Buoyed by the end of semiconductor inventory adjustments and a rebound in restocking demand, global outsourced semiconductor assembly and test (OSAT) revenue reached US$41.2 billion in 2024, marking a 5% year-on-year increase. Looking ahead to 2025, revenue is forecast to grow to US$43.4 billion, with AI chips and memory packaging and testing serving as the primary growth drivers.
However, geopolitical tensions have led non-Chinese electronics supply chains to accelerate procurement, which may weigh on semiconductor demand in the second half of 2025. Additionally, supported by self-sufficiency policies, Chinese OSAT vendors continue to gain market share, narrowing the gap with their Taiwanese counterparts at an accelerating pace, according to DIGITIMES
DIGITIMES data shows that global OSAT revenue reached US$41.2 billion in 2024, a 5% increase from the previous year. This growth was primarily driven by a recovery in IC packaging and testing demand, as electronics and semiconductor supply chains accelerated procurement to hedge against geopolitical risks following the end of semiconductor inventory adjustments.
Top-5 OSAT players saw inventory adjustment cycle return to pre-pandemic level in 4Q24
Chart 1: Inventory turnover days of global top-5 OSAT players, 1Q20-1Q25 (days)
Chinese OSAT player shares rise slightly in 2024; Hana Micron at 8th
Taiwan, US market shares dip in 2024, but China, Korea climb
Taiwan, China market share gap shrinking due to keen China semi supply chain orders
Chart 5: Taiwan, China share of global OSAT market , 2020-2024
IMF, World Bank cut economic outlook, reflecting geopolitical risks
Smartphone, NB 2025 shipment forecast lowered due to geopolitics
B300 to surpass B200 in shipments as GB300 Compute Tray returns to Bianca architecture
Chart 9: Inventory turnover days of major Taiwan, China IC designers, 1Q23-4Q24 (days)
