Semicon cos increase their R&D spend

BANGALORE, INDIA: According to IC Insights, Research and Development (R&D) spend by semiconductor companies worldwide is expected to grow 10 per cent in 2012 to a record-high Rs.2.92 lakh crore ($53.4 billion) compared to the current peak of Rs.2.66 lakh crore ($48.7 billion) set in 2011.

Chip companies will increase their R&D spending to 16.2 per cent of total semiconductor sales in 2012, which are now forecast to rise 3 per cent to Rs.18.02 lakh crore ($329.8 billion) from revenues of Rs.17.56 lakh crore ($321.4 billion) in 2011.

In 2011, some of the semiconductor companies have spent more than $1 billion each on R&D related activities. Intel's R&D expenditures accounted for 32 per cent of the top 10 spending and about 17 per cent of total R&D expenses at all semiconductor companies worldwide, that includes  integrated device manufacturers (IDMs), fabless suppliers, and foundries.