10 Key Factors Driving Semiconductor Market Growth
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High Hopes
The semiconductor confidence index is 59, up from the most recent low of 46 in 2011. A value above 50 for the next year is considered optimistic. -
Sales Surge
81% of semiconductor senior executives said they expect their companies' revenue to grow over the next year, compared with 77% a year ago. -
Steady Investment
48% said they anticipate that their capital spending (for equipment and software) would increase by more than 5% over the next year, which is slightly higher than it was a year ago. -
Research Effort
47% predicted that their R&D spending would increase by more than 5% in 2015, which is down from 52% a year ago. -
Personnel Decision
38% said they expect to expand their workforce by more than 5% in 2015, which is the same as a year ago. -
Top Semiconductor Growth Drivers, Part I
61% said that sensors would emerge as the "most important" driver of industry growth and 54% said microprocessors would. -
Top Semiconductor Growth-Driving Sectors, Part II
50% indicated that optoelectronics would play a lead role in driving industry growth and 47% said memory technologies would. -
Essential Apps
55% said that cloud computing apps would most support their revenue stream over the next year while 53% said that big data/analytics apps would. -
Market Forecast
66% said that the medical market would provide the strongest growth opportunities in 2015, and 62% said the networking and communications market would. -
Major Hurdles
43% said that increasing R&D costs would present some of the biggest industry challenges for the next three years while 37% said tech breakthroughs would. And 32% said the high cost of plants and equipment would bring on significant challenges. -
Transaction Tool
56% predicted that mobile payments would become the dominant method of payment within the next two years.
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Why Metrics Matter to the Channel Confidence in continued growth is on the upswing among semiconductor companies, but "guarded optimism" is the watchword, according to a recent survey from KPMG. The "KPMG Global Semiconductor Survey: Cautious Optimism Continues" report indicates that an overwhelming majority of industry execs expect their company revenues to increase in 2015, and many are planning to boost capital spending to enhance competitive capabilities. Sensors and optoelectronics were among the key growth drivers.. And while increased costs for plants, equipment and R&D will present challenges, overall sentiments for continued success remain strong. "With a wider range of attractive product categories [beyond traditional areas of growth related to PCs] and broader geographic markets, the majority of respondents agree the semiconductor industry remains in an expansion stage and may be becoming less susceptible to the boom-and-bust cycles of the industry's earlier years," the report indicates. A total of 155 semiconductor industry senior executives took part in the research. Channel Insider examines key takeaways from the study.