Automotive Will Overtake Wireless To Drive Chip Demand For The First Time | KPMG
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Semiconductor executives predict the automotive industry will become the primary driver of chip demand, according to a survey by KPMG and the Global Semiconductor Alliance.
That means automotive chips will kick into high gear and overtake wireless communications chip demand for the first time as the most important revenue driver in the next year, according to the 18th annual edition of KPMG Global Semiconductor Outlook.
The survey collected insights from 151 semiconductor executives on their outlook for the industry in 2023 and beyond. More than half of the respondents belong to companies with annual sales of more than $1 billion.
And as shortages are hard to overcome despite a weak economy, chip executives are more optimistic about their future. The Semiconductor Industry Confidence Index score is 56 for the coming year. A value above 50 indicates a more positive outlook than a negative outlook.
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look hereThis is less than each of the previous four years, but understandable given the economic uncertainty and geopolitical events that have unfolded over the past year.
"Geopolitical concerns, supply chain shocks, post-pandemic shifts in consumer behavior, ongoing talent shortages: there's been no shortage of hurdles for the semiconductor industry to overcome in recent years", said Mark Gibson, KPMG Global. and US technology, media and communications leader, in a statement. "Despite these challenges, the automotive sector's growing need for additional chips has kept the industry cautiously optimistic about future growth."
Eighty-one percent of executives expect their company's revenue to grow in the coming year, and half expect double-digit growth. Although these are lower than last year's survey (95% and 68% respectively), this is still encouraging given the current economic environment and perceptions regarding industry inventory levels. discussed below, according to the report.
Executives are slightly less optimistic about the sector's revenue growth. Sixty-four percent expect industry revenue to grow in the coming year, with 19% expecting double-digit growth. These rates are also significantly lower than last year's survey (97% and 49%, respectively).
The Russian-Ukrainian war could contribute to lower forecasts for revenue growth in the sector. Forty-one percent fear the war will have a significant impact on industry revenue growth in 2023. When KPMG and the GSA conducted a snap survey in May 2022, only 25% had this concern.
The automobile takes pole position
Check out all the Smart Security Summit on-demand sessions here.
Semiconductor executives predict the automotive industry will become the primary driver of chip demand, according to a survey by KPMG and the Global Semiconductor Alliance.
That means automotive chips will kick into high gear and overtake wireless communications chip demand for the first time as the most important revenue driver in the next year, according to the 18th annual edition of KPMG Global Semiconductor Outlook.
The survey collected insights from 151 semiconductor executives on their outlook for the industry in 2023 and beyond. More than half of the respondents belong to companies with annual sales of more than $1 billion.
And as shortages are hard to overcome despite a weak economy, chip executives are more optimistic about their future. The Semiconductor Industry Confidence Index score is 56 for the coming year. A value above 50 indicates a more positive outlook than a negative outlook.
EventOn-Demand Smart Security Summit
Learn about the essential role of AI and ML in cybersecurity and industry-specific case studies. Watch the on-demand sessions today.
look hereThis is less than each of the previous four years, but understandable given the economic uncertainty and geopolitical events that have unfolded over the past year.
"Geopolitical concerns, supply chain shocks, post-pandemic shifts in consumer behavior, ongoing talent shortages: there's been no shortage of hurdles for the semiconductor industry to overcome in recent years", said Mark Gibson, KPMG Global. and US technology, media and communications leader, in a statement. "Despite these challenges, the automotive sector's growing need for additional chips has kept the industry cautiously optimistic about future growth."
Eighty-one percent of executives expect their company's revenue to grow in the coming year, and half expect double-digit growth. Although these are lower than last year's survey (95% and 68% respectively), this is still encouraging given the current economic environment and perceptions regarding industry inventory levels. discussed below, according to the report.
Executives are slightly less optimistic about the sector's revenue growth. Sixty-four percent expect industry revenue to grow in the coming year, with 19% expecting double-digit growth. These rates are also significantly lower than last year's survey (97% and 49%, respectively).
The Russian-Ukrainian war could contribute to lower forecasts for revenue growth in the sector. Forty-one percent fear the war will have a significant impact on industry revenue growth in 2023. When KPMG and the GSA conducted a snap survey in May 2022, only 25% had this concern.
The automobile takes pole position
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