Global semiconductor R&D spending reached $30 billion in 2005

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Global semiconductor R&D spending reached $30 billion in 2005 [Copy link]

Source: Electronic Manager World Author: Unknown

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In 2005, total R&D spending by semiconductor companies worldwide reached more than $30 billion, up nearly 10% from 2004,

　　according to a new online report from market analyst firm IC Insights.

　　Total R&D spending by semiconductor companies worldwide grew by an average of 9% per year between 2001 and 2005. IC Insights noted in its report that the top 30 semiconductor suppliers doubled their R&D spending in the first few years of the last decade.

　　Among the top 25 device manufacturers (IDMs), Intel spent $22.1 billion on R&D between 2001 and 2005, about $10 billion more than other semiconductor companies, according to IC Insights’ analysis.

　　Intel’s R&D spending accounted for 26% of the top 25 IDMs’ product and R&D costs. Intel’s R&D spending affects the entire semiconductor industry, with the company’s five-year average spending accounting for only 14% of total sales. Over the past five years, the top 25 manufacturers have spent 16% of their sales on R&D. According to an analysis of an online database, the top 30 foundry-free suppliers spend 17% of sales on R&D.

　　This five-year R&D report on the top 25 IDMs shows that Samsung spent $12 billion, 20% of sales in five years. TI spent $9 billion, 17% of sales. ST spent $6.4 billion, 17% of sales. Infineon spent $6.3 billion, 19% of sales. Freescale spent $5.2 billion, 20% of sales. The

　　five-year R&D report of the top 30 foundry-free suppliers includes Qualcomm's $3.1 billion (15% of sales in five years); Broadcom's $2.4 billion (28% of sales); Nvidia's $1.3 billion (14% of sales); Xilinx's $1.3 billion (19% of sales), 8% of the entire group; and Marvell's $1 billion (23% of sales).

　　IC Insights' analysis also shows that foundries generally invest less in R&D than IDMs and foundry-free customers. However, this is understandable since foundries do not need to develop their own products.

　　Between 2001 and 2005, TSMC invested $1.8 billion in R&D, accounting for 6% of sales. Among the other foundries, in the past five years, Taiwan's UMC spent $1.1 billion on R&D, accounting for 9% of sales; SMIC spent $2.36 billion on R&D, accounting for 9% of sales; and Singapore's Chartered Semiconductor Manufacturing Ltd. spent $5.39 billion on R&D, accounting for 14% of sales.