18 chip companies over $1bn in 2017 R&D spending

February 27, 2018 // By Peter Clarke
Intel was way out in front when it came to spending money on semiconductor R&D in 2017. And out of 18 that spent more than $1 billion, the top ten chip companies increased their spending by 6 percent in 2017 compared with the year before, according to IC Insights.

Intel spent $13.1 billion in 2017 and accounted for 36 percent of the top ten group's R&D expenditures of $35.9 billion, up from $34.0 billion in 2017. It also represented 21.2 percent of revenues and about 22 percent of total worldwide semiconductor R&D expenditures of $58.9 billion in 2017,

Top ten chip companies ranked by semiconductor R&D. Source: IC Insights.

A total of 18 semiconductor suppliers allocated more than more than $1.0 billion for R&D spending 2017.  The eight manufacturers outside the top ten were NXP, Texas Instruments STMicroelectronics, AMD, Renesas, Sony, Analog Devices, and GlobalFoundries.

Intel's R&D spend increased by 3 percent in 2017, below its long-run CAGR of 8 percent. Intel's R&D spend was 9.3 percent of sales in 1995, 16.0 percent of sales in 2000 and 16.4 percent in 2010. It stood at 24.0 percent in 2015.

Semiconductor-related R&D spending at second-ranked Qualcomm was down 4 percent in 2017, after a 7 percent drop in 2016. Meanwhile third place Broadcom and fourth placed Samsung, increased R&D spending by 4 and 19 percent, respectively.

Next: How the others did


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