After initial panic, a new wave of optimism is sweeping across the chipmaking sector.
In March 2022, the industry was rife with uncertainty when Ukraine's two leading suppliers of neon — who produce nearly half of the world's supply of this key ingredient required for making chips — halted operations due to the Russia-Ukraine war.
This triggered fears of a semiconductor supply chain disruption, on the back of existing issues such as industry talent shortage, shifting regulations, rising global inflation, and increased scrutiny of American tech companies’ reliance on Taiwan for semiconductors amid geopolitical tensions between US and China.
Despite these recent challenges, the chipmaking industry is confident about growth in the next two years. In this 2022 semiconductor industry pulse report by KPMG and the Global Semiconductor Alliance, more than 80% of C-level executives polled expect the chip shortage to ease by end-2023.
Key findings from the report
A minority (32%) are concerned that the Russia-Ukraine war will materially impact the semiconductor supply chain in 2022 and only slightly more (39%) feel this way about 2023
Just 18% are concerned the Russia-Ukraine war will materially impact industry revenue growth in 2022 and 25% feel this way about 2023
Merely 18% of respondents are concerned about the impact of climate change legislation and reporting regulation
In the long term, talent shortage may pose more of a threat to industry growth than geopolitical concerns