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The above graph represents the Intel R&D expenses by quarter, starting from Q1 1993 to Q2 2020. Intel global R&D expenses declined 2.4% YoY during the second quarter of fiscal 2020, amounting to $3,354 million. The decline was primarily due to the ramp down of Intel’s 5G smartphone modem business. The semiconductor company spent nearly 17% of its total revenue in Q2 2020 on research and development activities.
Surge in Intel Quarterly R&D Expenses: History
|Source||Intel Quarterly reports, SEC Filings|
|Note||Intel fiscal year starts from January 1st|
In fiscal Q2 2019, Intel’s R&D expenses reached an all-time high of $3,438 million, with nearly 2% YoY increase.
Interestingly, the semiconductor giant spent over 1 billion on R&D activities for the first time in fiscal Q2 2002. The total research and development expenses increased an impressive 11.4% YoY, from $919 million in Q2 2001 to $1,024 million in Q2 2002.
Surprisingly, the company took almost 9 years to double its quarterly R&D spending. In fiscal Q3 2011, Intel research and development spending clocked $2,140 million worldwide, with an appreciable 27.8% YoY growth. This increase was primarily due to the expenses of McAfee and Intel Mobile Communications, and higher compensation expenses based on an increase in employees.
About Intel Corporation
Intel Corporation (NASDAQ: INTC) is a leading manufacturer of semiconductor computer circuits. Intel was founded on July 18, 1968, by Robert Noyce and Gordon Moore, with initial funding of $2.5 million. Interestingly, in just 3 years, exactly on October 13, 1971, Intel went for an initial public offering (IPO), raising $6.8 million ($23.50 per share). Intel and its compatible chips are now found in every desktop and laptop except Apple products.
The company’s three largest customers, Dell Inc., Lenovo Group Limited and HP Inc., accounted for nearly 40% of the total revenue as of 2018.
Intel is ranked #43 in the list of 2019 Fortune 500 companies, up from #46 in 2018.
Intel has always been open to having new mergers and acquiring new projects, the latest being OmniTek (2019) which deals with FPGA video acceleration, and most popular being McAfee (2010).
Intel recently announced its withdrawal from 5G smartphone modem business. However, the company will continue to meet current customer commitments for its existing 4G smartphone modem product line.
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