ICinsights announces Top Ten Investment in Semiconductor Research and Development

According to the latest (McClean Report) report published by IC Insights in 2021, R & D spending by global semiconductor companies is expected to grow by 5% in 2020, reaching an all-time high of $68.4 billion. By 2021, R & D spending will grow by 4% to $71.4 billion, a record high. According to their outlook for the integrated circuit industry, total R & D spending of semiconductor companies is expected to grow at a compound annual growth rate of 5.8 per cent (CAGR) between 2021 and 2025, bringing industry-wide R & D spending to $89.3 billion.

In 2020, the world was hit by the Covid-19 virus health crisis, and despite the economic impact of a deadly pandemic, the semiconductor industry's total revenue grew by an astonishing 8% during the year, but cautious semiconductor suppliers limited the growth of R & D spending.

Statistics show that semiconductor R & D spending as a percentage of global industry sales fell from 14.6% in 2019 to 14.2% in 2020, while R & D spending fell by 1%, and total semiconductor revenue fell by 12%.

Since the late 1970s, total spending on semiconductor research and development has fallen sharply in just four years. There were also declines during the slowdown, such as-1 per cent in 2019,-10 per cent in 2009 and back-to-back after the industry was hit by the major global recession) it was-1 per cent in 2002 and-10 per cent in 2001, when the economic downturn coincided with the collapse of the Internet ".com" Bubble at the turn of the century.

After the global recession of 2008-2009, R & D spending recovered strongly in 2010 and 2011, but subsequent spending has slowed over the past decade for a variety of reasons, including continued uncertainty and historic fluctuations in the global economy. Acquisitions in the chip industry.

Since 2000, with the exception of five years (2000, 2010, 2017, 2018 and 2020), total semiconductor R & D spending as a percentage of global sales has exceeded the four-decade historical average of 14.6%. During these five years, the lower R & D-to-sales ratio has more to do with the advantage of total revenue growth than the disadvantage of semiconductor suppliers in R & D spending.

Intel continues to lead all other semiconductor suppliers in R & D spending in 2020, accounting for about 19 per cent of the industry's total spending. However, cost-cutting, the elimination of certain product categories and efforts to maximize efficiency reduced Intel's R & D spending by 4 per cent to $12.9 billion in 2020, while the company's spending fell by 1 per cent in 2019. At that time, it accounted for 22% of the total number of industries with a market share.

Intel's decline in R & D spending from 2019 to 2020 was the company's first consecutive annual decline since 2008 and 2009. The 4% decline in 2020 was Intel's biggest R & D decline since the mid-1990s. Samsung, in second place, increased its R & D spending by 19% to $5.6 billion in 2020.

According to the report, the top 10 R & D spending (Intel, Samsung, Broadcom, Qualcomm, Nvidia, TSMC, MediaTek, Micron, SK Hynix and AMD) increased by 11% in 2020 to $43.5 billion, accounting for 64% of the industry total. The top 10 companies in 2020 are Nvidia (rising one place to fifth), MediaTek (ranking rising two places to seventh) and Advanced Micro Devices (ranking rising one place to 10th). According to the new IC Insights report, the proportion of R & D investment in the top 10 R & D / sales was 14.5% in 2020 and 15.0% in 2019.