NEW
YORK, July 17, 2024 /PRNewswire/ -- The global
semiconductor assembly and testing services (SATS) market size is
estimated to grow by USD 19.31
billion from 2024-2028, according to Technavio. The market
is estimated to grow at a CAGR of 6.59% during the forecast period.
Rising sales of IoT devices is driving market growth, with a trend
towards advances in SATS. However, intense competition in sats
industry poses a challenge. Key market players include Amkor
Technology Inc., Aptasic SA, ASE Technology Holding Co. Ltd.,
ChipMOS TECHNOLOGIES INC., DPA Components International,
Flexitallic Group, Formosa Advanced Technologies Co. Ltd.,
GlobalFoundaries Inc., Jiangsu Changdian Technology Co. Ltd., King
Yuan Electronics Co. Ltd., Koninklijke Philips N.V., Micross Inc.,
Ose Corp., Powertech Technology Inc., Rochester Electronics LLC,
Teledyne Technologies Inc., Tianshui Huatian Technology Co. Ltd.,
Unisem M Berhad, UTAC Holdings Ltd., and Walton Advanced
Engineering Inc..
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Forecast
period
|
2024-2028
|
Base Year
|
2023
|
Historic
Data
|
2018 - 2022
|
Segment
Covered
|
Application
(Communication, Computing and networking, Industrial, Consumer
electronics, and Automotive electronics), Service Type (Assembly
services and Testing services), and Geography (APAC, North America,
Europe, South America, and Middle East and Africa)
|
Region
Covered
|
APAC, North America,
Europe, South America, and Middle East and Africa
|
Key companies
profiled
|
Amkor Technology Inc.,
Aptasic SA, ASE Technology Holding Co. Ltd., ChipMOS TECHNOLOGIES
INC., DPA Components International, Flexitallic Group, Formosa
Advanced Technologies Co. Ltd., GlobalFoundaries Inc., Jiangsu
Changdian Technology Co. Ltd., King Yuan Electronics Co. Ltd.,
Koninklijke Philips N.V., Micross Inc., Ose Corp., Powertech
Technology Inc., Rochester Electronics LLC, Teledyne Technologies
Inc., Tianshui Huatian Technology Co. Ltd., Unisem M Berhad, UTAC
Holdings Ltd., and Walton Advanced Engineering Inc.
|
Key Market Trends Fueling Growth
The semiconductor assembly and testing services (SATS) market
has experienced significant growth due to advancements in chip
packaging technologies. One such innovation is 3D IC packaging,
which allows for miniaturized ICs and the stacking of intelligence
centers, addressing space constraints. Organic-substrate-interposer
technology is also popular due to its cost-effectiveness. Another
technology, TSV or silicon-via-interconnection, is used for
creating 3D packages and integrated circuits, offering increased
circuit compression, performance, and volume efficiency. TSVs are
also utilized in complementary metal-oxide semiconductor (CMOS)
image sensors to remove wire bonds and create high-density
interconnects. These factors are expected to fuel the expansion of
the global SATS market in the coming years.
The Semiconductor Assembly and Testing Services (SATS) market is
experiencing significant trends in the electronics industry. With
the rise of network connectivity, there's an increasing demand for
semiconductor components in smart homes, smart television sets,
smartphones, tablets, telecommunication, and 5G technologies.
Outsourcing SATS to service providers ensures operational
efficiency and cost savings. Packaging technologies, such as wire
bonding and 3D semiconductor assemblies, are crucial for
manufacturing power-efficient devices and portable electronics. The
paradigm shift towards advanced packaging technologies, like
fan-out wafer level packaging, is essential for enhancing product
quality and reliability. Semiconductor manufacturing faces process
complexity and resistance to safety systems, necessitating prudence
and flexibility from service providers. Reliability testing,
including thermal cycling and burn-in testing, is crucial for
certifications in the communication industry and automotive
electronics. Semiconductors, chip design, chipsets, and chipsets
(ICs) are at the core of these trends. As the industry evolves,
semiconductor manufacturing in wafer fabrication factories must
adapt to meet the demands of the market, ensuring quality and
reliability in 5G technologies, 5G wireless networks, and
accelerated stress testing. Cloud services are also becoming
increasingly important in semiconductor manufacturing and testing
processes.
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Market Challenges
- The Semiconductor Assembly and Testing Services (SATS) industry
is highly competitive and asset-intensive, with consolidation among
players leading to improved cost performance but increased
competition due to shortening product lifecycles and rapid
technological advances. Energy prices and volatile commodities pose
additional challenges. Most SATS businesses are based in emerging
economies, where labor costs are low but advanced manufacturing
techniques are limited. Lean manufacturing and IoT
implementation are common in front-end silicon wafer manufacturing
but not yet widespread in backend SATS. The top five SATS companies
account for over half the industry revenue, leaving smaller players
at a disadvantage due to lower economies of scale and high R&D
costs. The entry of pure-play foundries and IDMs, such as Intel,
Samsung, and TSMC, into the SATS market may intensify competition.
These factors may hinder the growth of the SATS market during the
forecast period.
- The Semiconductor Assembly and Testing Services (SATS) market
faces several challenges in today's technology landscape. With the
rise of 3D semiconductor assemblies and the implementation of 5G
technologies in communication and computing industries, there is a
growing demand for advanced packaging technologies. SATS providers
must adapt to meet the needs of automotive electronics and systems,
requiring certification for emission reduction and fuel efficiency.
Chip design and fabrication for IC chipset assembly, including
die preparation and encapsulation, must keep up with the demands of
the consumer electronics, entertainment systems, and the Internet
of Things markets. SATS providers must also ensure electrical
characterization, conductivity testing, and environmental testing
to meet industry standards. Moreover, the integration of 5G
wireless networks and mobile devices necessitates accelerated
stress testing for low thermal ratings and high data transfer
speeds. The use of metals, conductors, and insulators in
semiconductor manufacturing also adds complexity to the process.
SATS providers must stay updated with the latest certifications,
certifications, and industry trends to remain competitive in the
market. Additionally, the growing importance of cloud services and
the integration of electrification in various industries will
further expand the scope of SATS services.
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challenges - Download a Sample Report
Segment Overview
This semiconductor assembly and testing services (sats) market
report extensively covers market segmentation by
- Application
- 1.1 Communication
- 1.2 Computing and networking
- 1.3 Industrial
- 1.4 Consumer electronics
- 1.5 Automotive electronics
- Service Type
- 2.1 Assembly services
- 2.2 Testing services
- Geography
- 3.1 APAC
- 3.2 North America
- 3.3 Europe
- 3.4 South America
- 3.5 Middle East and
Africa
1.1 Communication- Semiconductor Assembly and Testing
Services (SATS) play a vital role in the communication segment by
delivering top-notch semiconductor components and services for the
production of communication devices. In the communication industry,
semiconductor components such as Integrated Circuits (ICs), power
amplifiers, and filters are essential for signal amplification,
filtering, and modulation, which are fundamental for data and
voice-over network transmission. SATS contribute significantly to
the manufacturing process of communication devices, including
smartphones, radios, modems, and routers, by providing necessary
components and testing services to ensure they meet the desired
quality and performance standards. Moreover, communication devices
must adhere to regulatory bodies' guidelines, such as the Federal
Communications Commission (FCC) and the International Organization
for Standardization (ISO). SATS offer testing and certification
services to ensure these devices meet safety, performance, and
quality requirements. SATS also cater to the customization needs of
communication device manufacturers by designing customized ICs and
modifying existing components for optimal performance. Quality
assurance is another critical aspect of SATS, ensuring
communication devices meet rigorous testing and quality processes,
including durability, reliability, and functionality checks. The
communication segment's growth in Internet of Things (IoT) and
wireless communication technology implementation necessitates SATS'
support. SATS provide components, such as ICs, sensors, and
modules, that enable these technologies and offer testing services
to ensure their proper functioning and compliance with standards.
These factors are expected to drive the expansion of the global
SATS market through the communication segment during the forecast
period.
For more information on market segmentation with geographical
analysis including forecast (2024-2028) and historic data (2018 -
2022) - Download a Sample Report
Learn and explore more about Technavio's in-depth research
reports
The global semiconductor market is experiencing robust growth,
driven by demand in consumer electronics, automotive, and
telecommunications sectors. The global Front End of the Line
Semiconductor Equipment market is pivotal, providing essential
tools for wafer fabrication and processing. Meanwhile, the global
Semiconductor Fabrication Software market is crucial for designing,
simulating, and managing semiconductor manufacturing, enhancing
efficiency and yield. Together, these markets are integral to the
advancement of semiconductor technology, catering to the increasing
need for high-performance and miniaturized electronic components
across various industries.
Research Analysis
The Semiconductor Assembly and Testing Services (SATS) market
encompasses various processes that ensure the production of
high-quality semiconductor devices. These services include
conductivity testing, which measures the resistance of conductors
and insulators in semiconductor materials. Advanced packaging
technologies are crucial in SATS, enabling the integration of
various components, including integrated circuits and chipsets,
into power-efficient devices. SATS plays a vital role in the
manufacturing of semiconductors for diverse applications, such as
mobile devices, Internet of Things, automotive electronics, and
advanced technologies like 5G and cloud services. Quality and
reliability are paramount in SATS, with rigorous electrical
characterization and environmental testing ensuring optimal
performance. Metals and their properties also play a significant
role in SATS, as they are used as conductors and insulators in
semiconductor manufacturing. The electrification trend and the
development of 3D semiconductor assemblies further expand the scope
of the SATS market.
Market Research Overview
The Semiconductor Assembly and Testing Services (SATS) market
encompasses various processes and services that support the
production of semiconductor devices. These services include 3D
semiconductor assemblies, which involve the integration of multiple
semiconductor layers to create complex structures. SATS plays a
crucial role in the manufacturing of advanced packaging
technologies for industries such as automotive electronics,
consumer electronics, and the communication and computing
industries. 5G technologies are driving the demand for SATS, with
the need for high-speed data transfer and low latency. SATS
providers offer services like burn-in testing, electrical
characterization, and reliability testing to ensure the quality and
reliability of semiconductor components. SATS also includes
fabrication processes like wafer fabrication and IC chipset
assembly, as well as packaging technologies like encapsulation and
conductivity testing. The market caters to various industries,
including automotive systems, industrial, and the entertainment
industry, among others. SATS providers offer outsourcing services,
enabling companies to focus on their core competencies while
ensuring operational efficiency and cost savings. The market is
subject to industry standards and certifications, with a paradigm
shift towards power-efficient devices and wearable electronics.
SATS services include emission reduction, thermal cycling, and
environmental testing, ensuring that semiconductor components meet
safety and reliability requirements. The market is characterized by
prudence and flexibility, with service providers adapting to the
evolving needs of their clients.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
- Application
-
- Communication
- Computing And Networking
- Industrial
- Consumer Electronics
- Automotive Electronics
- Service Type
-
- Assembly Services
- Testing Services
- Geography
-
- APAC
- North America
- Europe
- South America
- Middle East And Africa
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory
company. Their research and analysis focuses on emerging market
trends and provides actionable insights to help businesses identify
market opportunities and develop effective strategies to optimize
their market positions.
With over 500 specialized analysts, Technavio's report library
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technologies, spanning across 50 countries. Their client base
consists of enterprises of all sizes, including more than 100
Fortune 500 companies. This growing client base relies on
Technavio's comprehensive coverage, extensive research, and
actionable market insights to identify opportunities in existing
and potential markets and assess their competitive positions within
changing market scenarios.
Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/
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