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Base Year: 2024
Companies covered: 15
Tables & Figures: 350
Countries covered: 19
Pages: 210
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Outsourced Semiconductor Assembly and Testing Market
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Outsourced Semiconductor Assembly and Testing Market Size
The global outsourced semiconductor assembly and testing market accounts for USD 44.1 billion in 2024 and is projected to grow at a CAGR of 8.9% from 2025 to 2034, driven by the expansion of the consumer electronics market globally, demand for economical and specialized packaging and testing services, and rapid miniaturization of electronic devices.
The consumer electronics market, which encompasses smartphones, wearables, and smart home devices, has seen unprecedented growth in recent years. This explosive growth has heightened demand for OSAT assembly and testing services in the semiconductor industry to ensure product reliability and performance. For instance, as per Statista, the global smartphone market grew by nearly 15.6% and reached around 331 million units in Q4 of 2024. This is a significant growth highlighting the growing demand for smartphones globally. To meet the growing requirements of various end-use industries the semiconductor industry has been emphasising on complex packaging and testing requirements by outsourcing such operations. Due to such initiatives, there has been a continued need for OSAT assembly services. Since the OSAT industry is experiencing increased demand from the semiconductor industry, there is a growing investment in the OSAT infrastructure.
Furthermore, the pursuit of cost efficiency has led many semiconductor companies such as Nvidia, and Qualcomm to outsource assembly and testing services. With a typical OSAT service, semiconductor companies have been able to eliminate significant capital expenses such as expanding in-house assembly lines and multiple phases of testing & performance monitoring. Therefore, outsourcing the OSAT services has been more beneficial and has further minimized operational costs. In particular, the evolution of fabless companies and their continued reliance on OSAT services highlights the acceptable shift of outsourcing the back-end processes. According to estimates ASE, one of the leading companies in the OSAT industry, reported a revenue of USD 2.1 billion in 2021, which was a nearly 41% increase in revenue over the previous year, underscoring the growth potential and demand within the overall OSAT industry.
Miniaturization of electronic devices has driven the adoption of advanced packaging technologies using functionality and performance sophistication, i.e., 2.5D and 3D integration. Such miniaturization was not possible with conventional architecture and has thus necessitated the adoption of new assembly and test solutions. Specifically, 3D packaging technology has been very useful as the industry matured into higher processing systems with memory and computation in one unit. The growth indicates the critical importance of OSAT services to deliver advanced packaging technologies. The OSAT market has been growing substantially due to higher demands for new packaging technologies essential for miniaturization.
Outsourced Semiconductor Assembly and Testing Market Trends
Outsourced Semiconductor Assembly and Testing Market Analysis
Based on service type, the market is segmented into assembly & packaging, and testing. The assembly & packaging segment accounts for the highest market share of 86.3% and is also the fastest-growing segment with a CAGR of 9.1% during the forecast period.
Based on packaging type, the outsourced semiconductor assembly and testing market is segmented into ball grid array (BGA) packaging, chip scale packaging (CSP), stacked die packaging, multi-chip packaging, and quad flat & dual-inline packaging. The ball grid array (BGA) packaging segment accounts for the highest market share of 42.5%, while chip scale packaging (CSP) is the fastest-growing segment with a CAGR of 10.5% during the forecast period.
Based on application, the outsourced semiconductor assembly and testing market is segmented into communication, consumer electronics, automotive, computing and networking, industrial, and others. The communication segment accounts for the highest market share of 30.4%, while the consumer electronics segment is the fastest-growing segment with a CAGR of 10.2% during the forecast period.
Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and MEA. In 2024, the Asia Pacific region accounted for the largest market share with over 39.1% of the total market share, and is also the fastest-growing region, growing at a CAGR of 10.1%.
Outsourced Semiconductor Assembly and Testing Market Share
The OSAT industry is moderately consolidated, as it is very competitive in nature. There are lot of small and big players fighting for hold and expand their market share. ASE Technology Holding Co. Ltd, Amkor Technology Inc, ChipMOS Technologies Inc, Powertech Technology Inc, and King Yuan Electronics Co. Ltd are the leading companies capturing roughly 20% to 25% of the market share with ASE Technology Holding Co. Ltd being the market leader.
Strategic investments augment business competitiveness in the region. The companies mentioned above seem to obtain their edge by aggressively investing in new advanced packaging technologies, geographic expansion, and strategic alliances. Amkor also has plans to construct a high-volume value branch for automotive and 5G clients in Vietnam in 2024 along with ASE expanding its 2.5D and 3D advanced packaging lines. These revolutionary moves guarantee their leadership in the ever-changing semiconductor environment.
Outsourced Semiconductor Assembly and Testing Market Companies
The top prominent companies operating in the market include:
ASE Technology Holding Co. Ltd. can sustainably harness the advanced packaging innovations and capabilities it has. Recently ASE Technology has expanded its 2.5D and 3D packaging offers while incorporating formal ESG and supplier evaluations. Its investments in development, continued process improvements, and collaboration with the supply chain leverage sustainability-defined operational excellence and the contractor's sustainable operation improvement avoiding the intense OSAT global market competition.
Outsourced Semiconductor Assembly and Testing Industry News
The outsourced semiconductor assembly and testing market research report includes in-depth coverage of the industry with estimates and forecasts in terms of revenue in USD billion from 2021 – 2034 for the following segments:
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Market, By service type
Market, By packaging type
Market, By application
The above information is provided for the following regions and countries: