Global semiconductor industry outlook 2022

Semiconductor industry confidence surges despite supply chain and talent challenges.

Lincoln Clark

Lincoln Clark

Partner, Audit, KPMG US

+1 408-367-4914

Mark Gibson

Mark Gibson

Partner, Advisory, NSL & Teams, KPMG U.S.

+1 206-913-6558

Scott Jones

Scott Jones

Principal, Advisory, Strategy, KPMG US

+1 408-367-7002

The 17th annual KPMG Global Semiconductor Industry Outlook features key findings from a survey of 152 semiconductor professionals and was conducted in conjunction with the Global Semiconductor Alliance.

Industry confidence for 2022 is exceedingly high. 95% of semiconductor leaders forecast their company's revenue to grow, and 68% forecast it will grow 11% or more. Further, 88% anticipate expanding both their capital spending and workforces.

This optimism persists despite ongoing production capacity constraints and supply chain challenges. The survey results show most industry insiders (56%) expect the chip shortage to last into 2023.

Expectations for the end of the semiconductor shortage

Source: KPMG Global Semiconductor Industry Survey Findings, 2022 (n=152). Percentages do not sum to 100% due to rounding.

In order to better meet future demand, the majority (53%) of semiconductor leaders say their organization has moved toward being more oriented by specific end market. The top three drivers of semiconductor company growth over the next year are expected to be:

  1. Wireless communications
  2. Automotive
  3. Internet of Things

Looking farther out, executives name these as their top three strategic priorities over the next three years:

Top strategic priorities for semiconductor companies:

  1. Talent development/retention
  2. Supply chain flexibility
  3. M&A

Source: KPMG Global Semiconductor Industry Survey Findings, 2022 (n=152).

While the global shortage of technical talent is not new, fresh players in the semiconductor space are heightening the issue. When asked about the impact of tech giants and platform companies building out their own silicon capacities, survey respondents cite increased competition for talent as their main concern.

Read the report for additional insights and key considerations for semiconductor company leaders.