The 16th annual KPMG global semiconductor industry outlook provides perspectives from a survey of 156 global semiconductor executives on the impact of COVID-19, financial expectations for the upcoming year, growth products and applications, industry issues, and strategic priorities. For the third consecutive year, KPMG conducted the survey in conjunction with the Global Semiconductor Alliance, a leading industry association. Key findings include the following:
50% of industry leaders say COVID-19 has accelerated their digital transformation. Yet this pace lags the tech sector overall (89%) as well as other industries (81%).
Industry leaders reporting their digital tranformation has accelerated by months or years due to COVID-19
Sources: KPMG Global Semiconductor Industry Survey findings, 2021; n-156. KPMG 2020 CEO Outlook COVID-19 Special Edition; n-315.
Wireless/5G, IoT, and automotive are the most important applications driving revenue over the next year. Seventy-two percent of industry leaders believe 5G will become a significant driver of industry revenue within the next two years.
Timeframe for 5G technology to become a significant driver of semiconductor industry revenue growth
Less than one year
1-2 years from now
3-4 years from now
5 years or longer from now
Source: KPMG Global Semiconductor Industry Survey findings, 2021; n-156.
Nationalism (including cross border regulation, national security policies, tariffs, and new trade agreements) is the top issue facing the industry.
Top issues facing the semiconductor industry over the next three years
(cross border regulation, tariffs, new trade and/or national security policies)
Supply chain disruption
(not enough skilled workers, war for talent)
Source: KPMG Global Semiconductor Industry Survey findings, 2021; n-156. Multiple responses allowed; percentages do not sum to 100%. Partial list of responses shown.
34% of industry executives reveal their R&D spending is not efficiently aligned with their markets.