The global outsourced semiconductor assembly and testing market revenue was around US$ 36.7 billion in 2022 and is estimated to reach US$ 60.3 billion by 2031, growing at a compound annual growth rate (CAGR) of 6.3% during the forecast period from 2023 to 2031.

Assembly and testing (manufacturing) of outsourced semiconductors deliver testing facilities and IC packaging to third parties. Outsourced semiconductor assembly and testing are merchant vendors. Integrated foundries and database management systems usually outsource a specific percentage of their IC-packaging production to outsourced semiconductor assembly and testing with internal packaging functions. Fabless companies constantly outsource their packaging to foundries and/or outsourced semiconductor assembly and testing.

Factors Influencing Market Growth

- The surge in the degree of urbanization and increase in demand for consumer electronics across the globe primarily expands the growth of the outsourced semiconductor assembly and testing market.

- The rise in disposable income of people across the globe significantly boosts the sales of consumer electronics devices like mobile phones, TVs, and tablets, which expands the demand for outsourced semiconductor assembly and testing markets.

- The growth in the adoption of smartphones significantly pushes the demand for the outsourced semiconductor assembly and testing market.

- The high cost associated with outsourced semiconductor assembly and testing services is expected to hinder the growth of the outsourced semiconductor assembly and testing market during the forecast period.

- The rising chip market is expected to deliver outsourced semiconductor assembly and testing market lucrative opportunities during the forecast period.

Impact of COVID-19

The impact of COVID-19 pandemic had a significant influence on the global outsourced semiconductor assembly and test (OSAT) market. Due to strict lockdowns set by the governments of several nations, the production buildings of semiconductor companies were harshly impacted. As government had issued the companies to propose work from home to their employees which resulted in a negative effect on the growth of the manufacturing companies.

Regional Analysis

In 2022, North America dominated the global outsourced semiconductor assembly and testing market because of the surge in the growth of advanced chip applications in the Canada and U.S. which was the major factor in the development of the market.

Also, Asia Pacific is expected to notice significant growth during the forecast period. This growth is attributed because of the existence of several outsourcing facilities in the region.

Leading Companies

The leading prominent companies profiled in the global outsourced semiconductor assembly and testing market are: -

- Advanced Silicon S.A.
- Alphacore Inc.
- Amkor Technology, Inc.
- Device Engineering Inc.
- HiDensity Group (HMT microelectronic AG)
- Luminar Technologies, Inc. (Black Forest Engineering)
- Presto Engineering Group
- Sencio BV
- ShortLink group
- SiFive, Inc. (OpenFive)
- Other prominent key players

Segmentation Outline

The global outsourced semiconductor assembly and testing market segmentation focuses on Process, Packaging Type, Application, and Region.

Segmentation based on Process

- Sawing
- Sorting
- Testing
- Assembly

Segmentation based on Packaging Type

- Ball grid array
- Chip scale package
- Multi-package
- Stacked die
- Quad and dual

Segmentation based on Application

- Automotive
- Consumer electronics
- Industrial
- Telecommunication
- Aerospace and defense
- Medical and healthcare
- Logistics and transportation

Segmentation based on Region

- North America
- The U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Netherlands
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Singapore
- Rest Of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa