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With worldwide semiconductor sales falling nearly 1% in 2015 to $353.6 billion and R&D spending rising 0.5% to $56.4 billion, the industry’s R&D-to-sales ratio grew slightly to 16.0% from 15.8% in 2014. Since 2000, the semiconductor industry’s annual R&D-to-revenue ratio has average 16.0%. The new McClean Report forecasts semiconductor R&D spending to grow about 4% in 2016 $58.9 billion and reach $76.3 billion in 2020, which would represent a CAGR of 6.7% from 2015. By between 2016 and 2020, the semiconductor industry’s R&D-to-revenue ratio is expected to average 16.4% compared to 16.2% in the 2011-2015 timeperiod.
Page 2 of 2Semiconductor R&D Growth Slows in 2015
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Intel’s R&D expenditures grew 5% in 2015, which is significantly below its 13% average increase in spending per year since 2010 and slightly under its 8% annual growth rate since 2001, the new report says. Underscoring the growing cost of developing new IC technologies, Intel’s R&D-to-sales ratio has climbed significantly over the past 20 years. In 2010, Intel’s R&D intensity level was 16.4% of revenue spent in research and development compared to 24.0% in 2015. Intel’s R&D-to-sales ratios were 14.5% in 2005, 16.0% in 2000, and just 9.3% in 1995.
