New KPMG Global Semiconductor Outlook shows 79% of leaders predict industry-wide profitability will continue to increase
Despite the global pandemic and resulting economic downturn, the semiconductor industry remained resilient, finishing 2020 with revenue growth of 6.5%. The semiconductor industry will continue to grow due to the mainstream adoption of IoT, 5G and the increasing semiconductor needs of the automotive sector, according to the 2021 Global Semiconductor Industry Outlook from KPMG and the Global Semiconductor Alliance.
The 2021 KPMG Global Semiconductor Industry Outlook features insights from 156 senior executives from global semiconductor companies who were surveyed in the fourth quarter of 2020 about the future of the industry landscape. Key findings include:
“The pervasiveness of technology continues to accelerate across all industries, sectors,
and within society at large, arising from the profound shift to home-based work, education, and entertainment,” said Lincoln Clark, partner in charge of KPMG’s Global Semiconductor practice. “This is driving a surge in demand for chip-based products, and semiconductor companies have been quick to react, recover, and realign their businesses to new market needs.”
As we look to the future, and technology continues to penetrate consumer, enterprise and industrial devices – everything from batteries to cars – respondents named several chip categories as having increased growth potential to support the demand. Specifically, respondents highlighted sensors/micro-electro-mechanical systems (MEMS), analog/radio frequency (RF)/mixed signal, and microprocessors including graphic processing units (GPU), microcontrollers (MCU), and memory protection units (MPU) with the most potential.
“We are seeing increasing demand for different types of connected technologies with increased adoption of IoT, 5G, connected cars, among others, which will drive future growth for the industry,” said Scott Jones, a principal in KPMG’s Global Semiconductor practice. “These technologies require a vast array of chip components that will compel leading semiconductor companies to scale up their inventories to meet the growing demands of their customers.”
For the full report, please visit https://advisory.kpmg.us/articles/2021/global-semiconductor-industry-outlook-2021.html.
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