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Under former CEO Pat Gelsinger, Intel’s foundry division invested “tens of billions” into its chip processes but still lags behind competitors. According to the Korean outlet JoongAngDaily, Intel outspent both TSMC and Samsung in R&D, with figures reported around $16.55 billion. Interestingly, while Intel’s R&D saw a small year-over-year growth, it lagged compared to Samsung.
Intel’s R&D investments are driven by its push for a breakthrough with the 18A node. This is due to reports of unstable yield rates and insufficient production capacity. More importantly, Intel is seen as a key player in the U.S. chipmaking industry, necessitating continued R&D spending to ensure it delivers competitive solutions.
On the financial side, however, Intel’s massive spending hasn’t translated into expected returns. The foundry division has reportedly experienced operating losses for several quarters now.
Samsung also saw a significant increase in R&D spending, investing up to $9.5 billion last year, marking a 71% increase from the previous year. This surge is primarily due to competition for high-end nodes like 2nm and the integration of technologies such as GAA. Nonetheless, Samsung has yet to achieve notable results.
NVIDIA ranks second in R&D spending with $12.5 billion last year, while TSMC comes in seventh with $6.36 billion. The semiconductor ambitions of high-end chip manufacturers have proven to be a costly venture, highlighting the need for “tens of billions” and possibly more when racing towards nodes like 2nm.
