GSA, in collaboration with KPMG, surveys semiconductor executives from across geographies, company sizes, and industry segments to provide an annual Global Semiconductor Industry Outlook. This year, our research included a larger contingent of emerging semiconductor businesses. Despite their smaller size, these innovative companies are making significant investments in new technologies and applications, are growing fast, and are poised to play key roles in the industry going forward. Their perspectives are essential for understanding the outlook for the semiconductor industry.

Key Findings

  • For the first time, Internet of Things (IoT) was ranked as the top application driving revenue over the next year, surpassing wireless communications. Artificial intelligence and automotive both moved up the list too, ranking third and fourth, respectively.

  • “Increasing R&D costs” was named the biggest issue facing the industry, tied with “Cross border regulation”.

  • “Innovation and expanded R&D” was identified as the top strategic priority even though “Increasing R&D costs” is the biggest industry issue. This underscores the need to keep pace with the ever-expanding scope of connected devices and the software to run and integrate each.

  • More than one third (35%) of the respondents disclosed their R&D spending is not very efficiently aligned with their market opportunities.

  • “Talent risk” was voted the greatest threat to semiconductor companies’ growth.