Rising Integration of Electronics in Automobiles for Connectivity Has Increased the Demand for Semiconductor Assembly and Testing Services (SATS) Market

Globally, the semiconductor assembly and testing services (SATS) market is expected to grow with a CAGR of 5.3% during the forecast period from 2023 to 2030 and has a market value of around US$ 30.43 Bn in 2021. Semiconductor assembly and testing services (SATS) is defined as the process of assembling and testing of various electronic equipment before dispatching the final product to the user. 

The increasing demand for various electronic systems and devices in various industries such as IT & telecommunication, automobile, heavy machinery, consumer electronics, and other industries is driving the SATS market globally. The technological advancement and miniaturization of components are considered as a major factor for driving the market. However, the high initial cost for the setup is considered as a factor hindering the growth of the market. 

Semiconductor Assembly and Testing Services (SATS) with Solutions in its Component Segment Continue Dominating the Market

In 2021, the overall SATS market was led by the solutions segment in its component segment contributing to a high percentage of the market share of the total revenue generated globally in 2020 and is expected to grow with a CAGR of more than 5.6% during the forecast period. The increasing research and development of different technologies for various electronic systems assembly and packaging is driving the solution segment.

The solution segment is considered to dominate the market during the forecast period due to the rising demand for miniaturized devices and systems from consumers. However, the service segment is expected to be the fastest-growing segment during the forecast period.

Asia-Pacific Dominates the Market by Region

The global semiconductor assembly and testing services (SATS) market was led by Asia-Pacific with a market share of more than 40.0% in the year 2020. The region has various electronic manufacturing companies, which offer SATS services. China is considered to have the largest market share in the region and is expected to dominate the region based on countries during the forecast period. The growing demand for consumer electronics in the region is one of the major factors driving the market. Additionally, the presence of various mobile manufacturing companies such as Nokia, Oppo, Micromax and others which are developing new models of smartphones are also contributing in the growth of the market.

Some of the prominent players operating in the semiconductor assembly and testing services (SATS) are Amkor Technology, ASE Group, Tongfu Microelectronics Co. Ltd., JCET, SPIL, Powertech Technology Inc., CORWIL Technology, Integrated Micro-Electronics, Chipbond Technology Corporation, King Yuan ELECTRONICS Co. Ltd., GLOBAL FOUNDARIES, ChipMOS TECHNOLOGIES INC., UTAC, Tianshui Huatian Technology Co., Ltd, and SMIL.

Historical & Forecast Period

This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.

The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.

Research Methodology

The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Semiconductor Assembly and Testing Services (SATS) market are as follows:

• Research and development budgets of manufacturers and government spending
• Revenues of key companies in the market segment
• Number of end users and consumption volume, price and value.
• Geographical revenues generate by countries considered in the report
• Micro and macro environment factors that are currently influencing the Semiconductor Assembly and Testing Services (SATS) market and their expected impact during the forecast period.

Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.

Key questions answered in this report

• What are the key micro and macro environmental factors that are impacting the growth of Semiconductor Assembly and Testing Services (SATS) market?
• What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
• Estimated forecast and market projections up to 2032.
• Which segment accounts for the fastest CAGR during the forecast period?
• Which market segment holds a larger market share and why?
• Are low and middle-income economies investing in the Semiconductor Assembly and Testing Services (SATS) market?
• Which is the largest regional market for Semiconductor Assembly and Testing Services (SATS) market?
• What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
• Which are the key trends driving Semiconductor Assembly and Testing Services (SATS) market growth?
• Who are the key competitors and what are their key strategies to enhance their market presence in the Semiconductor Assembly and Testing Services (SATS) market worldwide?