Outsourced Services Dominate Semiconductor Assembly and Test Services Market

Published By : 24 Feb 2016 | Published By : QYRESEARCH

It has been observed that in the global SATS market, there is a growing demand for outsourced services. In fact, more than 50% of the market is monopolized by the outsourced services. The trend of the Outsourced Semiconductor Assembly and Test (OSAT) services is anticipated to continue in the long run. Additional features offered by SATS providers over in-house testing services are expected to further fuel the demand from the market. Also, SATS providers facilitate a more efficient supply chain and are hence preferred by integrated device manufacturers (IDM). However, high capital requirement for offering high end packaging solutions, coupled with volatility in the market and fluctuations in exchange rates will restrain the overall market.  

Market Players Focussing on Strategic Partnerships with Outsourced Services Providers

Some of the prominent players in the global SATS market are ASE Group, STATS chip PAC Ltd., Silicon Precision Industries Company Ltd., Amkor Technology Inc., Powertech Technology Inc., Chipbond Technology Corporation, CORWIL Technology Corp., Global Foundries Inc., and Integrated Microelectronics Inc. (Psi Technologies Inc.). The key players in the market are focussing on gaining the competitive edge through targeting the advanced expensive packaging solutions that would address the growing demand for low power requirements and miniaturization. 

Amkor Technology Acquires J-Devices Corp.

The market is witnessing a number of strategic alliances and collaborations among the key players owing to growing financial pressures. This month, Amkor Technology Inc. announced that it has acquired 100 percent stakes in J-Devices Corp., a Japan-based semiconductor assembly and testing services company. In October 2009, Amkor partnered with Nakaya Microdevices Corp. and Toshiba Corp. to acquire the assembly and test operations of Toshiba to form J-Devices. In Japan, J-Device is now the largest outsourced semiconductor assembly and test provider and is the sixth largest across the globe. Acquiring J-Devices will strengthen Amkor’s relationships with the prominent semiconductor companies in Japan and will boost its position in the automotive market. J-Devices had a net income of US$30 mn for the year 2015.

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