, global supply chain, outsourced manufacturing, and environmental regulations. Noteworthy trends expected within the forecast period embrace 3D ic technology, 5g technology, Artificial Intelligence (AI) and machine learning, high-performance computing, alongside advanced packaging.
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What Are the Drivers Transforming the Outsourced Semiconductor Assembly And Testing Market?
The surge in the need for consumer electronics is predicted to spur the development of the outsourced semiconductor assembly and testing industry. The escalation in the demand for these products is due to an increase in expendable income, alterations in consumer lifestyles, growth in the middle-class demographic, and decreasing prices of electronics. The process of outsourced semiconductor assembly and testing is vital before consumer electronics can be used since it's an economical and innovative solution that enhances performance, processing speed, and functionality of electronic devices while taking less space. For instance, statistics from the Japan Electronics and Information Technology Industries Association, a trade association based in Japan, showed that Japan's total production of electronic equipment was valued at $6,722 million (¥771,457 million) in May 2023. Furthermore, the production of consumer electronics reached $280 million (¥ 32,099 million) in that same month, a significant increase from $230.9 million (¥25,268 million) in May 2022. Therefore, this surge in consumer electronics demand is set to drive the outsourced semiconductor assembly and testing industry.
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What Long-Term Trends Will Define the Future of the Outsourced Semiconductor Assembly And Testing Market?
Strategic alliances have emerged as a significant trend within the outsourced semiconductor assembly and testing (OSAT) sector. Companies focused on technology and software are forging ties with OSAT businesses to establish new design platforms and gear towards the creation of next-gen, advanced package designs. These collaborations are strategically centred towards mutual expertise and resource utilization, targeting a strong market stance. In an exemplifying case from April 2024, Infineon Technologies AG, a German semiconductor manufacturing firm, proclaimed its intention to multiply its outsourced backend manufacturing foothold in Europe via a sustained alliance with Amkor Technology, Inc, a US-based firm delivering semiconductor packaging and testing services. This collaboration will work on crafting an exclusive packaging and testing unit at Amkor's Porto location, with anticipated operations launch in the early part of 2025. With this longstanding agreement, Infineon and Amkor strengthen their team-up while augmenting the traditional Outsourced Semiconductor Assembly and Test (OSAT) operational framework. Amkor is set to amplify its Porto facilities, including a complete production line, featuring a specially purposed clean room, while Infineon will provide engineering guidance and development support via their onsite staff.
Which Segments in the Outsourced Semiconductor Assembly And Testing Market Offer the Most Profit Potential?
The outsourced semiconductor assembly and testing market covered in this report is segmented -
1) By Type: Test Service, Assembly Service
2) By Process: Sawing, Sorting, Testing, Assembly
3) By Packaging Type: Ball Grid Array, Chip Scale Package, Multi Package, Stacked Die, Quad And Dual
4) By Application: Communication, Consumer Electronics, Computing And Networking, Automotive, Industrial, Other Applications
Subsegments:
1) By Test Service: Wafer Testing, Package Testing, Final Testing, Reliability Testing, Characterization Testing
2) By Assembly Service: Wafer-Level Packaging (WLP), Chip-On-Board (COB) Assembly, Ball Grid Array (BGA) Assembly, Flip Chip Assembly, Die Attach Services
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Which Firms Dominate the Outsourced Semiconductor Assembly And Testing Market by Market Share and Revenue in 2025?
Major companies operating in the outsourced semiconductor assembly and testing market include Advanced Semiconductor Engineering Inc., Amkor Technology Inc., Jiangsu Changjiang Electronics Tech Co. Ltd., King Yuan Electronics Co. Ltd., Alphacore Inc., Device Engineering Inc., HMT microelectronic AG, Presto Engineering Group, Sencio BV, ShortLink AB, SiFive Inc., Powertech Technology Inc., Tianshui Huatian Technology Co. Ltd., Nantong Fujitsu Microelectronics Co. Ltd., UTAC Holdings Ltd., Chipbond Technology Corporation, ChipMOS Technologies Inc., Huatian Technology Sdn. Bhd., Walton Advanced Engineering Inc., Signetics Corporation, Hana Micron Inc., NEPES Corporation, Sunrise Memory Corp., Tongfu Microelectronics Co. Ltd., Integrated Micro-electronics Inc., Formosa Advanced Technologies Co Ltd., Lingsen Precision Industries Ltd., Shenzhen CPET Electronics Co. Ltd.
Which Regions Offer the Highest Growth Potential in the Outsourced Semiconductor Assembly And Testing Market?
Asia-Pacific was the largest region in the outsourced semiconductor assembly and testing market in 2024. The regions covered in the outsourced semiconductor assembly and testing market report include Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
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