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TSMC's R&D spending rose by 44% in 2010

Posted: 18 Jan 2011     Print Version  Bookmark and Share

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

According to market research firm IC Insight Inc., Taiwan Semiconductor Manufacturing Co.'s R&D spending has risen by 44 per cent to reach Rs.4,334.35 crore ($945 million) positioning it within top 10 semiconductor R&D spenders in 2010.

Also the first pure play foundry to make it to the list, TSMC moved 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 per cent of their revenues on R&D, foundries invest only about 5 to 10 per cent 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 per cent in 2011, putting it at more than Rs.5,045.28 crore ($1.1 billion).

Dylan McGrath
EE Times

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