27 Mar 2023 -

KPMG releases semiconductor outlook: encouraging growth prospects


Semiconductor executives are optimistic about growth, with 81% projecting their company’s revenue will grow over the coming year, and half expect growth of more than 10 percent, according to the latest KPMG study.

The survey captures insights from 151 semiconductor executives about their outlook for the industry in 2023 and beyond. The Semiconductor Industry Confidence Index score is 56 for the upcoming year (a value above 50 indicates a more positive outlook than negative).

Growth drivers

  • For the first time, survey respondents clearly rate the automotive sector as the most important for driving semiconductor company revenue over the next year. In correlating research, KPMG predicts automotive semiconductor revenue will reach $200 billion annually by the mid-2030s and surpass $250 billion by 2040.
  • Wireless communications, long seen as the industry’s most important revenue driver, slip into second place in the 2023 outlook.
  • Internet of Things, cloud computing, and artificial intelligence rank third, fourth, and fifth in terms of importance. In its first year on the survey, metaverse was ranked last (out of 10) in importance for driving semiconductor company revenue over the next year. It will be interesting to see how this view changes in the coming years as metaverse technology evolves and adoption increases.

“As the semiconductor industry is cyclical, the survey also asked respondents when they think the next excess supply of semiconductor inventory will occur. Twenty-four percent believe there is already an excess, and 31 percent think it will occur in 2023. Another 36 percent feel the surplus will happen between 2024 and 2026, while 9 percent believe demand will keep increasing and there will not be an inventory excess in the next four years,” reports KPMG.

The complete report is available here:

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