WBG Semiconductors OSAT Market Report

The business development of the wide band gap (WBG) semiconductors is playing a major role in propelling the growth of the wide band gap components outsourced semiconductor assembly and test market. WBG materials such as SiC and GaN are being increasingly favored over conventional silicon components as they can support higher temperatures, voltages, and frequent operations. These characteristics render wide band gap materials especially appropriate for high power consuming and highly productive devices, including electric vehicles, green energy systems, and advanced industrial equipment. Consequently, there has been a growing demand for these assembly and test services to accommodate the packaging and testing of these sophisticated material components.

For instance, in the motor vehicle sector, silicon carbide components are being used in power electronics to ensure maximum electric car performance. Their potential to make the best use of the energy efficiency of powertrain systems and increase the travel range of electric vehicles is boosting demand for those devices. This is a trend reflected in the increased use of these components by leading vehicle producers such as Tesla and General Motors for their electric models. As these makers increase production, they lean on assembly and test service firms to offer critical services like die sorting, packaging, and testing to guarantee the reliability of the semiconductors.

In addition, wide band gap devices are affecting the green energy sector since they are increasingly being used in power conversion units for solar inverters and wind turbine controllers. Their higher efficiency and thermal robustness allow more compact and reliable power electronics necessary for maximizing energy generation and supply. For instance, businesses such as Cree and Wolfspeed have created silicon carbide products designed for power conversion in green energy uses. As the green energy market expands, the demand for specialized components assembling and testing solutions is fuelling the expansion of the outsourced semiconductor assembly and test sector. Additionally, the advent of 5G technology is compelling the demand for gallium nitride semiconductors that offer critical high productivity and power management capabilities to future telecom infrastructure.

Gallium nitride devices are used in base station equipment and RF power amplifiers to enable quicker and more secure data transmission. The global 5G network rollout has resulted in a growing demand for OSAT services dedicated to semiconductor component assembly and testing, thus driving market growth further. The WBG semiconductor OSAT industry takes advantage of these developments in a number of sectors with firms such as ASE Group, Amkor Technology, and JCET Group offering bespoke assembly and test solutions. The firms are capitalizing on the demand for high-performance and efficient wide band gap packaging to address increasing needs from the automotive, renewable energy, and telecommunication sectors.

Innovative packaging solutions for high-power applications are revealing considerable prospects in the WBG semiconductor OSAT market, propelled by the rising use of SiC and GaN power devices in sectors of electric vehicles, renewable energy, 5G infrastructure, and aerospace. Conventional wire-bond packaging faces challenges in meeting the thermal and electrical performance requirements of WBG semiconductors, resulting in the emergence of chip-scale packaging, flip-chip, embedded die, and power module integration. Amkor Technology created flip-chip-on-leadframe (FCOL) and system-in-package solutions to enhance the power density and thermal management of SiC and GaN components employed in EV inverters and onboard chargers.

The packaging of power modules is a crucial innovation domain, necessitating direct-bonded copper and active metal brazed substrates for SiC MOSFET modules to ensure efficient heat dissipation. The JCET Group is putting resources into double-sided cooling module packaging, improving reliability for power systems in industrial and automotive applications. In data centres, power conversion modules based on GaN are taking the place of conventional silicon options as firms such as Qorvo and Infineon create high-frequency GaN system-in-package solutions for power supplies. In aerospace and defense, radiation-resistant WBG packaging is crucial for reliable applications, with DARPA sponsoring the development of next-generation GaN RF modules.

Additionally, the demand for 3D heterogeneous integration is increasing as OSAT companies integrate multiple WBG components, passive elements, and cooling solutions into compact modules. SkyWater Technology and Wolfspeed are developing SiC/GaN power modules with integrated passive devices for satellites and high-power radar systems. Similarly, automotive-grade SiC module packaging, such as Infineon’s CoolSiC modules, is being widely adopted by Tesla, BYD, and other EV manufacturers, creating opportunities for OSAT providers specializing in power semiconductor integration. As power electronics continue to push performance boundaries, advanced packaging innovations will remain a critical growth driver for the WBG semiconductor OSAT market.

• IDMs are increasingly adopting vertical integration strategies within the WBG semiconductor market.
• WBG semiconductor companies are expanding their geographic presence in the Asian market.
• The rising adoption of multi-chip packaging is driving WBG semiconductor innovations.
• Advanced packaging facilities for wide band gap semiconductors are expanding globally to meet demand.
• Growth in Fan-Out Wafer-Level Packaging (FOWLP) is boosting WBG semiconductor development.

The wide band gap semiconductor outsourced semiconductor assembly and test market faces major difficulties due to high manufacturing and packaging complexity, along with the manufacturing costs as SiC and GaN power devices necessitate specialized assembly, testing, and thermal management solutions. In contrast to conventional silicon semiconductors, SiC and GaN chips function at elevated voltages, temperatures, and switching frequencies, requiring sophisticated packaging methods such as chip-scale packaging, direct-bonded copper substrates, and double-sided cooling systems.

The implementation of silver sintering, high-thermal conductivity die-attach substances, and modern encapsulation methods raises production intricacy and expenses. For instance, the expense of packaging SiC power modules may exceed 20-30% more than that of conventional silicon IGBT modules due to the requirement for materials with enhanced thermal conductivity and specific bonding techniques.

OSAT providers must invest heavily in advanced manufacturing capabilities, such as flip-chip bonding, wafer-level packaging (WLP), and heterogeneous integration, to meet industry demands. The JCET Group and Amkor Technology have expanded power module packaging facilities to accommodate SiC MOSFET and GaN RF devices, but the high cost of equipment, such as plasma dicing tools and high-precision wire bonders, adds to capital expenditures. For instance, setting up an advanced SiC packaging facility requires an investment exceeding US$ 500 million. Similarly, the need for cleanroom environments, precision handling equipment, and stringent quality control measures further escalates operational expenses for OSAT firms.

In addition, testing and reliability qualification introduces additional complexity and expenses for wide band gap semiconductors graded for automotive and aerospace applications particularly, which are required to meet AEC-Q101 and MIL-STD-883 standards. High-power cycling and thermal shock evaluations are essential for guaranteeing device durability, yet the specialized testing apparatus for wide band gap semiconductors is priced two to three times higher than standard silicon testers. This financial strain, coupled with qualification cycles reaching up to twenty-four months for automotive applications, puts pressure on the profitability of OSAT firms dealing with wide band gap semiconductors. With the increasing demand for high-power silicon carbide and gallium nitride modules, ensuring cost efficiency and manufacturing scalability continues to be a significant challenge for the WBG semiconductor OSAT sector.

As the WBG semiconductor market is in the development phase, many major players are trying to stay ahead of the competition through innovative technologies, expanding business units, collaborations, and mergers. For instance, in April 2024, the Wide Bandgap (WBG) Strategic Business Unit at Carsem announced that the company’s vision is to take the WBG semiconductor business to US$ 1 billion and beyond. The company is expanding factories in Malaysia to address the growing demand for high-power (WBG) packaging and automotive sensors and in China to cater to the rising demand, essentially high power, from the automotive sector.

Additionally, in January 2025, Forge Nano, Inc. declared the accomplishment of its new semiconductor cleanroom. The 2,000 sq. ft cleanroom allows Forge Nano to produce numerous commercial TEPHRA ALD cluster tools to accommodate mounting apparatus demand from the semiconductor market. Similarly, in July 2024, Forge Nano, Inc., a leading ALD equipment provider and materials science company, further expanded into the semiconductor market with the unveiling of its new Atomic Layer Deposition (ALD) product offering, Forge Nano’s new single-wafer ALD cluster platform. Similarly, in June 2024, Alpha and Omega Semiconductor Limited announced the expansion of their package portfolio options available for their second-generation 650V to 1200V αSiC MOSFETs.

The Asia-Pacific area, especially Southeast Asian nations and China, is pivotal in the outsourced semiconductor assembly and test market for wide band gap semiconductors, fueled by robust manufacturing ecosystems, governmental backing, and increasing demand for energy-efficient electronics. Taiwan hosts ASE Technology Holding and Powertech Technology Inc., two major OSAT providers globally, focused on packaging power modules in silicon carbide and gallium nitride for electric vehicles, 5G infrastructure, and renewable energy uses. China, backed by government-endorsed semiconductor programs and firms such as JCET Group, is enhancing local OSAT abilities, especially for automotive-grade SiC MOSFETs and GaN RF devices, with investments surpassing US$ 1.5 billion in new packaging plants.

Southeast Asia is emerging as a major OSAT hub due to its cost-effective labor and expanding semiconductor infrastructure. The Philippines hosts major OSAT facilities from Amkor Technology in Laguna and PSi Technologies, specializing in power semiconductor assembly for industrial and automotive applications. Vietnam and Thailand are attracting investments from Foxconn and UTAC Holdings for advanced SiC/GaN module assembly, while Indonesia is strengthening its semiconductor supply chain with plans for localized packaging plants. The region benefits from proximity to raw material suppliers, strong trade agreements, and growing demand for high-power electronics, positioning it as a key WBG OSAT manufacturing base.

The United States is bolstering its WBG semiconductor OSAT abilities, propelled by government support, increasing EV usage, and defense needs. Firms such as Amkor Technology and Integra Technologies are broadening their SiC and GaN packaging options, especially for the automotive, aerospace, and 5G sectors. With more than US$ 52 billion in financing from the CHIPS Act, OSAT providers are enhancing local advanced packaging capabilities. Wolfspeed, a major producer of SiC wafers, allocated approximately US$ 5 billion toward a facility in North Carolina, generating prospects for local OSAT services.

Moreover, SkyWater Technology and Qorvo are creating GaN-on-Si packaging solutions for RF and power uses. Furthermore, the U.S. defence industry is boosting the demand for radiation-resistant WBG semiconductor packaging, supported by DARPA funding for next-generation high-power module assembly.

The report provides a detailed overview of the WBG semiconductors OSAT market insights in regions including North America, Latin America, Europe, Asia-Pacific and the Middle East and Africa. The country-specific assessment for WBG semiconductors OSAT market has been offered for all regional market share, along with forecasts, market scope estimates, price point assessment, and impact analysis of prominent countries and regions. Throughout this market research report, Y-o-Y growth and CAGR estimates are also incorporated for every country and region, to provide a detailed view of the WBG semiconductors OSAT market. These Y-o-Y projections on regional and country-level markets brighten the political, economic and business environment outlook, which are anticipated to have a substantial impact on the growth of the WBG semiconductors OSAT market. Some key country and region included in the WBG semiconductors OSAT market report as follows:

• WBG semiconductor OSAT market detailed segments and segment-wise market breakdown
• WBG semiconductor OSAT market dynamics (Recent industry trends, drivers, restraints, growth potential, opportunities in WBG semiconductors OSAT industry)
• Current, historical, and forthcoming 10-year market valuation in terms of WBG semiconductors OSAT market size (US$ Mn), share (%), Y-o-Y growth rate, CAGR (%) analysis
• WBG semiconductor OSAT market demand analysis
• WBG semiconductor OSAT market regional insights with region-wise market breakdown
• Competitive analysis – key companies profiling, including their market share, product offerings, and competitive strategies.
• Latest developments and innovations in WBG semiconductor OSAT market
• Regulatory landscape by key regions and key countries
• WBG semiconductors OSAT market sales and distribution strategies
• A comprehensive overview of the parent market
• A detailed viewpoint on WBG semiconductor's OSAT market forecast by countries
• Mergers and acquisitions in WBG semiconductors OSAT market
• Essential information to enhance market position
• Robust research methodology