Frequently Asked Questions:
The global outsourced semiconductor assembly and testing (OSAT) market is expected to grow from USD 35.7 billion in 2021 to an estimated USD 43.6 billion by 2029, with a CAGR of just over 4.5%.
OSAT companies play a critical role in the semiconductor value chain by providing expertise in packaging and rigorous testing of integrated circuits (ICs). They bridge the gap between foundries that fabricate silicon wafers and the end consumers, ensuring semiconductor components meet specific application requirements and maintain quality standards.
The OSAT market is driven by rapid technological advancements in areas like IoT, AI, and 5G, which demand high-quality semiconductor components. The increasing complexity of ICs has led to a greater reliance on OSAT services. Additionally, trends like the rise of the fabless business model, popularity of smart devices, and the growing needs of industries like automotive electronics also bolster the demand for OSAT services.
The OSAT industry grapples with challenges such as fierce competition, significant capital expenditures, the need for continuous innovation due to evolving semiconductor devices, and the cyclical nature of the semiconductor sector. External factors like geopolitical disruptions, natural calamities, and intellectual property concerns add further complexities.