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June 26, 2012

Global semiconductor assembly and test services market to rise 12.5% per year: report

New product developments will drive the market growth

By CBR Staff Writer

The global semiconductor assembly and test services market is predicted to grow at a combined annual growth rate (CAGR) of 12.5% during the period between 2011-2015, according to a report by TechNavio.

The increase in new product development has led to the market growth and the cyclical nature of the semiconductor industry could pose a challenge for the market growth.

The global semiconductor assembly and test services (SATS) market, highly dependent on the semiconductor industry, has also encountered a requirement for shorter product cycles.

TechNavio hardware team analyst said in order to ensure that semiconductor manufacturers continue to outsource their assembly and test services, Semiconductor Assembly and Test Services (SATS) providers are offering comprehensive applications.

"For instance, SATS providers are partnering with key semiconductor manufacturers to customise their processes according to end-user requirements," the analyst added.

According to the report, the semiconductor industry is driven by rise in the number of electronic products that are being developed and marketed every year, so with manufacturers in the computers segment increasing their product portfolio, the demand for SATS is expected to increase during the forecast period.

TechNavio’s report, the Global Semiconductor Assembly and Test Services Market 2011-2015, report discusses the key vendors operating in this market as well as the market for all assembly and test services provided by independent semiconductor assembly and test service providers.

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The leading vendors in the market are Advanced Semiconductor Engineering, Amkor Technology, Silicon Precision Industries and STATS ChipPac.

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