Revenues of the out-sourced assembly and test (OSAT) industry leapt 26.6% y-o-y in Q2 to reach $6.325 billion reports DRAMeXchange.
 
Market leader ASE recorded quarterly revenue of $1.379 billion in 2Q20, an 18.9% increase YoY. Although ASE’s growth in 2Q20 tempered somewhat compared with 1Q20, the company’s upward momentum remained steady, thanks to increased OSAT demand from the 5G telecommunications and consumer electronics industries.

On the other hand, Amkor, SPIL, Powertech, and KYEC benefitted from their increased OSAT capacity for consumer electronics, memory products, and 5G chips. The four companies each registered more than 30% YoY growths in revenue.

Furthermore, these OSAT companies accelerated their shipment schedules in 2Q20, driven by redirected orders resulting from the pandemic and by the September 15th deadline after which U.S.-based OEMs will terminate manufacturing services for Huawei.

Chinese OSAT giants JCET, TSHT, and TFME each saw an estimated near-30% YoY increase in revenue in 2Q20 as a result of high OSAT demand from smartphones, AI chips, and wearables in China, where the pandemic was effectively brought under control.

Finally, ChipMOS and Chipbond each posted a 16.6% and 4.8% YoY increase in revenue in 2Q20. Their performances were mostly attributed to the recovering large-sized display panel demand and sales performances in the retail markets, which led to high LDDI and TDDI capacity utilization rates