Semiconductor Assembly and Testing Services Market to Reach US$ 52.1 Bn By 2029, Reports FMI
Continuous developments and implementation of new technologies such as organic-substrate-interposer technology and silicon-via-interconnection technology in the semiconductor assembly & testing services market are creating significant revenue opportunities for players in the semiconductor assembly and testing services market.
Implementation of semiconductor assembly and testing services in the consumer electronics sector helps manufacturers produce semiconductors, memory chips, and wafers used in consumer electronic products and wireless/mobile handsets in a more efficient manner.
The value of the global semiconductor assembly and testing services market is anticipated to witness a CAGR of 6.1% during the forecast period of 2022-2029.
- Among the application segment, the consumer electronics segment is expected to witness a high growth rate, owing to rising demand for audio/video equipment, cameras, calculators, and smart homes (home safety equipment & accessories)
- Asia Pacific Excluding Japan is expected to create lucrative growth opportunities for players in the semiconductor assembly and testing services market, attributable to the rapid growth of packaging of semiconductors, and increasing applications of semiconductor assembly methodologies in this region
- Increasing demand for connected devices worldwide including smartphones and tablets having connectivity and multimedia capabilities propels the demand for higher packaging technologies and creates growth opportunities for the service providers in the semiconductor assembly and testing services market.
“Semiconductor assembly and testing service providers can improve revenues by upgrading existing facilities to include superior electrical and thermal performance, and high input and output capabilities,” Says the FMI Analyst
Gains Upheld by Increasing Demand for Improved Connectivity in Consumer Electronics
Higher demand for mobile and connected devices such as tablets and smartphones has bolstered the demand for higher packaging technologies. Also, rising demand for digital video content drives the growth of high-performance and mobile consumer electronics products, such as Wi-Fi chipsets and other semiconductor chips.
For instance, STATS chip AC (JCET) develops an expanded Wafer Level Chip Scale Package (eWLCSP), which offers improved testing and a low-cost fan-in wafer-level package for space-controlled mobile devices.
Moreover, the growth of end-use industries such as electronics and semiconductors, automotive, manufacturing, and packaging is expected to offer potential growth opportunities for manufacturers in the global semiconductor assembly and testing services market.
ODMs and OEMs to Prioritize ‘Fab-lite’ Strategy
As semiconductor process technology migrates to larger wafers and smaller feature sizes, the cost of building state-of-the-art wafer fabrication factories has risen significantly, reaching several billion dollars. High investment costs for next-generation silicon technology and equipment are influencing various semiconductor companies to adopt or maintain a ‘fabless’ or ‘fab-lite’ strategy. The increasing demand for semiconductors is needed for cloud integration and connectivity including sensors, computing, interactivity, and communication devices.