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TSMC tops R&D spending list in H1

TSMC tops R&D spending list in H1

Taipei, Aug. (CNA) Taiwan Semiconductor Manufacturing Co. (TSMC,???), the world's largest contract chip maker, topped a list of the largest spenders in research and development among manufacturers listed on the local equity market for the first half of this year, according to the Ministry of Economic Affairs (MOEA). TSMC spent NT$33.4 billion (US$1.03 billion) in R&D in the first six months of the year, up 30.1 percent from a year earlier, as the chip maker intensified its efforts to strengthen its high-end technology processes to maintain the lead over its peers, the MOEA said. The ministry said that while global demand has showed signs of weakening amid a wobbly economy, local manufacturer giants, like TSMC, still spent lavishly on R&D to take on escalating competition from their foreign rivals. In the first half of the year, TSMC's R&D spending made up 7.8 percent of the company's total revenue, the ministry added. Hon Hai Precision Industry Co. (??), the world's largest contract electronics maker, which assembles iPhones and iPads for Apple Inc., came in second after spending NT$22.7 billion in R&D, up 7.2 percent year-on-year. The spending made up 1.1 percent of Hon Hai's total revenue in the first half of the year, the MOEA said. Integrated circuit designer MediaTek Inc. (???) took the third spot on the R&D spending list after spending NT$21.7 billion, up 12.6 percent from a year earlier. MediaTek's R&D spending accounted for 23 percent of its total sales in the six month period, the highest ratio among the top five spenders on the list. Flat panel maker Innolux Corp. (??) spent NT$7.6 billion in R&D on the development of large-sized screens in the first half of the year, up 47.2 percent from a year earlier, to take the fourth spot on the list ahead of smartphone vendor HTC Corp.'s (???), R&D spending of which totaled NT$7.1 billion, up from NT$6.1 billion seen a year earlier ago. Innolux's and HTC's R&D spending accounted for 3.9 percent and 9.5 percent of their total sales in the six month period, respectively, the MOEA said. In the first half of this year, manufacturers listed on the local main board and the over-the-counter market spent NT$270.9 billion in R&D spending, up 8.3 percent from a year earlier, the MOEA said. According to the ministry, the data covered a total of 972 manufacturers listed on the local bourse. In the second quarter of this year, the 972 listed companies spent NT$137.7 billion in R&D, up 5.9 percent from a year earlier, and these expenditures accounted for 2.5 percent of their aggregate sales during the period, the MOEA said. The electronics component segment saw a ratio of R&D spending to revenue hit a new high of 5.7 percent, while R&D spending of the computer/electronics/optoelectronics segment accounted for 2 percent of its total revenue and it was the first time for the ratio to hit 2 percent. (By Huang Chiao-wen and Frances Huang)


Updated : 2021-09-27 09:32 GMT+08:00