The semiconductor assembly and testing services market was valued at approximately US$ 51,906.3 million in 2021 and is projected to reach US$ 71,784.6 million by 2028, reflecting a compound annual growth rate (CAGR) of 4.7% during the period from 2021 to 2028.
As advanced technologies such as autonomous driving, 5G, artificial intelligence (AI), and the Internet of Things (IoT) continue to evolve, the semiconductor industry is expected to experience significant growth. This expansion is further supported by increasing investments in research and development from semiconductor design and manufacturing firms globally. The forecast period from 2021 to 2028 is anticipated to be particularly fruitful for the global semiconductor sector.
The Asia Pacific region plays a pivotal role in driving the majority of global semiconductor growth, with countries such as China, Taiwan, Japan, and South Korea being key contributors to the industry. The economic growth in these nations, combined with a rising demand for telecommunications infrastructure and consumer electronics, is propelling the semiconductor assembly, packaging, and testing market in the APAC region. Additionally, North America is another crucial area for semiconductor sales growth, driven by increasing needs in industrial automation, vehicle electrification, autonomous driving, 5G, IoT, and enhanced digital connectivity in countries like the United States and Canada. The escalating demand for advanced semiconductors across various sectors, including consumer electronics, automotive, and telecommunications, is expected to further stimulate the growth of the semiconductor assembly and testing services market globally from 2021 to 2028.
The COVID-19 pandemic has significantly impacted numerous industries, including semiconductors. The rapid spread of the virus led to stringent restrictions on movement and transportation, resulting in a notable decline in demand for electronic components from both industrial sectors and end-users. The revenue model for microelectronics suffered as mass production was halted during lockdowns. China, a major manufacturing hub, faced challenges due to industrial lockdowns across several APAC countries. However, the manufacturing sector began to recover in the latter half of the year by enhancing production capabilities. The demand for advanced electronics, such as smartwatches, wearables, and healthcare devices, surged during this period. As production facilities resumed operations while adhering to social distancing protocols, the semiconductor industry gradually regained its market share. The shift to remote work and the need for better connectivity highlighted the importance of the IT and telecommunications sectors, facilitating the adoption of new technologies like IoT connectivity.
The semiconductor assembly and testing services market is categorized based on service type, application, and geography. In terms of service, the market is divided into assembly & packaging services and testing services. In 2021, the assembly & packaging segment dominated the market, holding a significant share. Regarding application, the market is segmented into consumer electronics, automotive, medical, industrial, and other applications. The consumer electronics segment was the largest contributor to the market in 2021. Geographically, the market is segmented into North America, Europe, Asia Pacific (APAC), and Rest of the World (RoW), with APAC accounting for a substantial share of the global market in 2021.
Key players in the global semiconductor assembly and testing services market include Amkor Technology, ASE Group, Chipbond Technology Corporation, Integrated Micro-Electronics, Inc., JCET Group Co., Ltd, Integra Technologies, Powertech Technology Inc., Siliconware Precision Industries Co., Ltd., Teledyne Technologies, and Unisem Group.
The overall size of the global semiconductor assembly and testing services market has been determined through a combination of primary and secondary research methods. The research process began with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the market. This approach also aimed to provide an overview and forecast for the semiconductor assembly and testing services market across all segments. Additionally, numerous primary interviews were conducted with industry participants and experts to validate the data and gain deeper analytical insights. Participants included industry professionals such as VPs, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the semiconductor assembly and testing services market.