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TSMC is among chip industry's biggest R&D spenders in 2010

Posted: 18 Jan 2011 ?? ?Print Version ?Bookmark and Share

Keywords:R&D spending in chip industry? pure play foundry? fabless-foundry model?

Market research firm IC Insight Inc. has identified Taiwan Semiconductor Manufacturing Co. as one of the top 10 semiconductor R&D spenders in 2010, the first pure play foundry to make it to the list.

TSMC's R&D spending rose by 44 percent to reach $945 million last year, moving the company from 19th among chip manufacturers to 10th, IC Insights said.

The jump in R&D spending by TSMC is the latest result of the success of the fabless-foundry model and the increase in IDMs migrating to fab-lite models, IC Insights noted. While IDMs and fabless suppliers typically spend about 15 to 20 percent of their revenues on R&D, foundries invest only about 5 to 10 percent of their revenues in R&D, according to the market research firm.

IC Insights expects TSMC's R&D spending to grow by another 20 percent in 2011, putting it at more than $1.1 billion.

Dylan McGrath
EE Times

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