GIA reports chip manufacturing drives demand for ATE

March 30, 2014 (PRWEB). Demand for semiconductor ATE is intrinsically linked to the level of semiconductor fabrication activity, which in turn is largely influenced by the health of the global electronics industry. After a major setback during the 2007-2009 recession, the global semiconductor ATE market made a strong rebound in the year 2010. The recovery soon after was however marred by weak financial climate in Europe and natural calamities in Japan, which disrupted the global supply chain. Rising cost of production, price sensitive end-use markets and the resulting shrinking profit margins accelerated the consolidation trend among semiconductor ATE vendors.

However, steadily recovering global economic growth, strong gains in manufacturing, and PMI (purchasing manager's index) performance are expected to drive growth in the coming years, according to a new report by Global Industry Analysts Inc. Need for additional capacity, as a result of increased outsourcing of fabrication activity, is resulting in increased investments in new fab constructions in Asia, which in turn is expected to drive demand for semiconductor ATE.

Fabrication companies are under constant pressure to employ latest technology to design and manufacture advanced ICs to meet the complexity challenges of silicon chips as they grow in performance in parallel with the Moore’s Law. Semiconductor ATE, under this scenario, is assuming increasing importance. The software-centric approach to automated testing is expected to emerge as a game changer in the ATE industry, with vendors increasingly using software as a tool for differentiating product offerings. Miniaturization, digitalization, and high-speed computing represent trends in the electronics industry, which are benefiting the market for semiconductor ATE. Increase in demand for ASICs and NAND flash memory devices as a result of growing adoption of tablet PCs and smartphones, increase in DRAM sales in line with resurgence in demand for PCs also continues to induce strong demand for semiconductors and semiconductor production equipment including ATE.

Boundary-scan (BS) ATE, also known as BS controllers, and functional ATEs are driving growth in the PCB ATE market. The telecom industry is currently a hotbed for innovation, with demand for testing instruments anticipated to rise supported by increased R&D spending on wireless technologies for next-gen solutions. Robust demand for SoCs for use in portable communication devices is additionally anticipated to continue to spur growth in the global semiconductor ATE market. FPGA-based DSP is fast becoming a mainstay for advanced RF test equipment with user-programmable measurement algorithms on FPGA expected to take test-and-measurement instruments to the next level. PLX and other on-chip testing technologies are gaining popularity among fabricators across the globe.

As stated by the new market research report on Semiconductor Automated Test Equipment (ATE), Taiwan represents the single largest regional market worldwide. The country also represents one of the fastest growing markets with a CAGR of 7.2% over the analysis period.

Major players covered in the report include Advantest, Aeroflex, AMC Technology LLC, Astronics Test Systems, Chroma ATE, CREA (Collaudi Elettronici Automatizzati S.r.l.), LTX-Credence, Marvin Test Solutions, National Instruments, Roos Instruments, STAr Technologies, and Teradyne.

The research report titled “Semiconductor Automated Test Equipment (ATE): A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, growth drivers, technological trends, major challenges, mergers, acquisitions and other strategic industry activities. The report provides market estimates and projections for major geographic markets including the US, Japan, Europe, China, South Korea, Taiwan, and Rest of World.

For more details about this comprehensive market research report, please visit http://www.strategyr.com/Semiconductor_Automated_Test_Equipment_ATE_Market_Report.asp.

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