Silicon AnalyticaGlossary · Packaging
What is an OSAT?
An OSAT (outsourced semiconductor assembly and test) company packages and tests chips on behalf of chip designers and manufacturers. Packaging connects the silicon die to the circuit board and protects it.
Why it matters for investors
As advanced packaging grows in importance, OSATs both compete and cooperate with foundries that offer their own packaging services. Their utilization and capital spending track chip unit demand closely.
Investors follow OSATs for signs of changing demand in end markets such as smartphones, PCs, cars and data centers.
Key companies
Related terms
General educational explanation. Information only, not investment advice.