5G, AI chip manufacturing to spur semiconductor test volumes, demands

March 13, 2020 //By Rich Pell
5G, AI chip manufacturing to spur semiconductor test volumes, demands
A new report from market research firm Frost & Sullivan finds that the advent of 5G and AI chip manufacturing increases the need for advanced automated semiconductor testing equipment (ATE) systems.

A surge in semiconductor test volumes and stringent test demands from the communication, consumer electronics, automotive, and healthcare verticals are expected to revive the ATE industry, says the firm, after it saw a decline in 2019. The 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 $6 billion.

"There is a need for adjusting the product portfolio to integrate advanced test solutions and augment low-cost testing methodologies," says Riti Newa, Research Associate, Industrial at Frost & Sullivan. "Next-generation testing requires innovation and technological advancements to accommodate the high requirements of segments such as artificial intelligence (AI), automotive, and 5G networks."

The report explores the trends and factors influencing the global semiconductor automated test equipment industry and provides a thorough analysis of the current market scenario. It 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.

Investments across the 5G network infrastructure and innovations in semiconductor packaging provide new growth opportunities for market vendors, says the firm. Unified and integrated testing solutions along with test methodologies that accommodate high-speed parallel testing can assist in ATE product expansion. Differentiated market approaches such as transitions from product ownership to service ownership can be a major growth factor in addressing the price-sensitive semiconductor ATE market.

"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," says 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."

Semiconductor test equipment manufacturers, says the firm, can also boost revenues by:

  • Expanding the existing product portfolio to include next-generation testing technologies.
  • Developing

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