Technology
Semiconductor Assembly And Testing Services (SATS) Market size is set to grow by USD 19.31 billion from 2024-2028, Rising sales of IoT devices to boost the market growth, Technavio
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NEW YORK, July 17, 2024 /PRNewswire/ — The global semiconductor assembly and testing services (SATS) market size is estimated to grow by USD 19.31 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 6.59% during the forecast period. Rising sales of IoT devices is driving market growth, with a trend towards advances in SATS. However, intense competition in sats industry poses a challenge. Key market players include Amkor Technology Inc., Aptasic SA, ASE Technology Holding Co. Ltd., ChipMOS TECHNOLOGIES INC., DPA Components International, Flexitallic Group, Formosa Advanced Technologies Co. Ltd., GlobalFoundaries Inc., Jiangsu Changdian Technology Co. Ltd., King Yuan Electronics Co. Ltd., Koninklijke Philips N.V., Micross Inc., Ose Corp., Powertech Technology Inc., Rochester Electronics LLC, Teledyne Technologies Inc., Tianshui Huatian Technology Co. Ltd., Unisem M Berhad, UTAC Holdings Ltd., and Walton Advanced Engineering Inc..
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Forecast period
2024-2028
Base Year
2023
Historic Data
2018 – 2022
Segment Covered
Application (Communication, Computing and networking, Industrial, Consumer electronics, and Automotive electronics), Service Type (Assembly services and Testing services), and Geography (APAC, North America, Europe, South America, and Middle East and Africa)
Region Covered
APAC, North America, Europe, South America, and Middle East and Africa
Key companies profiled
Amkor Technology Inc., Aptasic SA, ASE Technology Holding Co. Ltd., ChipMOS TECHNOLOGIES INC., DPA Components International, Flexitallic Group, Formosa Advanced Technologies Co. Ltd., GlobalFoundaries Inc., Jiangsu Changdian Technology Co. Ltd., King Yuan Electronics Co. Ltd., Koninklijke Philips N.V., Micross Inc., Ose Corp., Powertech Technology Inc., Rochester Electronics LLC, Teledyne Technologies Inc., Tianshui Huatian Technology Co. Ltd., Unisem M Berhad, UTAC Holdings Ltd., and Walton Advanced Engineering Inc.
Key Market Trends Fueling Growth
The semiconductor assembly and testing services (SATS) market has experienced significant growth due to advancements in chip packaging technologies. One such innovation is 3D IC packaging, which allows for miniaturized ICs and the stacking of intelligence centers, addressing space constraints. Organic-substrate-interposer technology is also popular due to its cost-effectiveness. Another technology, TSV or silicon-via-interconnection, is used for creating 3D packages and integrated circuits, offering increased circuit compression, performance, and volume efficiency. TSVs are also utilized in complementary metal-oxide semiconductor (CMOS) image sensors to remove wire bonds and create high-density interconnects. These factors are expected to fuel the expansion of the global SATS market in the coming years.
The Semiconductor Assembly and Testing Services (SATS) market is experiencing significant trends in the electronics industry. With the rise of network connectivity, there’s an increasing demand for semiconductor components in smart homes, smart television sets, smartphones, tablets, telecommunication, and 5G technologies. Outsourcing SATS to service providers ensures operational efficiency and cost savings. Packaging technologies, such as wire bonding and 3D semiconductor assemblies, are crucial for manufacturing power-efficient devices and portable electronics. The paradigm shift towards advanced packaging technologies, like fan-out wafer level packaging, is essential for enhancing product quality and reliability. Semiconductor manufacturing faces process complexity and resistance to safety systems, necessitating prudence and flexibility from service providers. Reliability testing, including thermal cycling and burn-in testing, is crucial for certifications in the communication industry and automotive electronics. Semiconductors, chip design, chipsets, and chipsets (ICs) are at the core of these trends. As the industry evolves, semiconductor manufacturing in wafer fabrication factories must adapt to meet the demands of the market, ensuring quality and reliability in 5G technologies, 5G wireless networks, and accelerated stress testing. Cloud services are also becoming increasingly important in semiconductor manufacturing and testing processes.
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Market Challenges
The Semiconductor Assembly and Testing Services (SATS) industry is highly competitive and asset-intensive, with consolidation among players leading to improved cost performance but increased competition due to shortening product lifecycles and rapid technological advances. Energy prices and volatile commodities pose additional challenges. Most SATS businesses are based in emerging economies, where labor costs are low but advanced manufacturing techniques are limited. Lean manufacturing and IoT implementation are common in front-end silicon wafer manufacturing but not yet widespread in backend SATS. The top five SATS companies account for over half the industry revenue, leaving smaller players at a disadvantage due to lower economies of scale and high R&D costs. The entry of pure-play foundries and IDMs, such as Intel, Samsung, and TSMC, into the SATS market may intensify competition. These factors may hinder the growth of the SATS market during the forecast period.The Semiconductor Assembly and Testing Services (SATS) market faces several challenges in today’s technology landscape. With the rise of 3D semiconductor assemblies and the implementation of 5G technologies in communication and computing industries, there is a growing demand for advanced packaging technologies. SATS providers must adapt to meet the needs of automotive electronics and systems, requiring certification for emission reduction and fuel efficiency. Chip design and fabrication for IC chipset assembly, including die preparation and encapsulation, must keep up with the demands of the consumer electronics, entertainment systems, and the Internet of Things markets. SATS providers must also ensure electrical characterization, conductivity testing, and environmental testing to meet industry standards. Moreover, the integration of 5G wireless networks and mobile devices necessitates accelerated stress testing for low thermal ratings and high data transfer speeds. The use of metals, conductors, and insulators in semiconductor manufacturing also adds complexity to the process. SATS providers must stay updated with the latest certifications, certifications, and industry trends to remain competitive in the market. Additionally, the growing importance of cloud services and the integration of electrification in various industries will further expand the scope of SATS services.
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Segment Overview
This semiconductor assembly and testing services (sats) market report extensively covers market segmentation by
Application 1.1 Communication1.2 Computing and networking1.3 Industrial1.4 Consumer electronics1.5 Automotive electronicsService Type2.1 Assembly services2.2 Testing servicesGeography 3.1 APAC3.2 North America3.3 Europe3.4 South America3.5 Middle East and Africa
1.1 Communication- Semiconductor Assembly and Testing Services (SATS) play a vital role in the communication segment by delivering top-notch semiconductor components and services for the production of communication devices. In the communication industry, semiconductor components such as Integrated Circuits (ICs), power amplifiers, and filters are essential for signal amplification, filtering, and modulation, which are fundamental for data and voice-over network transmission. SATS contribute significantly to the manufacturing process of communication devices, including smartphones, radios, modems, and routers, by providing necessary components and testing services to ensure they meet the desired quality and performance standards. Moreover, communication devices must adhere to regulatory bodies’ guidelines, such as the Federal Communications Commission (FCC) and the International Organization for Standardization (ISO). SATS offer testing and certification services to ensure these devices meet safety, performance, and quality requirements. SATS also cater to the customization needs of communication device manufacturers by designing customized ICs and modifying existing components for optimal performance. Quality assurance is another critical aspect of SATS, ensuring communication devices meet rigorous testing and quality processes, including durability, reliability, and functionality checks. The communication segment’s growth in Internet of Things (IoT) and wireless communication technology implementation necessitates SATS’ support. SATS provide components, such as ICs, sensors, and modules, that enable these technologies and offer testing services to ensure their proper functioning and compliance with standards. These factors are expected to drive the expansion of the global SATS market through the communication segment during the forecast period.
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Learn and explore more about Technavio’s in-depth research reports
The global semiconductor market is experiencing robust growth, driven by demand in consumer electronics, automotive, and telecommunications sectors. The global Front End of the Line Semiconductor Equipment market is pivotal, providing essential tools for wafer fabrication and processing. Meanwhile, the global Semiconductor Fabrication Software market is crucial for designing, simulating, and managing semiconductor manufacturing, enhancing efficiency and yield. Together, these markets are integral to the advancement of semiconductor technology, catering to the increasing need for high-performance and miniaturized electronic components across various industries.
Research Analysis
The Semiconductor Assembly and Testing Services (SATS) market encompasses various processes that ensure the production of high-quality semiconductor devices. These services include conductivity testing, which measures the resistance of conductors and insulators in semiconductor materials. Advanced packaging technologies are crucial in SATS, enabling the integration of various components, including integrated circuits and chipsets, into power-efficient devices. SATS plays a vital role in the manufacturing of semiconductors for diverse applications, such as mobile devices, Internet of Things, automotive electronics, and advanced technologies like 5G and cloud services. Quality and reliability are paramount in SATS, with rigorous electrical characterization and environmental testing ensuring optimal performance. Metals and their properties also play a significant role in SATS, as they are used as conductors and insulators in semiconductor manufacturing. The electrification trend and the development of 3D semiconductor assemblies further expand the scope of the SATS market.
Market Research Overview
The Semiconductor Assembly and Testing Services (SATS) market encompasses various processes and services that support the production of semiconductor devices. These services include 3D semiconductor assemblies, which involve the integration of multiple semiconductor layers to create complex structures. SATS plays a crucial role in the manufacturing of advanced packaging technologies for industries such as automotive electronics, consumer electronics, and the communication and computing industries. 5G technologies are driving the demand for SATS, with the need for high-speed data transfer and low latency. SATS providers offer services like burn-in testing, electrical characterization, and reliability testing to ensure the quality and reliability of semiconductor components. SATS also includes fabrication processes like wafer fabrication and IC chipset assembly, as well as packaging technologies like encapsulation and conductivity testing. The market caters to various industries, including automotive systems, industrial, and the entertainment industry, among others. SATS providers offer outsourcing services, enabling companies to focus on their core competencies while ensuring operational efficiency and cost savings. The market is subject to industry standards and certifications, with a paradigm shift towards power-efficient devices and wearable electronics. SATS services include emission reduction, thermal cycling, and environmental testing, ensuring that semiconductor components meet safety and reliability requirements. The market is characterized by prudence and flexibility, with service providers adapting to the evolving needs of their clients.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
ApplicationCommunicationComputing And NetworkingIndustrialConsumer ElectronicsAutomotive ElectronicsService TypeAssembly ServicesTesting ServicesGeographyAPACNorth AmericaEuropeSouth AmericaMiddle East And Africa
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.
With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
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Huawei and IUCN Launch Tech4Nature Project to Protect Kenya’s Coral Reefs
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NAIROBI, Kenya, Jan. 10, 2025 /PRNewswire/ — Huawei, International Union for Conservation of Nature (IUCN), and local partner Kenya Wildlife Service (KWS) have launched a Tech4Nature project to monitor and protect coral reef and biodiversity in Kenya’s Kisite-Mpunguti Marine Park and Reserve.
Aligned with Huawei’s TECH4ALL initiative and the IUCN Green List, the objective of the three-year project is to strengthen monitoring and management efficacy of the protected area. Located on the southern coast of Kenya, Kisite-Mpunguti Marine Park and Reserve faces a number of nature conservation challenges. These include:
Illegal fishing and insufficient human resources to effectively patrol the area.A lack of remote monitoring of the reserve’s three coral islands coupled with pressures created by tourism, as the fringing reefs are popular diving sites.Limited community awareness of the importance of reef and biodiversity protection.Insufficient communications network infrastructure for underpinning tech-driven monitoring.
“Tech4Nature is an expansive project that falls under Huawei’s digital inclusion initiative TECH4ALL, where we look at ways to implement technology and innovation in various sectors of our day today life and improving global standards and ensure that we have a sustainable way of life in the world,” said Khadija Mohamed, Director of Media and Government Relations for Huawei Kenya.
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“The technology we are introducing is a groundbreaking development for marine conservation in Kenya. It will serve as the first monitoring tool for data collection, analysis, and management in a marine protected area. Additionally, this innovation presents an opportunity to assist the park in attaining IUCN Green List certification, aligning with the sustainability goals valued by tourists and ensuring that future generations can continue to benefit from our marine parks,” said Innocent Kabenga, Country Representative for the IUCN Kenya Country Office.
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“For us to deliver our mandate of protecting and conserving our wildlife in both terrestrial and marine ecosystems, you have to understand your resources very well. We are partnering with Huawei and IUCN to deploy underwater cameras to acquire some data on marine mammal, corals, and fisheries to make informed decisions. The advantage of this technology it can be deployed in wider area that we couldn’t patrol every single day to get data for day and night for us to make good, informed decisions,” said Adan Kala, Senior Assistant Director, Coast Conservation Area, Kenya Wildlife Service.
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About Tech4Nature
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Visit the Tech4Nature website: https://tech4nature.iucngreenlist.org/what-is-tech4nature/
About TECH4ALL
TECH4ALL is Huawei’s long-term digital inclusion initiative and action plan. Enabled by innovative technologies and partnerships, TECH4ALL is designed to enable inclusion and sustainability in the digital world.
Visit the Huawei TECH4ALL website at https://www.huawei.com/en/tech4all
Follow us on X at https://x.com/HUAWEI_TECH4ALL
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The study ‘Active Packaging in the Food Industry’, published in October 2024, explores the growing significance of active packaging in response to changing consumer demands and market trends. Unlike traditional packaging, which is designed to be inert, active packaging interacts with the product and its environment to extend shelf life and maintain food quality. This can involve incorporating additives into packaging systems, such as oxygen and ethylene scavengers, antimicrobial agents, antioxidants, and flavor-absorbing or releasing compounds. Intelligent packaging systems, like time-temperature indicators and gas detectors, are also discussed, emphasizing the importance of consumer acceptance for the commercial success of these technologies. The study reviews key mechanisms used in active packaging, including oxygen scavengers, which reduce the presence of oxygen in food packaging by using iron-based or ascorbic acid-based systems. These methods help maintain product freshness by limiting oxidative damage. Carbon dioxide-generating systems are also used to suppress microbial growth, particularly in meat, poultry, fish, and cheese packaging. Furthermore, ethylene scavengers are vital for extending the shelf life of fruits and vegetables by controlling ripening processes.
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Other applications discussed include the use of flavor and odor absorbers/releasers, which enhance the sensory properties of packaged food, and antimicrobial packaging that inhibits microbial growth to ensure food safety. The potential of nanotechnology to develop new and more effective active and intelligent packaging solutions is highlighted, paving the way for further innovations in the food packaging industry. This study underscores the need for advanced packaging technologies to meet consumer demand for fresh, safe, and high-quality food products and their critical role in prolonging shelf life and improving food safety.
The Meat, Poultry & Seafood is the having a largest share within the application sector of the smart food packaging market.
Due to growing global demand, meat, poultry, and seafood accounts for the highest market share of application in the smart food packaging market. Its needs lie in extending shelf life, safety, and traceability. As per data provided by the USDA from October 2024, Brazil dominates global chicken meat exports during 2025 as the production will be 11.8 million tons. Australia’s poultry production will increase by 2 percent to 2.6 million tons, as high global demand is expected. Beef exports from Australia will also reach a record 1.9 million tons in the year, as its demand increases in the US. These trends point towards the increasing international meat trade and export opportunities.
Increased production and exports require more advanced smart packaging technologies, such as modified atmosphere packaging and active packaging, for freshness, less food waste, and greater safety. This will fuel innovation and adoption of smart packaging solutions, especially in global markets like East Asia and North America.
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The active packaging segment holds significant market share in the smart food packaging market during the forecasted period 2024-2029.
Active food packaging accounts for a major market share in the smart food packaging industry, which is mainly attributed to the quality improvement, safety, and shelf life that active packaging can offer. Technologies, including oxygen scavengers, moisture absorbers, and antimicrobial agents, respond to some of the most important consumer needs related to freshness and reduction of food waste.
It is primarily gaining adoption across key industries, including meat, poultry, seafood, and dairy, where growing concerns about global food safety and sustainability are driving growth. Additionally, increasing export of perishable food products, particularly in North America, Europe, and Asia-Pacific, further supports the increasing demand for active packaging. As manufacturers look for more innovative ways to meet their regulatory requirements and consumer demands, active packaging will maintain its position in the market.
Based on region, Europe has a significant share in the smart food packaging market.
The growth of the food and beverage industry in Europe is a major driving force for the smart food packaging market, which is motivated by the increasing demand for advanced packaging solutions that would ensure food safety, traceability, and extended shelf life. According to European Commission data (March 2024), the food and drinks industry generates ~USD 245 billion (€227 billion) in added value and employs 4.6 million people, making it the EU’s largest manufacturing sector in terms of jobs and value. SMEs are over 99% of businesses in this ecosystem. The sector has also recorded a food trade surplus, with exports doubled over the last decade to exceed ~USD 196 billion (€182 billion), contributing a positive balance of nearly ~USD 32 billion (€30 billion). These strong figures, combined with growing trade opportunities and EU Single Market benefits, are driving demand for smart food packaging technologies to support efficient, sustainable, and competitive food supply chains.
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