© stevanovicigor dreamstime.com Business | February 20, 2018
Top 10 semiconductor R&D spenders in 2017
Intel far surpasses others with R&D spending of USD 13.1 billion in 2017 and accounts for 36% of expenditures among top R&D spenders, says IC Insights.
The ten largest semiconductor R&D spenders increased their collective expenditures to USD 35.9 billion in 2017, an increase of 6% compared to USD 34.0 billion in 2016. Intel continued to far exceed all other semiconductor companies with R&D spending that reached USD 13.1 billion. In addition to representing 21.2% of its semiconductor sales last year, Intel’s R&D spending accounted for 36% of the top 10 R&D spending and about 22% of total worldwide semiconductor R&D expenditures of USD 58.9 billion in 2017, according to the 2018 edition of The McClean Report that was released in January 2018. Figure 1 shows IC Insights’ ranking of the top semiconductor R&D spenders, including both semiconductor manufacturers and fabless suppliers. Top 10 Semiconductor R&D spenders (companies with ≥ $1B in spending)
*sales and R&D spending of acquired semiconductor supplier are included
Intel’s R&D expenditures increased just 3% in 2017, below its 8% average annual growth rate since 2001, according to the new report. Still, Intel’s R&D spending exceeded the combined R&D spending of the next four companies—Qualcomm, Broadcom, Samsung, and Toshiba—listed in the ranking.
Underscoring the growing cost of developing new IC technologies, Intel’s R&D-to-sales ratio has climbed significantly over the past 20 years. In 2017, Intel’s R&D spending as a percent of sales was 21.2%, down from an all-time high of 24.0% in 2015. In 2010, the ratio was 16.4%, 14.5% in 2005, 16.0% in 2000, and just 9.3% in 1995.
Qualcomm—the industry’s largest fabless IC supplier—was again ranked as second-largest R&D spender, a position it first achieved in 2012. Qualcomm’s semiconductor-related R&D spending was down 4% in 2017, after a 7% drop in 2016, and it was close to being passed up by third place Broadcom and fourth placed Samsung, whose R&D spending increased 4% and 19%, respectively.
Despite increasing its R&D expenditures by 19% in 2017, Samsung had the lowest investment-intensity level among the top-10 R&D spenders with research and development funding at 5.2% of sales last year. Samsung’s 49% increase in semiconductor revenue in 2017 (driven by strong growth in DRAM and NAND flash memory) lowered its R&D as a percent of sales ratio from 6.5% in 2016. Micron Technology’s revenues surged 77% in 2017, but its research and development expenditures grew 8%, resulting in an R&D/sales ratio of 7.5% compared to 12.5% in 2016. Similarly, SK Hynix’s sales climbed 79% in 2017, while its research and development spending increased 14% in the year, which resulted in an R&D/sakes ratio of 6.5% versus 10.2% in 2016.
Fifth-ranked Toshiba and sixth-ranked Taiwan Semiconductor Manufacturing Co. (TSMC) each allocated about the same amount for R&D spending in 2017. Toshiba’s R&D spending was down 7% while TSMC had one of the largest increases in R&D spending among the top 10 companies shown in the figure. TSMC’s R&D expenditures grew by 20% as the foundry raced rivals Samsung and GlobalFoundries in launching new process technologies, while its sales rose 9% to USD 32.2 billion in the year.
Rounding out the top-10 list were MediaTek, Micron, Nvidia, which moved from 11th place in 2016 to 9th position to displace NXP in the 2017 ranking, and SK Hynix. Collectively, the top-10 R&D spenders increased their outlays by 6% in 2017, two points more than the 4% R&D increase for the entire semiconductor industry. Combined R&D spending by the top 10 exceeded total spending by the rest of the semiconductor companies (USD 35.9 billion versus USD 23.0 billion) in 2017.
A total of 18 semiconductor suppliers allocated more than more than USD 1.0 billion for R&D spending 2017. The other eight manufacturers were NXP, TI ST, AMD, Renesas, Sony, Analog Devices, and GlobalFoundries.
|2017 Rank||Company||R&D Exp||R&D/Sales %||17/16 % change in R&D|
|Top 10 Total||35,921||13.0%||6%|
Hirose’s Malaysian factory has been temporarily closed The connector company had to temporarily close its operations in Malaysia on March 18 following a government order. The order is a precautionary measure against Covid19 and is affecting most of the country’s industries.
COVID-19: Vishay provides operational update The manufacturer of discrete semiconductors has provided an update on the operational status of its manufacturing facilities amidst COVID-19 pandemic.
Axcelis receives its first order For Purion in Japan Axcelis Technologies, a supplier of high-productivity solutions for the semiconductor industry, says it has received an order to ship its first Purion system into Japan.
NXP invests in Kalray An EUR 8 million equity investment to strengthen partnership between the companies who will co-develop, jointly promote and deploy autonomous driving solutions on the market.
SEMI urges ‘essential business’ designation of semi companies SEMI has urged government representatives around the U.S. and world to designate the semiconductor industry as an essential business so operations at companies across the chip supply chain can continue without interruption as the spread of COVID-19 continues.
Digi-Key inks distribution partnership with Siglent Technologies Digi-Key Electronics has expanded its product portfolio by signing a North American distribution partnership with Siglent Technologies, providing its customers with electronic test and measurement solutions.
Jenoptik supplies infrared optics to Rheinmetall The photonics group Jenoptik will supply infrared optical components to Rheinmetall between 2020 and 2025.
Kyoto Semiconductor names new president and CEO As of April 1, 2020, the company has announced that a new management system will begin, with Tsuneo Takahashi set to become its new President and CEO.
Smoltek signs evaluation license agreement with capacitor manufacturer Swedish technology company, Smoltek, says that it has signed an evaluation agreement with an unnamed manufacturer of capacitors.
Pervasive Displays increasing manufacturing capacity e-paper display manufacturer, Pervasive Displays (PDi), says it has made a major advancements in product reliability and manufacturing capacity to improve the automated production of electronic paper displays (EPDs).
Analog Devices prioritises the medical field during pandemic Analog Devices, Inc. has taken a series of actions to support the global response to the COVID-19 pandemic by expediting production of its healthcare technologies that can help fight the outbreak.
Autec Power Systems & New Yorker Electronics inks agreement Autec Power Systems, a provider of custom power supplies, high-efficiency LED Drivers, switching power supplies and power management products, has signed accredited distributor New Yorker Electronics to a new distribution pact.
MagnaChip Semiconductor to sell its foundry business and Fab 4 MagnaChip Semiconductor says that certain of its wholly-owned subsidiaries have entered into a definitive agreement to sell the company's Foundry Services Group and the factory in Cheongju (Fab 4), the larger of the company's two 8" manufacturing facilities.
Singulus Technologies temporarily reduces business operation Against the backdrop of the current situation related to the spread of COVID-19 and the resulting restrictions in private and business lives, Singulus Technologies is implementing short-time work at two of its German sites.
Kyocera to acquire Japan-based Showa Optronics Kyocera Corporation has entered into a share transfer agreement with NEC Corporation on March 25, 2020 to acquire all of NEC’s shares in Showa Optronics Co., Ltd., an optical components manufacturer.
Analog Devices withdraws second quarter outlook The economic and social effects caused by COVID-19 are currently creating supply chain disruption and uncertainty around future demand.
Movement control order restricts production for Renesas in Malaysia Due to a Movement Control Order announced by the Malaysian government, Renesas three production sites located in the country temporarily halted productions from March 18, 2020.
TTI remains operational during COVID-19 pandemic TTI, Inc. says it remains open following the guidelines mandated by local and federal governments during the COVID-19 coronavirus outbreak, with precautions in place to safeguard employees’ health.
Nokia completes acquisition of Elenion Technologies Nokia says it has completed its acquisition of U.S.-based supplier of silicon photonics technology, Elenion Technologies.
Nexperia CEO Frans Scheper retiring On March 24, 2020, Nexperia announced that CEO Frans Scheper has decided to take early retirement and will step down as Nexperia CEO and Management Board Member per March 25, 2020.
Intellitronix seeing interest from Ford Ohio-based Intellitronix Corporation, a subsidiary of US Lighting Group, has been invited by the Ford Motor Company to submit a proposal to design and manufacture an automotive electronics component for one of the automaker’s upcoming vehicles.
NEXT Biometrics receives additional order from government program in India NEXT Biometrics has received an additional order for UIDAI and STQC certified fingerprint biometric readers in India valued at USD 360,000. The customer has provided a 20% upfront payment and the readers have been delivered to the customer.Load more news