Semiconductor Companies Spends Over $30 Billion Annually for Research

According to IC Insights, total R&D spending by semiconductor companies exceeded $30 billion in 2005, an increase of about 10% from 2004. Research and development spending by all semiconductor companies worldwide grew at an annual average rate of 9% between 2001 and 2005. The world’s 30 largest fabless semiconductor suppliers increased their R&D expenditures at double that rate during the first half of this decade.

Intel’s R&D expenditures were $22.1 billion between 2001 and 2005, about $10 billion more than any other semiconductor company. In the past five years, the top 25 IC manufacturers averaged 16% of sales for R&D expenditures. The R&D spending level for the top 30 fabless suppliers was 17% of sales.

Source: IC Insights