In KPMG's Seventh Annual Global Semiconductor Industry Survey, 41 percent of the semiconductor executives surveyed expect that revenue will grow by more than 5 percent next year, compared with 78 percent a year ago, and 87 percent in 2009.

While semiconductor industry executives note the rise of the US as the second most important market for growth, behind China, their revenue and profitability growth expectations overall are down from a year ago and they do not plan to hire as many people, according to a global survey conducted by KPMG LLP, the US audit, tax and advisory firm.

In KPMG’s Seventh Annual Global Semiconductor Industry Survey, 41 percent of the semiconductor executives surveyed expect that revenue will grow by more than 5 percent next year, compared with 78 percent a year ago, and 87 percent in 2009. They also see less growth in profitability, with 30 percent anticipating profits to increase by greater than 5 percent over the next 12 months, compared with 37 percent last year.

In addition, this year the Semiconductor Business Confidence Index, a metric based on survey data, measured 46, compared to 60 in 2010 and 61 in 2009. The confidence index has risen from 36 in 2008, indicating that forecasted industry conditions entering 2012 will not be as severe as the beginning of 2009.

“It is not unexpected to see the industry take a breath after two strong years following the economic and industry downturn,” says Gary Matuszak, KPMG Global Chair for the Technology, Media and Telecommunications practice. “Executives continue to pursue their growth agendas, and will be acquisitive, but remain very apprehensive about the direction of the economy.”

In fact, in the KPMG survey, capital spending, R&D spending, and hiring are at lower levels than prior years. Just 27 percent, compared with 46 percent a year ago, anticipate capital spending to increase by more than 5 percent. Thirty-three percent expect more than a 5 percent rise in R&D spending, compared with 47 percent a year ago. And 19 percent of the respondents predict workforce growth of greater than 5 percent, compared with 29 percent in 2010.