Outsourced Semiconductor Assembly and Test (OSAT) Market: Chip Industry to

Assembly and testing (manufacturing) of outsourced semiconductors offer IC-packaging and testing facilities to third parties. OSATs are merchant vendors. IDMs and foundries often outsource a certain percentage of their IC-packaging production to OSATs with internal packaging operations. Fabless companies often outsource their packaging to the foundries and/or the OSATs. Semiconductors are also used by many modern consumer goods in daily life, such as cell phones, laptops, video cameras, televisions, washing machines, refrigerators, and LED bulbs. Growing popularity of smart TVs, 4 K ultra-HD TVs, 3D programming, video-on – demand content, a preference for large displays, and curved OLEDs drives OSAT revenues. OSATs offer cost-effective and creative solutions which deliver higher efficiency, processing speeds and functionality with space reduction in an electronic device.

Companies covered

Major players analyzed are ASE Group, UTAC, SPIL, Amkor, TFME, JECT, ChipMOS, TSHT, Powertech Technology Inc, Chipbond 5

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COVID-19 scenario Analysis: 

  • Global outsourced semiconductor assembly and test (OSAT) market has been significantly impacted by the COVID-19 outbreak. New projects throughout the world have stalled, which, in turn, have led to decline in demand for analog semiconductors.
  • Global factories have struggled to integrate new outsourced semiconductor assembly and test equipment as workers have stayed in their homes, which disrupted the global supply chains.
  • The impact of COVID-19 on this market is temporary as just the production and supply chain is stalled. Once the situation improves, production, supply chains, and demand for outsourced semiconductor assembly and test equipment are gradually going to increase.
  • This COVID-19 lockdown would help companies think about more advanced outsourced semiconductor assembly and test equipment to enhance efficiency.

Top impacting factors: Market Scenario Analysis, Trends, Drivers, and Impact Analysis

Global OSAT market is a moderately competitive market with various global and regional players present on the market. Commercial foundries controlled the production of semiconductors earlier, while IC assembly and testing were dominated by outsourced semiconductor assembly and test (OSAT) market. Yet as the industry shifts toward stacked die over the next few years, massive foundries want to extend their presence worldwide. There are various factors that drive market growth, including factors such as the growing demand for consumer electronics and the increase in global urbanization. Factors that serve as a business opportunity include the increasing transition in emerging economies, as well as the increase in smartphone adoption is expected to provide lucrative opportunities for OSAT market

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The global outsourced semiconductor assembly and test (OSAT) market trends are as follows:

Automotive industry to grow at a higher rate

The automotive industry is expected to hold a significant share, due to the growing use of automotive electronics devices in various processes and functions. The camera modules, Infotainment systems, body electronics, protection devices, and sensors are only a few applications in the industry to implement OSAT solutions. The industry has been able to overcome many important environmental problems related to vibrations and temperature due to the continued efforts of the OSAT members.

Chip market to provide a huge opportunity for OSAT companies

Chip manufacturers are forced to launch short-lived, new products. Chip designers are now trying to incorporate as many components as possible into a single chip that has increased the complexity even more. Most of these chipmakers rely on OSAT companies as they have limited technical expertise and infrastructure to meet current outsourced semiconductor assembly and test (OSAT) market demands.

Key benefits of the report:

  • This study presents the analytical depiction of the global outsourced semiconductor assembly and test (OSAT) industry along with the current trends and future estimations to determine the imminent investment pockets.
  • The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the global OSAT market share.
  • The current market is quantitatively analyzed from 2020 to 2027 to highlight the global surface mount technology market growth scenario.
  • Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
  • The report provides a detailed global outsourced semiconductor assembly and test (OSAT) market analysis based on competitive intensity and how the competition will take shape in coming years.

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Questions answered in the outsourced semiconductor assembly and test (OSAT) market research report:

  • Which are the leading market players active in the OSAT market?
  • What would be the detailed impact of COVID-19 on the market?
  • What current trends would influence the market in the next few years?
  • What are the driving factors, restraints, and opportunities in the outsourced semiconductor assembly and test (OSAT) market?
  • What are the projections for the future that would help in taking further strategic steps?

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