Chip assembly and testing market ‘to hit $45B by 2026’

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Growing demand for consumer electronics is expected to boost the value of the global outsourced semiconductor assembly and testing market by $13 billion in the next four years, a new report said.

According to the report by the market research group ReportLinker, the value of the market will grow from $32 billion in 2021 to $45 billion in 2026.

Outsourced semiconductor assembly and testing (OSAT) services refer to vendors and suppliers that are contracted by semiconductor design companies to build and test semiconductors.

Semiconductor testing involves sending electrical signals to a semiconductor device and comparing output signals to expected values to check if the device performs as intended.

The largest market for these services is in Asia-Pacific, the report said. According to the report, the market is also being buoyed by technology and software companies entering into strategic partnerships with OSAT companies to develop new design platforms and advanced package designs.

As an example of this, the report referred to a partnership between US-based Siemens Digital Industries Software and Advanced Semiconductor Engineering, a Taiwan-based independent semiconductor assembling and test manufacturing services company.

The partnership begun in early 2021 is focused on developing enablement technologies for next-generation high-density advanced package designs and on the future development of a single design platform utilizing Siemens’ software.