Semiconductor Execs See Automotive as Number One Revenue Driver: KPMG Survey

Wireless communications, long seen as number one driver, slips to second; Talent, geopolitical uncertainty present challenges to growth

The automotive sector is in the fast lane, surpassing wireless communications, as the most important sector for driving revenue over the next year for the first time according to the results of the 18^th Annual KPMG Global Semiconductor Outlook.

The survey, from KPMG LLP and the Global Semiconductor Alliance (GSA) captured insights in the fourth quarter of 2022 from over 150 semiconductor executives about their outlook for the industry in 2023 and beyond. More than half of the respondents are from companies with more than $1 billion in annual revenue.

Key findings include the following:

For the first time ever in the 18 years of this survey, automotive is seen as the most important sector for driving revenue over the next year. KPMG predicts automotive semiconductor revenue will surpass $250 billion by 2040.
Wireless communications, long seen as the most important revenue driver, is now in second place.
In a tight labor market, talent remains the biggest hurdle facing the semiconductor industry over the next 3 years. Inflation and the nationalization of semiconductor technology are tied for second.
Four in 10 say the Russia-Ukraine war may contribute to lower industry growth, which is up from 25% back in May when KPMG asked the same question in its Semiconductor industry pulse report.

“Geopolitical concerns, supply chain shocks, post-pandemic shifts in consumer behavior, a consistent talent shortage – there has been no lack of hurdles for the semiconductor industry to navigate over the past few years. Despite these challenges, the automotive sector’s burgeoning needs for more chips has kept the industry cautiously optimistic about future growth.”

– Mark Gibson, KPMG Global and U.S. Leader, Technology, Media & Telecommunications

Additional survey findings available here: Global semiconductor industry outlook for 2023 (kpmg.us). For media inquiries, please contact Alison Wentley. For more information on KPMG’s Global semiconductor practice, visit: Global semiconductor practice (kpmg.us).