This research service discusses the global semiconductor ATE market. The growth and forecasts are from 2007 to 2017 for memory, non-memory, and discrete ATE segments. The study also covers forecasts and analysis of the key end users that are likely to boost the growth of the ATE market and presents the top megatrends in measurement and instrumentation that are expected to influence people's lifestyles in the future. The base year for the study is 2010, with forecasts running through to 2017. The study covers the state of the market, drivers and restraints for growth, competition analysis, technology, and market trends.

Futuristic Technologies Set to Drive the Growth of the Semiconductor Automated Test Equipment Market

Participants Must Step up the Tempo of innovation to Ensure Business Progression

The world semiconductor ATE market is expected to witness sustained growth, fueled by the demand for system-on-chip (SoC) products in smart phones, wireless and wired communication devices, and consumer electronics. The success of tablets, PDAs, and handsets has created a boom in the consumer market, triggering the demand for greater functionality in terms of higher speeds, performance, and pin counts. With products becoming increasingly mobile, radio frequency (RF) connectivity is likely to assume greater importance. Greater device complexity will boost growth in the semiconductor ATE markets. “As the demand for tablets, PDAs, smartphones, and handsets continues to grow, increasingly rapid innovation is likely to be observed with the unceasing rollout of products with enhanced features and performance,” notes the analyst of this research service, “It will be imperative for ATE market participants to up the ante to improve their testing capabilities to keep pace with the quickly evolving end-user requirements.” In 2010, the non-memory semiconductor ATE market segment accounted for the largest market share of 75.9 percent.

With the increase in volumes in a consumer driven market, high functional integration in semiconductor devices, and huge pressures on the average selling price of these devices, there is a need for cost-effective test systems to test complex chips. Consumer demands have exerted pressure on test costs, requiring assembly and test prices to be reduced. To cope with CAPEX reduction, manufacturers of low-end digital devices often conduct in-house testing, using self-made automated test equipment or by developing self-testing methods that are less expensive. Although these self-made test solutions cannot compare with the more sophisticated test solutions available in the market, they do affect the lower cost ATE market in general. Competition is currently intense, as the market is consolidating, leaving very few key participants. Consolidation in the market may hinder the performance of smaller companies and new entrants who wish to enter the fray with low-cost test equipment. Mergers and acquisition, to some extent, will also limit the innovativeness of smaller companies while the big participants in the market grow bigger.

In this scenario, semiconductor ATE market participants need to continue to guarantee customer satisfaction by ensuring fast time-to-market deliveries for their customers, while enabling lower test costs and superior functionality in product offerings. Establishing local presence for technical sales and support is vital for ATE market participants to strengthen customer relations. Having local presence is especially important in Asia, which has the largest installed base of testers. The drive to continuously innovate and enhance product offerings will enable ATE market participants to remain competitive in the highly saturated market.

Market Sectors Cover:

By Product Type:

• Memory ATE
• Non-memory ATE
• Discrete ATE

By Geographic Region:

• North America
• Europe
• Asia Pacific and Rest of World (ROW)

By End Use Vertical:

• IT and Telecommunications
• Consumer Electronics
• Automotive Electronics
• Defense
• Others

TABLE OF CONTENTS

1. Executive Summary

2. Market Overview

3. Total Market
   3.1 External Challenges: Drivers and Restraints
   3.2 Forecasts and Trends
   3.3 Market Share and Competitive Analysis
   3.4 Mega Trends and Industry Convergence Implications

4. The CEO’s 360 Degree Perspective on the Test and Measurement Industry

5. Memory Automated Test Equipment Market Breakdown

6. Non-memory Automated Test Equipment Market Breakdown

7. Discrete Automated Test Equipment Market Breakdown

8. The Last Word