Canada Semiconductor Assembly and Testing Services Market

Canada Semiconductor Assembly and Testing Services Market Size Insights Forecasts to 2035

• The Canada Semiconductor Assembly and Testing Services Market Size is Expected to Grow at a CAGR of Around 5.8% from 2025 to 2035
• The Canada Semiconductor Assembly and Testing Services Market Size is expected to hold a significant share by 2035

According to a Research Report Published by Decisions Advisors & Consulting, The Canadian Semiconductor Assembly and Testing Services Market size is Growing at a CAGR of 5.8% from 2025 to 2035. The market is driven by the rapid evolution of advanced electronics, miniaturization of components, and increasing integration of semiconductors in diverse end-use applications. increasing demand for advanced chip packaging, proliferation of IoT devices and surge in 5G and automotive electronics.

Market Overview

The term semiconductor assembly and testing services (SATS) describes the contracted process of packaging integrated circuits (ICs) and testing their performance, functionality, and dependability before delivery to the final consumer. A semiconductor, sometimes referred to as a chip or microchip, is a substance that has electrical conductivity. For a clean and digital economy, semiconductors are necessary.

In November 2025, Canada announced a new federal investment through the Strategic Response Fund of up to $210 million toward a $662 million project to expand semiconductor packaging and commercialization capabilities at IBM Canada's Bromont facility and the MiQro Innovation Collaborative Centre (C2MI).

Government, academic, and business partnerships can open doors to funding and support for innovative initiatives. the creation of sophisticated, highly accurate testing equipment to satisfy the needs of next-generation semiconductors. Automation and robotics integration investments can lower costs and increase production productivity.

Report Coverage

This research report categorizes the market for the Canada semiconductor assembly and testing services market based on various segments and regions, and forecasts revenue growth and analyses trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Canada semiconductor assembly and testing services market. Recent market developments and competitive strategies, such as expansion, product launch, development, partnership, merger, and acquisition, have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the Canada semiconductor assembly and testing services market.

Driving Factors

The semiconductor assembly and testing services market in Canada is driven by rapid growth as new packaging technologies like fan-out wafer-level packaging, 3D integrated circuits, and system-in-packed (SiP) are developed.  Strong testing is becoming more and more necessary to ensure speed, thermal stability, and efficiency. Fabless semiconductor companies prioritize design innovation, shifting more and more assembly and testing to line specialized OSAT companies, the growing automotive sector to drive semiconductor assembly and testing services, and advancements in semiconductor packaging techniques.

Restraining Factors

The semiconductor assembly and testing services market in Canada is majorly restrained by the next-generation semiconductors are more difficult to test, which increases the barrier to entry and the level of competitiveness. The main issues facing SATS providers are international supply chain volatility, trade tariffs, and a lack of raw materials. Governments are enforcing export restrictions, tariffs, and national security measures that increase costs and limit cross-border access to cutting-edge technologies.

Market Segmentation

The Canada semiconductor assembly and testing services market share is categorised by product type and application.

• The testing segment accounted for the largest revenue market share in 2024 and is expected to grow at a significant CAGR during the forecast period. 

The Canadian semiconductor assembly and testing services market is segmented by product type into assembly and packaging, testing. Among these, the testing segment accounted for the largest revenue market share in 2024 and is expected to grow at a significant CAGR during the forecast period. The segment growth is driven by the testing comprises functional, physical, and electrical testing of the product to confirm its quality. Quality testing, such as lead frame manufacturing and x-ray inspection, is necessary due to the sector's increasing need for electronic products.

• The consumer electronics segment dominated the market in 2024 and is projected to grow at a substantial CAGR during the forecast period.  

Based on application, the Canadian semiconductor assembly and testing services market is segmented into communication, automotive electronics, industrial, consumer electronics, and computing and networking. Among these, the consumer electronics segment dominated the market in 2024 and is projected to grow at a substantial CAGR during the forecast period. The growth of the segment is primarily driven by It is ascribed to the increasing use of smartphones, tablets, smart TVs, 5G technology adoption, and other factors. Since these devices are validated before use, semiconductor assembly and test services are crucial to their proper functioning.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the Canada semiconductor assembly and testing services market, along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborate analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies                                                                                                                   

• Microart Services
• C2mi
• Teledyne Dalsa
• Bittele Electronics Inc.
• Active Electronic Manufacturing Inc
• DA-Integrated
• PEER Group
• August Electronics
• AIM Solder
• Optimont
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at the Canada, regional, and country levels from 2020 to 2035. Decisions Advisors has segmented the Canada Semiconductor Assembly and Testing Services Market based on the below-mentioned segments:

Canada Semiconductor Assembly and Testing Services Market, By Product Type

• Assembly and Packaging
• Testing

Canada Semiconductor Assembly and Testing Services Market, By Application

• Communication
• Automotive Electronics
• Industrial
• Consumer Electronics
• Computing and Networking

FAQ’s

Q: What is the Canadian semiconductor assembly and testing services market size?

A: The Canada Semiconductor Assembly and Testing Services Market size is growing at a CAGR of 5.8% during the forecast period 2025-2035

Q: What is a semiconductor assembly and testing services, and its primary use?

A: The term semiconductor assembly and testing services (SATS) describes the contracted process of packaging integrated circuits (ICs) and testing their performance, functionality, and dependability before delivery to the final consumer. A semiconductor, sometimes referred to as a chip or microchip, is a substance that has electrical conductivity. For a clean and digital economy, semiconductors are necessary.

Q: What are the key growth drivers of the market?

A: Market growth is driven by the rapid as new packaging technologies like fan-out wafer-level packaging, 3D integrated circuits, and system-in-packed (SiP) are developed.  Strong testing is becoming more and more necessary to ensure speed, thermal stability, and efficiency. Fabless semiconductor companies prioritize design innovation, shifting more and more assembly and testing to line specialized OSAT companies.

Q: What factors restrain the Canadian semiconductor assembly and testing services market?

A: The market is restrained by to the next-generation semiconductors are more difficult to test, which increases the barrier to entry and the level of competitiveness. The main issues facing SATS providers are international supply chain volatility, trade tariffs, and a lack of raw materials. Governments are enforcing export restrictions, tariffs, and national security measures that increase costs and limit cross-border access to cutting-edge technologies.

Q: How is the market segmented by material type?

A: The market is segmented into communication, automotive electronics, industrial, consumer electronics, and computing and networking.

Q: Who are the key players in the Canadian semiconductor assembly and testing services market?

A: Key companies include Microart Services, C2mi, Teledyne Dalsa, Bittele Electronics Inc., Active Electronic Manufacturing Inc., DA-Integrated, PEER Group, August Electronics, AIM Solder, and Optimont.