© Jakub Jirsak Dreamstime.com Analysis | January 31, 2020
Semiconductor R&D to nudge higher through 2024
Technical challenges including the move to EUV lithography, sub-3nm process technology, 3D die-stacking technologies, and advanced packaging are expected to lift R&D growth rates.
The semiconductor business is defined by rapid technological changes and the need to maintain high levels of investment in research and development for new materials, innovative manufacturing processes for increasingly complex chip designs, and advanced IC packaging technologies. While consolidation in the semiconductor industry contributed to lower growth rates in R&D spending in the past five years, the long-term trend has been for a slowdown in annual increases of research and development expenditures since the 1980s, according to data presented in the new edition of IC Insights’ McClean Report—A Complete Analysis and Forecast of the Integrated Circuit Industry, which was released in January 2020. However, technical challenges including three-dimensional die-stacking technologies, the move to extreme ultraviolet lithography in advanced processes, and growing complexities in products are expected to lift R&D budgets by slightly higher growth rates in the 2019-2024 period. R&D spending trends discussed here cover expenditures by integrated device manufacturers (IDMs), fabless chip suppliers, and pure-play wafer foundries and do not include other companies and organizations involved in semiconductor-related technologies, such as production equipment and materials suppliers, packaging and test service providers, universities, government-funded labs, and industry cooperatives, such as IMEC in Belgium, the CAE-Leti Institute in France, the Industrial Technology Research Institute (ITRI) in Taiwan, and the U.S.-based Sematech consortium, which was merged into the State University of New York (SUNY) Polytechnic Institute in 2015. Since the 1990s, the semiconductor industry has led all other major industrial segments in R&D intensity, with annual spending on research and development averaging about 15% of total sales, according to data compiled by IC Insights. Over the last three years, however, the semiconductor industry’s R&D-to-sales percentage slid to 13.5% in 2017 and 13.0% in 2018 primarily because of extremely high revenue growth in memory ICs. The industry’s R&D/sales ratio rebounded to 14.6% in 2019 when memory IC revenues fell 33% and the entire semiconductor market dropped 12%. The pharmaceuticals and biotechnology sector moved into the top position in the 2019 ranking with an R&D/sales ratio of 15.4%, based on a global survey in the European Union Industrial R&D Investment Scorecard report. During the last 41 years (1978-2019), R&D expenditures as a percent of semiconductor sales averaged 14.6%. Since the year 2000, semiconductor R&D spending as a percent of worldwide semiconductor sales exceeded the historical average in all but four years (2000, 2010, 2017, and 2018). In these four years, lower R&D-to-sales ratios had more to do with the strength of revenue growth than weakness in research and development spending.
For more information visit © IC Insights
For more information visit © IC Insights
Royal Flex Circuits boosts effort to support healthcare Santa Fe Springs, California-based Royal Flex Circuits is ramping up capacity at its year-old manufacturing facility to be produce more of the printed circuits needed in the production of ventilators used specifically in the treatment of Coronavirus.
Lam Research reacts to COVID-19 situation Fremont, California-based Lam Research Corporation has issued a business update for its quarter ending March 31, 2020.
Panasonic,Tesla scaling down production in Nevada In response to Panasonic’s announcement this week of a temporary, full suspension of production of its operations at Tesla’s Gigafactory in Nevada, Tesla also issued a statement that it would significantly decrease production at the site.
NOTE temporarily suspends production at Windsor plant Swedish EMS provider NOTE has, in line with the UK authorities' decision to limit all non-essential travel and work, temporarily halted its production at its manufacturing facility in Windsor.
Texas Instruments adjusting operations in Texas Texas Instruments is following a Dallas County shelter-in-place order and reducing operations at the company’s Dallas-area plants.
European EV battery production gets a boost from the EIB The European Investment Bank (EIB) has signed a EUR 480 million loan agreement with LG Chem Wroclaw Energy, the Polish subsidiary of the LG Chem Group that was established to develop the group’s battery production facility in Europe.
Würth Elektronik CBT produces PCBs for ventilators The worldwide spread of the coronavirus is not only increasing the demand for personal protective equipment, but also for medical ventilators.
North American PCB industry sales down 1.1% in February Total North American PCB shipments in February 2020 were down 1.1% compared to the same month last year.
U.S. may further crimp Huawei's global chip supply Senior Trump administration officials have reportedly agreed on new restrictions to curb the global supply of chips to China’s Huawei Technologies, sources are saying.
Tesla to reopen NY plant to make ventilators Tesla has joined industry efforts to shift production from autos and other non-healthcare related components to much needed supplies that support the domestic battle against rising numbers of coronavirus victims and the need for testing.
Bosch develops rapid test for COVID-19 Developed in just six weeks, Bosch says the rapid test can detect a COVID-19 infection in patients in under two and a half hours – measured from the time the sample is taken to the time the result arrives.
Lockdown in India halts production at Foxconn and Wistron Both EMS giants are complying with the nationwide lockdown ordered by Prime minister Narendra Modi. Both Foxconn and Wistron have now suspended production at their plants in India.
NAND Flash ASP may tumble in 2H20 ahead of expectations The continued spread of the COVID-19 pandemic has resulted in considerably weakened shipment for most end products in 1Q20, according to the DRAMeXchange research division of TrendForce,
Beijer Electronics takes preventive measures – downsizes workforce Beijer Group says it has increased its readiness and is taking measures to address the currently assessed consequences of the spread of COVID-19.
COVID-19 forces Lacroix to close several plants The French EMS provider says it is taking appropriate steps to limit the spread of COVID-19, safeguard its teams and, as far as possible, ensure business continuity for its customers.
PVA joins growing list of companies helping fight COVID-19 Upstate New York-based PVA has ramped up efforts to supply solutions for the shortage of COVID-19 test kits, portable respirators, and mechanical ventilators.
Applied Materials walks back Q2FY20 business outlook Applied Materials Inc. is withdrawing its business outlook for the second quarter of fiscal 2020, ending on April 26, 2020, due to the changing worldwide response to COVID-19 and its impact on the company’s supply chain and manufacturing operations.
Getting creative: Ford, 3M, GE, UAW unite to battle COVID Ford Motor Company, 3M and GE Healthcare are brainstorming ways to engineer and manufacture medical equipment and supplies for front line healthcare workers and responders, as well as patients fighting coronavirus.
Hamamatsu Photonics establishes subsidiary in Korea Hamamatsu Photonics Korea Co., Ltd. has been established as a subsidiary to strengthen the sales structure for its Imaging and Measurement Instruments business in South Korea.
Serial production & prototype construction continues at Akasol Akasol says it will maintain its serial production as well as prototype and sample construction for the time being, despite the current crisis related to COVID-19; but with stricter precautions related to health and safety.
Bittium receives purchase order from the Finnish Defence Forces Bittium has received a purchase order from the Finnish Defence Forces for the Bittium Tactical Wireless IP Network (TAC WIN) system's products, which are meant for tactical communications.
Italian restrictions creates uncertainties for GPV’s Swiss factory As of the March 23, GPV’s production site in Mendrisio is unable to operate due to further restrictions imposed by the Italian government as well as from the government of the canton Ticino in Switzerland in an attempt to combat the spread of COVID-19.
Incap temporarily reduces capacity in the UK Following new strict guidelines announced by the British government on Monday 24 March to contain the COVID-19 pandemic in the UK, Incap will temporarily reduce the operations of its Straffordshire factory in the UK to focus on production of medical and scientific instruments only.
II-VI ups capacity for diagnostic testing systems II-VI Incorporated, a provider of lasers, optics, thermoelectrics, and subassemblies for the life sciences market, is ramping up manufacturing capacity of components and subassemblies for molecular diagnostic testing systems for polymerase chain reaction (PCR) testing platforms.Load more news