The COVID-19 pandemic has significantly bolstered global demand for microchips. This is because it has triggered changes in the business sector and prompted consumers to increasingly use digital technology in their businesses and daily life while also accelerating the transition towards 5G technology and smart electrical appliances. Additionally, global demand for microchips has been supported by faster-than-expected recovery in the global automotive market. Such circumstances have benefited the outsourced semiconductor assembly and test (OSAT) business because wafer manufacturers tend to subcontract microchip assembly and testing to OSAT vendors for management flexibility and OSAT R&D cost reduction.
Thailand has the OSAT business to facilitate microchip manufacturing, as well. Its share of the OSAT global market accounted for roughly 7.5 percent, ranking 12th place in the world during 2020. The Thai OSAT business has also benefited from growing demand for microchips in the global market. As the global economy is expected to gradually improve amid a transition towards 5G technology and the recovering global automotive market, it is expected that turnover in the Thai OSAT market overall will grow approximately 5.2 percent to some USD2,478 million in 2021, against the 2.8 percent growth or equivalent to USD2,356 million reported for 2020.