The global OSAT market is growing significantly, reaching US$40 billion in 2023, and Chinese enterprises are showing impressive performance.
The concentration of semiconductor OSAT industry in the world is obvious. The market is mainly occupied by enterprises in Taiwan and mainland China. The top ten OSAT enterprises in the world account for about 80% of the market. Among them, solar and moonlight silicon products are the leading enterprises in OSAT industry. In 2018, the revenue of the solar and moonlight silicon sealing industry reached 9.844 billion US dollars, accounting for about one third of the global market.
Semiconductor market tends to show a certain periodicity. From 2016 to 2018, the global market of sealed-up OEMs grew significantly. From the second half of 2018, market growth began to show a certain degree of weakness. In the first quarter of 2019, the operating income of Sunlight Holdings was lower than expected. Asiatic Consulting believes that, benefiting from the impact of the Tokyo Olympic Games in 2020 and the Beijing Winter Olympic Games in 2022, the semiconductor industry is expected to begin to recover in the second half of 2019, showing a higher growth trend in the next few years, and the global OSAT market is expected to reach US$40 billion in 2023.
Data Source: Asiatic Consultation
Statistics and Forecast of the Top Ten OSAT Enterprises in the World ($100 million)
Data Source: Asiatic Consultation
Note: Sunshine, Moonlight and Silicon are listed separately in the table.
China's semiconductor sealing and testing market is growing rapidly, with more than 120 sealing and testing enterprises.
According to the statistics of China Semiconductor Industry Association, from 2009 to 2018, the scale of integrated circuit sales in China increased from 110.9 billion yuan to 653.2 billion yuan, with an average annual compound growth rate of 21.78%, of which 33.59% was sealed, reaching 219.39 billion yuan. Asiatic Consulting expects that China's semiconductor sealing Market (including IDM) will exceed 400 billion yuan in 2023.
Data Source: China Semiconductor Industry Association, Asiatic Consulting
Compared with IC design and wafer manufacturing, sealing industry has the advantages of less investment and faster construction. With cost and geographical advantages, China has developed semiconductor sealing industry rapidly in recent years. A large number of foreign-funded enterprises have transferred their capacity to the mainland or built new capacity in the mainland. In addition, China's semiconductor sealing and testing enterprises have sprung up like mushrooms after a spring rain. According to Asiatic Consulting Statistics, China's semiconductor packaging enterprises have reached 121, and China's semiconductor sealing and testing enterprises have ushered in a golden period of development.
Advanced packaging has become a strategic highland for major manufacturers to compete for. Fan-out packaging technology is a hot topic.
With the acceleration of 5G, IoT, AI and other emerging fields, the required size of the chip is becoming smaller and smaller, while the variety of the chip is increasing, and the number of I/O pins is also greatly increased. Advanced packaging technologies, such as 3D packaging, TSV, FOWLP, SIP and so on, have become the strategic plateau contested by major global manufacturers. According to Yole Development, in 2017, the global advanced packaging market was close to 25 billion US dollars, with solar and moonlight silicon products accounting for 19.3% and Intel accounting for 12.4%. China's leading sealing and testing company, Changdian Science and Technology, accounted for 7.8% and ranked third in the world.
From the point of view of market growth, fan-out packaging technology and TSV technology are growing rapidly, especially fan-out packaging technology. In recent years, many enterprises around the world actively layout fan-out packaging, and carry out related research and development and production work.
On April 22, 2019, according to Korean media reports, Samsung Electronics will acquire the semiconductor Fan Out Panel Packaging (FOPLP) business of Samsung Motor. The two sides have completed the agreement to acquire the FOPLP project. Although Samsung hasn't announced the deal publicly yet, fan-out packaging has become a hot spot in the advanced packaging field, which is an obvious trend.