Semiconductor industry executives remain optimistic about the sector’s growth in 2026, but their positive outlook is tempered by concerns over supply chain stability, energy procurement, and talent shortages. These findings come from the 21st annual Global Semiconductor Outlook survey conducted by KPMG LLP and the Global Semiconductor Alliance (GSA).
According to the survey, which collected responses from 151 semiconductor executives—more than half of whom lead companies with annual revenues exceeding $1 billion—the AI boom has significantly influenced expectations. A large majority, 93%, anticipate revenue growth in 2026. The KPMG Semiconductor Industry Confidence Index reached a score of 63, marking its third-highest level in twenty years; a score above 50 indicates more positive than negative sentiment.
Chad Seiler, Line of Business Leader for Technology, Media and Telecom at KPMG US, commented on the findings: “We’re seeing a fundamental surge in semiconductor demand that spans the entire economy—from AI and data centers to electric vehicles.”
Seiler added: “This broad-based demand creates a more resilient growth trajectory, but it also creates intense pressure. Leaders are now faced with the challenge of capitalizing on this historic opportunity while simultaneously navigating supply chain, energy and talent challenges.”
For the first time since the survey began, tariffs and trade policy have overtaken talent risk as the top concern among executives. Other significant findings include:
– More than half (54%) expect their company’s revenue to increase by at least 11% in the coming year.
– Artificial intelligence leads as the primary application driving revenue (73%), followed by cloud/data centers (61%), wireless communications (57%), and automotive applications (56%).
– Memory products—including high-bandwidth memory—have risen sharply as a growth opportunity, matching microprocessors at around two-thirds of respondents citing them.
– Energy security is an emerging issue: 34% are concerned about sourcing enough power for manufacturing facilities over the next three years. This concern increases to 58% when considering whether hyperscale data center operators can secure sufficient energy.
– Adapting supply chains to geopolitical changes is now seen as a top strategic priority for nearly half of respondents (45%). Increasing geographical diversity within supply chains is viewed as the most important action toward achieving this goal.
KPMG stated that it will release its full Global Semiconductor Industry Outlook report in early 2026.
