Intel spent the most on R&D among the popular chipmakers, more than $16 billion, but Team Blue has yet to introduce a capable solution.
Intel's Pursuit of 18A & Beyond Technologies Has Been a Costly Venture, As The Firm Tops In R&D Spending
Team Blue's chipmaking efforts have been rather sluggish, considering that under the former CEO Pat Gelsinger, Intel's foundry division invested 'tens of billions' into its chip processes, but is still lagging behind competitors. According to a report by the Korean outlet JoongAngDaily quoting TechInsights, Intel outspent both TSMC and Samsung in chip R&D, as it is apparently one of the few chipmakers that invests in both design and chipmaking capabilities. The figure is reported to be around $16.55 billion, but interestingly, the chip R&D saw a small YoY growth, relative to the likes of Samsung.
Intel's R&D investments are motivated by the company's push for a breakthrough with its 18A node, following reports of unstable yield rates and insufficient production capacity. More importantly, Intel is seen as an asset in the US chipmaking industry, which is why the firm needs to keep up with its R&D spending to ensure that it delivers a capable end solution. However, on the financial side, Intel's massive spending hasn't managed to deliver up to expectations, as the foundry division has been reportedly experiencing operating losses for several quarters now.
Apart from Intel, Samsung also witnessed a massive boost in spending, investing up to $9.5 billion in R&D last year, which marks a 71% increase from 2023. The bump in investments is mainly associated with the Korean giant's competition in the race for high-end nodes like 2nm, integrating technologies like GAA. However, like Intel, the Korean giant has yet to yield capable results. In terms of ranking, NVIDIA comes after Intel in R&D spending, reaching $12.5 billion last year, while TSMC comes in seventh with $6.36 billion.
Semiconductor ambitions of some of the high-end chip manufacturers have proved to be a costly venture, and this shows how racing towards nodes like 2nm comes with the requirement of spending 'tens of billions', and maybe even higher.
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
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