Semiconductor Assembly and Testing Services Market Growth 2028

Semiconductor Assembly and Testing Services Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Services (Assembly & Packaging Services and Testing Services) and Application (Consumer Electronics, Automotive, Medical, Industrial, and Other Applications)

Publication Month : Dec 2021

  • Report Code : TIPRE00011144
  • Category : Electronics and Semiconductor
  • Status : Published
  • No. of Pages : 142
Inquire Before Buy

PRICING

$4550

$2730

The semiconductor assembly and testing services market was valued at US$ 51,906.3 million in 2021 to reach US$ 71,784.6 million by 2028; it is estimated to grow at a CAGR of 4.7% from 2021 to 2028.

With heavy usage of smartphones, desktops, digital cameras, tablets, laptops, hard disks, and televisions, among others, the consumer electronics industry has evolved significantly due to several new technological developments. For instance, the rising adoption of 5G networks is creating strong opportunity for the market players to develop advanced RF modules using system-in-package technology for connectivity. According to the Ericsson’s mobility report, the share of 5G network in the North American market is expected to grow from 4% in 2020 to 80% by 2026, while the rest 20% would be held by the 4G technology. With the rising need of electronic equipment, the usage for semiconductor devices also increases in multiple digital consumer products including smartphones, televisions, digital cameras, refrigerators, washing machines, and LED bulbs. This is subsequently stirring the need for semiconductor testing services. Therefore, the rising demand for consumer electronics is driving the semiconductor assembly and testing services market

Customize Research To Suit Your Requirement

We can optimize and tailor the analysis and scope which is unmet through our standard offerings. This flexibility will help you gain the exact information needed for your business planning and decision making.

Semiconductor Assembly and Testing Services Market: Strategic Insights

semiconductor-assembly-and-testing-services-market
Market Size Value inUS$ 51,906.3 million in 2021
Market Size Value byUS$ 71,784.6 million by 2028
Growth rateCAGR of 4.7% from 2021 to 2028.
Forecast Period2021-2028
Base Year2021
Analyst Image

Naveen

Have a question?

Naveen will walk you through a 15-minute call to present the report’s content and answer all queries if you have any.

Analyst Image  Speak to Analyst

Impact of COVID-19 Pandemic on Semiconductor Assembly and Testing Services Market

 

The COVID-19 pandemic has shaken several industries. The unprecedented growth in the spread of the virus has urged governments worldwide to impose strict restrictions on vehicles and human movement. The semiconductor industry took a significant hit as the demand for electronic components was lowered from industrial sector and end users. The revenue model for microelectronics has declined as no mass production was carried in the lockdown period. The North American market suffered a huge loss in the first half of 2020 owing to the high number of COVID-19 cases, specifically in the US. Post lockdown, the market witnessed increasing demand for digital devices. North America is among the eminent regions in adopting smart or IoT-based devices due to favorable infrastructure that support high-speed internet services. The adoption of 5G network has driven the market growth post lockdown. Post lockdown, the semiconductor industry started to regain the market share as production facilities restarted the operation by taking social distancing measures. Besides, work from home and remote monitoring strategies helped increase the sale of advanced electronics products for better connectivity. IT and telecommunication industry importance have been highlighted for the communicational purpose, which allowed the industry to evolve with new technologies such as IoT connectivity.

Lucrative Regions in Semiconductor Assembly and Testing Services Market

  • Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
  • Request discounts available for Start-Ups & Universities

Market Insights – Semiconductor Assembly and Testing Services Market

Rising Automotive Sector to Propel Semiconductor Assembly and Testing Services

The adoption of safety-related electronics systems has grown rapidly. Semiconductor component manufacturers are continuously focusing on manufacturing advanced systems. Automotive semiconductor vendors get benefited from a surge in demand for multiple semiconductor devices, such as microcontrollers, sensors, and memory, used in cars. Apart from this, electrification, automation, digital connectivity, and security systems result in the addition of more semiconductor equipment into automotive electronics.

Service-Based Insights

Based on type, the semiconductor assembly and testing services market is segmented into assembly & packaging services and testing services. The assembly & packaging services segment held a larger market share in 2021.

Players operating in the semiconductor assembly and testing services market are mainly focused on the development of advanced and efficient products.

  • In May 2021, Deca, an industry-leading pure-play technology provider for advanced semiconductor packaging, announced the introduction of its new APDK methodology. The solution is the result of Deca’s collaboration with Advanced Semiconductor Engineering, Inc. (ASE) and Siemens Digital Industries Software.
  • In Oct. 2020, ASE, MOE and NKUST together establish onsite campus semiconductor assembly and test facility to develop world-class high-tech industry graduates.

The semiconductor assembly and testing services market is segmented based on service and application, and geography. Based on service, the market is segmented into assembly & packaging services and testing services. In 2021, the assembly & packaging segment led the semiconductor assembly and testing services market and accounted for a larger market share. Based on application, the market is segmented into consumer electronics, automotive, medical, industrial, and other applications. In 2021, the consumer electronics segment led the semiconductor assembly and testing services market and accounted for a larger market share. Geographically, the market is broadly segmented into North America, Europe, Asia Pacific (APAC), and Rest of the World (RoW). In 2021, APAC accounted for a significant share in the global market.

Semiconductor Assembly and Testing Services Market – Company Profiles

  • Amkor Technology
  • ASE Group
  • Chipbond Technology Corporation
  • Integrated Micro-Electronics, Inc
  • JCET Group Co., Ltd
  • Integra Technologies
  • Powertech Technology Inc
  • Siliconware Precision Industries Co., Ltd
  • Teledyne Technologies
  • Unisem Group
Report Coverage
Report Coverage

Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered
Segment Covered

Services and Application

Regional Scope
Regional Scope

North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

Country Scope
Country Scope

Australia, Canada, China, France, Germany, India, Italy, Japan, MEA, Mexico, Russian Federation, SAM, South Korea, Taiwan, United Kingdom, United States

Frequently Asked Questions


Which region has dominated the semiconductor assembly and testing services market in 2021?

In 2021, APAC led the market with a substantial revenue share, followed by North America and Europe. Government initiatives such as ‘Made in China 2025 are transforming the Chinese manufacturing industries. The evolution in electronics and automotive manufacturing industries is encouraging the manufactures to incline toward adopting advanced systems including semiconductor equipment.

Which service dominated the market in 2021?

The global semiconductor assembly and testing services market was dominated by assembly and packaging services segment accounted for the largest share in 2021 and the testing services segment is anticipated to be one of the fastest growing segments during the forecast period. The rising demand for consumer electronics and advanced packaging solutions is driving the demand for assembly and packaging services. In addition, the ongoing development in consumer electronics and advancement in innovation are increasing the demand for testing services.

What are key driving factors behind semiconductor assembly and testing services market growth?

The semiconductor assembly and testing services have been in use for several years worldwide, however, the technology has been experiencing immense demand in recent years. Rising demand for consumer electronics and high usage of a semiconductor device in industrial automation is supporting the growth of the semiconductor assembly and testing services market.

What are key market opportunities for the semiconductor assembly and testing services market?

The consumption of automotive electronic components for navigation, safety, and fuel efficiency will accentuate in coming years due to more electronic equipment being used in advanced safety features such as advanced driver-assistance systems (ADAS) added to the vehicles. This would drive the demand for integrated circuits, microcontrollers, and sensors. Therefore, with the increase in the usage of semiconductors in the automotive sector, there will more opportunities for semiconductor assembly and testing services.

Which are the major companies operating in the semiconductor assembly and testing services market?

The major companies in semiconductor assembly and testing services includes ASE Group, Amkor Technology, JCET Group Co., Ltd, Powertech Technology Inc., and Tongfu Microelectronics. The ranking has been derived analysing multiple parameters such as annual revenue earned from semiconductor assembly and testing services portfolio, client base, geographic locations, R&D expenditure, brand image, and number of employees, among others. These companies are actively participating in developing semiconductor assembly and testing services for various applications.

Which country dominated the APAC region semiconductor assembly and testing services market?

China held the largest share in APAC region. China is the largest industrial manufacturing hub in the world, with the presence of various diverse industries (especially electronics & semiconductor and consumer electronics). Companies are expanding their footprint in China to offer advanced solutions, as well as to improve production capabilities. The strong foothold of semiconductor assembly, packaging, and testing services companies in Taiwan (Province of China) is another key factor driving the growth of these services in the Asia Pacific region.

The List of Companies - Semiconductor Assembly and Testing Services Market

  1. Amkor Technology
  2. ASE Group
  3. Chipbond Technology Corporation
  4. Integrated Micro-Electronics, Inc
  5. JCET Group Co., Ltd
  6. Integra Technologies
  7. Powertech Technology Inc
  8. Siliconware Precision Industries Co., Ltd
  9. Teledyne Technologies
  10. Unisem Group

The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

  1. Data Collection and Secondary Research:

As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

  1. Primary Research:

The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

A typical research interview fulfils the following functions:

  • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
  • Validates and strengthens in-house secondary research findings
  • Develops the analysis team’s expertise and market understanding

Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

  • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
  • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

Below is the breakup of our primary respondents by company, designation, and region:

Research Methodology

Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

  1. Data Analysis:

Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

  • 3.1 Macro-Economic Factor Analysis:

We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

  • 3.2 Country Level Data:

Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

  • 3.3 Company Profile:

The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

  • 3.4 Developing Base Number:

Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

  1. Data Triangulation and Final Review:

The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

Your data will never be shared with third parties, however, we may send you information from time to time about our products that may be of interest to you. By submitting your details, you agree to be contacted by us. You may contact us at any time to opt-out.

Trends and growth analysis reports related to Semiconductor Assembly and Testing Services Market