Semiconductor industry most concerned by tariffs, trade policy: KPMG

The semiconductor industry, the bedrock of our digital world, is constantly navigating a complex web of challenges. From geopolitical tensions to rapid technological advancements, leaders in this sector are always on high alert. But what’s keeping them up at night these days?

According to KPMG’s highly anticipated 21st annual Global Semiconductor Outlook, there’s a significant shift in priorities. For the first time in the report’s history, supply chain issues have surged past talent as the top concern for industry leaders. This isn’t just a minor fluctuation; it signals a profound re-evaluation of the most pressing risks facing the sector.

The move to prioritize supply chain resilience is particularly telling in the current global climate. Tariffs, evolving trade policies, and geopolitical instability have created an intricate and often unpredictable landscape for manufacturing and distribution. Companies are grappling with everything from sourcing raw materials to delivering finished products across borders, all while facing potential disruptions and increased costs.

While talent development and retention remain critical for innovation and growth, the immediate threat posed by vulnerable supply lines appears to have taken precedence. This highlights a strategic pivot: while nurturing a skilled workforce is a long-term investment, ensuring the uninterrupted flow of components and products is now seen as the more urgent, existential challenge. Leaders are now intensely focused on diversification, localization, and building more robust, resilient supply networks to mitigate these external pressures.

The KPMG report underscores a critical message: in an interconnected yet often turbulent world, the ability to maintain a stable and secure supply chain is paramount for the semiconductor industry’s continued success and innovation. Addressing these challenges head-on, particularly those driven by tariffs and complex trade policies, will define the industry’s trajectory in the years to come.

Source: Original Article