Semiconductor Packaging and Test Market in China 2015-2019

Market overview of the semiconductor packaging and testing in China

The aggressive promotional policies of the Chinese government and investment by private companies has driven the semiconductor industry in China to grow at a quick rate. China’s semiconductor consumption grew at a CAGR of about 19% over the last decade.

The increasing use of packaging and testing devices for the completion of semiconductor chip manufacturing has driven the growth of the semiconductor packaging and test market in China, which has resulted in a projected CAGR of over 7% during the forecast period.

The rapid expansion of semiconductor chip application is one of the primary factors contributing to the growth of the semiconductor packaging and test market in China. The use of semiconductor chips has expanded broadly with rising demands from various industries such as power, energy, medical, green cars, networking and telecommunications, LED lighting, automobile, consumer applications, military, aerospace and defense, motor control applications, and robotics.

Segmentation of the semiconductor packaging and test market in China by business type

• IDM
• Outsourced semiconductor assembly and test (OSAT)

The semiconductor packaging and test market by outsourced semiconductor assembly and test in China is anticipated to rise to $3.30 billion by 2019. The outsourcing segment is driven by factors such as the overall growth in the semiconductor industry and the rising costs for packaging and testing equipment.

Competitive landscape and key vendors

The rising costs of the packaging and test equipment has driven chip manufacturers to sell off the packaging and test facilities and focus more on partnerships and mergers to outsource their packaging and testing of chips.

For instance, Amkor, a leading packaging and test equipment manufacturer has formed a joint venture with the Japanese firm, J-devices.

Top vendors in the market are -

• Amkor Technology
• ASE
• Powertech Technology
• Siliconware Precision Industries (SPIL)
• STATS ChipPAC
• UTAC

Other prominent vendors included in this report are ChipMos, Greatek, Huahong, JCET, KYEC, Lingsen Precision, Nepes, SMIC, Tianshui Huatian, and Unisem.

Growth drivers, challenges, and upcoming trends: Semiconductor packaging and testing

Technavio’s market research analysts analyze upcoming trends such as the emergence of 3D chip packaging, which involves the stacking of multiple chips into a single stack, thereby occupying less space in a device. The rise of 3D chip packaging will provide semiconductor foundries with new business opportunities in the coming years and drive the market growth during the forecast period.

This report provides a number of factors contributing to the adoption, limitations, and opportunities of the semiconductor packaging and test market in China. It also offers an analysis of each factor and an estimation of the extent to which the factors are likely to impact the overall market growth.

Key questions answered in the report include

• What will the market size and the growth rate be in 2019?
• What are the key factors driving the semiconductor packaging and test market in China?
• What are the key market trends impacting the growth of the semiconductor packaging and test market in China?
• What are the challenges to market growth?
• Who are the key vendors in the semiconductor packaging and test market in China?
• What are the market opportunities and threats faced by the vendors in the semiconductor packaging and test market in China?
• What are the key outcomes of the five forces analysis of the semiconductor packaging and test market in China?

Technavio also offers customization on reports based on specific client requirement.

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