Global OSAT Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Global OSAT Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

OSAT (Outsourced semiconductor assembly and test) are the companies that offer third-party IC-packaging and test services. These companies provide packaging to silicon devices that are made by foundries and test devices prior to shipping to the market.

Market Overview:

The latest research study on the global OSAT market finds that the global OSAT market reached a value of USD 47318.0 million in 2022. It’s expected that the market will achieve USD 64155.0 million by 2028, exhibiting a CAGR of 5.2% during the forecast period.

The impact of the Russia-Ukraine war on the OSAT Market

The Russia-Ukraine war may affect the OSAT industry in several ways. First of all, the Ukrainian-Russian region supplies various raw materials critical to chip manufacturing. Ukraine, for example, is a major source of noble gases, such as neon needed for semiconductor lithography processes, and any disruption in the supply of neon and other noble gases in the country could trigger shortages and associated cost increases. Therefore, the Ukrainian-Russian war may affect the semiconductor manufacturing industry, thereby affecting the back-end packaging and testing market. In addition, Russia is an important supplier of palladium production. Palladium can be used in semiconductor components such as sensors and is also one of the important raw materials for semiconductor packaging. Therefore, the OSAT industry may suffer due to the lack of key raw materials needed in the packaging and testing process.

Service model is driven by market demand

With the rapid upgrading of integrated circuit technology and the diversification of downstream applications, the investment cost of the integrated circuit industry has risen, the window period for new product development has shortened, and the proportion of product customization has increased. Faced with challenges in terms of product diversity, the integrated circuit professional division model represented by Fabless+Foundry+OSAT emerged as the times require, and promotes the gradual development of the integrated circuit industry in the direction of specialized division of labor. In the professional division of labor mode, Fabless manufacturers operate the chip design process independently, and Foundry manufacturers provide foundry services for wafer manufacturing, and then entrust OSAT manufacturers to package and test, and finally deliver chip products to terminal application manufacturers. This model is the product of the professional division of labor in the industry, and it is also the inevitable result of the industry's pursuit of higher efficiency. At present, the professional division of labor model, with its high R&D efficiency and good industrial chain coordination, better adapts to the technology and product trends of integrated circuit products, and is gradually becoming the mainstream business model of the industry.

Region Overview:

In 2022, the share of the OSAT market in China Taiwan stood at 49.94%.

Company Overview:

The top three companies are ASE, Amkor Technology, JCET Group with a revenue market share of 25.10%, 14.99%, 10.34% in 2022.

ASE is a semiconductor packaging and testing manufacturing service company in Taiwan. It provides integrated services for semiconductor customers, including chip front-end testing and wafer needle testing to back-end packaging, material and finished product testing. The global headquarters is located in Nanzi Technology Industry, Nanzi District, Kaohsiung City. Park, and set up a branch in Zhongli District, Taoyuan City, with operating bases covering mainland China, South Korea, Japan, Malaysia, Singapore, Mexico, the United States and many major cities in Europe. It is currently one of the largest packaging and testing factories in the world. ASE Company uses artificial intelligence, big data and intelligent automation to achieve comprehensive digital transformation. ASE Companies are increasing productivity and adding more value to the supply chain by harnessing the power of smart manufacturing. Enterprises continue to invest huge sums of money in research and development, application and improvement of technology. ASE Company's leading packaging technology. In the field of testing, ASE has a large capacity of testing equipment, which can quickly meet customer needs. At the same time, it has outstanding performance in multi-functional testing, and has professional knowledge in test platform, program conversion and test program development. In terms of packaging, the company has various technologies such as System-in-Package, Leadframe Packaging, Wire Bond BGA, Flip Chip Packaging, Wafer Level Packaging, Fan-Out Packaging, and Bumping.

Amkor Technology is one of the world's largest providers of outsourced semiconductor packaging and test services. Founded in 1968, Amkor pioneered IC packaging and test outsourcing and is now a strategic manufacturing partner to the world's leading semiconductor companies, foundries and electronics OEMs. Amkor's base of operations includes production facilities, product development centers and sales and support offices located in key electronics manufacturing regions in Asia, Europe and the United States. Amkor offers a full suite of services including package design and development, wafer probe and package test, wafer bumping and redistribution services, assembly and final test. The availability of high-quality packaging and testing services enables customers to focus their resources on semiconductor design and wafer fabrication. Amkor‘s packaging formats include wafer-level, CSP, BGA, leadframe and the enablement of next-generation 3D packaging solutions. Amkor has introduced several state-of-the-art package formats including advanced copper pillar bumping, Through Mold Via (TMV®), Through Silicon Via (TSV), and Wafer Level Fan-Out (WLFO). 3D configurations such as Package-on-Package, stacked CSP and BGA, as well as die stacks that integrate all manner of flip chip and wire bond interconnect showcase Amkor leadership in continuous technology innovation.

Segmentation Overview:

Among different product types, System-in-Package (SiP) Technology segment is anticipated to contribute the largest market share in 2028.

Application Overview:

By application, the Consumer Electronics segment occupied the biggest share from 2018 to 2022.

Key Companies in the global OSAT market covered in Chapter 3:

Amkor Technology
ChipMOS
Hana Micron
JCET Group
Powertech Technology
King Yuan Electronics
Signetics
HT-tech
Greatek Electronics
Unisem
ASE
TongFu Microelectronics
Chipbond Technology
UTAC
SFA Semicon
Orient Semiconductor Electronics

In Chapter 4 and Chapter 14.2, on the basis of types, the OSAT market from 2018 to 2029 is primarily split into:

Ball Grid Array (BGA) Packaging
Chip-scale Packaging (CSP)
Wafer Level Packaging (WLP)
System-in-Package (SiP) Technology
Others

In Chapter 5 and Chapter 14.3, on the basis of Downstream Industry, the OSAT market from 2018 to 2029 covers:

Consumer Electronics
Computing
Automotive
Industrial
Aerospace & Defense
Others

Geographically, the detailed analysis of consumption, revenue, market share and growth rate, historic and forecast (2018-2029) of the following regions are covered in Chapter 8 to Chapter 14:

North America (United States, Canada)
Europe (Germany, UK, France, Italy, Spain, Russia, Netherlands, Turkey, Switzerland, Sweden)
Asia Pacific (China, Japan, South Korea, Australia, India, Indonesia, Philippines, Malaysia)
Latin America (Brazil, Mexico, Argentina)
Middle East & Africa (Saudi Arabia, UAE, Egypt, South Africa)