PUBLISHER: The Business Research Company | PRODUCT CODE: 1923958
PUBLISHER: The Business Research Company | PRODUCT CODE: 1923958
Outsourced semiconductor assembly and testing (OSAT) refers to a third-party service that encompasses semiconductor assembly, packaging, and testing of integrated circuits (ICs). These services are provided by vendors or suppliers who are contracted by semiconductor design companies.
The main types of services in the outsourced semiconductor assembly and testing market include test services and assembly services. Test services involve semiconductor testing, a process conducted through semiconductor test equipment (IC tester). This equipment sends electrical signals to a semiconductor device, comparing the output signals to expected values to ensure the device performs as intended. The processes involved in outsourced semiconductor assembly and testing include sawing, sorting, testing, and assembly. Various packaging types are employed, including ball grid array, chip scale package, multi-package, stacked die, quad, and dual. Outsourced semiconductor assembly and testing find applications in communication, consumer electronics, computing and networking, automotive, industrial, and other sectors.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
Tariffs have significantly affected the outsourced semiconductor assembly and testing (OSAT) market by raising the cost of imported wafers, substrates, chemicals, and precision packaging equipment, disrupting pricing structures and production cycles. Communication, consumer electronics, and automotive segments in Asia-Pacific, Europe, and North America face the highest impact due to their dependence on global semiconductor supply chains. Despite these pressures, tariffs have accelerated regionalization trends, encouraging local packaging and testing investments, expansion of domestic semiconductor ecosystems, and development of cost-optimized manufacturing strategies to improve long-term supply chain resilience.
The outsourced semiconductor assembly and testing market research report is one of a series of new reports from The Business Research Company that provides outsourced semiconductor assembly and testing market statistics, including outsourced semiconductor assembly and testing industry global market size, regional shares, competitors with a outsourced semiconductor assembly and testing market share, detailed outsourced semiconductor assembly and testing market segments, market trends and opportunities, and any further data you may need to thrive in the outsourced semiconductor assembly and testing industry. This outsourced semiconductor assembly and testing market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The outsourced semiconductor assembly and testing market size has grown strongly in recent years. It will grow from $45.77 billion in 2025 to $49.89 billion in 2026 at a compound annual growth rate (CAGR) of 9.0%. The growth in the historic period can be attributed to growth in traditional ic assembly outsourcing, reliance on manual packaging processes, early adoption by communication electronics, expansion in consumer electronics outsourcing, development of basic test services.
The outsourced semiconductor assembly and testing market size is expected to see strong growth in the next few years. It will grow to $70.21 billion in 2030 at a compound annual growth rate (CAGR) of 8.9%. The growth in the forecast period can be attributed to increasing demand for advanced packaging technologies, rising adoption in automotive electronics, expansion of high-density ic testing, growth of heterogeneous integration, development of chiplet-based architectures. Major trends in the forecast period include automation of advanced semiconductor packaging, integration of smart quality-control analytics, expansion of IoT-connected testing infrastructure, development of high-precision robotic assembly, adoption of AI-driven test optimization.
The anticipated surge in the demand for consumer electronics is set to drive the growth of the outsourced semiconductor assembly and testing market. This heightened demand is attributed to factors such as increased disposable income, evolving customer lifestyles, a growing middle-class population, and decreasing prices of electronic devices. Outsourced semiconductor assembly and testing play a crucial role in enhancing the performance, processing speeds, and efficiency of electronic devices, all while optimizing space utilization. For instance, data from the Japan Electronics and Information Technology Industries Association reveals that electronic equipment production in Japan reached $6,722 million (¥771,457 million) in May 2023. Moreover, consumer electronics production experienced notable growth, reaching $280 million (¥32,099 million) compared to $230.9 million (¥25,268 million) in May 2022. Thus, the increasing demand for consumer electronics is expected to propel the outsourced semiconductor assembly and testing market.
Companies operating in the outsourced semiconductor assembly and testing (OSAT) market are focusing on forming strategic partnerships, such as collaborative advanced-packaging and testing platforms, to meet the rising demand for next-generation semiconductor designs, increased backend capacity, and technological enablement for complex chip architectures. These partnerships strengthen traditional OSAT models by combining manufacturing scale with design and engineering expertise, enabling faster innovation compared with standalone development approaches. For example, in April 2024, Infineon Technologies AG, a Germany-based semiconductor manufacturer, announced a multi-year collaboration with Amkor Technology, Inc., a US-based provider of semiconductor packaging and test services, to expand Infineon's outsourced backend manufacturing footprint in Europe. The partnership involves establishing a dedicated packaging and testing unit at Amkor's Porto facility, scheduled to begin operations in early 2025. Under this arrangement, Amkor will expand and operate the production line, including a dedicated clean room, while Infineon will provide engineering and development support through on-site staff-reinforcing their longstanding cooperation and evolving the traditional OSAT business model.
In May 2024, Kaynes Technology, an electronics manufacturing company based in India, acquired Digicom Electronics for an undisclosed sum. This acquisition aims to strengthen Kaynes' entry into the U.S. market and enhance its strategy in artificial intelligence (AI) and high-performance computing infrastructure. By leveraging Digicom's extensive expertise in New Product Introduction (NPI), small-batch production, and prototype manufacturing of complex printed circuit board assemblies (PCBAs) and box constructions, Kaynes seeks to enhance its offerings. Digicom Electronics is a U.S.-based electronics manufacturing services (EMS) provider located in Oakland, California.
Major companies operating in the outsourced semiconductor assembly and testing market are Advanced Semiconductor Engineering Inc., Amkor Technology Inc., Jiangsu Changjiang Electronics Tech Co. Ltd., King Yuan Electronics Co. Ltd., Alphacore Inc., Device Engineering Inc., HMT microelectronic AG, Presto Engineering Group, Sencio BV, ShortLink AB, SiFive Inc., Powertech Technology Inc., Tianshui Huatian Technology Co. Ltd., Nantong Fujitsu Microelectronics Co. Ltd., UTAC Holdings Ltd., Chipbond Technology Corporation, ChipMOS Technologies Inc., Huatian Technology Sdn. Bhd., Walton Advanced Engineering Inc., Signetics Corporation, Hana Micron Inc., NEPES Corporation, Sunrise Memory Corp., Tongfu Microelectronics Co. Ltd., Integrated Micro-electronics Inc., Formosa Advanced Technologies Co Ltd., Lingsen Precision Industries Ltd., Shenzhen CPET Electronics Co. Ltd.
Asia-Pacific was the largest region in the outsourced semiconductor assembly and testing market in 2025. The regions covered in the outsourced semiconductor assembly and testing market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the outsourced semiconductor assembly and testing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The outsourced semiconductor assembly and testing market include revenues earned by entities by providing various outsourced semiconductor assemblies and testing services such as Pure-Play Foundries (FABs) and OSATs services to transform the design files into real silicon wafers, testing, assembly, and logistics of semiconductors. outsourced semiconductor assembly and testing help semiconductor manufacturers with operational efficiency and optimization of internal resources. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Outsourced Semiconductor Assembly And Testing Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses outsourced semiconductor assembly and testing market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for outsourced semiconductor assembly and testing ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The outsourced semiconductor assembly and testing market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
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