Technology

The Global Semiconductor Alliance (GSA) conducted their 19th annual global semiconductor industry survey in Q4 2023, gathering insights from 172 executives, primarily from companies with over $1 billion in annual revenue. The Semiconductor Industry Confidence Index stands at 54 for 2024, indicating a cautiously positive outlook. While similar to the previous year, it is lower than the last five years, driven by muted expectations in workforce growth, research and development spending, and capital expenditures. Despite concerns, over 80% of executives anticipate revenue growth, with the automotive sector leading for the second consecutive year. Notably, artificial intelligence has risen to become the second most critical application, impacting revenue drivers and prioritizing microprocessors, particularly for AI applications. The survey emphasizes talent challenges as a top concern, with competition for technical talent intensifying, leading companies to focus on university partnerships, employee value propositions, and remote work options. The survey also indicates growing apprehension about semiconductor inventory levels, with 30% believing in an excess, and 12% expecting it in 2024, prompting actions such as reducing inventory and postponing capital expenditures. Despite concerns, a faction of executives sees emerging technologies like AI as a continuous growth engine, with 19% anticipating sustained demand without an inventory excess in the next four years, double the previous year's percentage.