Valley Cottage, NY -- (SBWIRE) -- 12/12/2017 -- The global market for semiconductor assembly and testing services (SATS) will continue to be primarily driven by the surging demand for high-end packaging solutions. The global semiconductor assembly and testing services market will possibly reach a value of US$ 24.72 Bn by 2016 end. The market will gain continued traction communication vertical. Asia Pacific will remain the most attractive market for semiconductor assembly and testing services.

Increased demand for outsourced SATS or OSAT services will be a remarkable trend favouring the growth of the global SATS market. With the rapidly thriving consumer electronics industry, the demand for connectivity and mobility is also on the rise, which is foreseen to be an important booster to the demand for connected devices, eventually fostering the semiconductor assembly and testing services market. Rising adoption of multimedia technology devices is identified to be another factor bolstering the demand for SATS. A number of SATS providers offer value added services, such as in-house testing and high-end packaging, which will remain an important driver to the market growth. Several integrated design manufacturers are increasingly prioritising semiconductor assembly and testing services as a time-efficient alternative.

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Moreover, rising demand for automotive safety systems is expected to be a strong factor providing impetus to the SATS market. Due to higher costs associated with larger wafer fabrication factory, manufacturers are largely inclined toward outsourcing semiconductor assembly and testing services to third party providers. Leading fabless companies will continue to outsource everything, including testing, assembly, and packaging of semiconductor. This will favour the market growth. Rising adoption of automotive electronics and promising emergence of next-generation electronic vehicles are likely to boost the market growth further.

However, high capital costs related to high-end packaging solution provision, volatility of prices in the market, and uncertainty in exchange rates will continue to pose a negative impact on the global SATS market growth.

By service, assembly and packaging segment will continue to be dominant over the testing segment, prominently driven by the rising demand for consumer electronics and advanced packaging solutions.

On the basis of packaging solution, the copper wire and gold wire bonding segment is expected to retain the leading segment position with over 53% market value share, accounting for the revenues of around US$ 13.24 Bn in 2016. However, the growth of this segment is likely to witness sluggish growth post-2016. The flip chip segment is foreseen to exhibit a robust growth rate, contributing around 18% share to the entire market revenues in 2016. This segment will witness an impressive Y-o-Y growth of 8.6% in 2017 over 2016.

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Based on application, communication segment is projected to remain dominant, whereas consumer electronics application segment is likely to register a stellar growth rate in terms of Y-o-Y.

By regional analysis, the global semiconductor assembly and testing services market is segmented into four key markets viz. North America, Europe, Asia Pacific, and Middle East and Africa. APAC will remain the dominant market with over 84% market value share in 2016 but is anticipated to witness a consistent Y-o-Y decline post-2016. On the other side, North America is likely to see a consistent gain in the Y-o-Y growth post-2016. This region will account for over 31% share of the market in 2016, in terms of revenues.

Some of the key companies operating in the global marketplace for semiconductor assembly and testing services (SATS), include Amkor Technologies Inc., ASE Group, Silicon Precision Industries Co. Ltd., STATS ChipPAC Ltd. (JCET), Psi Technologies Inc. (IMI), Powertech Technology Inc., Global Foundries, CORWIL Technology corporation, and Chipbond Technology Corporation.

Long-term Outlook: By 2021 end, the global semiconductor assembly and testing services (SATS) market is expected to account for US$ 39.05 Bn in terms of revenues.

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