A survey found that Intel has reduced its R&D investment for the last two consecutive years. It is unusual for Intel, the world’s largest semiconductor company, to continuously reduce R&D spending. On the other hand, it was found that Samsung Electronics’ R&D expenditure increased significantly due to the development of ultrafine processes.
According to market research firm IC Insights on the 21st, Intel spent 12.9 billion dollars (about 14,200 billion won) on R&D last year. This is a 4% reduction compared to 2019.
IC Insights analyzed it as “the largest decline since the mid-1990s.” In addition, he said, “R&D expenditures have decreased for the second consecutive year following 2019, which decreased by 1%,” he said, “the first time since 2008 and 2009.”
Intel spent the most money on R&D last year among the world’s semiconductor companies. Intel investment accounted for 19% of the total semiconductor industry’s R&D expenditure, which reached 66.4 billion dollars (about 75.34 trillion won). However, as the amount decreased, the market share also fell from 22% in 2019. Last year, Intel was evaluated as reducing R&D expenditures as it began to reduce costs, improve management efficiency, and organize products.
On the other hand, Samsung Electronics’ R&D expenditure increased significantly last year. It invested $5.6 billion, an increase of 19% compared to 2019, ranking second in the industry.
IC Insights analyzed that “because it developed advanced logic processes below 5 nanometers (nm).” Samsung Electronics, the world’s largest memory semiconductor company, is also challenging the No. 1 foundry market. It is accelerating the development of ultra-fine processes such as 5-nano and 3-nano to pursue the No. 1 TSMC, and it is interpreted that R&D expenditure has increased due to strengthening investment in foundry.
Broadcom, Qualcomm, Nvidia, TSMC, MediaTek, Micron, SK Hynix, and AMD were listed in the top 10 global semiconductor R&D, following Intel and Samsung Electronics.
Amidst traditional semiconductor powerhouses, Nvidia, Mediatech, and AMD showed a pattern of increasing R&D. Nvidia rose from 6th in 2019 to 5th in 2020, and MediaTek rose to 7th place by two steps. AMD entered the 11th to 10th place in 2019.
Reporter Gunil Yoon [email protected]