The worldwide semiconductor assembly and test services (SATS) market totaled $24.5 billion in 2012, a 2.1 percent increase from 2011, according to final results from Gartner, Inc.
"After experiencing relatively mild 1.8 percent growth in 2011, the SATS market remained in a slow-growth mode for 2012," said Jim Walker, research vice president at Gartner. "Weakness in the PC market, which started in 2011 and carried into 2012, and lower overall consumer demand were contributors to the slow growth. This weak demand for semiconductor devices resulted in inventory buildup for much of the year."
ASE remained No. 1, with revenue of $4.4 billion (see Table). Packaging accounted for 80.5 percent of the company's total assembly/test/materials (ATM) revenue. As the No. 2 vendor, Amkor Technologies' 2012 total revenue was down slightly (0.6 percent), at $2.8 billion, due partially to the aggressive strategy in the copper wire-bonding transition by ASE, SPIL and others. Third-place SPIL was able to achieve revenue of $2.2 billion, with 90 percent of the revenue from packaging and 10 percent from test. At No. 4, STATS ChipPAC is the last of the top four broad-based package supplier companies in Gartner's top five. In the fifth spot, Powertech Technology (PTI) is differentiated from the others in that the majority of its revenue comes from servicing the memory segment of the semiconductor market.