Semiconductor Industry to Spend Record $20 Billion for R&D

6/8/2004 - R&D spending in the semiconductor industry is set to reach a record high in 2004, according to Future Horizons, Europe's leading electronics analyst. R&D spending in the industry is set to rise by "double digits" to $20 billion in 2004, from 14.2 billion in 2001, according to Future Horizons Semiconductor Monthly Update Report.

"Consumers are demanding beasts. They want more, cheaper, now. The good news is that the electronics industry is delivering thanks to the fact that semiconductor manufacturers maintained R&D throughout the downturn," said Malcolm Penn, CEO, Future Horizons.

Despite the downturn in the electronics industry between 2001 and 2003, Future Horizons reports that semiconductor manufacturers have never stopped experimenting with new materials and manufacturing methods.

Future Horizons reports that the current phase of innovations is focussed on four areas:

Improvements in EDA software and the practise of loading chips with pre-designed modules has cut design times by up to 50 per cent in the last two years. Take together these advances have enabled companies to design more versatile consumer electronic products.

Future Horizons forecast in January worldwide semiconductor industry to grow by 32 per cent in 2004 to $220 billion, driven by an almost insatiable consumer appetitive for electronic products.

The Future Horizons Semiconductor Monthly Update Report is published monthly and available from Future Horizons priced at £1,000 for a single user license or 2,200 for a multi-user intranet version.

About Future Horizons
Future Horizons, founded in 1989, is Europe's leading semiconductor analyst. It provides market research and business support services for use in opportunity analysis, business planning and new market development. Its industry information seminars and Forums are widely considered to be the best of their kind. Future Horizons publishes a series of monthly, half-yearly and annual market reports, with emphasis is placed on the worldwide microelectronics and electronics industry and the European market environment. See for further information.

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