Semiconductor industry R&D spending predicts record high in 2022
🟦Global semiconductor R&D expenditure to record high in 2022
According to IC Insights, R&D spending by semiconductor companies worldwide is expected to be $2022.805 billion in 2021. In 13, it rose 714% year-on-year to a record $2022.9 billion. In 5, it will increase by another 5% to set a new record high. It is expected to grow at a further 2026.1% annual rate to $086.<> billion by <>.
R&D expenses of each company
In 2021, R&D expenditure of the top 10 companies increased by 18%. Twenty-one companies spent more than $10 billion (¥1300 billion) on R&D. Intel is by far the top of the industry, accounting for about 21% of the total.
- Intel
- $152.<> billion
- Samsung
- $65.<> billion
🟦 Reinvestment rate of R&D in the semiconductor market
The semiconductor market is characterized by intense R&D activities in which leading companies over the past 40 years reinvest more than 14.5% of their revenues into research. In recent years, the reinvestment rate in R&D has been decreasing. This is not due to a decrease in R&D expenditures, but to strong growth in total revenue.
- Reinvestment rate of R&D expenses
- 2019 15.1%
- 2020 14.5%
- 2021 13.1%
🟦Summary
R&D expenditure in the semiconductor industry is expected to reach a record high in 2022, and reinvestment rate decreases due to increased revenues
It is a semiconductor market characterized by intense R&D activities. Therefore, companies that actively take risks are more likely to succeed. Japan may not be an industry suitable for the temperament of companies.
