Online information source for semiconductor professionals
Semiconductor R&D expenditures rising faster than revenues, says IC Insights
Popular articles
Sematech Litho Forum: Sematech mulling multi-beam mask writer effort - 12 May 2010
Oberai discusses Magma’s move into solar PV yield management space - 29 August 2008
TSMC hosts 2008 Green Forum on ‘green’ factories - 31 October 2008
TSMC honors suppliers at annual Supply Chain Management Forum - 03 December 2008
Samsung and Micron gain most market share in DRAM crisis - 17 February 2009
Semiconductor R&D and engineering costs are rising at a faster rate
than IC sales, according to a new report from IC Insights. R&D and
engineering expenditures increased at a compound average growth rate
(CAGR) of 12.7 percent between 1990 and 2007, while semiconductor sales
grew at a CAGR of 9.9 percent in the 17-year period.
In 2007, IDMs, fabless and pure-play wafer foundries spent a total of
$45.7 billion on R&D and related engineering activities, up 8
percent compared to $42.5 billion spent in 2006, according to IC
Insights.
In the first quarter of 2008, spending on
semiconductor research and development grew 12 percent to $11.1 billion
compared to $10.0 billion in R&D expenditures in the same period
last year. R&D spending as a percent of semiconductor market sales
was 17.5 percent compared to 16.4 percent in the same quarter last year.
According to IC Insights, foundries spent only 7.1 percent of total sales on R&D and engineering expenditures in 1Q08.
