KPMG: Broad Semiconductor Industry Rebound Expected

By Rob Starr, Content Manager, Big4.com

Semiconductor industry executives are planning for an industry rebound in 2013, most likely weighted to the second half of the year. Looking beyond the recovery, the US has moved ahead of China as the most important market for revenue, according to this year’s global semiconductor industry survey from KPMG International.

A year ago, semiconductor executives surveyed by KPMG 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.  Also, two-thirds expect their workforce to expand, up from just 48 percent in last year’s survey.  In addition, 71 percent say annual industry profitability will increase over the next year.

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. 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. The US and Chinese markets are followed in importance by Europe, Korea, and Taiwan, which only 2 years ago was ranked second, slightly ahead of the US.