Semiconductor Assembly and Testing Services (SATS) Global Market – Overview
The Global Semiconductor Assembly and Testing Services (SATS) Market is growing with the rapid pace. According to a recent study report published by the Market Research Future, The global market of Semiconductor Assembly and Testing Services (SATS) will grow moderately over the forecast period. The market is forecasted to witness slow but steady growth by 2022, which will be a surplus growth at a moderate CAGR during the projected period (2017 -2022).

Global Semiconductor Assembly and Testing Services market has already crossed the market size of a billion dollar. Today, consumer wants more smart, compact and small devices which are more reliable in terms of performance, more functional and the most important, has low price. Assembly of semiconductor products plays very vital role in the pricing of the final product and after assembly, the next big factor which is associated with the quality, reliability and cost is testing. With growing demand for the consumer electronic devices and growing semiconductor industry, the market of Semiconductor Assembly and Testing Services is expected to rise subsequently.

The recent growth in consumer electronics with the innovation and advancement in technology, have propelled the semiconductor assembly and test services market across the world. The demand for higher packaging technologies has raised with the high growth of smartphones and tablet with multimedia capabilities that creates a potential market for SATS. Furthermore, the efficient supply chain facilitated by the SATS providers has reduced the time to market, thus becoming the priority choice of integrated design manufacturers. The demand for mobility and connectivity in the consumer electronics has added to the growth for SATS. The increase in use of automated control system technology in automobiles to enhance the safety is another driving factor, which contributes to the growth in SATS market. To cater the high market demand for electronic products and gadgets, electronic manufacturing industries are aiming to focus on their core competencies, by outsourcing the semiconductor assembly and test services, which in turn has added to the rise in demand for SATS.
The increase in demand for semiconductor assembly and tests services has added to the economies of scale, with the larger volumes of semiconductor packaging outsourced by electronic manufacturers. In the future a massive investment will be required in order to support new innovation and technologies in the SATS market.

The semiconductor processing technology is rapidly shifting to larger wafer fabrication with smaller feature size; however, wafer fabrication involves higher CAPEX and operational costs for testing and packaging. Building and maintaining a state-of-the-art factory for wafer fabrication is an expensive affair. Swelling costs of advanced packaging solutions are also expected to favour the SATS market. Semiconductor companies thus prefer to remain fabless and concentrate on their core capabilities, employing a third party expert for testing, assembly, and packaging of semiconductor assembly.

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Key Players:
Advanced Semiconductor Engineering, Inc. (U.S.), Amkor Technology, Inc. (U.S.), Siliconware Precision Industries Co., Ltd. (Taiwan), STATS ChipPAC Ltd (Signapore), Powertech Technology Inc. (Taiwan), CORWIL Technology (U.S.), Chipbond Technology Corporation (U.S.), Integrated Micro-Electronics, Inc. (U.S.), Global Foundries (U.S.) among others are some of the prominent players profiled in MRFR Analysis and are at the forefront of competition in the Global Semiconductor Assembly and Testing Services (SATS) Market.

Industry/ Innovation/ Related News:
May 24, 2017 – Amkor Technology Inc. recently completed the acquisition of Europe's largest OSATS (Outsourced Semiconductor Assembly and Test Services) company, Nanium S.A. Portugal-based Nanium provides semiconductor assembly, packaging, test, engineering and manufacturing services. Their solutions include package designing, wafer-level packaging (WLP), wafer probe, assembly and test, supply-chain management and drop shipping. The deal is a step on Nanium's part to enhance the use of WLFO technology to expand its market share in the packaging market. By leveraging Nanium's technology, Amkor will be able to strengthen its foothold in the fast-growing market of wafer-level packaging for smartphones, tablets and other applications. Management believes that the deal could expand Nanium's scale of manufacturing, thereby increasing the company's customer base.

November, 2017 - Advanced Semiconductor Engineering (ASE) and Siliconware Precision Industries (SPIL) have finally received all anti-trust approvals for the proposed and long-awaited merger between the two IC packaging houses. The combination of ASE and SPIL will also enable the two companies to share R&D and product development. ASE, SPIL and other OSATs have seen an increase in R&D costs, particularly in the development of advanced packaging. Fewer OSATs can afford to make the necessary investments in advanced packaging, a move that is fueling the merger and acquisition activity in the arena.

Sep 06, 2017 - Independent integrated circuit test and services firm Integra Technologies LLC of WICHITA, KS, USA has acquired CORWIL Technology Corp of Milpitas, CA, USA, which provides die prep, assembly and test services focusing on high-reliability (hi-rel), fast-turn and wafer processing markets. Founded in 1990, CORWIL provides full back-end assembly services to medical, military/aerospace e and commercial semiconductor companies. Combination of the two firms will provide a single point of contact for a broad array of semiconductor die prep, assembly, test and evaluation services supporting the military, avionics, space, medical, automotive and fabless semiconductor markets.
Growing demand for FOWLP solutions

To provide a high level of integration with a great number of input and output contacts, and better thermal efficiency and system performance, an advanced form of WLP called Fan-out wafer-level packaging was developed. During the past six years, the use of FOWLP in the SATS industry has only gained traction. One of the advantages of FOWLP over other packaging solutions is the higher number of interconnect points.
In 2010, Intel initiated the commercial use of FOWLP by using it in mobile connectivity chips. But this initiative witnessed slow acceptance at that time. Several players such as Amkor Technology, ASE Group, and TSMC have introduced their own FOWLP technologies into the market, while some other companies are currently testing or developing fan-out packaging designs. TSMC started the mass production of its Integrated Fan-Out packaging in 2016 that was widely used in the Apple iPhone 7

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Semiconductor Assembly and Testing Services (SATS) Market – Segmentation
The Global Semiconductor Assembly and Testing Services (SATS) is segmented in to 4 key dynamics for the convenience of the report and enhanced understanding;
Segmentation by Services: Comprising assembly, packaging and testing.
Segmentation by Application: Comprising consumer electronics, Information technology, telecommunications and automotive industrial.
Segmentation by Packaging Solution: Comprises Copper wire and gold wire bonding, Copper clip, Flip chip, Wafer level packaging, TSV.
Segmentation by Regions: Comprises Geographical regions - North America, Europe, APAC and Rest of the World.

Semiconductor Assembly and Testing Services (SATS) Market: Regional Analysis
Semiconductor Assembly and Testing Services (SATS) global market is expected to be dominated by Asia Pacific with the largest market share due to high development in field of manufacturing industry and high presence of semiconductor manufacturing companies gives a competitive advantage over other regions.
North America stands as second biggest market for Semiconductor Assembly and Testing Services where U.S. is the major contributors in the market growth due to the growing telecommunication and IT industry. Asia-Pacific is also expected to be the fastest growing market during the forecast period. The economic developments of Asian countries is inviting major big players to establish their business unit in Asian Countries.

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