KPMG "The Biggest Revenue Driver in the Semiconductor Industry Over the Next Year Is 'Automobiles'"

'2024 Global Semiconductor Industry Outlook' Report Published
85% of Global Semiconductor Industry Leaders Expect Semiconductor Market Revenue Growth This Year
More Than 7 out of 10 Leaders Anticipate Semiconductor Supply Surplus
53% of Semiconductor Company Executives Plan Supply Chain Regional Diversification

In a context where the global automotive sales growth forecast for this year has slightly slowed to 2.8%, semiconductor industry leaders have identified the automotive sector as the most important area driving sales growth for the second consecutive year.

Survey Results on the Financial Aspects of Semiconductor Companies [Data Provided by Samjong KPMG]

On the 27th, the global accounting and consulting firm KPMG published the '2024 Global Semiconductor Industry Outlook' report, stating, "Due to technological advancements such as electric vehicles, advanced driver-assistance systems (ADAS), and autonomous driving, demand for advanced semiconductors within the automotive industry is increasing. Efforts are also underway for in-house production and long-term supply contracts to ensure a stable supply of automotive semiconductors."

The next promising sector expected to drive semiconductor companies' sales growth was identified as artificial intelligence (AI). In particular, U.S. semiconductor industry leaders responded that AI is the most important sales driver this year, showing a more optimistic outlook compared to other regions.

Semiconductor industry executives observed overall industry growth this year. Eighty-five percent of respondents expect overall semiconductor industry sales to grow this year, and 69% anticipate an increase in their companies' R&D (research and development) investments. The percentage of respondents expecting improved profitability in the semiconductor industry rose significantly to 70%, compared to 44% last year. Fifty-three percent of respondents said they plan to diversify their supply chains regionally over the next year to enhance supply chain flexibility and resilience. The most preferred regions for supply chain diversification were Asia-Pacific areas such as Korea, Japan, and Vietnam.

Survey Results on Operational Aspects of Semiconductor Companies [Data Provided by Samjong KPMG]

More than seven out of ten semiconductor industry leaders (75%) believe that semiconductor oversupply either already exists or will occur within the next four years. Conversely, only 8% responded that inventory shortages due to excessive demand would occur within four years. Nineteen percent predicted that demand growth driven by new technologies such as AI would maintain a balance between semiconductor industry supply and demand.

Fifty-two percent of global semiconductor executives identified human resource-related risks, such as a shortage of skilled workers and talent acquisition, as the biggest issues facing the semiconductor industry over the next three years.

Promising Application Areas Driving Revenue Growth for Semiconductor Companies [Provided by Samjong KPMG]

Seunghoon Yeom, Semiconductor Industry Leader (Vice President) for Electronics, Information & Communication at Samjong KPMG, stated, "We will expand the scope of potential human resources across the semiconductor value chain and related industries to strengthen future talent development." He added, "It is necessary to consider talent acquisition and development strategies such as industry-academia cooperation for workforce training, employee value proposition (EVP) to retain staff, and diversification of work styles." Furthermore, he emphasized, "As securing potential application areas for generative AI, which will drive semiconductor industry growth, is essential, we will also focus on AI governance strategies and securing specialized personnel."

This survey was conducted by KPMG and the Global Semiconductor Alliance (GSA) targeting 172 senior executives from global semiconductor companies. Leaders from the United States (46%), Europe (24%), Asia-Pacific (21%), and the Middle East, Africa, and other regions (8%) were included.

This content was produced with the assistance of AI translation services.