KPMG: Semiconductor Industry Looking Good

By Rob Starr, Content Manager, Big4.com

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. Some of the more relevant findings included:

• Two-thirds, compared to 62 percent last year, anticipate an increase in the number of merger and acquisition deals in the industry in fiscal year 2013.
• More than three-fourths expect semiconductor-related R&D spending to increase in the next fiscal year, up significantly from 2011 (65 percent).
• NFC (32 percent) and RFID (28 percent) were cited most often as the technologies expected to provide the best platforms for conducting mobile payments.
• Of several auto-related areas, one-quarter say body electronics (remote control, HVAC, etc.) will provide the most semiconductor revenue over the next 3 years, while 20 percent say communications convergence (transition smartphone to the car, etc.) and roughly the same number say safety (lane departure warning, electronic stability control, etc.)

Significantly fewer executives placed China among the top three markets for headcount growth during the next 12 months, while more placed the US and Europe among the top. Still, China remains first, followed by the US and Europe.