Semiconductor has made its presence in almost all the industry sectors. Semiconductor assembly and test services (SATS) is predicted to grow gradually with the growing trend of outsourcing by the OEMs and chipmakers. The semiconductor assembly and test services is seen shifting towards outsourcing business mode and increase in shift to outsourcing of SATs is expected in the coming years as the OEMs and device manufacturers tend to keep pace with the growing complexity in packaging technology.
The advancement in packaging technology with the development of wafer-level processes have made the semiconductor assembly and test services providers technology enablers for the emerging consumer electronics and computing applications.
The recent growth in consumer electronics with the innovation and advancement in technology, have propelled the semiconductor assembly and test services market across the world. The demand for higher packaging technologies has risen with the high growth of smartphones and tablet with multimedia capabilities, creates a potential market for SATS.
Furthermore, the efficient supply chain facilitated by the SATS providers has reduced the time to market, thus becoming the priority choice of integrated design manufacturers. The demand for mobility and connectivity in the consumer electronics has added to the growth for SATS. The increase in use of automated control system technology in automobiles to enhance the safety is another driving factor, which contributes to the growth in SATS market.
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To cater the high market demand for electronic products and gadgets, electronic manufacturing industries are aiming to focus on their core competencies, by outsourcing the semiconductor assembly and test services, which in turn has added to the rise in demand for SATS. The increase in demand for semiconductor assembly and tests services has added to the economies of scale, with the larger volumes of semiconductor packaging outsourced by electronic manufacturers. In the future a massive investment will be required in order to support new innovation and technologies in the SATS market.
In the recent past, the increase in number of semiconductor manufacturers in the Asia market, has created opportunities for semiconductor assembly and test services in Asian countries. Asian countries such as South Korea, China, Japan, and Taiwan accounts for the major share in semiconductor manufacturing globally, which will create pool of opportunities for SATS in the coming years, as the outsourcing of SATS is forecasted to increase.