A new survey by KPMG and the Semiconductor Industry Association finds that semiconductor companies do not expect an industry recovery any time soon. The November survey interviewed 85 senior executives at device, foundry and fabless companies. Fifty-two percent of the executives expect revenues to decrease and 69% expect profitability to decline over the next year to 18 months. For the next three years, 47% expect the profitability of the semiconductor industry to be unpredictable, unstable or to decline. Regarding their firms’ R&D spending, 48% expect it to decline, while 28% expect to increase it in the upcoming fiscal year. Fifty-two percent of those surveyed expect capital spending to drop. Asked where they plan to spend R&D funds in the next three years, 44% said the US. Of those surveyed, 77% expect their companies to increase their R&D investment in green technology and 84% expect green products to make up more than 20% of their revenues in five years.

Source: KPMG

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