News

Home page

In 2022, global outsourced packaging and testing grew by 10%, with Tongfu Microelectronics rising to fourth place globally.

Release date:

2023-02-02

Although the global semiconductor market as a whole performed poorly in 2022, coupled with a shortage of semiconductor equipment that led to extended lead times and rising prices—putting significant pressure on the packaging and testing industry—global OSAT companies still delivered an impressive performance despite a slight decline in capacity utilization during the second half of the year.

　　Although the global semiconductor market as a whole performed poorly in 2022, coupled with a shortage of semiconductor equipment that led to extended lead times and rising prices, putting significant pressure on the packaging and testing industry. Additionally, OSAT companies saw a slight decline in their capacity utilization rates in the second half of the year. Nevertheless, global OSAT firms still delivered an impressive performance.

　　The ChipInsights Institute has released its 2022 Global Outsourced Semiconductor Assembly and Test (OSAT) Ranking. The list reveals that the overall revenue of the OSAT industry grew by 9.82% in 2022 compared to 2021, reaching RMB 315.4 billion. Among them, the top 10 companies generated a combined revenue of RMB 245.9 billion, representing a 10.44% increase from 2021. Notably, this ranking excludes revenue from IDMs' in-house testing services as well as testing services provided by pure-play wafer foundries.

　　This year, the biggest change in rankings is that Tongfu Microelectronics surpassed 20 billion yuan in revenue, growing by 30% compared to 2021, and forcing Force Technology to become the world's fourth-largest outsourced semiconductor assembly and test (OSAT) company.

　　Qibang and Nanma both saw their revenues decline in 2022—Qibang experienced negative revenue growth for the first time since 2019, while Nanma has been facing negative revenue growth since 2016.

　　In 2022, industry concentration increased only slightly compared to the previous year. The revenue of the top 10 outsourced packaging and testing companies accounted for 77.98% of OSAT revenue, up 0.43 percentage points from 77.55% in 2021.

　　Among the top 10 outsourced packaging and testing companies, five are based in Taiwan, China (ASE Group, P-Tech, KYEC, ChipMOS Technologies, and Chipbond), accounting for a market share of 39.36%, down 1.22 percentage points from 40.58% in 2021. Meanwhile, four companies are located in mainland China (JCET, TFMC, HUATIAN, and Zhilu Packaging & Testing), with a market share of 24.54%, up 1.01 percentage point from 23.53% in 2021. The United States is represented by one company—Amkor—holding a market share of 14.08%, an increase of 0.64 percentage points compared to 13.44% in 2021.

　　In August 2020, Zilu Capital completed the acquisition of UTAC, a semiconductor packaging and testing company based in Singapore. In January 2021, it finalized the purchase of ASE Technology's bumping business operations in Singapore. Then, in 2022, Zilu Capital acquired four packaging and testing facilities operated by ASE Group on the Chinese mainland—specifically in Suzhou, Kunshan, and Weihai—and rebranded these plants collectively as ASE New Semiconductor. Meanwhile, the Shanghai facility was retained under the name Rirong Semiconductor, which remains a wholly owned subsidiary of ASE New Semiconductor.

　　In recent years, the packaging business has undergone significant changes. Now, IDM companies, foundries, IC substrate suppliers, EMS providers, and even panel manufacturers are all entering the IC packaging and testing market, gradually encroaching on parts of the OSAT market. Meanwhile, advanced packaging is shifting from package substrates to wafer-level solutions—a transformation that presents semiconductor giants like TSMC, Intel, and Samsung with a prime opportunity to showcase their strengths in the cutting-edge packaging arena.

　　TSMC's revenue from advanced packaging is estimated to exceed NT$36 billion in 2022, placing it firmly in third place globally if ranked by outsourced packaging services.

Return to list →