News & Analysis
Recovery remains uncertain but China is key, says survey
Peter Clarke
11/18/2009 7:04 AM EST
One consistent finding is that the Chinese market opportunity is the key to growth. The survey forecasts increased revenue in 2010, increased profitability but only modest job growth. The executives who responded to the survey also anticipate moderate increases, albeit less than revenue, in capital expenditures and research and development next year, with a focus on areas of energy efficient and renewable technology.
However, KPMG concludes that the path forward in the near term is uncertain and there is no consensus on the shape of the recovery.
KPMG's study, conducted in collaboration with the Semiconductor Industry Association, surveyed 113 senior level executives in the semiconductor industry including executives at integrated device makers, foundries and fabless chip companies.
The results of the survey produced an increase in KPMG's Semiconductor Industry Business Confidence Index, a measure derived from specific survey responses. This index registered a 61, the equivalent of two years ago and up from 36 in 2008. "For the semiconductor industry, China continues to be viewed as most important for recovery and revenue growth in the next three years but industry executives still see volatility in some markets," said Henry Keizer, KPMG Global Head of Audit, in a statement.
Next: Limited job growth
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Chee Choy
11/18/2009 9:57 PM EST
China is definitely a vibrant marketplace st this time, but one thing, China import very little from other countries, only raw materials are their major importing items with some high end quality products to meet their riches group, also high tech products China do not produce. Other than that I seen very little impact China could benefit others rather do not worsen the world econcmy is good enough.
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nexogen
11/19/2009 2:08 AM EST
You cannot have technological unemployment in a money based system. The crisis will not go away unless you accept this and demand a moneyless system, or Resource Based Economy as some call it.
You know how fast automation technologies replace human labor, and that's the final proof our current system is out of date.
Planned obsolecence and deliberate product inefficiency is not a sane way to deal with this as it destroys the environment. There are 1 billion people starving in the world yet we have enough food to feed twice the entire population.
I dare you think more about this, research it, look up the work of the Jacque Fresco, before it's too late.
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