The OSAT industry is growing rapidly, driven by semiconductor advancements and rising demand for miniaturized electronics in consumer, automotive, and telecom sectors.
Austin, Nov. 06, 2024 – Market Size & Growth Insights:
According to the S&S Insider, “The Outsourced Semiconductor Assembly and Test (OSAT) Services Market Size was valued at USD 40.10 Billion in 2023 and is expected to reach USD 77.90 Billion by 2032, growing at a CAGR of 7.67% over the forecast period 2024-2032.”
Innovation And Strategic Shifts Are Driving Growth in The OSAT Market as Demand Dynamics Evolve.
The outsourced semiconductor assembly and test (OSAT) services market has seen significant growth, fueled by the increasing complexity of semiconductor devices and rising demand for cost-effective manufacturing solutions. Taiwan, China, and the U.S. dominate the global OSAT landscape, collectively accounting for 80.1% of the market in 2022. Taiwan maintained a 49.1% market share despite a 2.5% decline, while China’s share rose to 26.3%, backed by local expansion and government support. U.S.-based Amkor, a key player in the sector, increased its market share by 1.7% to reach 18.8%, driven by strong demand from the automotive and 5G markets.
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In 2023, the OSAT sector faced challenges due to decreased consumer electronics demand and a decline in non-AI cloud server demand. Capacity utilization across OSAT plants averaged 65% in the first half of 2023, with projections rising to 75% in the second half and potentially reaching 80% due to urgent advanced packaging orders. This remains below the 85% utilization level observed in 2022, leading to an expected 13.3% decline in the global OSAT market for 2023. As semiconductor demand gradually recovers, advancements in packaging technologies such as 3D packaging, system-in-package (SiP), and flip-chip are set to enhance thermal management, signal integrity, and functionality, supporting renewed OSAT market growth into 2024 and beyond.
Leading Market Players with their Product Listed in this Report are:
- ASE Technology Holding Co., Ltd. (Wafer Level Packaging, Advanced Packaging Solutions)
- Amkor Technology, Inc. (Flip Chip Technology, System in Package (SiP))
- Powertech Technology Inc. (Memory Packaging, 3D IC Packaging)
- JCET Group Co., Ltd. (Bumping Services, Flip Chip Packaging)
- ChipMOS Technologies Inc. (Mixed-Signal Testing, Advanced Packaging)
- Tianshui Huatian Technology Co., Ltd. (Wire Bonding Services, Chip-on-Board (COB) Packaging)
- Tongfu Microelectronics Co., Ltd. (Chip Packaging Services, Wafer Level Test)
- King Yuan Electronics Co., Ltd. (Plastic Package, High Density Packaging)
- UTAC Holdings Ltd. (Test and Assembly Services, System in Package (SiP))
- Unisem Group (Flip Chip Packaging, Multi-Chip Module Packaging)
- Walton Advanced Engineering Inc. (High Frequency RF Packaging, Thermal Management Solutions)
- Carsem Malaysia (Chip-on-Board Assembly, Wafer Level Packaging)
- Integrated Micro-Electronics, Inc. (IMI) (Automotive Electronics, Consumer Electronics Assembly)
- Lingsen Precision Industries, Ltd. (QFN Packaging, Wafer Level Chip Scale Packaging)
- STATS ChipPAC Ltd. (System-in-Package (SiP), Leadframe Package Solutions)
- Simec Group (Bumping and Packaging, Assembly of MEMS Devices)
- Siliconware Precision Industries Co., Ltd. (Advanced Packaging, 3D Packaging)
- Qualcomm Technologies, Inc. (RF Front End Modules, Custom Semiconductor Packaging)
- Jiangsu Changjiang Electronics Technology Co., Ltd. (IC Packaging, Test Services)
- Nippon Chemi-Con Corporation (Capacitor Packaging, Power Electronics Packaging)
Outsourced Semiconductor Assembly and Test Services Market Report Scope:
| Report Attributes | Details |
| Market Size in 2023 | USD 40.10 Billion |
| Market Size by 2032 | USD 77.90 Billion |
| CAGR | CAGR of 7.67% From 2024 to 2032 |
| Report Scope & Coverage | Market Size, Segments Analysis, Competitive Landscape, Regional Analysis, DROC & SWOT Analysis, Forecast Outlook |
| Key Segments | • By Service Type (Assembly & Packaging, Testing) • By Application (Telecommunication, Consumer Electronics, Industrial Electronics, Automotive, Aerospace & Defense, Others) |
| Key Drivers | • The surge in consumer electronics fuels demand for advanced semiconductor devices and subcontracted assembly services. • Global semiconductor market expansion through strategic outsourcing of assembly and testing services. |
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Leading Segments in the OSAT Market
By Type
In 2023, the assembly and packaging segment led the OSAT market with an 85% share, driven by the need for advanced packaging solutions that address the complexity of semiconductor designs and the miniaturization of electronics. Key players like Amkor Technology and STATS ChipPAC lead in this space, offering sophisticated packaging technologies such as System-in-Package (SiP) and 3D packaging, vital for high-performance applications in consumer electronics, automotive, and telecommunications. Meanwhile, the testing segment is projected to be the fastest-growing from 2024 to 2032, as the demand for rigorous quality control and reliability in semiconductors accelerates testing services across various stages.
By Application
In 2023, the telecommunications sector dominated the OSAT market with a 36% share, driven by rising demand for advanced communication technologies, including 5G and IoT devices. Key players like Qualcomm and Broadcom depend heavily on OSAT for crucial components in base stations, routers, and mobile devices. Meanwhile, consumer electronics is set to be the fastest-growing segment from 2024 to 2032, fueled by the demand for smart devices. Major brands like Apple and Samsung rely on OSAT providers for rapid innovation in semiconductor packaging and testing.
Asia Pacific Dominance and North America’s Emerging Growth in the OSAT Market
In 2023, the APAC region dominated the OSAT market, capturing a substantial 55% market share, largely due to its concentration of leading semiconductor manufacturers and assembly houses. Countries like China, Taiwan, and South Korea are at the forefront of semiconductor production, attracting significant investments in OSAT services. Notable companies in this region include Silicon ware Precision Industries Co., Ltd. (SPIL) and ASE Technology Holding Co., Ltd., which offer comprehensive packaging and testing solutions to clients globally.
Meanwhile, North America is poised to become the fastest-growing region from 2024 to 2032, driven by rising demand for advanced semiconductor solutions across sectors such as automotive, consumer electronics, and telecommunications. The increasing complexity of semiconductor devices necessitates specialized assembly and testing services, prompting more outsourcing. Major firms like Amkor Technology and Jabil are investing heavily in new assembly technologies and expanding their service portfolios to address the evolving needs of semiconductor manufacturers.
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Recent Development
- October 2024: Amkor Technology partnered with TSMC to open an OSAT facility in Peoria, Arizona, focusing on advanced packaging technologies like InFO and CoWoS.
- September 2024: ASE Group invested to enhance its assembly and testing capacity at its facilities in Malaysia and China to meet rising global demand.
- August 2023: SPIL launched a new assembly and testing facility in Kaohsiung, Taiwan, specializing in 3D packaging and chip stacking.
Table of Contents – Major Points
1. Introduction
2. Executive Summary
3. Research Methodology
4. Market Dynamics Impact Analysis
5. Statistical Insights and Trends Reporting
5.1 Customer Demographics (2023)
5.2 Capacity Utilization Rates, (2023), by Region
5.3 Service Delivery Times, by Region (2020-2032)
5.4 Customer Retention Rates, by region
6. Competitive Landscape
7. Outsourced Semiconductor Assembly and Test Services Market Segmentation, by Service Type
9. Outsourced Semiconductor Assembly and Test Services Market Segmentation, by Type
10. Regional Analysis
11. Company Profiles
12. Use Cases and Best Practices
13. Conclusion
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