OSAT Market

OSAT, or outsourced assembly and test market are businesses which offer third-party integrated circuit (IC) packaging & test services on the open market, rather than being captive to the manufacturer of the die.

OSAT companies come into major play at the end stage of the semiconductor manufacturing process after the wafer fabrication and wafer probe stages. These companies provide innovative packaging solutions to bare silicon devices (semiconductors) in a well-established market.

Here is an in-depth analysis of market scenario with all it’s aspects you need to know in 2020.

Market growth

According to a Market Research, The Global Outsourced Semiconductor Assembly And Test (OSAT) Market was valued at USD 30,679.0 Million in 2018 and it is projected to reach nearly USD 44,047.6 Million by 2026, growing at a CAGR of 4.65% from 2019 to 2026.

The increased demand from Automotive subsystems and connected devices are found to be the major driving force in the forecasted period. Taking 2019 as the base year the largest & fastest growing market is estimated to be from the Asia Pacific at a growth rate of 6% overall.

Major players

OSAT Market is well-known & highly competitive market which consists of several major players. In terms of market share & size, few of the major players currently dominating the market are ACE, Amkor, and JCET. Those are the major players who accounted for more than 50% share in 2017.

Other manufacturers are Powertech technology Inc., THT co Ltd., Siliconware Precision Industries Co., Ltd., KYEC, Hana Micron, Signetics, Unisem Group, Walton Advanced Engineering, etc. These companies will be profiled on the basis of their financials, their geographic and business segment breakdown, as well as product benchmarking.

Global regions

When it comes to global, the Asia Pacific is considered as the largest player in the market and is expected to contribute significantly to the overall revenue in the near future. However, the North American Market is highly expected to participate in the implementation of the Outsourced Semiconductor Assembly And Test (OSAT) services due to the advancements in technology that the market faces.

China is currently the largest market for OSAT Market, globally. China is the home to companies like TSMC, ASE, who have partnered with tech giants like Apple, Hisilicon, Qualcomm, NVIDIA and AMD. The tech wars between US & China may affect the OSAT market in near future.

OSAT by applications

Segmentation by product type: Test Service & Assembly Service Segmentation by application: Communication, Computing & networking, Consumer electronics for others

Moreover, the computing segment is one of the significant and most mature markets among all other major semiconductor market segments in OSAT. A research says, about half of the revenue from the computing segment comes from data storage and processing.

For wired applications such as routers, servers, logic, switches, memory, PHY, network processors, and security processors, OSATs like Amcor, ASE, STATS ChipPAC, etc. usually have a comprehensive list of solutions like FCBGA, fcCSP, SiP, SSOP, SOIC, PBGA, QFP, and CABGA.

In this recent years, emerging & developing “lifestyle connectivity” such as digital home networking has driven the OSAT market to grow rapidly.