What Is The Definition Of The Global Semiconductor Assembly And Testing Services Market?
Semiconductor assembly and testing services refer to assembling individual semiconductor components into complete integrated circuits (ICs) or chips and testing them for functionality, reliability, and quality assurance. These services are crucial in the semiconductor manufacturing supply chain, ensuring that semiconductor devices meet performance specifications and quality standards before being shipped to customers.
Semiconductor Assembly And Testing Services Global Market Report 2024 provides data on the global semiconductor assembly and testing services market such as market size, growth forecasts, segments and geographies, competitive landscape including leading competitors’ revenues, profiles and market shares. The Semiconductor Assembly And Testing Services market report identifies opportunities and strategies based on market trends and leading competitors’ approaches.
How Is The Global Semiconductor Assembly And Testing Services Market Size Expected To Expand, And At What Annual Growth Rate?
The semiconductor assembly and testing services market size has grown strongly in recent years. It will grow from $32.78 billion in 2023 to $34.94 billion in 2024 at a compound annual growth rate (CAGR) of 6.6%. The growth in the historic period can be attributed to the widespread adoption of smartphones and tablets, growth in consumer electronics, increasing globalization, need for innovative packaging solutions, increasing adoption of advanced packaging technologies. The semiconductor assembly and testing services market size is expected to see strong growth in the next few years. It will grow to $45.67 billion in 2028 at a compound annual growth rate (CAGR) of 6.9%. The growth in the forecast period can be attributed to continuous innovation in semiconductor technologies, deployment of 5G networks, the proliferation of Internet of Things (IoT) devices, rise of electric vehicles, popularity of wearable devices. Major trends in the forecast period include the proliferation of the Internet of Things (IoT), the rollout of 5G networks, the automotive industry's transition toward electric vehicles (EVs), continued expansion of cloud computing infrastructure, and increasing adoption of renewable energy technologies.
What Are The Key Drivers Fueling Growth In The Semiconductor Assembly And Testing Services Market?
The increasing demand for consumer electronics is expected to propel the growth of the semiconductor assembly and testing services market going forward. Consumer electronics refers to devices crafted explicitly for purchase and utilization by end-users or consumers for personal and non-commercial/professional uses in their daily lives. The demand for consumer electronics is rising due to rising disposable income levels, shifts in consumer lifestyles, rapid urbanization, and the proliferation of e-commerce platforms. The semiconductor assembly and testing services support the consumer electronics industry by providing high-quality, reliable, and cost-effective semiconductor components that power various devices, including smartphones, tablets, laptops, wearables, and smart home appliances. For instance, in May 2023, according to the Japan Electronics and Information Technology Industries Association, a Japan-based trade association, the total consumer electronics production increased from $161.17 million (¥25,268 million) in May 2022 to $204.75 million (¥32,099 million) in May 2023. Therefore, the increasing demand for consumer electronics is driving the growth of the semiconductor assembly and testing services market going forward. The market size for this segment was valued at $2.1 billion in 2023, is projected to reach $2.6 billion in 2024, and $3.9 billion by 2028.
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What Are The Principal Market Segments In The Global Semiconductor Assembly And Testing Services Industry?
The semiconductor assembly and testing services market covered in this report is segmented –
1) By Service: Assembly And Packaging Services, Testing Services
2) By Packaging Technology: Flip-Chip, Wire Bond, Other Packaging Technologies
3) By End Use Industry: Telecommunication, Computing And Networking, Consumer Electronics, Industrial, Automotive Electronics, Other End-Use Industries
Which Emerging Market Trends Are Altering The Semiconductor Assembly And Testing Services Sector?
Companies in the semiconductor assembly and testing services market are concentrating on AI-powered software solutions to improve yield throughout integrated circuit (IC) engineering and production. AI-powered software is designed to enhance yield and operational efficiency in IC production. For example, in November 2022, Advantest Corporation, a Japanese manufacturer of automatic test equipment for the semiconductor industry, launched ACS EASY. This AI-driven software enhances productivity in device engineering and production, serving a range of users from chip designers to outsourced semiconductor assembly and testing (OSAT) companies. ACS EASY uses AI to autonomously monitor test conditions and identify potential causes of yield issues, facilitating problem isolation and analysis in production.
What Is The Leading Region In The Semiconductor Assembly And Testing Services Market?
Asia-Pacific was the largest region in the semiconductor assembly and testing services market in 2023. The regions covered in the semiconductor assembly and testing services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
