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Global SATS market growth slower than expected in 2013: firm

TAIPEI, Taiwan -- Despite growth, the worldwide semiconductor assembly and test services (SATS) market grew slower than expected in 2013, according to Gartner Inc.

The global SATS market totaled US$25.1 billion in 2013, up 2.3 percent from the previous year, the market intelligence and advisory firm said in a research note Friday.

“Japanese yen depreciation against the U.S. dollar resulted in a drastic reduction in Japanese SATS companies' revenue compared with 2012, which impacted the overall growth of the market,” said Jim Walker, research vice president at Gartner.

Another contributing factor was that dynamic random access memory (DRAM) producers increased use of internal manufacturing capability, resulting in tighter capacities and higher utilization rates in 2013, Walker said.

“This, in turn, reduced the need for outsourcing and resulted in lower revenue for the SATS market,” he said.

The top SATS companies continue to distance themselves from the more than 150 companies in the market.

Taiwan-based Advanced Semiconductor Engineering Inc . (日月光) took an 18.9-percent global market share in 2013, followed by South Korea's Amkor Technology at 11.8 percent and Taiwan's Siliconware Precision Industries Co. (矽品精密) at 9.3 percent, according to the report.

Their focus on advanced technologies, including wafer level packaging and flip chip manufacturing, resulted in increased revenues, the report showed.

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