With the demand for semiconductors rising at an unprecedented rate, ancillary service sectors for the core semiconductor industry, including semiconductor testing and packaging, is witnessing a renaissance too. Innovations in semiconductor packaging and scope for the full-range back-end testing of semiconductors offered by some leading companies are prolific developments in the expanse of semiconductor assembly and test services market.

The emergence of 3D semiconductor assemblies is deemed revolutionary in the scope of semiconductor assembly methodologies. This has enabled the entire electronics industry to maximize the functionality of its products. The integration of multiple die elements within a single package framework has enabled product boards to be significantly smaller than their predecessors. Further, due to shorter interconnection, this has helped improve the electrical performance and functional capability of semiconductors. Resultantly, this translates into a plus for the uptake of 3D semiconductor assemblies.

For semiconductor assemblies, multiple die packaging commonly uses some substrate as a base. Precisely, a semiconductor assembly on a substrate is akin to the one used for standard integrated circuit (IC) packaging on lead frames. Nonetheless, serving to be an advantage, the range of materials for substrate-based IC packaging is wide, along with several alternatives for the assembly of IC packaging. This holds scope for the expanse of substrate materials and packaging assemblies for semiconductors.

In this space, companies that have already employed some form of 3D packaging technology have experienced success. On the downside, however, success of the 3D packaging methodology so far has been restricted to staked die and stacked package configurations.

3D packaging methodologies for semiconductors are, as yet, not ascertained for large-scale multiple function processors. This implies vast scope of innovation in the semiconductor assembly and testing services space. To gauge opportunities in this space, Transparency Market Research (TMR) has published a market intelligence study on the semiconductor assembly and test services market. According to TMR, the semiconductor assembly and test services market is predicted to register a notable ~6% CAGR over the 2019-2027 forecast period.

semiconductor assembly and test services market infographic

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Semiconductor Assembly and Test Services Market – Key Trends

Automation and Electrification of Automobiles Spawn Significant Demand

Design enhancements and innovations in automobiles have indirectly led to a spurt in the demand for semiconductor assemblies. Electrification and automation of automobiles have led to the increasing need for semiconductor assembly and testing equipment. For example, in the recent past, the incorporation of various technologies in the mass production of cars, including enhanced lidar sensors and matrix LED lights, is pertinent for the demand of semiconductor assembly and test services.

The development of electric vehicles has served to the impel semiconductor assembly and test services market tremendously. Electric vehicle (EV) batteries that are of utmost importance for electric vehicles require reliable testing before being installed, to ensure the optimum safety and best-on-road performance of vehicles.

Apart from this, the gamut of electronics and electrical components for automotive vehicles is vast. Sensors, alternators, actuators, batteries, generators, oxygen sensors, starter solenoids, and high-power electrical systems are a few, all of which require semiconductors extensively.

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Foundries to Remain at the Fore

Among a slew of end users, the foundries segment is anticipated to register a high CAGR in the semiconductor assembly and test services market, finds TMR. Predominantly, this is because foundries feature the provision for refining and production of silicon and other metals for semiconductor packaging.

Read TMR Research Methodology at: https://www.transparencymarketresearch.com/methodology.html

From a geographical perspective, vis-à-vis revenue, Asia Pacific is predicted to hold a leading share in the semiconductor assembly and test services market over the forecast period. Vast expansion of the electronics industry in the region has influenced the demand for semiconductor assembly and test services enormously.

semiconductor assembly and test services market segmentation

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