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ASE remains largest IC assembly, test services provider

TAIPEI--Taiwan-based Advanced Semiconductor Engineering Inc. (ASE, 日月光) retained the title as the world's largest semiconductor assembly and testing services (SATS) provider in 2013, according to Gartner.

In a research report, the market information advisory firm said that ASE took an 18.9-percent share of the global integrated circuit packaging and testing services market last year after posting US$4.74 billion in sales, up 10.3 percent from a year earlier.

U.S.-based Amkor Technology Inc. came in second, grasping an 11.8-percent share of the global SATS market after reporting a 7.1-percent year-on-year increase in sales at US$2.96 billion, Gartner said.

Siliconware Precision Industries Co. of Taiwan ranked as the third largest SATS provider in 2013 by posting US$2.34 billion in sales, up 6.8 percent from a year earlier, to enjoy a 9.3-percent share of the market, the advisory firm said.

Singapore-headqauartered STATS ChipPAC Ltd. was the fourth largest provider of the world's SATS market by taking a 6.4-percent share of the market on US$1.60 billion in sales, which fell 6.1 percent from a year earlier, Gartner said.

Powertech Technology Inc., also from Taiwan, ranked as the fifth largest provider of the global SATS market after it posted US$1.27 billion in sales, down 10 percent, to hold a 5.1-percent market share, it added.

According to Gartner, sales in the world's SATS market for 2013 rose 2.3 percent from a year earlier to US$25.1 billion, but the top three providers — ASE, Amkor and Siliconware — "grew faster than the market average, and took market share away from other, lower-ranked companies."

"Their focus on advanced technologies, including wafer level packaging and flip chip, resulted in increased revenue, due to the higher average selling prices of these packages," the advisory firm said.

Gartner said the global SATS market grew slower than expected as the depreciation of the Japanese yen against the U.S. dollar resulted in a reduction of Japanese firms' revenue, which affected global sales growth.

In addition, dynamic random access memory chip makers reduced their outsourcing to outside packaging and testing services providers after raising their internal capability, which made the global SATS market growth slower, Gartner said.

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