KPMG: 56% of chip leaders expect shortage to last in 2023

According to KPMG, about 56% of semiconductor industry leaders expect that during the epidemic we will have a chip shortage lasting until 2023.

Of course, because of this expectation, confidence in global semiconductor revenue growth is at an all-time high. 95% said they believe their companies’ revenue will grow in the coming year, expecting 34% growth of 20% or more.

Shortages are shaking the entire economy, pushing up the prices of electronic goods and making high-end gear like graphics cards and PlayStation 5s into a rare commodity. Despite continued supply chain challenges, financial and operational confidence for semiconductor executives has reached an all-time high, according to KPMG and the Global Semiconductor Alliance’s 2022 KPMG Global Semiconductor Industry Outlook. The 17th Annual Survey provides insights from more than 150 global semiconductor executives.

Some 42% of chip executives believe the shortage will end in 2022. The US sees 2023 as the most probable year,
65% say supply / demand imbalance will continue next year.

About 9 out of 10 believe that their global workforce will grow in 2022 – about 40% more than last year’s estimate. That’s why Intel CEO Pat Gelsinger is confident of spending anywhere from $ 20 billion to $ 100 billion on chip factories in the US – until the subsidy bill is passed by Congress. It is also causing inflation.

“While supply chain and talent headwinds certainly remain, the semiconductor industry expects to deliver an all-time high of over $ 600 billion in 2022,” Lincoln Clark, KPMG’s global semiconductor practice partner in charge, said in a statement. “As economic pressures recede, confidence in the industry’s growth prospects is likely to continue to grow over the next few years.”

In the future, wireless communications, including 5G infrastructure, smartphones and other mobile devices
Considered to be the most important revenue driver so far.

Respondents expect the automotive sector to emerge as the second most important revenue driver in the next financial year.

Internet of Things (IoT), recently no. 1 Revenue driver, dropped to number. 3, back
Wireless communication and automotive.

Confidence remains high for the growth of the automotive market. However, the sector is also projected to continue to face supply chain logjam, with some speculating that the wholesale car market will not return to pre-covid-19, pre-chip shortage levels until at least 2025. While short-term pressure is likely. To stay, KPMG estimates that the automotive semiconductor market will reach more than $ 200 billion in the next two decades.

“The semiconductor industry has emerged as the most important component of our rapidly digitizing global economy,” said Scott Jones, principal of KPMG’s global semiconductor practice. “Continuous demand is a renewed focus on the industry, and we expect to see significant local growth and M&A activity over the next few years.”

Talent development and retention is a top strategic priority for industry decision makers, the report said. When asked by various tech giants about the impact of investing more in their own silicone capabilities, the talent attracted by these giants was cited as their main concern.

Overall, however, only 19% of unconventional chip developers’ perspectives are emerging as serious competitive risks.

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