Outsourced Semiconductor Assembly and Testing Market Expected to Reach $60.3 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Outsourced Semiconductor Assembly and Testing Market," The outsourced semiconductor assembly and testing market size was valued at $34.6 billion in 2021, and is estimated to reach $60.3 billion by 2031, growing at a CAGR of 6.3% from 2022 to 2031.

Outsourced semiconductor assembly and test (OSAT) are the number of companies that offers third-party IC-packaging as well as test services. IDMs and foundries often outsource a certain percentage of their IC-packaging production to OSATs with internal packaging operations. OSAT mainly emphasizes on providing advanced packaging as well as test solutions for semiconductor companies in various markets such as consumer goods, communications, and computing along with emerging markets such as Internet of Things (IoT), automotive electronics, and wearable devices.

The global outsourced semiconductor assembly and testing industry is mainly driven by increase in demand for consumer electronics and surge in degree of urbanization. In addition, increase in adoption of smartphones significantly fuels the market growth. However, high cost associated with OSAT services may hamper growth of the market during forecast period. On the other hand, outsourced semiconductor assembly and testing market trends inlcude growth in the chip market is anticipated to provide a huge opportunity for OSAT companies.

The assembly segment was the largest revenue contributor in 2021, and is expected to grow at a CAGR of 6.46% from 2022 to 2031. This is attributed to rise in need for effective supply chain management in the semiconductor manufacturing industry. By packaging type, the ball grid array segment was the leading largest contributor of revenue in 2021 and is expected to grow at a CAGR of 5.63% from 2022 to 2031. Technological advancements in the semiconductor industry has led to surge in demand for thinner and lighter electronics products.

This factor primarily drives growth of the ball grid array type of packaging, owing to several miniaturization advantages that it offers. By region, the outsourced semiconductor assembly and test market trends have been analyzed across North America, Europe, Asia-Pacific, and LAMEA. The analysis identified that North America contributed for the maximum revenue in 2021 in  outsourced semiconductor assembly and testing market growth. This is attributed to increase in industrialization as well as rapid development in automotive and telecommunication industries.

The key players profiled in the outsourced semiconductor assembly and testing market analysis include Advanced Silicon S.A., Alphacore Inc., Amkor Technology, Inc., Device Engineering Inc., HiDensity Group (HMT microelectronic AG), Luminar Technologies, Inc. (Black Forest Engineering), Presto Engineering Group, Sencio BV, ShortLink group, and SiFive, Inc. (OpenFive). Market players have adopted various strategies such as product launch, expansion, collaboration, partnership, and acquisition to strengthen their foothold in the outsourced semiconductor assembly and testing market share.