OSAT prices climb as AI chip demand tightens capacity, with new supply seen in 2027

The outsourced semiconductor assembly and test, or OSAT, industry is facing a sharp round of price increases as AI chip demand stretches testing time and absorbs available capacity. Citing industry sources, Economic Daily News said recent quotes from packaging and testing providers have risen by roughly 10% to 30%, while rush orders from smaller customers may be priced at as much as double. The report said the squeeze is being driven by longer AI chip test cycles, stronger orders from major chip designers, and a wave of in-house AI silicon projects from cloud companies including Google, Microsoft, Meta and Amazon. It also said OpenAI and Anthropic have begun seeking customized AI chips, adding to the pressure on foundry and OSAT capacity. Taiwanese companies expected to benefit include ASE Technology Holding, King Yuan Electronics, Powertech Technology and Ardentec. Even so, the report said meaningful new capacity from major OSAT providers across Taiwan, Southeast Asia and North America is not expected to come online until 2027, leaving the near-term supply gap difficult to close.