FMI Expects Semiconductor Assembly and Testing Services Market to Cross its US$ 50 Bn Mark by 2029

Jan 23,2020 | Electronics, Semiconductors, and ICT

Continuous developments and implementation of new technologies such as organic-substrate-interposer technology and silicon-via-interconnection technology in the semiconductor assembly & testing services market are creating significant revenue opportunities for players in the semiconductor assembly and testing services market. Implementation of semiconductor assembly and testing services in the consumer electronics sector helps manufacturers produce semiconductors, memory chips, and wafers used in consumer electronic products and wireless/mobile handsets in a more efficient manner.

The value of the global semiconductor assembly and testing services market is anticipated to witness a CAGR of 5.8% during the forecast period of 2019-2029.

Key Takeaways of Semiconductor Assembly and Testing Services Market Study

  • Among the application segment, consumer electronics segment is expected to witness high growth rate, owing to rising demand for audio/video equipment, cameras, calculators, and smart homes (home safety equipment & accessories)
  • Asia Pacific Excluding Japan is expected to create lucrative growth opportunities for players in the semiconductor assembly and testing services market, attributable to rapid growth of packaging of semiconductors, and increasing applications of semiconductor assembly methodologies in this region
  • Increasing demand for connected devices worldwide including smartphones and tablets having connectivity and multimedia capabilities propels demand for higher packaging technologies and creates growth opportunities for service provider in the semiconductor assembly and testing services market.

“Semiconductor assembly and testing service providers can improve revenues by upgrading existing facilities to include superior electrical and thermal performance, and high input and output capabilities,” Says the FMI Analyst

Gains Upheld by Increasing Demand for Improved Connectivity in Consumer Electronics

Higher demand for mobile and connected devices such as tablets and smartphones, has bolstered the demand for higher packaging technologies. Also, rising demand for digital video content drives growth of high performance and mobile consumer electronics products, such as Wi-Fi chipsets and other semiconductor chips. For instance, STATS chipPAC (JCET) develops expanded Wafer Level Chip Scale Package (eWLCSP), which offers improved testing and a low cost fan-in wafer level package for space-controlled mobile devices.

For More Detailed Insights on Semiconductor Assembly And Testing Services Market

Moreover, growth of end-use industries such as electronics and semiconductors, automotive, manufacturing, and packaging is expected to offer potential growth opportunities for manufacturers in the global semiconductor assembly and testing services market.

ODMs and OEMS to Prioritize ‘Fab-lite’ Strategy  

As semiconductor process technology migrates to larger wafers and smaller feature sizes, cost of building state-of-the-art wafer fabrication factories has risen significantly, reaching several billion dollars. High investment costs for next generation silicon technology and equipment are influencing various semiconductor companies to adopt or maintain a ‘fabless’ or ‘fab-lite’ strategy. The increasing demand for semiconductors are needed for cloud integration and connectivity with including sensors, computing, interactivity and communication devices.

More Valuable Insights on Semiconductor Assembly and Testing Services Market

FMI’s report on the semiconductor assembly and testing services market is segmented into three major sections such as services (assembly & packaging services (copper wire & gold wire bonding, flip chip, wafer level packaging, TSV, others), and testing services), applications (communications, computing & networking, consumer electronics, industrial and automotive electronics, and region to help readers understand and lucrative evaluate opportunities in the semiconductor assembly and testing services market.

About Electronics, Semiconductors, and ICT division of FMI

The electronic, semiconductors, and ICT division at Future Market Insights focuses on tracking and analyzing ever-changing dynamics of the IT and telecommunication industry. The ICT team has also executed several complex projects pertaining to the convergence of healthcare and ICT, rapid adoption of ‘as-a-service’ business model, growth prospects of consumer electronics market, and evolution in design and fabrication of semiconductors. To help clients from all over the globe meet their unique needs, the team offers a variety of customized market research reports and consulting services: reach out to explore how we can help.

About Future Market Insights (FMI)

Future Market Insights (FMI) is a leading provider of market intelligence and consulting services, serving clients in over 150 countries. FMI is headquartered in London, the global financial capital, and has delivery centres in the U.S. and India. FMI's latest market research reports and industry analysis help businesses navigate challenges and take critical decisions with confidence and clarity amidst breakneck competition. Our customized and syndicated market research reports deliver actionable insights that drive sustainable growth. A team of expert-led analysts at FMI continuously track emerging trends and events in a broad range of industries to ensure that our clients prepare for the evolving needs of their consumers.

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