GSA 2023 European Executive Forum

Dealing with Uncertainty

The global economy is sending mixed messages, and with every new data release comes a new batch of upbeat or defeatist headlines.

Uncertainty remains if inflation is fully under control and how quickly economic growth will pick up strongly again. On one side the labor market seems healthier than it’s been in years, on the other all major tech companies have announced significant layoffs.  The chip shortage is not over yet in some segments, but in some others there is excess supply. Our new multipolar world order will enforce structural changes to the economy, such as the need to rebuild reliable supply chains closer to home, which often comes at higher prices.

Despite these uncertainties, innovation in our industry remains as strong as ever, with relentless growth driven by automotive, 5G and next generation connectivity, new silicon design paradigms including RISC-V and chiplets, big trends towards decarbonization and new materials like SiC, the positive effects of increased diversity and inclusion. And large amounts of government money is made available globally to support this growth, through “chips acts” and “green deals”.

There is therefore a strong belief that tech innovation and growth will continue to prevail and, with a little more positive international cooperation, deal with the apparent challenges altogether.