Growing demand of consumer electronics, increasing integration of electronics and connectivity in automotive are major factors driving growth of the global semiconductor assembly and testing services (SATS) market.
Semiconductor industry is highly volatile in nature. Major market participants in this industry are fabless companies that focus on leveraging their resources in designing and utilising their expertise in enhancing performance of the chipsets or ICs. Therefore, most of the semiconductor assembly, testing, and packaging related services are outsourced by fabless companies to third party providers known as ‘Outsourced Semiconductor Assembly and Test Service Providers’.
Moreover, with the shift of semiconductor process technology to the larger wafers and smaller feature sizes, the cost of building a state-of-the-art wafer fabrication factory has increased considerably, states FMI. Semiconductor assembly and testing services are offered in various end user industries. One of the major applications of semiconductor assembly and testing services is for communication.
Global SATS market is categorised on the basis of services, application and region. On the basis of services, the market is segmented as assembly and packaging, and testing. The assembly and packaging segment is anticipated to register a CAGR of 5% during the forecast period, says FMI.
On the basis of application, the global SATS market is segmented into communication, computing and networking, consumer electronics, industrial, and automotive. The revenue contribution from the consumer electronics segment is anticipated to expand at a CAGR of 6.3% during the forecast period.
Among the regions, FMI states that Taiwan is projected to exhibit relatively high growth in the global market, registering a CAGR of 5.6% over the forecast period. Revenue from the SATS Market in North America and APAC (excluding Taiwan) is expected to collectively account for over 40% of the global SATS Market revenue in 2017. Semiconductor assembly and testing services providers can focus on expanding their footprints across several countries in APAC and Europe regions such as India and UK.
On the basis of assembly and packaging, the Global SATS Market is segmented into copper wire and gold wire bonding, copper clip, flip chip, wafer level packaging, and TSV. The revenue contribution from the wafer level packaging segment is anticipated to expand at a CAGR of 8.8% during the forecast period.
