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Spending on Semiconductor Research and Development increases by 10%


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How Research and Development Helps in Increasing Business : 

R&D along with sales is on a considerable rise, to be precise the magic number is 10% as in total. The sales of IC Designs can surely rack the stock markets with its new technologies that have been poisoned in the market, expect around 450million wafers to go live. This new change has been brought because of the new complex IC Designs which are hovering in the market. The new merger between Renesas and NEC have proved to be beneficial in 2010, the entrance has given a lot in return.

If the global market is considered in this 10% rise then there is a huge increase globally too. It has not only dominated but literally desolated the market. Spending according to 2011 indicate that US had 57% of worldwide semiconductor market under its list, the dollars were spread worldwide. The leftover was left with Japan being 17%, South Korea 7%, Taiwan 8% and China 1%. This shows that United States has been very serious with technology and their new market has seen a considerable rise.

Semiconductors are designed to support several electronic items, therefore its technology needs to be upgrading on regular basis. The time when new applications are introduced the update needs to be done, by this way it can certainly handle new processes. CEO Morris Chang of TSMC states “With the influx of IDMs turning to foundry capacity and major fabless customers needing lead-edge CMOS processes, TSMC is spending more money on both new 300mm fabs and R&D.” Such an update from the analyst firm has gripped the market and has ensured to deliver best in class products therefore stating the rise in the market.

IDMs accounted for a whopping 66% rise in the R&D section in 2011, Qualcomm had 25% along with TSMC at 23%. Everyone has increased their budget because of competition; it is not in winning but delivering the right type of product that the market requires. This is the current scenario as of 2012; still there is time for this year to end.


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