The US semiconductor assembly and testing services market is expected to grow from US$ 10,723.0 million in 2021 to US$ 15,798.4 million by 2028; it is estimated to grow at a CAGR of 5.7% from 2021 to 2028.
With heavy use of smartphones, desktops, digital cameras, tablets, laptops, hard disks, and televisions, among others, the consumer electronics industry has evolved significantly with several technological advancements. The rising adoption of 5G networks is creating strong opportunities for companies in the US to develop advanced RF modules using system-in-package technology for connectivity. According to data published by Statista in March 2021, the use of 5G is expected to generate US$ 253 billion, and it is likely to create up to 2.39 million jobs in California alone. Moreover, New York and Texas are also projected to add more than US$ 130 billion. This highlights the opportunities for electronic companies to develop new electronics devices comprising ICs enabled with the embedded die packaging technology. Additionally, the emergence of smart devices, growing adoption of tablets, surge in demand for devices with large screens, and emergence of IoT across devices is creating high demand for consumer electronics. According to the Statista data in March 2021, advancements such as 5G usage, artificial intelligence, and the Internet of Things (IoT) adoption are expected to add up to US$ 1.5 trillion to the national gross domestic product (GDP) of the US by 2025. With the rising need of electronics, the use for semiconductor devices in digital consumer products, including smartphones, televisions, digital cameras, refrigerators, washing machines, and LED bulbs, would also increase; this is subsequently stirring the need for semiconductor testing services. Therefore, the rising demand for consumer electronics is driving the US semiconductor assembly and testing services market
Impact of COVID-19 Pandemic on US Semiconductor Assembly and Testing Services Market
The COVID-19 pandemic has shaken several industries. The tremendous growth in the spread of the virus has urged US government to impose strict restrictions on vehicles and human’s movement. Due to travel ban, mass lockdown, and business shutdowns, the pandemic has affected economies and countless industries in the country. The lockdown imposition has resulted in lesser production of commodities, goods, and services. Manufacturing, automotive, semiconductor & electronics, oil & gas, mining, aviation, and other industries have witnessed a decline in their operations due to the temporary shutdown of activities. The semiconductor industry took a significant hit as the demand for electronic components was lowered from industrial sector and end users. The revenue model for microelectronics has declined as no mass production was carried in the lockdown period.
US market suffered a huge loss in the first half of 2020 owing to the high number of COVID-19 cases. Post lockdown, the market witnessed increasing demand for digital devices. US is among the leading country in adopting smart or IoT-based devices due to favourable infrastructure support for high-speed internet services. The adoption of the 5G network is supposed to drive the market growth post lockdown. The COVID-19 outbreak has a major impact on manufacturing facilities as production capacities were lowered. As the demand for electronics remained constant, it helped the market to resume the growth. For instance, in December 2020, Qualcomm Inc, a leading manufacturer of microprocessors (US) has predicted that the shipments of 5G smartphones will double in 2022, with the increasing 5G network deployment. Such increasing adoption of 5G smartphones is lowering the COVID- 19 impact for the post lockdown period; while in lockdown, it certainly hampered the market growth. Further, in post lockdown, semiconductor industry started to regain the market share as production facilities restarted the operation by taking social distancing measures. Besides, work from home and remote monitoring strategies also helped increase the sale of advanced electronics products for better connectivity. IT and telecommunication industry importance have been highlighted for the communicational purpose, which allowed the industry to evolve with new technologies such as IoT connectivity. The increasing demand for the small firm factor-based electronics devices specifically for health monitoring and smartphones augmented the market growth.
US Semiconductor Assembly and Testing Services Market Revenue and Forecast to 2028 (US$ Million)
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US Semiconductor Assembly and Testing Services Market Segmentation
US Semiconductor Assembly and Testing Services Market – by Service
- Assembly and Packaging Services
- Testing Services
US Semiconductor Assembly and Testing Services Market – by Application
- Consumer Electronics
- Automotive
- Medical
- Military
- Space
- Others
US Semiconductor Assembly and Testing Services Market - Companies Mentioned
- Amkor Technology
- ASE Group
- Unisem Group
- DPA Components International (DPACI)
- GlobalFoundries U.S. Inc.
- Golden Altos Corporation
- Grinding & Dicing Services, Inc.
- Micross
- Precision Test Solutions
- Promex Industries Inc.
- SkyWater Technology
US Semiconductor Assembly and Testing Services Market Report Scope
| Report Attribute | Details |
|---|---|
| Market size in 2021 | US$ 10,723.0 Million |
| Market Size by 2028 | US$ 15,798.4 Million |
| Global CAGR (2021 - 2028) | 5.7% |
| Historical Data | 2019-2020 |
| Forecast period | 2022-2028 |
| Segments Covered |
By Service
|
| Regions and Countries Covered | United State
|
| Market leaders and key company profiles |
- Historical Analysis (2 Years), Base Year, Forecast (7 Years) with CAGR
- PEST and SWOT Analysis
- Market Size Value / Volume - Global, Regional, Country
- Industry and Competitive Landscape
- Excel Dataset
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
This text is related
to segments covered.
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
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to country scope.
Frequently Asked Questions
With heavy use of smartphones, desktops, digital cameras, tablets, laptops, hard disks, and televisions, among others, the consumer electronics industry has evolved significantly with several technological advancements. The rising adoption of 5G networks is creating strong opportunities for companies in the US to develop advanced RF modules using system-in-package technology for connectivity. According to data published by Statista in March 2021, the use of 5G is expected to generate US$ 253 billion, and it is likely to create up to 2.39 million jobs in California alone. Moreover, New York and Texas are also projected to add more than US$ 130 billion.
Semiconductors have a wide range of applications in the automotive sector, especially in due to emerging technologies such as autonomous driving as well as in various automotive electronic equipment. The adoption of safety-related electronics has grown rapidly in the last few decades. Semiconductor component manufacturers are continuously focusing on the manufacturing of advanced systems. Further, surge in demand for multiple semiconductor devices, such as microcontrollers, sensors, and memory, is benefitting the automotive semiconductor vendors. Electrification, automation, digital connectivity, and security systems further add to the demand for more semiconductor equipment in automotive electronics.
Assembly and packaging were considered a fairly non-critical part of the design; however, at present, it is an essential and a significant part of semiconductor manufacturing and design. It affects power, performance, and cost on a macro level, and the basic functionality of all chips on a micro level. Assembly and packaging take a wafer with completed, unseparated chips, and turns it into separate, packaged chips. The package is the container that holds the semiconductor die.
Consumer electronics are the equipment intended for entertainment, recreation, and communication. The consumer electronics sector is witnessing new developments to overcome the challenges such as flexibility, reliability, and cost-saving benefits for customers. Consequently, the smart devices in consumer electronics are getting smaller in size to offer enhanced comfort and best fit solution for consumers.
Micross has announced the expansion of its Hybrid and assembly business with the acquisition of assets of the microelectronics business from Ultra CEMS (“Ultraâ€). DPACI has announced to continue the partnership with Infineon/Cypress Semiconductor on a family of Synchronous Static and Flash Memories for space level requirements. Intel Corp. is exploring the possibility to buy GlobalFoundries Inc. This move comes as Intel is attempting to become a chip manufacturer for others and this deal can be around $30 Billion.
IC manufacturers are exploring newer chip-packaging options such as 2.5D and 3D ICs into their production processes for ensuring high performance at lowered costs. These advanced packaging technologies, claiming greater chip connectivity and lower power consumption than the traditional packaging configurations, are in their initial phase. With the adoption of advanced packaging technologies, the demand for semiconductor equipment is likely increase in future.
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The List of Companies - US Semiconductor Assembly and Testing Services Market
- Amkor Technology
- ASE Group
- Unisem Group
- DPA Components International (DPACI)
- GlobalFoundries U.S. Inc.
- Golden Altos Corporation
- Grinding & Dicing Services, Inc.
- Micross
- Precision Test Solutions
- Promex Industries Inc.
- SkyWater Technology
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