US Semiconductor Assembly and Testing Services Market Growth and Forecast by 2028

The US semiconductor assembly and testing services market is expected to grow from US$ 10,723.0 million in 2021 to US$ 15,798.4 million by 2028; it is estimated to grow at a CAGR of 5.7% from 2021 to 2028.

With heavy use of smartphones, desktops, digital cameras, tablets, laptops, hard disks, and televisions, among others, the consumer electronics industry has evolved significantly with several technological advancements. The rising adoption of 5G networks is creating strong opportunities for companies in the US to develop advanced RF modules using system-in-package technology for connectivity. According to data published by Statista in March 2021, the use of 5G is expected to generate US$ 253 billion, and it is likely to create up to 2.39 million jobs in California alone. Moreover, New York and Texas are also projected to add more than US$ 130 billion. This highlights the opportunities for electronic companies to develop new electronics devices comprising ICs enabled with the embedded die packaging technology. Additionally, the emergence of smart devices, growing adoption of tablets, surge in demand for devices with large screens, and emergence of IoT across devices is creating high demand for consumer electronics. According to the Statista data in March 2021, advancements such as 5G usage, artificial intelligence, and the Internet of Things (IoT) adoption are expected to add up to US$ 1.5 trillion to the national gross domestic product (GDP) of the US by 2025. With the rising need of electronics, the use for semiconductor devices in digital consumer products, including smartphones, televisions, digital cameras, refrigerators, washing machines, and LED bulbs, would also increase; this is subsequently stirring the need for semiconductor testing services. Therefore, the rising demand for consumer electronics is driving the US semiconductor assembly and testing services market.

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

The COVID-19 pandemic has shaken several industries. The tremendous growth in the spread of the virus has urged US government to impose strict restrictions on vehicles and human’s movement. Due to travel ban, mass lockdown, and business shutdowns, the pandemic has affected economies and countless industries in the country. The lockdown imposition has resulted in lesser production of commodities, goods, and services. Manufacturing, automotive, semiconductor & electronics, oil & gas, mining, aviation, and other industries have witnessed a decline in their operations due to the temporary shutdown of activities. 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.

US market suffered a huge loss in the first half of 2020 owing to the high number of COVID-19 cases. Post lockdown, the market witnessed increasing demand for digital devices. US is among the leading country in adopting smart or IoT-based devices due to favourable infrastructure support for high-speed internet services. The adoption of the 5G network is supposed to drive the market growth post lockdown. The COVID-19 outbreak has a major impact on manufacturing facilities as production capacities were lowered. As the demand for electronics remained constant, it helped the market to resume the growth. For instance, in December 2020, Qualcomm Inc, a leading manufacturer of microprocessors (US) has predicted that the shipments of 5G smartphones will double in 2022, with the increasing 5G network deployment. Such increasing adoption of 5G smartphones is lowering the COVID- 19 impact for the post lockdown period; while in lockdown, it certainly hampered the market growth. Further, in post lockdown, 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 also 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. The increasing demand for the small firm factor-based electronics devices specifically for health monitoring and smartphones augmented the market growth.

US Semiconductor Assembly and Testing Services Market Revenue and Forecast to 2028 (US$ Million)

US Semiconductor Assembly and Testing Services Market Segmentation

US Semiconductor Assembly and Testing Services Market – by Service

• Assembly and Packaging Services
• Testing Services

US Semiconductor Assembly and Testing Services Market – by Application

• Consumer Electronics
• Automotive
• Medical
• Military
• Space
• Others

US Semiconductor Assembly and Testing Services Market - Companies Mentioned

• Amkor Technology
• ASE Group
• Unisem Group
• DPA Components International (DPACI)
• GlobalFoundries U.S. Inc.
• Golden Altos Corporation
• Grinding & Dicing Services, Inc.
• Micross
• Precision Test Solutions
• Promex Industries Inc.
• SkyWater Technology

US Semiconductor Assembly and Testing Services Report Scope