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

• More than half of semiconductor leaders (54%) expect their company's revenue to grow by 11% or more in the coming year.
• In response to the current economic environment, leaders are most likely to increase employee headcount and undertake/accelerate internal IT/systems upgrades & transformation.
• 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.
• 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 centers, that concern nearly doubles to 58%.

• 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%).
• 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. 

Click here for more information on KPMG’s Global Semiconductor practice.