What Factors are Influencing Growth in Semiconductor Assembly and Testing Services Market in US?
Companies in the US are constantly focusing on manufacturing new electronic devices and equipment to meet the growing demand by customers for these advanced devices and equipment. The increasing use of semiconductors in these devices is resulting in the need for semiconductor assembly and testing services that can analyze the failure of semiconductor devices by reliability testing or electrical verification processes.
The semiconductor assembly and testing services providers in the US are focusing on designing platform depending on the service in order to execute entire code as a single function. Advancement in technology along with the growing use of smartphones in the US is also boosting demand for connected devices, thereby, resulting in the rise in semiconductor assembly and testing services. Moreover, companies offering semiconductor assembly and testing services are also focusing on providing value added services such as high-end product packaging and in-house testing services. Below are some of the key trends influencing the growth in the semiconductor assembly and testing services market in the US.
Rise in Advanced System-in-Package (SiP)
The system-in-package technology allows the integration of Integrated Circuits (ICs) in a single package. Combining various functions performed by different ICs, advanced system-in-package perform several operations single-handedly. To meet the growing need for increased integration, while reducing power consumption, increasing speed, and improving performance, semiconductor assembly and testing service providers in the US are offering services for advanced SiP and miniaturized modules that are widely used in smartphones, wearables, Internet of Things (IoT), automotive, and communication networks.
The information presented here is based on FMI’s report. A sample of the report is available upon request.
Increasing Focus on Core Competencies by Semiconductor Suppliers and Chip Manufacturers
Several chips and semiconductor manufacturers in the US are increasingly focusing on only designing chip, due to the advent of new technologies such as artificial intelligence, Internet of Things (IoT) that require more tailored chips. Moreover, the rising cost of packaging and testing is also driving key chip manufacturers in the country to enter into partnership with companies providing semiconductor assembly and testing services. This is also resulting in the growing number of companies in the US providing semiconductor assembly and testing services.
Majority of the companies in the US outsource their semiconductor assembly and testing to countries like China. However, increasing focus on in-house manufacturing and designing chip by countries like China has led to the chip manufacturers in the US to select local semiconductor assembly and testing service providers.
Growing Demand for Fan-Out Wafer-Level Packaging
Fan-out wafer-level packaging also known as FOWL packaging or FOWLP is the enhancement of the standard wafer-level packaging. In recent years, the use of FOWLP in the semiconductor assembly and testing has increased as it provides improved electrical and thermal performance as compared to the conventional packaging technology. Moreover, growing demand for compact designed electronics in the US is also resulting in use of FOWLP as it reduces overall size of the packaged integrated circuit.
Emergence of Next-Gen Electronic Vehicles in the US
The rise of electric and autonomous cars in the US is leading to the growing demand for advanced semiconductors to support touch-screen interactivity and power batteries and components in electric vehicles. Development of more digitally advanced electric vehicles is driving demand for more semiconductors, thereby, accelerating the demand for semiconductor assembly and testing to better and safe product for electric vehicles. Moreover, with features like blind-spot detection and autonomous driving gaining popularity in the automotive industry, the demand for advanced semiconductor will likely increase, this, in turn, will result in significant growth in semiconductor assembly and testing services.
The semiconductor assembly and testing services market in the US is likely to witness significant growth in the coming years owing to the wide application of cloud-based servers and big data services across various industries. However, the high cost for high-end packaging and highly volatile nature of the semiconductor industry in the US is expected to impact the semiconductor assembly and testing services in the country.