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Samsung hikes R&D spending a world-topping 71 percent

Published: 02 Sep. 2025, 18:04

Samsung Electronics' next-generation semiconductor research and development complex in Giheung, Gyeonggi, on Nov. 18, 2024 [SAMSUNG ELECTRONICS]

Samsung Electronics recorded the biggest jump in research and development (R&D) spending last year among the world’s 20 largest semiconductor companies, according to market tracker TechInsights on Tuesday.

The company invested $9.5 billion in R&D in 2024, up 71.3 percent from $5.5 billion in 2023, TechInsights said in its recent report. The increase propelled Samsung from seventh place to third in terms of total R&D investment.

Intel remained the biggest spender at $16.55 billion last year, but its growth rate was just 3.1 percent, far below Samsung's.

Samsung is competing in advanced process nodes against rivals including Taiwan’s TSMC, Intel and Japan’s Rapidus, while also facing fierce competition in the dynamic random access memory and NAND flash markets, which have struggled in recent years, according to TechInsight. The firm added that it remains uncertain whether Samsung’s large-scale investment will translate into a long-term technological edge.

Intel, the only U.S. chipmaker that designs and manufactures semiconductors in-house, is believed to have focused its spending on boosting yields of its 18A process (1.8 nanometers) in its foundry. Despite the push, Intel reported an $18.8 billion loss last year.

Nvidia ranked No. 2 in total R&D spending with $12.5 billion last year, a 47 percent jump from 2023. TSMC ranked seventh with $6.36 billion, up 8.8 percent, and remained the only pure-play foundry investing more than $1 billion annually in R&D. SK hynix ranked 10th for the second consecutive year, spending $3.33 billion, a 32.7 percent increase.

Nvidia logo [REUTERS/YONHAP]

Overall, the top 20 semiconductor companies spent $98.68 billion on R&D in 2024, up 17 percent year over year, accounting for about 96 percent of total industry R&D. Fifteen of the 20 firms increased their spending while five cut back.

By R&D-to-revenue ratio, U.S. firms dominated the rankings: Intel, Broadcom, Qualcomm and AMD topped the list. The average ratio for the top 20 stood at 15.8 percent. Samsung’s ratio was 11.7 percent while SK hynix’s was 6.99 percent, the lowest among the group. Although SK hynix increased its R&D spending by more than 32 percent, its revenue nearly doubled, pulling the ratio down.

TechInsights projected Nvidia could surpass Intel as the world’s largest R&D spender next year. Intel devoted 33.6 percent of its revenue to R&D last year, but its new CEO, Lip-Bu Tan, has been cutting spending in the area. Nvidia, by contrast, spent 10.8 percent of its $115.62 billion in revenue on R&D and has been sharply increasing its investment for four consecutive years.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY PARK HAE-LEE [[email protected]]