The combined output value of Taiwan's OSAT firms is estimated to grow by over 15% to US$18.5 billion in 2020 and to US$20 billion in 2021, according to Digitimes Research.

Despite impacts of the pandemic and US trade ban on Huawei, Taiwanese OSATs' output value has returned healthy growth, thanks mainly to a rapid recovery in demand for 5G chips, driver ICs, and memory chips supporting new devices for 5G and stay-at-home applications. In 2019, their output value inched down 1% on year.

Backend demand is expected to stay strong in 2021, given that major OSATs including ASE Technology, Powertech Technology, King Yuan Electronics, Chipbond Technology and ChipMos Technology all have clear order visibility through the first half of next year, with their new capacity even already booked by clients. This, coupled with rising backend service quotes, will send their combined output value rising at least 8% to top US$20 billion next year, Digitimes Research estimates.