By Rob Starr, Content Manager, Big4.com
KPMG surveyed semiconductor executives one year ago and they anticipated lower growth and showed less confidence in 2011. Today, as the industry finds itself in the predicted economic malaise to close out this year, three-quarters of the semiconductor executives say their company’s revenue growth will increase in the next fiscal year, compared to 63 percent a year ago.
The broadening set of significant semiconductor applications could be responsible for the shift in the importance of geographic markets, placing the US ahead of China according to KPMG. For the third year in a row, fewer industry executives believe China will be the most important market for their company’s semiconductor revenue growth 3 years from today while the US market’s importance has increased.
“Our survey findings bolster the belief that we will see the rebound beginning in 2013, with a gradual recovery picking up steam in the back half of next year,” says Gary Matuszak, global chair of KPMG’s Technology, Media and Telecommunications practice. “And unlike past recoveries, this one will not be driven by wireless handsets and wireless communications alone, as other applications are becoming increasingly important revenue drivers, such as power management given the proliferation of wireless devices.”
KPMG’s study, conducted in September, surveyed 152 semiconductor industry business leaders, primarily senior level executives, including device, foundry and fabless manufacturers. Half of the companies represented in the survey have annual revenue of $1 billion or more.