Deloitte’s joint survey with The Global Semiconductor Alliance (GSA) covered enterprises from the semiconductor value chain in Asia. This survey and associated report provide a playbook for navigating through business to remain competitive and profitable by exploring what companies should be doing today to stay ahead of the digital technology curve, as well as how to continue to innovate and create value in a dynamic world.

In 2023, the global semiconductor market faced significant challenges, but we expect the market will rebound in 2024 due to the recovery of downstream demand. The global semiconductor market is forecasted to surge by 13.1% in 2024, due to the demand recovery from downstream demand and continued growth in demand for generative AI products and power discrete devices. In addition, the overall demand for electronic devices is expected to increase due to the growing expectation of economic recovery.

According to the survey, we find that:

• Nearly half of semiconductor companies remain optimistic on future growth, believing that the Asia-Pacific market will accelerate growth in the next 3-5 years, and it is expected that corporate revenue will increase by more than 10%.
• More than 75% of semiconductor enterprises have begun digital transformation or have transformation plans in place. However, changes in operating models, upgrading of existing systems and lack of talent are the main challenges faced by enterprises in their digital transformation journey.
• Considering market condition, companies are relatively conservative about potential mergers and acquisitions. The main purpose of M&A is to obtain the technology to enter new markets. In addition, companies also face supply disruptions.
• In the future, semiconductor companies will focus on investment in R&D, supply chain stability, and talent training:
  • Geopolitics and costs are the main challenges to supply chain stability. Most semiconductor companies have adjusted their supply chains to analyze and reduce risks. 50% of companies have adopted automation/intelligent solutions to improve supply chain visibility.
  • Companies are concerned about supply chain stability and talent capacity; big data, machine learning and cloud computing technologies are utilized to manage these risks.
  • Companies choose to focus on employee career path planning and skill development to retain talent to cope with the impact of lack of talent on project progress and increased costs.