Q1 Semiconductor R&D Grew 12% YoY PDF Print E-mail
Thursday, 26 June 2008 08:15
SCOTTSDALE, AZ – The tepid semiconductor market isn’t slowing spending on chip research and development. First quarter semiconductor R&D grew 12% to $11.1 billion compared to the same period last year, says IC Insights.

R&D spending as a percent of sales stood at 17.5% compared to 16.4% in the first quarter of 2007.

Last year, integrated device manufacturers, fabless semiconductor companies and pure-play wafer foundries spent a total of $45.7 billion on R&D and related engineering activities for new IC products, says the research firm. 

In 2007, industry-wide R&D expenditures grew 8% year-over-year. R&D and engineering expenditures as a percent of semiconductor sales rose to 17.9% from 17.2% in 2006. In contrast, R&D expenditures as a percent of semiconductor revenues averaged 14.9% between 1990 and 2007.

With next-generation IC processes becoming more expensive to develop and IC design costs exploding, R&D and engineering budgets have increased at a faster rate than the industry's sales growth since the early 1990s, according to IC Insights. 

R&D and engineering expenditures increased at a CAGR of 12.7% between 1990 and 2007, while semiconductor sales grew at a CAGR of 9.9% in the 17-year period. 

Overall, IC Insights expects this trend to continue into the next decade, but R&D expenditures in 2008 are forecast to rise just 8% to $49.2 billion, as some IC makers attempt to curb spending and transfer some development activities to third-party foundries.

In the first quarter, IDMs collectively spent 17.9% of revenues on R&D and related engineering activities, while fabless semiconductor suppliers averaged 25.1% of sales on R&D and engineering costs. Meanwhile, pure-play silicon foundries spent 7.1% of total sales on R&D and engineering expenditures.
 

Columns

Eastern-US: China’s New Competitor?

Parity emerges among EMS Factories from Asia, Mexico and the US.

For the first time in years we see parity in the Eastern US among EMS factories from Asia, Mexico and the US. This EMS market condition will permit American OEMs (the EMS industry refers to OEMs as customers) to have more EMS pathways to choose from. Now more than ever, such EMS assignments will require deeper investigation relating to the OEMs’ evaluation of manufacturing strategies.

Read more...
 
The Human Touch

For those who count on the electronics industry for big feats, it’s been a remarkable couple of years.

Read more...
 

Features

Advances in Concentration Monitoring and Closed-Loop Control

Contaminated bath water skews refractive index results. New technology can accurately measure aqueous cleaning agent concentration.

Read more...
 
Circuits Disassembly: Materials Characterization and Failure Analysis

A systematic approach to nonconventional methods of encapsulant removal.

Read more...
 

Search

Search

Login

CB Login

Language

Language

English French German Italian Portuguese Russian Spanish
 

Products

Panasonic Debuts PanaCIM Maintenance with Augmented Reality
PanaCIM Maintenance with Augmented Reality software provides instant communication and information to factory technicians -- when and where it is needed -- so they can respond to factory needs more...