LONDON The global semiconductor contract assembly and test services (SATS) market grew by 26.5 percent in 2006 and reached $19.2 billion according to Gartner, Inc. Outsourcing's share rose to 43.5 percent of the total semiconductor packaging market.
Advanced Semiconductor Engineering (ASE) Group remained the leading provider of assembly and test services, and with a 15.8 percent share became the first SATS provider to exceed $3 billion in revenues in a calendar year.
Amkor Technology grew the fastest among the top three companies, growing more than 30 percent to sales of $2.7 billion, representing a 14.2 share of the market.
SPIL retained third position, with a 9 percent share, followed by STATS ChipPAC (8.4 percent) and UTAC with 3.3 percent. The remaining suppliers shared 48.6 percent of the total.
UTAC's figure of $638 million includes the revenues from the acquisition of NS Electronics, Bangkok in 2006, and propels the group from 7th position in 2005 to fifth for 2006.
"SATS market growth was greater than overall semiconductor growth again in 2006, reflecting the ongoing increased used of outsourcing services resulting from the dynamic expansion in chip scale packages (CSPs), flip-chip packages, system-in-package (SiP) and 3-D assembly," said Jim Walker, research vice president for Gartner's semiconductor manufacturing and design research group.