One consistent finding is that the Chinese market opportunity is the key to growth. The survey forecasts increased revenue in 2010, increased profitability but only modest job growth. The executives who responded to the survey also anticipate moderate increases, albeit less than revenue, in capital expenditures and research and development next year, with a focus on areas of energy efficient and renewable technology.

However, KPMG concludes that the path forward in the near term is uncertain and there is no consensus on the shape of the recovery.

KPMG's study, conducted in collaboration with the Semiconductor Industry Association, surveyed 113 senior level executives in the semiconductor industry including executives at integrated device makers, foundries and fabless chip companies.

The results of the survey produced an increase in KPMG's Semiconductor Industry Business Confidence Index, a measure derived from specific survey responses. This index registered a 61, the equivalent of two years ago and up from 36 in 2008. "For the semiconductor industry, China continues to be viewed as most important for recovery and revenue growth in the next three years but industry executives still see volatility in some markets," said Henry Keizer, KPMG Global Head of Audit, in a statement.