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TSMC ranks as 6th-largest R&D spender in IC industry
Central News Agency
2014-02-26 06:53 PM
Taipei, Feb. 26 (CNA) Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chip maker, ranked as the sixth-biggest spender in research and development in the global integrated circuit business, according to a research report released Wednesday. In the report, market information advisory firm IC Insights said that TSMC's R&D spending in 2013 totaled US$1.62 billion, up more than 18 percent from 2012, when the Taiwanese chip maker was the ninth-largest R&D spender in the global semiconductor industry. In 2010, TSMC raised its R&D spending by about 44 percent from a year earlier, vaulting the company to the position of 10th-largest R&D spender in the world, up eight notches from the previous year on the back of rising demand from fabless IC designers, IC Insights said. Last year, it accounted for 8 percent of the company's total sales, the same ratio as the previous year, IC Insights said. TSMC plans to spend US$9.5 billion-US$10 billion in capital expenditure in 2014 -- little changed from 2013 -- as the company aims to maintain its lead over its peers in technology development. IC Insights said Intel Corp., a U.S.-based integrated device manufacturer in the IC sector, retained its title as the largest R&D spender in the world's semiconductor business in 2013, spending US$10.61 billion, a record high in the company's history and up 5 percent from a year earlier. Intel's R&D spending accounted for 22 percent of its sales revenues in 2013, up one percentage point from 2012. U.S.-based Smartphone chip supplier Qualcomm Inc. replaced South Korea's Samsung Electronics Co. as the second-largest R&D spender in the IC industry, spending US$3.40 billion in 2013, up 28 percent from a year earlier. Samsung's R&D spending rose 2 percent in 2013 from a year earlier to US$2.82 billion to become the third-largest spender, ahead of U.S.-based wireless communications chip maker Broadcom Inc., whose 2013 R&D expenses rose 7 percent from 2012 to US$2.49 billion, and STMicroelectronics Inc. in Europe, whose spending fell 25 percent year-on-year to US$1.82 billion. (By Jackson Chang and Frances Huang)
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