TSMC largest R&D spender among Taiwan listed manufacturers in 2018

2019/05/11 21:22:21 fontsize-small fontsize-default fontsize-big
TSMC largest R&D spender among Taiwan listed manufacturers in 2018

Taipei, May 11 (CNA) Contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) retained the title of largest spender on research and development among listed Taiwanese manufacturers in 2018, Ministry of Economic Affairs (MOEA) data showed.

TSMC, the world's largest contract chipmaker, spent NT$84.9 billion (US$2.75 billion) on R&D in 2018, up 6.3 percent from a year earlier, MOEA data showed.

The company's R&D spending accounted for almost 20 percent of total R&D investment of NT$426.2 billion made by all manufacturers listed on Taiwan's main stock exchange and over-the-counter market in 2018, according to the figures.

TSMC's R&D spending, focused mainly on developing high-end production processes to maintain its technology lead over its global rivals, amounted to 8.3 percent of the company's sales in 2018, compared the 2.5 percent ratio averaged by all listed manufacturers.

Integrated circuit designer MediaTek Inc. came in second after spending NT$26.4 billion on R&D in 2018, which was down 0.3 percent from a year earlier but still accounted for 29.8 percent of its total sales, the MOEA said.

Flat panel maker Innolux Corp. took third with R&D spending of NT$11.3 billion in 2018, down 7.4 percent from a year earlier. Innolux's spending represented 4.1 percent of its total sales, according to MOEA data.

Listed companies in the local electronics component industry spent NT$247.4 billion on R&D, accounting for 58 percent of the total spent by all listed manufacturers, followed by listed companies in the computer and optoelectronics industry, which spent NT$115.2 billion in R&D, accounting for 27 percent of the total, the data showed.

In terms of fixed asset investments, TSMC also took the top spot at NT$298.1 billion in 2018, down 4.4 percent from a year earlier, the data showed. The MOEA said the decline largely reflected a high base of comparison from a year earlier.

TSMC's fixed asset investments accounted for 40.4 percent of the total investments made by all listed manufacturers last year, which totaled NT$738.6 billion.

Innolux came in second after investing NT$41.7 billion in fixed assets, up 86.9 percent from a year earlier, ahead of rival AU Optronics Corp., which invested NT$26.4 billion in fixed assets, down 8.1 percent from the previous year.

In 2018, the combined net profit of all listed manufacturers rose 1.4 percent year-on-year to NT$1.51 trillion, the highest in five years.

TSMC had the highest net profit of any of the listed manufacturers at NT$351.1 billion, accounting for 23.2 percent of the total, the MOEA said.

Hon Hai came in second with NT$129.1 billion in net profit, followed by Formosa Petrochemical Corp., which registered a net profit of NT$60.1 billion, the MOEA said.

(By Tsai Peng-min and Frances Huang)

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