Semiconductor Assembly and Testing Services Market Report 2026

The semiconductor assembly and testing services market size has grown strongly in recent years. It will grow from $36.85 billion in 2025 to $39.15 billion in 2026 at a compound annual growth rate (CAGR) of 6.2%. The growth in the historic period can be attributed to growth in consumer electronics demand, increasing complexity of integrated circuits, expansion of fabless semiconductor companies, rising need for quality assurance in chip manufacturing, cost advantages of outsourced assembly and testing.

The semiconductor assembly and testing services market size is expected to see strong growth in the next few years. It will grow to $48.43 billion in 2030 at a compound annual growth rate (CAGR) of 5.5%. The growth in the forecast period can be attributed to growth of automotive electronics and EVs, rising demand for advanced nodes and heterogeneous integration, expansion of 5g and high performance computing, increasing investments in semiconductor supply chain resilience, growing adoption of AI and data center chips. Major trends in the forecast period include rising adoption of advanced packaging technologies, increasing demand for high reliability and automotive grade testing, growing outsourcing of assembly and testing services, expansion of wafer level and system in package solutions, increasing automation in semiconductor testing processes.

The semiconductor assembly and testing services market is poised for growth due to the increasing demand for consumer electronics. Consumer electronics are devices designed for end-users for personal use, driven by rising disposable incomes, evolving lifestyles, urbanization, and the growth of e-commerce platforms. These services are crucial for providing reliable semiconductor components that power devices such as smartphones, tablets, laptops, wearables, and smart home appliances. For example, in May 2023, the Japan Electronics and Information Technology Industries Association reported a significant increase in consumer electronics production, from $161.17 million (¥25,268 million) in May 2022 to $204.75 million (¥32,099 million) in May 2023, indicating a strong market trend.

Leading companies in the semiconductor assembly and testing services market are prioritizing the development of advanced solutions such as real-time data infrastructure to improve operational efficiency, yield, and time to market. Real-time data infrastructure is a platform that securely gathers, analyzes, stores, and monitors semiconductor test data within milliseconds, enabling automated decision-making and rapid conversion of insights into actionable steps. For example, in December 2023, Advantest Corporation, a Japan-based semiconductor test equipment manufacturer, introduced the ACS RTDI platform, which integrates data sources across the entire IC manufacturing supply chain, provides edge computing analytics in a true zero-trust environment, streamlines data usage across multiple insertions, and supports major data analytics partner applications. This platform enables customers and partners to reduce test time, enhance quality and reliability, and improve smart packaging by addressing systematic final test failures earlier in the process and reducing packaging costs.

In December 2023, Luxshare Precision Industry Co. Ltd., a China-based electronic component manufacturer, acquired the assembly and test facilities of Qorvo Inc. This strategic move allows Luxshare to offer assembly and testing services for Qorvo products, strengthening its position in the market. Qorvo, Inc., a US-based provider of radio-frequency (RF) components, benefits from this partnership by gaining access to Luxshare's expertise in assembly and testing for mobile, infrastructure, and defense applications.

Major companies operating in the semiconductor assembly and testing services market are Powertech Technology Inc., Taiwan Semiconductor Manufacturing Company, Intel Corporation, Micron Technology Inc., ASE Technology Group, QUALCOMM Inc., Amkor Technology Inc., Teledyne Technologies Inc., Jiangsu Changjiang Electronics Technology Co. Ltd., Siliconware Precision Industries Co. Ltd., Tianshui Huatian Technology Co. Ltd, Global Foundries Inc., Integrated Microelectronics Inc., King Yuan Electronics Corp., STATS chipPAC Ltd., ChipMOS Technologies INC., Chipbond Technology Corporation, UTAC Holdings Ltd., Unisem Group, Formosa Advanced Technologies Co. Ltd, Walton Advanced Engineering Inc., Lingsen Precision Industries Ltd., Integra Technologies LLC, Greatek Electronics Inc., CORWIL Technology Corp.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs have impacted the semiconductor assembly and testing services market by increasing costs of imported packaging materials, testing equipment, and precision tools used in backend manufacturing. The effects are most pronounced in asia pacific manufacturing hubs and north american automotive and computing segments that rely on cross border supply chains. Higher duties have pressured margins and extended turnaround times. However, tariffs have also encouraged regional diversification, local capacity expansion, and long term investments in domestic assembly and testing capabilities.

The semiconductor assembly and testing services market research report is one of a series of new reports that provides semiconductor assembly and testing services market statistics, including semiconductor assembly and testing services industry global market size, regional shares, competitors with a semiconductor assembly and testing services market share, detailed semiconductor assembly and testing services market segments, market trends and opportunities, and any further data you may need to thrive in the semiconductor assembly and testing services industry. This semiconductor assembly and testing services market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Semiconductor assembly and testing services involve the assembly of individual semiconductor components into complete integrated circuits (ICs) or chips, followed by testing to ensure functionality, reliability, and quality assurance. These services play a critical role in the semiconductor manufacturing supply chain, ensuring that semiconductor devices meet performance specifications and quality standards prior to being shipped to customers.

The primary services provided in semiconductor assembly and testing include assembly and packaging services, along with testing services. Assembly services involve combining multiple small shipments into a single one for shipping or transportation purposes. Various packaging technologies are utilized, including flip-chip, wire bond, and other packaging technologies tailored to end-use industries such as telecommunications, computing, networking, consumer electronics, industrial applications, automotive electronics, and more.Asia-Pacific was the largest region in the semiconductor assembly and testing services market in 2025. The regions covered in the semiconductor assembly and testing services market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the semiconductor assembly and testing services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The semiconductor assembly and testing services market consist of revenues earned by entities by providing services such as wafer-level packaging (WLP), chip-on-board (COB), system-in-package (SiP), and final testing. The market value includes the value of related goods sold by the service provider or included within the service offering. The semiconductor assembly and testing services market also includes sales of assembly equipment, testing equipment, packaging equipment, and metrology and inspection equipment. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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