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Global semiconductor chip handlers: Projected increase in the adoption of the fabless model by 2020

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Semiconductor chip handlers: Key market research findings

  • Increase in wafer sizes drives market growth
  • APAC dominates the market geographically
  • Key vendors – Seiko Epson Corporation, Multitest, ASM Pacific Technology, Cohu, Advantest, and Boston Semi Equipment

Technavio’s market research analysts predict the global semiconductor chip handlers market to grow at a CAGR of over 4% between 2016 and 2020. The demand for semiconductor chip handlers is augmented by the increase in wafer sizes. The size of silicon wafers has increased remarkably from 100 mm to 300 mm, reducing the manufacturing cost by at least 20%-25%, resulting in a higher demand for testing and chip handlers. During 2015, APAC dominated the global semiconductor chip handlers market by occupying almost 75% of the overall market share. The presence of prominent semiconductor foundries and mobile and consumer electronic device manufacturers are expected to propel growth in the semiconductor chip handlers market in APAC during the forecast period.

The new market research report from Technavio presents a breakdown and analysis of semiconductor chip handler segments based on the end-user.

“Recently, there has been an increase in the number of fabless semiconductor companies and test houses. Several companies are going fabless to minimize the overheads involved in foundry operations and maintenance. Furthermore, chip manufacturers are subcontracting a large number of test equipment to outsourced semiconductor assembly and test providers (OSATs) because of the growing complexity and capital spending involved in the automated test equipment manufacturing process,” says Asif Ghani, Lead Analyst, Semiconductor, Technavio Research.

By 2020, the OSATs segment will account for a market share of almost 63% owing to the growing complexity of ICs, which will require constant upgrading of manufacturing equipment. OSATs make use of IC chip handlers to transfer finished chips to test equipment for final electrical, visual, and other performance tests. The overall growth of the semiconductor industry coupled with the rising costs of packaging and test equipment is expected to create a high demand for automated test equipment along with chip handlers by 2020.

The global semiconductor chip handler market is consolidated with the presence of just a few suppliers. The manufacturing process requires high capital investment. Manufacturers are looking for ways to expand their production capacity and would like to get products to the market as fast as possible. Vendors who can offer cheaper and technologically advanced products will be able to improve their market share during the forecast period. The key vendors in the market include Seiko Epson Corporation, Multitest, ASM Pacific Technology, Cohu, Advantest, and Boston Semi Equipment.

A more detailed analysis is available in the Technavio report, Global Semiconductor Chip Handlers Market 2016-2020.

We can customize reports by other regions and specific segments upon request.

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