World Semiconductor Automatic Test Equipment (ATE) Markets

SUMMARY

Cyclical Nature of End-user Markets Affects ATE Market Revenues and Stability

The world semiconductor automatic test equipment (ATE) market directly depends on the ATE customer base, consisting mainly of semiconductor, communication, and the consumer sectors. These end-user markets go through a cyclical trend lasting for about one and a half years (earlier between two and four years) that controls the ATE industry. Additionally, the economic situation also impacts the end-user markets with excellent growth in boom periods and large drops in sales during difficult times. Nonetheless, ATE manufacturers that adopt comprehensive solutions and maintain lower test equipment ownership costs are expected to be in a stronger position to minimize the industry downturn impact that results from these market cycles.

This Frost & Sullivan research service provides an overview of and outlook for the global semiconductor ATE markets, detailing revenue forecasts by region and segments as well as providing market share analyses. The study looks into the broad market segments -- linear/mixed signal, logic, discrete, memory ATE, and system-on-a-chip (SOC) ATE. This invaluable market information is essential for both large and small market participants seeking to position themselves for maximum return on investment.

Increased Functional Integration Requires More Comprehensive Test Solutions

The technologically advanced electronics industry continuously integrates with its semiconductor counterpart. However, existing test methods are proving insufficient to validate the advances, which incorporate new functions and levels of miniaturization. As a result, there is high demand for more comprehensive test solutions to be devised for the successful testing of new products. "The manner in which the ATE industry individually and as a whole deals with this situation will be a major factor in shaping the future of this market," says the analyst of this research.

ATE manufacturers are increasingly opting for software strategies over hardware ones. Through this, manufacturers are able to offer flexible and user-friendly interfaces along with easy and inexpensive system upgrade solutions. These software schemes allow complete data capture and storage of all testing results.

Improved Manufacturing Techniques Encourage "Just Enough Test" Concept

As high-volume manufacturing pushes the demand from consumer markets for advanced semiconductor ATEs, semiconductor makers are responding by adopting the idea of "just enough test" for a product. Although this results in reduced demand for ATEs, it ensures product quality. Here, the test system needs a configuration that matches a given device's requirements at the lowest cost.

Overall, the world semiconductor ATE market is evolving very rapidly to cater to the end-user demands with test equipment improving in terms of performance, range of applications, and its industrial uses. This growth is expected to continue as a strong economy, new testing technologies, and demand for complete test solutions drive the ATE market.

TABLE OF CONTENTS

• 1. Executive Summary
  • 1. Market Overview
    • 1. Introduction
    • 2. Total Forecasts
• 2. Total Semiconductor ATE Markets
  • 1. Market Overview
    • 1. Market Overview and Definitions
    • 2. Market Research Measurements - Overview
    • 3. Market Research Measurements - Sizing Analysis
    • 4. Market Research Measurements - Structure Analysis
    • 5. Challenges
      • a. Cyclical nature of the semiconductor market result in fluctuating revenues and affect long-term stability
      • b. Increased integration of functions in consumer devices challenge test solutions to be quickly adapted to successfully test them
      • c. Cost of testing gets critical with increase in complexity of silicon chips
      • d. 'Just enough test' concept increasing with better manufacturing techniques in semiconductors
      • e. Demand for scalable and open architecture testers challenge vendors
      • f. Technology to design and manufacture integrated circuits is advancing at a rate faster than the technology to test them
      • g. Manufacturing methods getting outdated, and as end users begin to upgrade methodology, the demand is increasing for complete test solutions
      • h. Shorter product life cycles increasing time-to-market pressures
      • i. Increased global competition affects regional companies
    • 6. Drivers
      • a. Economic recovery in the semiconductor industry
      • b. Growth in consumer electronics industry in China and worldwide
      • c. Test methods focus on flexible software-based solutions in place of hardware-based testing
      • d. Updated testers required as older test equipment and methods get obsolete
      • e. Large increase in demand for flash memory
      • f. Time to market pressures due to shorter product cycles
    • 7. Restraints
      • a. Uncertainty over sustained growth of semiconductor industry over the next four years
      • b. Meeting the technological demands of modern end-user manufacturers
      • c. Mergers and acquisitions in the end-user markets
      • d. Built-in-self-test capabilities reduce ATE requirements
      • e. Stabilizing the growth of end-user industries
      • f. Need to reduce cost per test
  • 2. Forecasts Trends and Revenue Analysis
    • 1. Revenue Forecasts
    • 2. End-user Analysis - Overview
    • 3. End-user Analysis - IT Telecom and Consumer Electronics
    • 4. End-user Analysis - Automotive Defense and Others
    • 5. Market and Technology Trends
    • 6. Pricing Trends
  • 3. Geographic Analysis
    • 1. Overview
    • 2. North America
    • 3. Europe
    • 4. Asia Pacific
    • 5. Rest-of-World
  • 4. Competitive Structure and Market Share Analysis
    • 1. Competitive Structure
    • 2. Market Share Analysis
• 3. Linear/Mixed Signal ATE Market
  • 1. Market Overview
    • 1. Market Overview and Definitions
    • 2. Drivers
      • a. Reducing cost per test
      • b. Increasing chip integration
      • c. Growing use of modular ATE components
    • 3. Restraints
      • a. Development of SOC
      • b. High cost of mixed signal ATE
      • c. Broad DUT product range
  • 2. Forecasts Trends and Revenue Analysis
    • 1. Revenue Forecasts
    • 2. Market and Pricing Trends
  • 3. Competitive Structure and Market Share Analysis
    • 1. Competitive Structure
    • 2. Market Share Analysis
• 4. Logic ATE Market
  • 1. Market Overview
    • 1. Market Overview and Definitions
    • 2. Drivers
      • a. Growth of telecommunications and semiconductor industries
      • b. Focus on time-to-market
      • c. Parallel Test Technologies
      • d. High demand for microprocessors and microcontrollers
    • 3. Restraints
      • a. Development of SOC
      • b. Increasingly demanding end users
  • 2. Forecasts Trends and Revenue Analysis
    • 1. Revenue Forecasts
    • 2. Market Technology and Pricing Trends
  • 3. Competitive Structure and Market Share Analysis
    • 1. Competitive Structure
    • 2. Market Share Analysis
• 5. Discrete ATE Market
  • 1. Market Overview
    • 1. Market Overview and Definitions
    • 2. Drivers
      • a. Emergence of new radio frequency technologies
      • b. Decreasing test times
      • c. Maturity of discrete ATE market
    • 3. Restraints
      • a. Increased reliability of manufacturing process
      • b. Market saturation
      • c. Reduction in production costs
  • 2. Forecasts Trends and Revenue Analysis
    • 1. Revenue Forecasts
    • 2. Market and Technology Trends
• 6. Memory ATE Market
  • 1. Market Overview
    • 1. Market Overview and Definitions
    • 2. Drivers
      • a. Consumer devices with increased memory
      • b. High speed memory chips
      • c. Reducing memory device life cycles
    • 3. Restraints
      • a. Developments in SoC ATE
      • b. Increased use of embedded memories
  • 2. Forecasts Trends and Revenue Analysis
    • 1. Revenue Forecasts
    • 2. Market and Technology Trends
  • 3. Competitive Structure and Market Share Analysis
    • 1. Competitive Structure
    • 2. Market Share Analysis
• 7. SOC ATE Market
  • 1. Market Overview
    • 1. Market Overview and Definitions
    • 2. Drivers
      • a. Growth in the SoC device market
      • b. Parallel test technologies
      • c. Short product life cycles
      • d. Simulation of Devices Under Test speed up testing
    • 3. Restraints
      • a. Rapid technological development
      • b. High technological demands
      • c. Short SOC product life cycles
  • 2. Forecasts Trends and Revenue Analysis
    • 1. Revenue Forecasts
    • 2. Market and Technology Trends
  • 3. Competitive Structure and Market Share Analysis
    • 1. Competitive Structure
    • 2. Market Share Analysis
• 8. Appendix
  • 1. Decision Support Database
    • 1. Semiconductor Equipment
    • 2. Telecom Equipment Production
    • 3. Mobile Handsets
    • 4. Manufacturing Establishments
    • 5. Telecom Equipment Expenditure