1 Global OSAT Market Insight Analysis
The global OSAT market value will reach US$51,676 million in 2025, with a compound annual growth rate of 7.96% from 2025 to 2033.
OSAT (Outsourced semiconductor assembly and test) are the companies that offer third-party IC-packaging and test services. These companies provide packaging to silicon devices that are made by foundries and test devices prior to shipping to the market.
Figure Global OSAT Market Size (M USD) and CAGR (2025-2033)
2 OSAT Market Growth Drivers and Restraints
Downstream demand growth: The integrated circuit packaging and testing industry depends on the integrated circuit industry, and the development of the integrated circuit industry mainly depends on the downstream market. In recent years, the rapid development of markets such as artificial intelligence, the Internet of Things, 5G base stations, and electric vehicles has greatly increased the demand for chips, which has promoted the explosive growth of the integrated circuit industry, and in turn driven the development of the OSAT market.
Taking the electric vehicle market as an example, with the advent of the global energy crisis, the new energy vehicle market continues to expand. In 2021, the sales volume of the US electric vehicle market hit a new high, and during 2020-2022, the sales volume of electric vehicles in the United States, Europe, and China increased significantly. The growth of the electric vehicle market has driven the growth of chip demand, thereby promoting the development of the OSAT industry.
Service model innovation: With the rapid upgrading of integrated circuit technology and the diversification of downstream applications, the investment cost of the integrated circuit industry has increased, the window period for new product development has shortened, and the proportion of product customization has increased. Against this background, the integrated circuit professional division of labor model represented by Fabless + Foundry + OSAT came into being.
In this model, Fabless manufacturers are responsible for chip design, Foundry manufacturers provide wafer manufacturing foundry services, OSAT manufacturers perform packaging and testing, and finally deliver chip products to terminal application manufacturers. This model improves R&D efficiency, optimizes industrial chain coordination, better adapts to the technology and product trends of integrated circuit products, gradually becomes the mainstream business model of the industry, and promotes the development of the OSAT market.
The rise of the Asia-Pacific market: The rapid development of emerging consumer electronics markets represented by smartphones and tablets, as well as the rise of technology industries such as automotive electronics, industrial control and the Internet of Things, have led to the rapid growth of the semiconductor industry. The Asia-Pacific region (excluding Japan) has become the world’s largest semiconductor market, accounting for 60.34% of the global market share in 2018. Among them, mainland China is one of the fastest growing regions in the global semiconductor market. The rapid development of the semiconductor industry in the Asia-Pacific region has brought a lot of opportunities to the OSAT market.
Fierce market competition: There are many participants in the OSAT market, including wafer foundries, integrated packaging and testing companies, and third-party professional testing manufacturers, all of which can provide wafer testing or chip product testing services. With the prosperity of the integrated circuit industry, the demand for integrated circuit testing has continued to expand, attracting more companies and testing service providers to expand production capacity and increase investment, resulting in increasingly fierce market competition. If companies cannot continue to improve in technology, scale, service quality, etc., and narrow the gap with leading companies, they may be at a disadvantage in the competition.
High customer concentration: The main customers of OSAT companies are fabless chip designers. Due to the high entry barriers and high market concentration of the chip design industry, most of the global market is occupied by a few leading chip companies, making the customer concentration of the OSAT industry high. For most OSAT companies, the operating income of major customers accounts for a high proportion of the company’s operating income.
If there are adverse changes in the cooperation of major downstream customers, or the market share of customers decreases due to market competition, macroeconomic fluctuations and their own product problems, and the company fails to expand new customers in time, it may face the risk of slowing or even declining revenue growth.
Raw material supply and price fluctuations: The Russian-Ukrainian war has affected the supply of raw materials in Ukraine and Russia. For example, Ukraine is the main supplier of rare gases (such as neon) required for semiconductor lithography processes, and Russia is an important producer of important semiconductor packaging raw materials such as palladium. Interruptions in the supply of raw materials may cause shortages and increased costs, affecting the semiconductor manufacturing industry, and in turn impacting the production and operations of the OSAT industry. In addition, fluctuations in raw material prices in the global semiconductor market will also bring cost pressure to OSAT companies, affecting their profit margins and market competitiveness.
3 Technological Innovations in the OSAT Market
Advanced packaging technology is developing rapidly: At present, semiconductor packaging technology is mainly divided into traditional packaging and advanced packaging. Advanced packaging includes flip chip (FlipChip), bumping (Bumping), wafer level packaging (Wafer Level Packaging), 3D packaging (TSV) and other technologies. These technologies effectively improve product performance by achieving higher density integration.
For example, FlipChip technology faces the chip active area to the substrate, and interconnects the chip and the substrate through array-arranged solder balls, shortening the interconnection length, reducing RC delay, and improving electrical performance; TSV in 3D packaging technology makes full use of three-dimensional space by realizing electrical connection in the direction of chip thickness, reducing power consumption and increasing bandwidth.
Testing technology is constantly upgraded: OSAT companies continue to innovate in testing technology to meet the increasing performance and functional requirements of semiconductor products. For example, ASE provides comprehensive semiconductor testing services, covering front-end engineering testing, wafer probing, high-performance logic, mixed signal, RF, final testing of 2.5D/3D packaging, and system-level testing. Its testing services use advanced technology and expertise to test chips in a variety of application areas. At the same time, enterprises are also constantly optimizing the test process to improve test efficiency and accuracy.
Rise of microelectromechanical system (MEMS) packaging: With the large-scale implementation of sensors and IoT applications, MEMS packaging has received increasing attention. Unlike integrated circuit packaging, MEMS packaging uses multi-level vertical packaging, and the mutual influence between different modules needs to be considered during design. At present, MEMS packaging is moving towards CMOS-compatible manufacturing processes and chip stacking to achieve mass production with lower costs and higher performance.
Integrate resources and enhance competitiveness: Enterprises integrate resources through mergers and acquisitions, optimize business layout, and enhance their competitiveness in the market. For example, Amkor Technology completed the acquisition of NANIUM S.A. in 2017, a world-class wafer-level fan-out (WLFO) semiconductor packaging solution provider. The acquisition strengthened Amkor’s position in the fast-growing market for wafer-level packaging for applications such as smartphones and tablets, enabling it to leverage NANIUM’s high-yield, reliable WLFO technology to enhance its own technical strength and market share.
Expand business areas and achieve diversified development: Some companies have entered new business areas through mergers and acquisitions to achieve diversified development. For example, JCET Group completed a private placement of RMB 5 billion in 2021, introduced diversified investors, and provided financial support for the company’s business expansion. The company has further improved its business layout, increased R&D and production investment in advanced packaging and other fields, improved its competitiveness in the high-end packaging market, and achieved diversified business development.
4 Global OSAT Market Size by Type
BGA packaging is a popular surface mount technology that uses an array of solder balls on the bottom of the package for electrical connections. In 2025, the global revenue for BGA packaging is projected to be USD 12,745 million, accounting for approximately 24.66% of the total OSAT market. This segment continues to be a significant part of the market due to its reliability and widespread use in various applications, including consumer electronics and automotive.
Chip-scale packaging is known for its small form factor and high performance. In 2025, the global revenue for CSP is expected to reach USD 7,030 million, representing about 13.60% of the total market. CSP is particularly favored in applications where space is a critical factor, such as in mobile devices and IoT devices. The growth in these sectors is driving the demand for CSP solutions.
Wafer Level Packaging offers high performance and cost-effectiveness by packaging integrated circuits at the wafer level. In 2025, the global revenue for WLP is forecasted to be USD 9,582 million, capturing around 18.54% of the market. WLP is increasingly being adopted in advanced applications, including high-speed digital and RF devices, due to its ability to achieve high-density integration and excellent thermal performance.
System-in-Package integrates multiple functional chips into a single package, providing a complete system solution. In 2025, the global revenue for SiP technology is projected to be USD 18,789 million, making up approximately 36.36% of the total market. SiP is particularly popular in applications that require high integration and miniaturization, such as smartphones, tablets, and other consumer electronics.
Table Global OSAT Market Size and Share by Type in 2025
Type | Market Size (M USD) 2025 | Market Share 2025 |
|---|---|---|
Ball Grid Array (BGA) Packaging | 12745 | 24.66% |
Chip-scale Packaging (CSP) | 7030 | 13.60% |
Wafer Level Packaging (WLP) | 9582 | 18.54% |
System-in-Package (SiP) Technology | 18789 | 36.36% |
Others | 3529 | 6.83% |
5 Global OSAT Market Size by Application
Consumer Electronics remains a dominant application area in the OSAT market. In 2025, its consumption value is forecasted to be 21,554 million USD, accounting for 41.71% of the total market share. This significant revenue and share are attributed to the continuous innovation and high – volume production in the consumer electronics sector. Products such as smartphones, tablets, and smartwatches require a large number of semiconductors, driving the demand for OSAT services.
Computing is the second – largest application segment. In 2025, it is expected to generate a consumption value of 9,602 million USD, with a market share of 18.58%. The growth in the computing sector, including data centers, laptops, and desktops, which demand high – performance semiconductors, fuels the OSAT market. As the trend of digital transformation accelerates, the need for more powerful computing devices is increasing, further boosting the OSAT market in this application area.
The Automotive segment is also a notable contributor. In 2025, its consumption value is projected to be 7,634 million USD, holding a market share of 14.77%. The automotive industry’s shift towards electric vehicles and autonomous driving technologies has led to a substantial increase in the demand for semiconductors. Advanced driver – assistance systems (ADAS), battery management systems, and in – car infotainment systems all rely on sophisticated semiconductor components, thus driving the growth of the OSAT market in the automotive application.
Industrial applications follow, with a consumption value of 4,701 million USD in 2025, representing a market share of 9.10%. The Industrial Internet of Things (IIoT), automation, and smart manufacturing are driving the demand for semiconductors in the industrial sector. These applications require reliable and efficient semiconductor components, which in turn boosts the OSAT market.
Aerospace & Defense has a relatively smaller but still important share. In 2025, its consumption value is forecasted to be 1,711 million USD, accounting for 3.31% of the market share. The high – tech nature of aerospace and defense systems, such as satellite communication and military avionics, demands high – quality semiconductors, contributing to the OSAT market.
Table Global OSAT Market Size and Share by Application in 2025
Application | Market Size (M USD) 2025 | Market Share 2025 |
|---|---|---|
Consumer Electronics | 21554 | 41.71% |
Computing | 9602 | 18.58% |
Automotive | 7634 | 14.77% |
Industrial | 4701 | 9.10% |
Aerospace & Defense | 1711 | 3.31% |
Others | 6473 | 12.53% |
6 Global OSAT Market Size by Region
In 2025, the OSAT revenue in China Mainland is forecasted to be 11,945 million USD. China Mainland has witnessed remarkable growth in the semiconductor industry in recent years. It has been actively promoting domestic semiconductor manufacturing and packaging capabilities. The government’s strong support through policies and investment has led to the establishment of numerous semiconductor manufacturing and OSAT enterprises.
With a large domestic market demand for electronics products, such as consumer electronics, computing devices, and automotive electronics, the OSAT industry in China Mainland is well – positioned for further expansion. Moreover, continuous efforts in R & D and talent cultivation are enhancing its competitiveness in the global market.
China Taiwan is a dominant player in the global OSAT market. In 2025, its OSAT revenue is expected to be 25,152 million USD. It has a well – established semiconductor ecosystem, with world – renowned OSAT companies. Taiwan’s long – term investment in semiconductor technology research and development, along with its advanced manufacturing capabilities, has enabled it to maintain a leading position. It benefits from its close cooperation with global semiconductor design companies and has a high – end manufacturing technology base. The region’s ability to quickly adapt to new technological trends and meet the high – quality requirements of international customers has been crucial for its continued success in the OSAT market.
The United States is also a significant contributor to the global OSAT market. In 2025, its projected OSAT revenue is 7,296 million USD. The U.S. has a strong foundation in semiconductor design and advanced semiconductor technology research. Many leading semiconductor design companies are based in the U.S., which drives the demand for OSAT services. Additionally, the U.S. has a highly skilled workforce and a well – developed venture capital and research infrastructure, which support the growth of the semiconductor and OSAT industries. However, in recent years, challenges such as increasing competition from Asia – Pacific regions and issues related to the global supply chain have also influenced its development.
Malaysia’s OSAT revenue is forecasted to be 2,358 million USD in 2025. Malaysia has been gradually building up its semiconductor packaging and testing capabilities. It has attracted foreign investment in the semiconductor industry, taking advantage of its relatively low – cost labor and strategic geographical location. The country has been focusing on improving its manufacturing processes and quality control to meet international standards. It also benefits from its participation in the global semiconductor supply chain, often acting as a manufacturing base for multinational semiconductor companies.
South Korea’s OSAT revenue is expected to be 1,730 million USD in 2025. South Korea is well – known for its strong semiconductor manufacturing giants. These companies have made significant investments in advanced packaging and testing technologies. South Korea’s semiconductor industry is highly vertically integrated, which gives it an edge in terms of technology transfer and cost – efficiency. It is also actively involved in R & D to stay competitive in the global OSAT market, especially in areas such as high – density packaging for advanced memory and logic chips.
In 2025, Singapore’s OSAT revenue is projected to be 1,324 million USD. Singapore has positioned itself as a hub for high – tech manufacturing and semiconductor – related services. It has a business – friendly environment, advanced infrastructure, and a skilled workforce. The city – state focuses on value – added services in the semiconductor supply chain, such as advanced testing and packaging for high – end semiconductor products. It also collaborates with global semiconductor players through partnerships and joint ventures, further enhancing its position in the OSAT market.
Figure Global OSAT Market Size (M USD) by Region in 2025
7 Global OSAT Market Analysis by Major Players
ASE (Advanced Semiconductor Engineering)
Company Profile: ASE, founded in 1984 and headquartered in Taiwan, is a global leader in semiconductor assembly and testing services. The company operates manufacturing facilities across Asia and the United States, providing comprehensive services from wafer probing to final product testing. ASE is known for its advanced packaging technologies such as System-in-Package (SiP) and Wafer Level Packaging (WLP), which cater to a wide range of applications including mobile devices, IoT, automotive, and high-performance computing.
Business Overview: ASE’s business model focuses on delivering high-quality, cost-effective solutions to its customers. The company’s extensive portfolio of services includes wafer bumping, assembly, testing, and advanced packaging solutions. ASE’s strong R&D capabilities and strategic partnerships with leading semiconductor companies have enabled it to maintain a competitive edge in the rapidly evolving semiconductor industry. In 2023, ASE continued to expand its market presence by investing in new technologies and enhancing its production capabilities to meet the growing demand for semiconductor products.
Product Offered: ASE offers a diverse range of products and services, including advanced packaging solutions like SiP and WLP, which are designed to meet the needs of high-performance and miniaturized semiconductor devices. The company also provides traditional packaging options such as Ball Grid Array (BGA) and Chip-scale Packaging (CSP). ASE’s testing services cover a broad spectrum of semiconductor devices, ensuring that products meet the highest quality standards before reaching the market.
Revenue Summary for 2023: In 2023, ASE achieved a revenue of USD 11,221 million, maintaining its position as the market leader in the global OSAT industry. The company’s robust product portfolio and strong market position contributed to its continued growth and success.
Amkor Technology
Company Profile: Amkor Technology, established in 1968, is one of the world’s largest providers of outsourced semiconductor packaging and test services. Headquartered in the United States, Amkor operates manufacturing facilities in Asia, Europe, and the United States. The company is renowned for its innovative packaging solutions and advanced testing capabilities, serving a diverse range of customers in the semiconductor industry.
Business Overview: Amkor Technology’s business strategy emphasizes continuous innovation and the development of advanced packaging technologies. The company offers a comprehensive suite of services, including wafer probe, package test, wafer bumping, and redistribution services. Amkor’s strong focus on R&D has enabled it to introduce state-of-the-art packaging solutions such as Through Silicon Via (TSV) and Wafer Level FanOut (WLFO). The company’s global presence and strategic partnerships with leading semiconductor companies have solidified its position as a key player in the industry.
Product Offered: Amkor Technology provides a wide range of packaging and testing services, including advanced packaging solutions like TSV and WLFO. The company also offers traditional packaging options such as BGA and CSP. Amkor’s testing services cover various semiconductor devices, ensuring that products meet stringent quality and performance standards. The company’s advanced technologies and comprehensive service offerings make it a preferred partner for many semiconductor companies.
Revenue Summary for 2023: In 2023, Amkor Technology reported a revenue of USD 6,634 million, reflecting its strong market position and continued growth in the global OSAT industry. The company’s innovative solutions and robust service offerings contributed to its sustained success.
JCET Group
Company Profile: JCET Group, founded in 1972, is a leading integrated circuit manufacturing and technical service company with a global presence. The company operates manufacturing facilities in China, South Korea, and Singapore, providing a comprehensive range of services from wafer-level packaging to system-level testing. JCET Group is known for its advanced wafer-level packaging technologies and comprehensive testing solutions.
Business Overview: JCET Group’s business strategy focuses on delivering high-quality, cost-effective solutions to its customers. The company offers a full range of services, including wafer-level packaging, testing, and system-level integration. JCET Group’s strong R&D capabilities and strategic partnerships with leading semiconductor companies have enabled it to maintain a competitive edge in the industry. The company’s commitment to innovation and continuous improvement has led to the development of advanced packaging technologies such as Fan-In Wafer-Level Packaging (FIWLP) and Fan-Out Wafer-Level Packaging (FOWLP).
Product Offered: JCET Group provides a diverse range of packaging and testing services, including advanced wafer-level packaging solutions like FIWLP and FOWLP. The company also offers traditional packaging options such as BGA and CSP. JCET Group’s testing services cover various semiconductor devices, ensuring that products meet the highest quality standards. The company’s advanced technologies and comprehensive service offerings make it a preferred partner for many semiconductor companies.
Revenue Summary for 2023: In 2023, JCET Group achieved a revenue of USD 3,876 million, reflecting its strong market position and continued growth in the global OSAT industry. The company’s advanced packaging technologies and comprehensive service offerings contributed to its sustained success.