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      AI boom drives semiconductor industry confidence to near-record high

      Despite that confidence, supply chain and infrastructure concerns intensify

      KPMG and the Global Semiconductor Alliance conducted the 21st annual global semiconductor industry survey in the fourth quarter of 2025. The survey captured insights from 151 semiconductor executives about their outlook for the industry in 2026 and beyond. More than half of the respondents were from companies with $1 billion or more in annual revenue.

      Fueled by the AI boom, 93% of industry leaders expect revenue growth in 2026. This confidence has pushed the KPMG Semiconductor Industry Confidence Index to 63, up from 59 last year and the third-highest score in two decades (a value above 50 indicates a more positive outlook than negative).

      However, this bullish outlook is tempered by significant operational and geopolitical risks. For the first time, leaders now rank tariffs and trade policy as their top concern, and some fear they may not be able to procure enough energy to power their advanced chip manufacturing facilities.

      Anna Scally
      Anna Scally

      Partner, Global Head of Technology, Media, and Telecommunications

      KPMG in Ireland

      Key findings

      The impact of AI is extensive, from revenue generation to operational efficiency.

      • Driving revenue

        AI (73%) extended its lead as the top revenue driver followed by Cloud/Data centres (61%), Wireless communications (57%) and Automotive (56%).

      • Growing product opportunities
        Memory (including High Bandwidth Memory) has surged 18 points year-over-year to become the industry's top product growth opportunity, reaching parity with long-time leader microprocessors (67% and 66%, respectively).
      • Optimising workforce

        Over the next 12 months, two-thirds of leaders (66%) plan to use AI to augment productivity and free employees for higher skilled work (with no headcount reduction).


        When asked how they are ensuring they have the talent it needs to achieve their growth goals, the majority (54%) said they are leveraging technology, AI and automation to optimise workforce productivity.

      • Future deployments

        While concrete plans are still emerging, future Gen AI deployments are focused on procurement and supply chain, whereas IT and Customer Support are the leading areas for planned Agentic AI implementation. 

      Investing in growth

      Despite economic uncertainty, the industry is investing in growth.

      • Revenue growth

        More than half of semiconductor leaders (54%) expect their company's revenue to grow by 11% or more in the coming year.

      • Employee headcount

        In response to the current economic environment, leaders are most likely to increase employee headcount and undertake/accelerate internal IT/systems upgrades & transformation.

      • Global workforce

        Nearly two-thirds of executives (65%) expect their company’s global workforce to increase in the next year. However, as non-traditional companies develop their own chips, competition for talent remains the primary expected impact.

      • Energy concerns

        Over the next three years, 34% are concerned about the semiconductor industry being able to procure enough energy to power their fabrication/manufacturing facilities.


        When asked about hyperscalers being able to procure enough energy to power their data centres, that concern nearly doubles to 58%.

      Geopolitics

      Geopolitics has reshaped the industry’s top priorities.

      • Diverse supply chain

        Making the supply chain more flexible and adaptable to geopolitical changes and other disruptions (45%) has risen to become the no. 1 strategic priority for companies in the semiconductor industry over the next 3 years.


        The top action to achieve this is increasing the geographical diversity of the supply chain (54%).

      • Government funding

        Leaders are caught in a strategic paradox regarding government funding: 54% agree it is now necessary to build advanced fabs in domestic territories; 54% also believe that accepting government funding will limit their company’s market agility and ability to innovate. 

      Is the semiconductor industry in a supercycle?

      Dive into our thinking: Explore the dynamics behind AI-driven demand, supply chain constraints, and macroeconomic uncertainty. 

      Get in touch

      Contact our Irish team to explore how these global semiconductor trends could impact your business in Ireland.

      Anna Scally
      Anna Scally

      Partner, Global Head of Technology, Media, and Telecommunications

      KPMG in Ireland

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