When it comes to powering the future, size doesn't matter.
Despite being small and compact — some measuring no more than 2-nanometers (nm) — semiconductors continue to play a critical role in an increasingly connected world. Often regarded as the brains behind modern tech, they continue to fuel the innovation needed to operate modern-day digital infrastructure across key sectors like telecommunications, healthcare and defence.
Advancements in IoT and AI continue to feed the demand for leading-edge semiconductors, further outlining its importance in shaping the future. Yet, a combination of supply chain issues and talent shortages threaten to undermine the sector. Rising geopolitical tensions are also complicating matters as rising inflation and interest rates result in reduced demand.
Despite existing headwinds, semiconductor executives remain optimistic about future growth in the sector thanks to improvements in inventory and increased spending in R&D and talent. Together with the Global Semiconductor Alliance (GSA), we surveyed 151 semiconductor executives to understand their outlook for the industry in 2023 and beyond. Conducted in the fourth quarter of 2022 the 18th annual global semiconductor industry survey outlines key concerns and strategies that semiconductor exectutives can embrace as they navigate a new normal.
Almost two-thirds of semiconductor leaders are predicting industry revenue will increase, not contract. That’s a positive indicator for the upcoming year given the current economics and the fact the industry is almost at the point of having excess inventory.
Mark Gibson, Global Sector Head of Technology, Media & Telecommunications, KPMG International
By the numbers: Sizing up semiconductors
expect company revenues to increase in 2023
say talent risk remains the top strategic priority for the next 3 years
feel chip supply shortages will ease by mid-2023
believe there is currently a semiconductor inventory excess and the supply chain shortage is over
plan to diversify their supply chain geographies in the next 12 months
Key findings are detailed below
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