Status of the MEMS Industry 2011

How MEMS market growth changes the supply chain and companies adapt Totally revamped from previous years, this ALL NEW 2011 edition of "Status of the MEMS Industry" presents MEMS device markets, key player strategies, key industry changes and trends including foundries business evolution. It also includes MEMS equipment forecast and major MEMS manufacturing evolutions. MEMS supply chain will evolve Today, MEMS devices can be used as a replacement function (e.g. microphones), as a new function (e.g. micro-mirror, RF MEMS tunable antenna) or as a combination of functions (e.g. IMUs). This last function is bringing a Business Model revolution as new partnerships are becoming necessary. Indeed, structural changes of the MEMS industrial supply chain are occurring as further fragmentation of an activity is starting. This is happening in the microphone business as some players are processing wafers while others are focusing on packaging and selling the sensor. Also, new intermediate business models appear between MEMS foundries and IDMs: some IDMs specialize in producing MEMS wafers with their own design but at the same time some MEMS foundries are developing product platforms with their own design as well. Another complication of the industry comes from multi-chip integration in a module: it's starting with inertial modules, from 6DOF to 10DOF and this implies many new challenges in integration, software and supply chain. This report will describe examples that are illustrating that supply chain evolution, e.g.: 1.The emergence of inertial combo sensors in consumer: Combo sensors should represent a large part of the market in 2016. For select key applications (Gaming, Cell phones, Tablets, P MP), it will be close to 1/3 of the shipments and close to 50% of the value. 2.The supply chain of the MEMS microphone industry has changed in the past few years (Infineon has turned into a microphone die supplier and works with Asian MEMS microphone players: AAC Acoustics, Hosiden, BSE, Goertek. while some other companies are trying to become microphone manufacturers instead of being just foundry, like MEMSTech and Omron). 3.For bolometers, camera cores (module with detector) are increasingly becoming a key business for camera manufacturers (FLIR and DRS propose new cores in 2011). This will further facilitate the infrared detector integration and the adoption by new camera players. A complete description of the different MEMS markets The MEMS market will undergo a 15% CA GR over the 2010-2016 period in $ value and 24% in units. In 2010, we estimated the MEMS market to be $8.7B for 4.3 billion devices and the consumer market is still the main driver that accounts for about 46% of the total market in value. In 2016, the MEMS market figures will be $19.6 B and 15.8 billion units respectively. Inertial MEMS will strongly contribute to the market growth and new devices will contribute as well (microbolometers, oscillators, microfluidics). The MIS report also includes MEMS Front-End and Back-End equipment forecast. An analysis of the MEMS players' strategic moves The 2011 edition of MIS will cover all the structural changes the MEMS industry is undergoing. The MEMS business is maturing as it moving from a highly fragmented MEMS business to fewer larger suppliers with now 21 players above $100M in sales in 2010. The big players get bigger (e.g. Bosch, ST, Panasonic.) as they are able to supply (ramping up when necessary), to drive costs down and to offer reliable devices. At the same time, it is becoming tough for smaller players to compete. Small and diversified MEMS players will have a hard time competing with big players, but there is still room for specialized companies. For example, AK M, Knowles, TI and Inkjet companies make a decent business with only one product. Because the business is maturing, others can specialize in one part of the supply chain: for e.g. Infineon specializes in making the MEMS microphone die / wafer only, others specialize in packaging or in software. Today, most of the Top 30 companies are integrated manufacturing companies and the new thing is that an increasing number of those big companies start to offer foundry services. The others are becoming fab-light, either by outsourcing consumer devices for cost and infrastructure reasons or by outsourcing specific parts of the process for inkjet heads for instance. The Top 30 MEMS ranking illustrates this change as only 2 fabless companies are among the ranking (Knowles and InvenSense) while many fab-light companies are present (e.g. HP, Freescale, AD, Lexmark, Infineon, VTI). There are also many other fabless companies struggling, or still in the growing phase and they could become large players soon or are just starting commercialization. The new MIS report analyzes why the coming years will be critical for the MEMS industry. We have identified the different scenarios: players involved in high-value and automotive markets will likely keep their internal fabs; existing players which move in consumer will have the possibility to easily outsource production; and consumer players with internal fabs will have to drastically increase their market shares to survive and support the infrastructure costs. Foundries will need to get a critical size of wafer volume to be stable either by developing new device offers or by selling to additional customers. But MEMS foundries coming from the semiconductor area will only target high volume applications where the number of processes is limited. Key features of the report: A complete analysis of the evolution of business models and industry structural changes. A description of the factors affecting the MEMS business. An update of the new MEMS startups. Provide market forecasts for MEMS devices in $M, units, wafer start for more than 12 MEMS devices used in 150+ applications in report plus in a separate Excel file. A ranking of the major MEMS players. What are the major key technological evolution in Front End and Packaging. A MEMS cost analysis: where are the major cost factors. Who should buy: The executives of MEMS companies to look at the complete MEMS business and the major evolution that could impact the industry in the long term. The end users, trying to understand the evolution of the MEMS industry and find data on each application and who is doing what. The marketing and technology team of equipment and materials manufacturers, looking to have a complete picture of MEMS world and the key metrics of the industry. The technology team of MEMS companies, looking to learn from the development of the other parts of the MEMS industry. Please note: this is delivered as a PowerPoint presentation.

Additional Information

Companies cited in the report:

3S Systems
AAC Acoustics
Advanced Micro Fab
AK M
AD
Asia Pacific Microsystems (AP M)
Audiopixels
Avago
Boehringer Ingelheim
BSE
Canon
Colibrys
Dalsa
Deep Di Semiconductor
Denso
Domintech
DRS
ELMOS (SMI)
FLI R
FormFactor
Freescale Semiconductor
FujiFilm Dimatix
GE Measurement & Controls
Gettop
Global Foundries
GMEMS
Goertek
Goodrich
HP
Honeywell
Hosiden
IMT
Infineon
Innoluce
Invensense
Jazz Semiconductor
Jyve
Kaiam
Kionix
Knowles
Lensvector
Lexmark
Melexis
Memscap
memsmart
memstech
MEMStim
Mezmeriz
Micralyne
MicroGen
Mikrosense
Mitsubishi Heavy Industries
Movea
Murata
NovioMEMS
Nuvoton Technology
Olympus
Omron
Opus Microsystems
Panasonic
poLight
Preciseley Microtechnology
Pyreos
QMT
Qualtre
Robert Bosch
Seiko Epson
Semefab
Senodia
Sensata
Sensonor Technologies
Silex Microsystems
Silicon Sensing Systems
Siltronix
SMIC
Sony
STMicroelectronics
SDI
Telecardia
Texas Instruments
Touch Microsystems (TMT)
Tronics Microsystems
TSMC
Ulis
UMC
Veeco
Verreon
VTI Technologies
Xaar
XFAB
Yamaha
Yishay Sensor.