Semiconductor Chip Test Handler Market

Market Outlook:

The Global Semiconductor Chip Test Handler Market was valued at USD 945.8 Million in 2022 and is projected to reach USD 1,735.5 Million by 2031, expanding at a CAGR of 7.3% during the forecast period.

A semiconductor chip test handler is the equipment used in the semiconductor industry to automate the testing and handling of semiconductor chips during the manufacturing process. It is designed to facilitate an efficient and accurate testing of chips to ensure their quality and functionality, before they are integrated into electronic devices. This equipment’s are typically used in high-volume production environments to efficiently and accurately handle large quantities of chips. Semiconductor chip test handlers help in the identification of defective semiconductor chips through extensive process of testing and sorting, ensuring that only functional chips move forward to the next stage of production. Moreover, increasing need for automated testing equipment in semiconductor industry for better production efficiency and quality is fueling the market growth in the coming years.

Macro-Economic Factors

GDP

The GDP of a country or region has a substantial impact on the semiconductor chip test handling market. According to the Semiconductor Industry Association, global semiconductor sales increased by 6.6% in 2020, despite a 3.5% decline in global GDP. This size and value imply that the significance of semiconductors in global products and operations, as well as the economy in general, is crucial to executives across industries. Additionally, growing GDP indicates a robust economy with greater consumer spending and technical breakthroughs. This results in increased demand for electronic gadgets, which drives the demand for semiconductor chips. As a result, demand for semiconductor chip test handlers is increasing as manufacturers seek fast testing and sorting methods to ensure chip quality and dependability. Moreover, a high GDP boosts the industry expenditures in R&D, production capacity growth, and infrastructure upgrades, which leads to the purchase of modern testing equipment such as semiconductor chip test handlers. For instance, cars are becoming more digitalized in the automobile sector, and the average car in 2010 included USD 300 value of microchips. This was reached the value around USD 500 in 2022. Therefore, GDP has a considerable impact on the semiconductor chip test handling market because it drives chip demand and the requirement for reliable testing solutions in keeping with economic growth.

Technology Advancement

The technological advancements in semiconductor chip test handling have revolutionized the capabilities of the testing devices. Automation technologies such as robots, artificial intelligence (AI), and machine learning, have enabled the development of highly automated test handlers capable of handling enormous volumes of chips, performing tests with precision, and error minimization. This automation boosts testing efficiency and throughput. Additionally, the significant development made in manufacturing process of semiconductor, together with the rise of connected devices in developing nations and the extension of the IoT network, are driving the semiconductor chip test handler market in the coming years. Furthermore, developments in test algorithms and software enable more advanced testing capabilities, data processing, and reporting, providing precise insights into chip performance. For instance, machine learning is a crucial contribution to the semiconductor industry since it can be used to optimize complex software and hardware systems. As more organizations begin to migrate to data and computing services, semiconductor manufacturers attempt to adapt the chips to specific applications. Overall, technological improvements have moved the semiconductor chip test handling market forward, providing businesses with more efficient, accurate, and dependable testing options.

Government Regulation

Government rules & regulation have a significant impact on the semiconductor chip test handling market, influencing different section of the industry. Safety and environmental rules ensure that hazardous materials are handled and disposed of properly, preserving workers' health and reducing the environmental impact of production processes. For instance, the National Emission Standards for Hazardous Air Pollutants (NESHAP) are a set of emission standards used by the Environmental Protection Agency (EPA) to regulate hazardous air pollution from stationary sources. Additionally, government-mandated quality and certification requirements assure the dependability and conformity to industry norms of test handlers, fostering customer trust and market competitiveness. Furthermore, trade and tariff policies influence global market dynamics, supply chains, and test handler manufacturers' competitiveness, altering pricing and market accessibility. For instance, the United States has released a new set of trade rules that would impede the selling of American-made semiconductor equipment to China in 2020. As a result, telecom and networking giant Huawei Technologies is apparently attempting to encourage TSMC and Samsung to construct an advanced production line that does not employ US-made equipment. Thus, compliance, market access, and the safety, quality of the products in the sector all rely on test handler manufacturers abiding by government regulation.

Market Dynamics

Market Driver- Surge in demand for semiconductor chips from the consumer electronics industry for compact electronic devices

The growing demand for semiconductor chips from the consumer electronics industry has been driven by the rising popularity of compact electronic devices such as smart wearables, smartphones, tablets, and IoT devices. These devices require high-performance chips with advanced functionalities to power their features and provide a seamless user experience. If consumer electronics industry is analyzed, then semiconductor chip is commonly used in smartphones, laptops, and other consumer products, where Analog type semiconductor chips are installed and have a substantial growth rate of 33.1% in the year 2021, and on the other hand, memory chip sales were valued at USD 153.8 billion in the same year. Additionally, microprocessors are included in the category of micro-ICs, which saw a 15.1% increase in sales to USD 80.2 billion in 2021. So, in order to cater to the huge demand from the consumer electronics industry for compact, powerful, and energy-efficient devices, semiconductor chip manufacturers confront enormous challenges in assuring the quality and stability of their processors. This is where semiconductor chip test handlers play a crucial role. The major function of the semiconductor chip test handler is to maintain the quality, reliability, and performance of semiconductor chips through testing, sorting, and quality control procedures to spot any flaws or performance problems in terms of electrical features, power consumption, chip functionality, and overall chip quality in various operating environments. Consequently, effective semiconductor chip test handlers enable manufacturers to satisfy consumer electronics industry expectations while maintaining strict chip quality standards.

Market Driver- Growing need for MEMS systems in the automotive sector, fueling the market demand

The growing need for Micro-Electro-Mechanical Systems (MEMS) in the automotive sector is fueling the demand for semiconductor chip test handlers. Miniature integrated systems known as MEMS devices combine mechanical and electrical components on a single chip. These devices have several uses in the automobile sector, such as tyre pressure monitoring systems, motion sensors, accelerometers, gyroscopes, and other electronic devices. Furthermore, if the automobile production trend is analyzed, then the automobile production shows that around 85 million motor vehicles has been produced worldwide in the year 2022, which is 6% production increment from the previous year. In order to fulfill the large demand from automotive industry, the MEMS producers are also fueling the production volume. And hence, the growing usage of MEMS devices in the automobile industry is pushing up demand for semiconductor chip test handlers. Automotive MEMS devices usually demand the employment of specialized testing techniques and approaches due to their distinct functionality and performance requirements. Configuring semiconductor chip test handlers will allow for the special testing needs of automotive MEMS systems. Due to its versatility, MEMS devices can be created to meet the specifications of the automotive sector by allowing manufacturers to conduct specialized tests, such as functional and durability tests.

Due to continued advancements in ADAS, IoT device integration, and autonomous driving technologies, MEMS application in the automotive sector is anticipated to increase in the upcoming years. Therefore, the market for semiconductor chip test handlers is expected to grow in the next years as manufacturers strive to meet the rising production demand with the highest quality automotive MEMS devices.

Market Restraint- High Capital investment in installing test handler for SMBs

It is difficult for small and medium-sized businesses (SMBs) to invest the required capital to install semiconductor chip test handlers, which is expected to restrain the market growth in the coming years. SMBs have a restricted budget and unable to deploy a sizeable amount of their capital on purchasing and maintaining sophisticated semiconductor chip test handler. The expenses related to test handling include the equipment's purchase/leasing, installation fees, maintenance and calibration charges, and equipment operating staffs’ training. These expenses are collectively significant for SMBs, which can exceed the immediate advantages of having a test handler. Additionally, SMBs generally do their business on a lower scale. They do not need as many chips or have the same production demands to rationalize the expense of a specialized semiconductor chip test handler, as the cost per unit tested may not be as profitable. Furthermore, continuous investments in updating and remaining current with recent test handler technologies are necessary to keep up with semiconductor technology advancements. This presents a major challenge for SMBs with limited resources. To overcome these challenges, SMBs contract with third-party testing service providers to handle their chip testing needs. Since these service providers have the infrastructure and expertise to meet chip testing requirements, they provide affordable solutions without forcing SMBs to invest in their own test handlers. Due to the significant financial investment needed for semiconductor chip test handling, SMBs, however, find it challenging to enter the semiconductor business. Small firms find it difficult to compete with established, larger organizations that have enormous money to invest in cutting-edge testing equipment. As a result, one of the main obstacles to entering the semiconductor sector is the significant capital expenditure required to install test handler for SMBs.

Market Opportunity - Increased spending on production capacity enhancement and integration of automation

Increasing spending on improving production capacity and the incorporation of automation is anticipated to offer a lucrative opportunity for semiconductor chip test handler market in the coming years. As semiconductor makers invest in constructing new manufacturing facilities and increasing throughput in already existing ones, efficient and reliable chip testing and sorting become crucial. Additionally, semiconductor chip test handlers help manufacturers to cater the demand for increased production capacity by assuring the quality and dependability of the chips produced. Furthermore, the manufacture of semiconductors is changing as a result of the incorporation of automated technology. The handling, moving, manufacturing, testing, and assembly of materials, among other basic to sophisticated automated processes, have experienced significant advancements over the past few decades and have been crucial in reducing the number of defective parts per million (DPPM). Automated semiconductor chip test handlers are able to handle large numbers of chips, carry out testing operations more quickly and accurately, and reduce error. This automation integration enhances the consistency and reproducibility of test results while also increasing overall throughput. Moreover, the ability to produce semiconductors is projected to grow by 10 to 20% globally in the coming years. Therefore, in order to achieve decreased defectivity, contemporary method is required for all improved facilities. On the other hand, reliability and quality control are crucial elements that are generating enormous opportunity for semiconductor chip test handlers. Automated test handlers also perform tests accurately, adhere to established protocols, and minimize human error. This level of accuracy ensures that only high-quality chips are included into electrical goods by strengthening the quality assurance process. Test handlers for semiconductor chips contribute to bettering the overall performance and dependability of electronic equipment, as well as to increasing consumer dependence on goods.

Scope of the Report

The report on the Global Semiconductor Chip Test Handler Market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Attributes	Details
Report Title	Semiconductor Chip Test Handler Market – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast
Base Year	2022
Historic Data	2016-2021
Forecast Period	2023-2031
Segmentation	by Product (Gravity Handlers, Turret Handlers, Pick-and-Place Handlers, Strip Handlers), by Application (Outsourced semiconductor assembly and test provider (OSAT), Integrated device manufacturers (IDM))
Regional Scope	Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
Report Coverage	Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
Key Players Covered	ADVANTEST CORPORATION, ASMPT, Boston Semi Equipment, Chroma ATE Inc., Cohu,Inc, ENGMATEC Gmbh, HON.PREC, NS Technologies Inc., Pentamaster, SPEA S.p.A., SRM Integration (M) Sdn. Bhd, SYNAX CO.,LTD., TechWing, Inc., TESEC Corporation, Tokyo Weld Co., Ltd., UENO SEIKI CO.,LTD., and YoungTek Electronics Corp.

 

Segmental Outlook

The Global Semiconductor Chip Test Handler Market is segmented on the basis of by Product, and by Application.

Based on product, the Global Semiconductor Chip Test Handler Market is segmented into gravity handlers, turret handlers, pick-and-place handlers, and strip handlers. The gravity handlers segment is expected to hold a significant market share during the forecast period. The growing need for progressive packaging techniques such as fan-out wafer-level packaging (FOWLP), system-in-package (SiP), and 3D packaging is a key trend. This demand is pushing the need for efficient handling and testing systems, such as gravity handlers, that can test chips in these sophisticated package designs accurately and reliably. Another major trend in the gravity handlers segment is the incorporation of automation and robots. Gravity handler manufacturers are combining automation and robotics technology to improve handling speed and precision.

Based on application, the Semiconductor Chip Test Handler market is segmented into outsourced semiconductor assembly and test providers (OSAT), and integrated device manufacturers (IDM). The outsourced semiconductor assembly and test providers (OSAT) segment is projected to expand at a rapid pace during the forecast period. An increasing number of fabless semiconductor businesses, as well as some IDMs, have decided to outsource the manufacturing and testing of their semiconductor chips to specialized OSAT providers. Therefore, companies can concentrate on their core capabilities, cost reduction and get access to OSATs' resources and experience by outsourcing these activities.

Regional Outlook

Based on regions, the market is classified as North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

The market in Asia Pacific is projected to expand at a significant CAGR during the forecast period. In the coming years, Asia Pacific is expected to be the highest revenue-generating region in the global market. The availability of key resources such as land and labor to establish manufacturing facilities in countries such as India and China might contribute to the region's rise to control the global market.

Key Benefits for Industry Participants & Stakeholders

• In-depth Analysis of the Global Semiconductor Chip Test Handler Market

• Historical, Current, and Projected Market Size in terms of Value and Volume

• Potential & Niche Segments and Regions Exhibiting Promising Growth Covered

• Industry Drivers, Restraints, and Opportunities Covered in the Study

• Recent Industry Trends and Developments

• Competitive Landscape & Strategies of Key Players

• Neutral Perspective on Global Semiconductor Chip Test Handler Market

Segments

By Product

• Gravity Handlers
• Turret Handlers
• Pick-and-Place Handlers
• Strip Handlers

By Application

• Outsourced semiconductor assembly and test provider (OSAT)
• Integrated device manufacturers (IDM)

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Key Market Players Profiled in the Report

• ADVANTEST CORPORATION
• ASMPT
• Boston Semi Equipment
• Chroma ATE Inc.
• Cohu,Inc
• ENGMATEC Gmbh
• HON.PREC
• NS Technologies Inc.
• Pentamaster
• SPEA S.p.A.
• SRM Integration (M) Sdn. Bhd
• SYNAX CO.,LTD.
• TechWing, Inc.
• TESEC Corporation
• Tokyo Weld Co., Ltd.
• UENO SEIKI CO.,LTD.
• YoungTek Electronics Corp.

Competitive Landscape

• Top players in the market include TechWing, Inc., ASMPT, Chroma ATE Inc., ADVANTEST CORPORATION, Cohu, Inc

• These companies are considered key providers of Semiconductor Chip Test Handler based on their revenue, offerings, regional presence, and value chain management system.

• The players are adopting key strategies such as acquisition, collaborations, and geographical expansion where potential opportunities for Semiconductor Chip Test Handler Market.