Nvidia Spending over a Third of Revenue in Semiconductor R&D for Future Graphics Technologies

Usman Pirzada
Posted Mar 10, 2015
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The Russian publication overclockers.ru published a report on research and development spendings of semiconductor companies all over the world. Wafer fabrication is all about the big bucks and R&D budget is a leading indicator of this fact, so this piece is about that basic rundown.

tsmc_semiconductor_fab14_productionA stock photo of a fabrication plant. @TSMC Public Domain

Green makes the top 10 spenders on semiconductor R&D, Intel tops the list

R&D is absolutely critical to any semiconductor firm and their spending is, in most cases, very indicative of their success. In a report released by the agency IC Insights we learn of the top 10 highest spenders in this department. The list, as you may guess, offers quite a lot of insights into the current standing of these companies. Intel for example, the undisputed giant of the tech world, currently has spending that is approximately 3 times that of the guy in second place. Its R&D budget completely eclipses that of everyone else on the list – once again, something that indicates just how much of a lead Intel has over TSMC.insights_01

Interestingly Nvidia has also managed to claim a spot in the top 10 list, albeit at 10th place. Interestingly the bottom few semiconductor companies all have approximately the same budget, while Intel has more budget than nearly all of them combined. What is perhaps of more interest to our readers is that Nvidia spends approximately 1/3 of its total revenue on semiconductor R&D, needless to say, that is a huge amount. Comparatively, TSMC, which is Nvidia’s foundry spends only 22% more than green itself – and even that after raising its R&D budget. That should give you an idea how high Nvidia’s budget for research is. Out of the companies present in the report, five of them are headquartered in the United States, three in Asia and the Pacific, and Europe and Japan.

Intel Corporation 2nd Quarter 2016 Results Out - Beats Analyst Expectations, Posts Earnings Per Share of 59 Cents

Intel Corporation remains the leader in the development costs for the year, and increased their funding for this year by 9%. The processor giant spent approximately 22.4% of its annual revenue on R&D. 36% of total R & D expenditure of the Top 10 belongs to Intel, while TSMC has managed to climb from seventh to fifth with a 15-percent increase in R & D expenditures and 7.5 percent share of the proceeds.

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