LONDON – A chip market rebound will help the U.S. move head of China as the most important market for revenue according to a global survey of semiconductor executives conducted by business consultancy KPMG.
The rebound is likely to begin in the second half of 2013, but 75 percent of the 152 executives polled said their companies' revenue growth will increase in the next fiscal year, compared to 63 percent a year ago. Also, two-thirds expect their workforce to expand, up from just 48 percent in last year's survey and 71 percent say annual industry profitability will increase over the next year.
The survey was conducted in September 2012 and the senior level executives polled were drawn from IDM, foundry and fabless chip companies.
The U.S. is growing in significance for the third year in a row, and fewer industry executives believe China will be the most important market for their company's semiconductor revenue growth three years from now. Executives said the U.S. will be the most significant market, followed by China and Europe, South Korea and Taiwan, KPMG said. Two years ago Taiwan was ranked second, ahead of the U.S.
In terms of growth of employment over the next 12 months China remains the leader. Significantly, fewer executives placed China among the top three markets for job growth during the next 12 months in this year's survey, while more placed the U.S. and Europe at the top.
Consumer electronics replaced wireless devices in the survey as the top semiconductor application, which may reflect the stranglehold achieved on the wireless device category by the likes of Apple and Samsung. More executives ranked industrial, medical, automotive and power management as important revenue drivers than in the previous three year's surveys, KPMG said.
This year, 53 percent of the executives said renewable energy technologies like batteries will be an important driver of revenue over the next three years, up from 36 percent a year ago.
To your last point. That could well be the case.
There are rumors that Apple will pressure Hon Hai to build a manufacturing plant in the United States. But that would just be one example.
There is a lot of awareness in Europe of how Germany's manufacturing- and export-led economy is really the most viable here. There is also much discussion of re-industrialization.
But how to achieve it against global competition is not easy.
this is an interesting article, I think Global Semiconductor Executives are figuring out that investing and Playing China is not easy and not worth it any more.
Asian business dominated by low cost competition with local govt. Subsidy and Invention,
1) China specially has too much Govt. intervention. Govt is protecting and promoting local companies and market is not free, no not good business Ideas, besides very hard to protect IP & Tech Know how, too many copy cats
2) Korean companies have Govt. protection as well.
3) Taiwan has nationalistic approach to its Industry, hard for outsiders to win here,
It is much easier for Korean and Taiwanese companies to win here,
Also Asian companies are realizing importance of R&D Talent in USA, lot of companies investing in R&D in USA.
I think more MFG investment will also be seen from Asia in USA.
Join our online Radio Show on Friday 11th July starting at 2:00pm Eastern, when EETimes editor of all things fun and interesting, Max Maxfield, and embedded systems expert, Jack Ganssle, will debate as to just what is, and is not, and embedded system.