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R&D Cost Crisis

R&D being a critical element in most capital-intensive industries such as the semiconductor industry-its delicate ecosystem a crucial enabler for many of the key breakthroughs in the business

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R&D is often forgotten and neglected, despite being a critical element in most capital-intensive industries such as the semiconductor industry––its delicate ecosystem a crucial enabler for many of the key breakthroughs in the business. However, due to rising costs and a consolidation of the industry, companies are hesistant about spending on R&D.

Singalarity image and text block source: http://www.consultancy.uk/news/944/strategy-rd-spending-reaches-highest-level in-2014

But there could be a troubling trend, if not a crisis, brewing on two fronts in the R&D arena.

Case study: Sematech, a US-based major R&D chip consortium, has entered an uncharted future. 
On one front, R&D costs for semiconductor technologies are escalating at each node. Higher R&D costs are not only making it more difficult for vendors to move to the next node, but are also putting a strain on budgets and contributing to the current wave of consolidation in the IC industry.
On another front, Asian and European R&D organizations are expanding their efforts while the United States is taking a step back.

Read more about the case in point: http://semiengineering.com/semiconductor-rd-crisis/
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