SAN JOSE, Calif. -- Semiconductor executives anticipate moderate revenue growth -- with below historical averages -- in the coming year, according to a recent global survey conducted by KPMG LLP.
In the survey, 99 percent of the executives expect revenue growth in the next fiscal year, with approximately half (52 percent) estimating growth in excess of 10 percent.
The growth projections appear to be more moderate this year compared to last year, when 60 percent of respondents indicated they thought growth would exceed 10 percent, according to the firm.
KPMG found that only 57 percent of respondents expect capital spending to increase next year -- a sharp decline from 72 percent in 2006.
Executives surveyed by KPMG indicated that China, the U.S. and Europe were the top three geographic growth markets. Application markets such as consumer products, wireless handsets and computing would be important over the next three years.
"Semiconductor execs are grappling with profitability outlooks while dealing with the dynamics of increased competition, pricing pressures, and manufacturing challenges," said Gary Matuszak, leader of KPMG's global Information, Communications, and Entertainment (ICE) practice, in a statement. "The focus right now is on maintaining a growth path, which points to continued spending, although at muted levels, and potential consolidation in the industry."
KPMG's global survey, conducted in partnership with the Semiconductor Industry Association, surveyed 94 C-level executives at the top 100 global semiconductor companies, including device, foundry and fabless manufacturers.
KPMG LLP, an audit, tax and advisory firm, is the U.S. member firm of KPMG International.