Canadian Manufacturing

Semiconductor automated testing equipment to reach US$6B by 2026: report

Need for cost-efficient testing to increase profit margins and boost growth opportunities for semiconductor test equipment, finds Frost & Sullivan

March 11, 2020  by CM Staff

PHOTO: Frost & Sullivan

A confluence of macroeconomic and end-user trends, combined with cyclical fluctuations in the semiconductor industry, saw the global semiconductor automated testing equipment (ATE) market post a sharp decline in revenues in 2019, according to Frost & Sullivan.

However, a recent analysis by the research firm forecasts that revenues from the sector will grow at a compound annual growth rate (CAGR) of 3.7% between 2019 and 2026 to reach US$6 billion.

“There is a need for adjusting the product portfolio to integrate advanced test solutions and augment low-cost testing methodologies,” said Riti Newa, research associate, industrial at Frost & Sullivan, in a statement. “Next-generation testing requires innovation and technological advancements to accommodate the high requirements of segments such as artificial intelligence (AI), automotive and 5G networks.”

Frost & Sullivan’s latest report examines key market drivers and restraints and presents detailed revenue forecasts through the year 2026. The research also identifies the opportunities for growth in this sector and offers strategic recommendations to leverage them.

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“There is a growing need for advanced ATE and next-generation test solutions to accommodate rising testing requirements for new markets in 5G and AI,” noted Newa. “Growing innovation in areas of AI, automotive and 5G communication is boosting the production of high-end IC chips and other semiconductor equipment, which can potentially renew the market demand for ATE.”