Universal standards needed to drive semiconductor industry growth

By Barbara K. Mednick

Universal standards and regulations in 5G, Internet of Things (IoT), and autonomous vehicles would be the most beneficial in helping to drive increased growth for semiconductor companies. That’s according to Part 2 of KPMG’s 2020 Global Semiconductor Industry Outlook, which was drawn from a survey of 195 senior global semiconductor executives conducted during the fourth quarter of 2019 by KPMG and the Global Semiconductor Alliance (GSA).

Lack of standards limits market growth

This year’s study found that one of the most significant factors limiting growth in the semiconductor industry is the lack of formal standards and regulations governing the development and operation of new products for 5G, IoT, and autonomous vehicles.

When asked what technologies, universal standards and regulations would help drive the most growth for semiconductor companies, executives named 5G (33% of respondents), followed by IoT (26%), and autonomous vehicles (22%).  

“Establishing universal standards and regulations on new technologies would be a boon for semiconductor companies, allowing customers to make their designs more definitive and their production processes more efficient,” said KPMG Global Semiconductor Leader Lincoln Clark.

“Developing standards would also help to accelerate design and manufacturing processes and hasten interoperability,” explained Clark.

Tech convergence drives growth, revenue

According to the survey, wireless communications (including 5G) and IoT were virtually tied as the top two applications expected to drive company revenue over the next year -- reinforcing the symbiotic relationship between the two technologies. Automotive applications, which will be greatly assisted by 5G and IoT, ranked a close third. Artificial intelligence (AI) came in fourth and is a critical underpinning to help the other technologies achieve their potential.

“As 5G, IoT and AI technologies continue to develop, they will converge into single systems and devices that all require advanced semiconductor content,” said Clark.

GSA Global Vice President and Executive Director Shrikant Lohokare echoes that sentiment. “Pervasive smart technology in consumer, industrial and infrastructure applications is triggering a multiplier effect for semiconductor growth. Requirements of real time and decentralized sensing, processing and communications is creating a convergence in semiconductor technologies in 5G, IoT, AI and cloud-edge computing,” said Lohokare. “Interdependence and interplay of these technologies is expected to boost their market prospects individually and collectively in 2020 and beyond.”

To learn more or to arrange an interview with Lincoln Clark, please contact Barbara K. Mednick.

Media kit

Technology convergence powers growth for semiconductor companies
KPMG’s 15th annual Global Semiconductor Industry Outlook discusses the biggest growth opportunities for the industry, including the key products and applications that will likely drive future revenue.

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Barbara K. Mednick

Barbara K. Mednick

Associate Director, Corporate Communications, KPMG US

+1 612-305-5471


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Lincoln Clark

Lincoln Clark

Partner, Audit, KPMG US

+1 408-367-4914