Worldwide SATS Market Revenue Predicted To Grow

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Demand for consumer electronics, increasing integration of electronics and connectivity in automotive are driving the growth of the SATS market. 

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The global semiconductor assembly and testing services (SATS) market was valued at $ 27,700 million in 2016 and is expected to register a CAGR of 4.7 per cent from 2017 to 2027, according to Future Market Insights (FMI).

The growing demand for consumer electronics, increasing integration of electronics and connectivity in automotive are major factors driving the growth of the global semiconductor assembly and testing services (SATS) market. 

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The semiconductor industry is highly volatile in nature. Major market participants in this industry are fabless companies that focus on leveraging their resources in designing and utilising their expertise in enhancing the performance of the chipsets or ICs. Therefore, most of the semiconductor assembly, testing, and packaging related services are outsourced by fabless companies to third-party providers known as ‘Outsourced Semiconductor Assembly and Test Service Providers’.

Moreover, with the shift of semiconductor process technology to the larger wafers and smaller feature sizes, the cost of building a state-of-the-art wafer fabrication factory has increased considerably, states FMI. Semiconductor assembly and testing services are offered in various end-user industries. One of the major applications of semiconductor assembly and testing services is for communication.

Factors in demand
Global SATS market is categorised on the basis of services, application and region. On the basis of services, the market is segmented as assembly and packaging, and testing. The assembly and packaging segment is anticipated to register a CAGR of 5 per cent during the forecast period, says FMI.

On the basis of application, the global SATS market is segmented into communication, computing and networking, consumer electronics, industrial, and automotive. The revenue contribution from the consumer electronics segment is anticipated to expand at a CAGR of 6.3 per cent during the forecast period.

Among the regions, FMI states that Taiwan is projected to exhibit relatively high growth in the global market, registering a CAGR of 5.6 per cent over the forecast period. Revenue from the SATS Market in North America and APAC (excluding Taiwan) is expected to collectively account for over 40 per cent of the global SATS Market revenue in 2017. Semiconductor assembly and testing services providers can focus on expanding their footprints across several countries in APAC and Europe regions such as India and the UK.

On the basis of assembly and packaging, the Global SATS Market is segmented into the copper wire and gold wire bonding, copper clip, flip chip, wafer level packaging, and TSV. The revenue contribution from the wafer level packaging segment is anticipated to expand at a CAGR of 8.8 per cent during the forecast period.

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