Driven by the development of mobile devices, the worldwide IC packaging and testing industry saw a significant growth in 2014. With leadership in technology and production capacity, Taiwanese vendors have enjoyed above-average growth in the worldwide IC packaging and testing market. According to MIC (Market Intelligence & Consulting Institute), the Taiwanese IC packaging and testing industry led the world with a market share of 51.6% in 2014, and is further expected to rise to 52.2% in 2015.

Worldwide IC Packaging and Testing Market Share by Region, 2012 – 2015

Source: Respective companies, compiled by MIC, September 2015

While the United States remain at the second position with a 12% share in 2014, China is catching up fast. China’s market share reached 8.7% in 2014, on par with Japan and Singapore. With the Chinese government’s support for local supply chain, Chinese IC packaging and testing vendors has benefited from a constant increase in shipment value of China’s IC design and manufacturing industry.

"In addition, the expansion of some foreign-invested or joint ventures between foreign and Chinese companies in China has raised the bar for the Chinese IC packaging and testing industry, driving up Chinese vendors' competitiveness. China's largest IC packaging and testing firm JCET acquired Singapore's largest counterpart STATS ChipPAC in late 2014," says Hui-Chung Tu, semiconductor analyst with MIC. "The acquisition will enhance China's competitive edges in the IC packaging and testing market as STATS ChipPAC has not only held a 6% share of the global market but also developed advanced packaging and testing technologies with a focus on communications products."

The benefits of the acquisition are likely to occur in 2015, boosting China's global market share to 14.7% in 2015. By then, China will overtake the United States to become the world's second largest IC packaging and testing country, next to Taiwan.

To see more about this report, please visit: Worldwide and Taiwanese Semiconductor Packaging & Testing Industry, 2015 and Beyond

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About MIC

Market Intelligence & Consulting Institute (MIC), based in Taipei, Taiwan, was founded in 1987. MIC is Taiwan's premier IT industry research and consulting firm providing intelligence, in-depth analysis, and strategic consulting services on global IT product and technology trends, focusing on markets and industries in Asia-Pacific. MIC is part of the Institute for Information Industry. https://mic.iii.org.tw/english