OSAT (Assembly & Test)

Actor Type: Processor Breaks When: Demand shocks; in-sourcing Capital Intensity: Medium–High Cash Flow Stability: Cyclical Economic Nature: Contract manufacturing Margin Driver: Throughput; yield Performs Best When: Electronics booms Pricing Power: Limited Primary Function: Package & test chips Primary Risk Transfer Mechanism: Per-unit contracts Primary Risks Held: Utilization risk Public / Private Mix: Mostly public Representative Firms: ASE; Amkor; JCET Residual Risk After Transfer: Moderate Revenue Model: Fee-for-service Typical Margin Profile: Low–medium Value Chain Segment: Midstream Who Ultimately Bears the Risk?: Shareholders