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The following is the In 2020, global semiconductor R & D expenditure will reach US $68.4 billion, with a year-on-year growth of 5% From IC Insights recommended by recordtrend.com. And this article belongs to the classification: IC Insights, Hardware equipment industry.
According to the latest “the McClean report” released by the authoritative semiconductor market research company IC insights, the R & D expenditure of global semiconductor companies is expected to increase by 5% year on year in 2020, reaching a record $68.4 billion, and is expected to increase to $89.3 billion by 2025. Semiconductor companies ranked in the top 10 in R & D spending increased by 11% to US $43.5 billion, accounting for 64% of the industry.
Among them, Intel ranked first with nearly 1 / 5 of the total, Samsung and Broadcom ranked second and third respectively, TSMC and MediaTek were both listed, and AMD entered the top 10 of R & D for the first time.
1、 Semiconductor industry’s revenue is growing against the epidemic, and R & D investment is expected to continue to rise in the next five years
The world economy will suffer from the impact of the new coronavirus in 2020. In this year, although the total revenue of the global semiconductor industry has unexpectedly increased by 8%, semiconductor companies are still more cautious in limiting the growth of R & D expenditure.
In 2020, the proportion of Semiconductor R & D expenditure in total global semiconductor revenue decreased to 14.2%, compared with 14.6% in 2019. At that time, R & D expenditure decreased by 1%, and total semiconductor revenue decreased by 12%.
The figure below depicts the level of Semiconductor R & D expenditure and the ratio of production to sales in the past 20 years, as well as IC insights’ forecast of R & D expenditure of the semiconductor industry in the next five years.
It can be seen from the picture that although the R & D expenditure of semiconductor industry decreased in 2002 and 2009 due to the global economic downturn, the overall trend of R & D expenditure was fluctuating and rising.
Except for 2000, 2010, 2017, 2018 and 2020, the proportion of global semiconductor R & D in all years of the past 20 years has exceeded the 40 year historical average of 14.6%.
In the past five years, the decline of the overall R & D to sales ratio is more due to the strong growth of the total revenue of the semiconductor industry than the weak R & D expenditure of semiconductor suppliers.
Although the growth rate of industrial R & D expenditure has slowed down in the past 10 years due to the continuous uncertainty of the global economy and the historic acquisition wave of the chip industry, the R & D expenditure of global semiconductor companies is expected to grow by 5% year on year in 2020, reaching a record $68.4 billion.
The report predicts that global semiconductor companies’ R & D spending will grow by 4% to $71.4 billion in 2021. From 2021 to 2025, R & D expenditure of semiconductor companies is expected to grow at a compound annual growth rate of 5.8% to US $89.3 billion.
2、 Intel’s R & D costs have declined year after year, and TSMC Samsung has increased R & D costs to compete for advanced manufacturing processes
According to the McClean report, the top 10 R & D spending companies in 2020 are Intel, Samsung, Broadcom, Qualcomm, NVIDIA, TSMC, MediaTek, micron, SK Hynix and AMD. The 10 companies with the highest R & D spending increased by 11% to $43.5 billion, accounting for 64% of the total semiconductor industry.
Among the top 10 R & D companies in 2020, NVIDIA (up 1 place to 5th place), MediaTek (up 2 places to 7th place) and AMD (up 11 places to 10th place in 2019) are on the rise. According to the IC Insights report, the R & D / sales investment ratio of the top ten enterprises will be 14.5% in 2020, compared with 15.0% in 2019.
Intel’s R & D spending in 2020 will continue to exceed that of all other semiconductor suppliers, about US $12.9 billion, accounting for 19% of the total R & D spending of the industry.
However, due to cost cutting, efficiency improvement and elimination of some product categories, Intel’s R & D expenditure will drop by 4% in 2020 after a 1% decline in 2019 (accounting for 22% of the total R & D expenditure of the industry), which is the largest decline since the mid-1990s.
This is the first consecutive annual decline in Intel’s R & D spending since 2008-2009.
Second, Samsung’s R & D spending rose 19% to $5.6 billion in 2020. Part of the reason is that Samsung has increased its R & D costs in order to compete with TSMC for advanced manufacturing technology.
TSMC’s R & D spending will grow by 24% in 2020 to nearly $3.7 billion.
Conclusion: the semiconductor industry is developing well, and TSMC and Samsung are launching an arms race
Although covid-19 was hit by the new global economic crisis in 2020, the semiconductor industry still increased by 8%. This shows that the development of the whole industry is good, and it will also encourage semiconductor companies to increase R & D investment.
At present, the dominant position of leading companies in the industry is still unshakable. The R & D expenses of the top ten companies account for 64% of the total semiconductor industry.
Intel’s R & D expenses have declined year after year, but its revenue is still strong. Because AMD, apple and NVIDIA do not have Intel’s capacity advantage, Intel’s chip business revenue will be twice the total revenue of the three companies.
The competition between TSMC and Samsung in advanced manufacturing technology will continue. At present, although TSMC occupies a leading position, with Samsung’s high R & D investment, no one knows who will win the competition.
IC insights: 2013 global semiconductor growth rate ranking: Hynix first, MediaTek second, Qualcomm IC insights: it is estimated that the value of chip products made in China will rise to US $45.2 billion in 2023 IC insights: 2020 global semiconductor manufacturers ranking forecast Intel first IC insights: Q1 global top 10 semiconductor manufacturers sales ranking in 2020 HUAWEI Hyers enters the first ten IC Insights:2018 global chip market, the US company shares exceed 50%IC Insights:2019, the world semiconductor factory ranks HUAWEI Hass growth highest IC Insights: Intel semiconductor revenue is expected to be 69 billion 832 million US dollars in 2019, unchanged from last year, IC Insights:2019 year, Chinese mainland wafer fab monthly capacity fifth IC Insights: Samsung’s semiconductor product revenue is expected to drop 20% year on year in 2019 IC insights: in Q1 of 2020, Huawei Hisilicon’s sales will reach US $2.67 billion, ranking among the world’s top 10 IC insights: in the first half of 2020, Huawei Hisilicon, the world’s top 10 semiconductor manufacturers, will be among the top 10 IC insights: it is expected that the global memory chip output will exceed US $100 billion IC insights in 2018 Insights:2020 global semiconductor manufacturers sales ranking HUAWEI Hass has fallen out of TOP 15IC Insights:2025, Chinese mainland semiconductor chip output will reach 223 billion U.S. dollars, IC Insights:2017 ten ranking of the world’s top Fabless
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