MEMS microphones shipments to rise to 1 billion in 2013

EL SEGUNDO, USA: Despite a slowdown in 2009, global shipments of Microelectromechanical System (MEMS) microphones are set to more than triple from 2008 to 2013 due to their strong acceptance in mobile handsets and other applications, according to iSuppli Corp.

Worldwide MEMS microphone shipments are set to reach 1.1 billion units in 2013, up from 328.5 million in 2008. This strong growth will come despite a deceleration in shipment growth and a decline in global revenue in 2009, the first such contraction in the history of the market.

The figure presents iSuppli’s forecast of global MEMS microphone shipments.Source: iSuppli, Sept. 2009

MEMS microphones are tiny microphones that employ a pressure-sensitive diaphragm etched on a semiconductor using microelectromechanical technology. They are commonly employed in cell phones, headsets, notebook PCs, video cameras and cars.

“MEMS microphones are truly one of the success stories in the MEMS market,” said Jérémie Bouchaud, director and principal analyst, MEMS, for iSuppli. “Market shipments are set to exceed 1 billion in 2013, largely because these MEMS are becoming less expensive as the volume increases. Silicon microphones also outperform conventional microphones in terms of size, scalability, and sound quality. The simplification of applications like noise cancellation and beam forming for directional microphones using MEMS will further boost their acceptance.”

Demand for digital technology microphones also will boost sales of MEMS devices for laptops and increasingly for cell phones.

Microphone check
Despite the rosy outlook for MEMS microphones, the year 2009 will be a poor one for the market.

“After five consecutive years of double-digit growth, global MEMS microphone shipments will rise by only 7.5 percent in 2009,” Bouchaud observed. “With the weak rise in unit shipments and decline in pricing, global revenue will drop to $132.4 million in 2009, down 2.4 percent from $135.7 million in 2008.”

The MEMS microphone market largely can attribute its 2009 sales woes to one company: Motorola.

“Motorola was the first company to widely adopt MEMS microphones, making extensive use of them in its best-selling ultra-thin RAZR handsets,” Bouchaud said. “The company accounted for about 30 percent of global shipments of MEMS microphones for mobile handsets in 2008.

However, the company has suffered a major downturn, having fallen to the world’s No.-4 position in the global handset market in 2008, down from No.-2 in 2006. Motorola is continuing to lose handset share in 2009. This has seriously impacted MEMS microphone sales.”

Beyond Motorola, another factor impacting the MEMS microphone market in 2009 is the weakness in the worldwide mobile handset market. Global cell phone shipments are set to decline significantly in 2009.

Furthermore, MEMS microphones continue to face competition from older electret condenser microphones.

“Electret condenser devices are still significantly cheaper than MEMS and are now available as Surface Mount Devices (SMDs), and thus will remain in the market for many years,” Bouchaud said.

MEMS microphone makers’ machinations
Because of the strong promise of MEMS microphones, new suppliers are entering the market and changing the competitive landscape. Two large companies -- EPCOS and Bosch -- bought entry tickets into the MEMS microphone market during the last six months by engaging in acquisitions.

While Knowles still largely dominates the market with more than 80 percent of units, two companies are emerging as volume manufacturers next to Knowles: Infineon and MemsTech. Overall, nine companies now are shipping MEMS microphones to customers.

“This is a good news for a market that has been suffering from a lack of second sources for volume production.” Bouchaud said.

MEMS CoST: Tool for MEMS manufacturing cost analysis

LYON, FRANCE: Yole Développement and System Plus Consulting are collaborating to release a new MEMS cost simulation tool dedicated to MEMS devices manufacturing, MEMS CoST. With this cost analysis tool, Yole Développement and its partner, System Plus Consulting propose a relevant tool to analysis MEMS manufacturing cost.

MEMS cost structure is gaining increased importance as it can determine the business model for a MEMS company. Indeed, according to the manufacturing technologies (wet vs.dry, type of bonding, lithography…), but also to the geographical localization of the manufacturing facilities, a MEMS company can select one supplier or another to save money.

Moreover, it is also today obvious that MEMS cost have to decrease to be more widely integrated into consumer applications. But, to achieve that, one must be able to precisely estimate the cost structure in order to identify where the pain points are.

As an example, the Reverse Costing Analysis made by Yole’s partner SystemPlus Consulting, has shown that potential selling price for the gyroscope is below $2 and that shrinking ASIC, MEMS and/or shifting to 200mm wafer size could reduce the cost.

MEMS cost structure analysis (including test, packaging and assembly) is the key of the MEMS business evolution. This is why Yole Développement and System Plus Consulting have released MEMS CoST.

Powerful tool designed for MEMS community
With MEMS devices providing mission critical functionality in more applications, the need for comprehensive cost simulation is paramount. Due to their non‐standard manufacturing process, the cost of MEMS devices can be difficult to estimate. Components such as accelerometers, pressure sensors, inkjet heads or micromirrors involve very different process steps.

This is why a specific and very flexible tool is required for their cost estimation. Yole Développement, leader in the analysis of MEMS applications and markets, and System Plus Consulting, leader in cost analysis of electronic products have joined forces to provide this unique MEMS Cost Simulation Tool (CoST).

Benefits of MEMS cost simulation tool
With Yole’s MEMS CoST, MEMS companies are able to run the cost simulation for a variety of different conditions: region, clean room class, process type, etc.

• Very high flexibility: MEMS CoST allows the user to enter any MEMS process flow. The manufacturing process flows are created dynamically in a friendly hierarchical view where each process step can be moved, modified or deleted. The user can save an unlimited number of process flows, equipment types and materials. Moreover, a project manager function offers the possibility to save all the user created data and scenarios (wafer Fab unit, process flow, yields…) and to reuse them later. This new tool includes two calculation modes: for dedicated fabs and non‐dedicated fabs.

• Simulation of up to five simultaneous scenarios allowing the user to run sensitivity analysis and compare results like yield improvement, manufacturing location impact on cost, etc.

• MEMS CoST uses an Excel interface for maximum usability. This tool will enable you to evaluate the cost per wafer for manufacturing using your own inputs or using the pre‐defined parameters included with the tool.

The use of MEMS CoST:
• Estimation of the MEMS margin
• Understanding of the cost structure
• Competitive analysis
• Cost evaluation for different technology options
• Identification of the cost pain points in your process
• Definition of a business model (fabless, fablight, manufacturing …)

MEMS CoST
MEMS Cost Simulation Tool is now available. Catalogue price: EURO 8,990 (single user license)

Gyroscopes spin up in video games and cell phones

EL SEGUNDO, USA: When Nintendo Co. wanted to enhance the sensitivity of its motion-sensitive video-game controllers, it turned to 3-axis gyroscope technology in the form of its Wii Motionplus add-on.

Soon, a flood of other companies in the consumer electronics and cell phone markets also will turn to Microelectromechanical System (MEMS) gyroscopes due to technological developments that have made these parts more attractive for such applications, iSuppli Corp. predicts. This will cause gyroscope revenue in these areas to more than double by 2013.

The global market for gyroscopes used in consumer electronics and cell phones will expand to $347.2 million in 2013, up from $152.9 million in 2008, as presented in the figure.

iSuppli: Global Forecast of MEMS Gyroscopes for Use in Consumer Electronics and Wireless Applications (Revenue in Millions of US Dollars)Source: iSuppli, USA

“Gyroscopes have always been too big, too power hungry and too expensive for mobile and consumer applications,” said Richard Dixon, senior analyst for MEMS at iSuppli.

“However, recent progress on silicon and quartz gyroscopes has changed the game—literally. MEMS gyroscopes will penetrate gaming applications in much larger numbers later this year and in 2010. These sensors will also begin to make inroads into the mobile-phone market earlier than first anticipated—again beginning at the end 2009 or early in 2010—for image stabilization and user interfaces.”

Gyroscope suppliers gear up
A major driver behind the expansion of the gyroscope market is the flourishing number of offerings of multi-axis parts. Previously, there were just two major suppliers of 2-axis gyroscopes: Panasonic Corp. and InvenSense Inc.

However, this list grew in June when STMicroelectronics bolstered its portfolio by offering no less than 10 dual-axis gyroscopes. Tri-axis gyroscopes, a must for gaming, also are emerging.

While InvenSense already offers a two-package 3-axis gyroscope solution today, STMicroelectronics intends to introduce a monolithic solution in 2010.

iSuppli anticipates that revenue from shipments of multi-axis gyroscopes for consumer and wireless applications will overtake those single-axis devices by the end of the year and will account for 80 percent of the consumer gyroscope market by 2013.

“This represents a great opportunity for companies offering multi-axis gyroscopes and even parts combined with 3-axis accelerometers in low-cost inertial measurement units,” Dixon said. “On the other hand, this will put pressure on those companies that only have a single-axis technology on their shelves.”

mPhase reports rapid advancement with leading MEMS foundry partner

LITTLE FALLS, USA: mPhase Technologies Inc. reported that its work with a world leading MEMS foundry has resulted in the rapid advancement of its Smart NanoBattery technology.

Last week, mPhase announced a laboratory discovery of a polymer coating that improves the ability to control activation of the Smart NanoBattery. mPhase, along with its MEMS foundry partner, have since determined that the laboratory results appear to be able to be replicated in a foundry manufacturing environment.

mPhase previously found that the coating would prevent short circuiting and provide electrical isolation on conductive surfaces of the battery's porous membrane while providing better activation control.

The mPhase team is now working with its MEMS foundry partner to transfer the technical testing results using additional dielectric coating materials and processing methods that are available in a foundry production environment.

The foundry production environment should allow for more consistent and uniform development of the membrane structure which the coating is applied to. The coated membrane physically separates the liquid electrolyte and solid electrodes enabling a potentially infinite shelf life for the Smart NanoBattery.

The activation of each battery cell can be better controlled with the addition of this coating, which creates precise and controlled battery activation capabilities.

"We have made rapid progress during the past few weeks and are encouraged by our technical results and continue to work closely with our MEMS foundry in advancing this unique battery technology," said mPhase CEO Ron Durando.

"These advancements mark another important milestone in our progress and create the potential for developing batteries with an unsurpassed shelf life that can be electronically controlled."

The Smart NanoBattery is being developed as part of the U.S. Army STTR Program. mPhase was awarded $750,000 for a two year Phase II development contract by the U.S. Army in September 2008 to develop this unique new battery technology for military purposes.

austriamicrosystems ships one billionth analog IC

UNTERPREMSTAETTEN, AUSTRIA: austriamicrosystems, a leading global designer and manufacturer of analog ICs for communications, industrial, medical and automotive applications announced the shipment of its one billionth high performance analog IC for the successful SiSonic series of MEMS microphones.

A major MEMS success story, SiSonic MEMS microphones are the leading product family in this rapidly developing market with major global OEMs relying on Knowles Acoustics’ unmatched expertise.

Built on Knowles’ CMOS/MEMS technology platform, which was originally launched in 2002, the SiSonic silicon-based microphone series is entering its fifth generation of development, with the overall product family shipping in excess of 1 billion units, to date.

The proven, and evolving, design series supports high-performance, high-density innovation in applications such as cell phones, notebooks, digital still cameras, portable music players, and other portable electronic devices.

“We are proud to be associated with a company that has been so successful in introducing this leading technology. It is our objective to continually support Knowles with compelling solutions to reduce costs and improve performance of the integrated preamplifier and modulator circuits,” stated Franz Faschinger, Senior Vice President at austriamicrosystems.

“Finding the right IC was an important element to the success of the SiSonic MEMS microphone. austriamicrosystems was one of the few semiconductor suppliers who were able to meet our demanding requirements," stated Mike Adell, General Manager of Knowles Acoustics. "With unique capabilities, depth, and reliability, we believe our relationship with austriamicrosystems will allow us to extend our leadership position in MEMS microphone technology for years to come.”

MEMS microphones consist of two dies -- the MEMS sensor element and the CMOS circuit. Acoustic signals are converted inside the MEMS into a change in capacitance. The CMOS IC converts the capacitance changes into a digital or analog output voltage, which can then be processed by the other components in the mobile device.

austriamicrosystems’ high performance analog ASIC is a very low noise, low power, low voltage MEMS interface system which offers small die area and low cost and also meets the requirements of high manufacturing quality and high voltage capability.

LTE cellphones to reach 56 million in 2013

TEMPE, USA: Forward Concepts has announced the publication of its newest in-depth annual study of the worldwide cellphone market and virtually all of the chips that go into them.

The extensive (594-page) study, “Cellular Handset & Chip Markets '09,” gauges the performance of the top 53 handset vendors and ranks their 2008 market shares. The study provides dozens of detailed forecasts by technology and by global region through 2013 of handsets, subscribers and cellular handset chips of all types.

In addition, the report provides estimates of the market shares of cellphone vendors by air technology, including HSPA+ and LTE. Even ultra-low-cost cellphones are forecast by air interface. Importantly, the study estimates market shares of chip vendors for virtually every chip type and for every applicable air technology.

Market metrics are the central focus of the study, and some key findings are:
* Cellphone unit market growth continues slowing globally. The 2008 market was up 4.1 percent, but is forecast to decline by 4.4 percent in 2009 to 1.22 billion shipments. However, a healthier 12.8 percent growth is forecast for 2010.

* In spite of an overall decline this year, smartphone shipments are predicted to grow by 25 percent, feature phones by 2.5 percent and ultra-low-cost phones for developing countries will grow by 14.5 percent.

* The fast-growing smartphone market is driving introduction of peripherals that support Wi-Fi, Bluetooth, GPS, and FM radio on a single chip.

* HSPA+ is emerging in 2009, and will begin to displace WCDMA and HSDPA. LTE will begin in 2010, first as data cards and dongles. The forecast calls for LTE handsets to reach 56 million units in 2013 for a compound growth rate of 262 percent.

* Although the cellphone digital mobile TV market is growing, free-to-air analog mobile TV will dominate the 78-million receiver unit market in 2009, accounting for over half of the world market -- driven by the demand in China, Southeast Asia and Eastern Europe.

* The ever-present LCD display will soon have to make room for newer displays, like OLED, ePaper, Qualcomm's Mirasol, and Liquavista. The market for these new "post-LCD" displays is growing fast -- to over $3 billion in 2013.

* MEMS constitute another fast-growing component family in the cellphone market, expanding from basic accelerometers, to filters, gyroscopes, RF switches and microphones, reaching over $1.6 billion in 2013.

* Application processor competition is heating up as the demand for increasing video and Internet functionality grows with 3G's higher data rates. There is a clear trend of bundling application processors with digital basebands, either on a single die or in a multichip package. The resulting "Communication Processors" are becoming popular, and could ultimately hurt companies which specialize in only one of those components.

According to the principal author, Carter L. Horney: "The cellphone continues to be the physical and market magnet that is pulling in the functionality of digital cameras, PDAs, MP3 players, GPS navigators, Bluetooth, Wi-Fi, AM/FM Radio, mobile TV, cordless phones, smart cards and even fingerprint sensors, and the cellphone is quickly becoming the dominant market for each and all of these functions.

"Our report covers all of these cellphone component markets, and companies making stand-alone versions of such products would be well-advised to understand how their market will be impacted by cellphones."

Will Strauss, Forward Concepts’ president and editor of the report, said: “Qualcomm and continues to dominate the cellphone chip market, but ST-Ericsson is expected to displace Texas Instruments for the number-two spot in 2009. Infineon is not far behind and with recent new financing, their future appears brighter now.

"With new peripherals and features being continually added, there opportunities for smaller vendors to target new chip types to get their piece of the market. This valuable resource provides the key information needed for new business plans. We are confident that this study provides the most comprehensive coverage of cellphone and cellphone chip markets available."

Consumer/wireless MEMS bulldoze way through downturn

EL SEGUNDO, USA: Defying the downturn in the overall electronics industry, the market for Microelectromechanical Systems (MEMS) used in consumer electronics and wireless products is expected to generate 6.4 percent growth in 2009, according to iSuppli Corp.

Global consumer and wireless MEMS revenue will amount to $1.24 billion in 2009, up from $1.17 billion in 2008. This contrasts sharply with the 23 percent decline in overall semiconductor revenue expected in 2009. It also flies in the face of the predicted 8.2 percent and 13.1 percent drops in consumer electronics and wireless equipment revenue in 2009.

The figure presents iSuppli’s forecast of global revenue of sales of MEMS for consumer and mobile electronics products.

iSuppli: Global Revenue Forecast for Consumer and Mobile Market for MEMS Devices, 2006-2013 (Revenue in Millions of US Dollars)Source: iSuppli, July 2009

“On the consumer side, gyroscopes are helping to drive the growth of MEMS, with revenue rising at a CAGR of 18 percent from 2008 to 2013,” said Jérémie Bouchaud, director and principal analyst for MEMS at iSuppli.

“These devices are used in products including controllers for video game consoles. As the market for multi-axis gyroscopes develops and these components hit target insertion prices, the market will accelerate for gaming and will pick up for cell phone camera image stabilization as early as 2010.”

On the wireless side, growth is being driven by MEMS accelerometers for mobile phones. Owing to the essential role they play in the user interfaces of hot smart phones like Apple Inc.’s iPhone and Palm Inc.’s Pre, accelerometers are expected to appear in one-third of mobile phones shipped next year, up from one-fifth in 2009, according to iSuppli.

In such smartphones, accelerometers support features like screen-orientation adjustment when the handset is turned to the side. These capabilities now are spreading beyond smart phones to other types of handsets.

Other MEMS products experiencing fast growth in the wireless market include Bulk Acoustic Wave (BAW) filters used in for CDMA and UMTS phones, whose unit shipments grew faster than 50 percent in terms of units in the first half of the year.

The downside of this fast MEMS unit growth is rapid price erosion. Accelerometers in cell phones now sell for 25 percent to 30 percent less than one year ago. Suppliers that are the most aggressive on pricing are gaining the largest market share.

iSuppli notes that the MEMS microphone market will experience its first annual drop in revenue in 2009, but will recover to double-digit annual growth rates starting in 2010. Other MEMS devices of note are RF MEMS switches and varactors, which should go into production for cell phones in the fourth quarter of 2009 or in the first quarter of 2010.

Global Litho Services Foundation addresses semiconductor, MEMS need

EINDHOVEN, THE NETHERLANDS: Global Litho Services (GLS) is pleased to announce its establishment today, providing services and pre-owned lithography equipment to the mature semiconductor, MEMS, and niche application markets.

Registered in the Netherlands, Global Litho Services specializes in trading, selling and servicing of pre-owned lithography systems, offering high quality equipment and support at very competitive prices.

The experienced management team and advanced expertise of its technical staff ensure a unique and high quality proposition. GLS offers attractively priced solutions to customers requiring hardware and process support that is typically not available from the OEM.

GLS has already successfully secured supply of various types of pre-owned wafer steppers. The compelling GLS proposition has been proven through the recent sale, delivery, and installation of the first systems at a prominent US semiconductor manufacturer.

Erik Corduwener, Managing Director for Global Litho Services, stated: “We are very excited about the launch of Global Litho Services. It is unique in its kind. We have an extremely skillful team of people with extensive semiconductor and MEMS knowledge specific to lithography equipment and its applications."

Global and China MEMS industry report: Global CE, automobile sales have dropped

DUBLIN, IRELAND: Research and Markets has announced the addition of the "Global and China MEMS Industry Report, 2008-2009" report to its offering.

MEMS, abbreviated for Micro Electro Mechanical Systems, is a semiconductor technology integrating mechanics and electronics, which got widely applied for auto airbag preliminarily, and then for all the other auto industries via MEMS sensor.

With the further development of MEMS technology, as well as the characteristics of application terminals such as lightness, thinness, shortness and smallness, the demand for small MEMS products with high performance shoots up, and the fields like consumer electronics and medical care also increasingly require large quantity MEMS products.

Apple iPhone series, beyond doubt, has promoted MEMS application in cell phone, and after iPhone, more and more MEMS cell phones will be in prevalence. MEMS in the components of portable devices consist of gyroscope, new-generation triaxial accelerometer, pressure sensor and module design.

Besides browsing web pages via touch, scrolling web pages via inclining cell phone, and displaying pictures by the change of cell phone direction and angle, it can also be step counter, guide interface, LBS positioning information service, HDD anti-collision protection from geocentric gravity, individual inertial navigation, intelligence interactive game etc.

Cell phones with in-built MEMS function also can be used to measure absolute atmosphere or as the sensing device. In addition, the cell phone MEMS sensor can judge the distance of cell phone to ear skin so that it can close display screen automatically, and the electricity source can be saved.

Impacted by global economic downturn in 2008, both global consumer electronics and automobile sales have dropped, which continues in 2009. The two American auto giants are faced with bankruptcy, which has given a heavy blow to MEMS market. However, MEMS still has a bright prospect since the rising portion of MEMS application in single products in spite of a decline in consumer electronics shipment.

Moreover, the compulsory configuration regulations launched by the countries in Europe and America in auto ESC and TPMS fields have secured the steady supply of MEMS products.

MEMS products are mostly customized, which has higher requirements on wafer fabs. Therefore, Scarcely wafer fabs in Mainland China have entered the field. However, at the end of Oct, 2008, SMIC announced to enter MEMS OEM, and in early 2009, the top visiting group of Founder Microelectronics Inc. visited many MEMS companies in Taiwan.

As it is said that Shanghai and Wuxi are planned to establish MEMS industrial parks, and China's MEMS insiders are also seeking chances to share opportunities that MEMS industry has brought.

One-third of mobile phones to use accelerometers by 2010

EL SEGUNDO, USA: Owing to the essential role they play in the user interfaces of hot smart phones like Apple Inc.’s iPhone and Palm Inc.’s Pre, accelerometers are expected to appear in one-third of mobile phones shipped next year, according to iSuppli Corp.

“By next year, one out of three mobile phones shipped worldwide will include an accelerometer, up from one out of five in 2009, and one out of 11 in 2008,” observed Jérémie Bouchaud, director and principal analyst, Microelectromechanical Systems (MEMS) for iSuppli.

“While few consumers know what accelerometers are, they do know that when they turn their iPhones to the side, their screens automatically adjust from portrait to landscape view, or that when they shake their handsets they can roll a pair of virtual dice in a game of chance.

With their capability to detect and measure motion, accelerometers are the critical enablers of these features, which are an essential element of what makes these smart phones so popular. These capabilities now are spreading beyond smart phones to other types of handsets.”

Fig. 1 presents iSuppli’s forecast of global accelerometer penetration in all types of mobile phones.

iSuppli Fig. 1: Global Penetration of Accelerometers in All Types of Mobile Phones (Percentage of Total Mobile Phone Shipments)Source: iSuppli, July 2009

Beyond game play and screen orientation, the most popular uses for 3-axis MEMS accelerometer motion sensors in phones include power management and shake modes for control of tracks in music phones, context awareness and pedometers.

iSuppli’s teardown analysis of the iPhone 3G S revealed the use of a 3-axis MEMS accelerometer from STMicroelectronics. Beyond the features mentioned above, the STMicroelectronics part works with the new iPhone’s digital compass to orient maps to whatever direction a user is facing.

In the teardown of the Palm Pre, iSuppli identified a Kionix Inc. MEMS accelerometer and inclinometer.

Looking specifically at the top mobile-phone OEMs, 38 percent of new Nokia handsets platforms have integrated motion-sensing accelerometers since January. Sony Ericsson had the highest penetration of accelerometers, with 18 out of 19 new phones models introduced this year. Samsung and LG also are offering new phones with 3-axis accelerometers.

iSuppli annually tracks the features of more than 1,000 mobile phones from 32 manufacturers—accounting for 99 percent of total cell phone shipments. Since January 1, of the several hundred phones already introduced, 18.3 percent of the models integrated an accelerometer. iSuppli expects the penetration of accelerometers in new models to rise in the second half of 2009.

Partly because of the rapid rise in accelerometer adoption, as well as the use of other MEMS, the market for microelectromechanical sensors for mobile phones is expected to more than triple from 2008 to 2013. Global revenue from sales of MEMS for mobile phones will rise to $1.6 billion in 2013, up from $460.9 million in 2008.

Beyond accelerometers, other MEMS devices already used in mobile phones include microphones, BAW duplexers and filters, MEMS autofocus actuators, pressure sensors and even MEMS pico-projectors. MEMS gyroscopes will join the fray in early 2010.

Fig. 2 attached presents iSuppli’s forecast of global MEMS revenue derived from mobile handsets.

iSuppli Fig. 2: Worldwide Forecast of Sales of MEMS for Use in Mobile Phones (Revenue in Millions of US Dollars)Source: iSuppli, July 2009

Global and China MEMS industry report, 2008-2009

NEW YORK, USA: Reportlinker.com has announced a new market research report: Global and China MEMS Industry Report, 2008-2009.

MEMS, abbreviated for Micro Electro Mechanical Systems, is a semiconductor technology integrating mechanics and electronics, which got widely applied for auto airbag preliminarily, and then for all the other auto industries via MEMS sensor.

With further development of MEMS technology, as well as characteristics of application terminals such as lightness, thinness, shortness and smallness, the demand for small MEMS products with high performance shoots up, and fields like consumer electronics and medical care increasingly require large quantity MEMS products.

Apple iPhone series, beyond doubt, has promoted MEMS application in cell phone, and after iPhone, more and more MEMS cell phones will be in prevalence. MEMS in the components of portable devices consist of gyroscope, new-generation triaxial accelerometer, pressure sensor and module design.

Besides browsing web pages via touch, scrolling web pages via inclining cell phone, and displaying pictures by the change of cell phone direction and angle, it can also be step counter, guide interface, LBS positioning information service, HDD anti-collision protection from geocentric gravity, individual inertial navigation, intelligence interactive game etc.

The cell phones with in-built MEMS function also can be used to measure absolute atmosphere or as the sensing device. In addition, the cell phone MEMS sensor can judge the distance of cell phone to ear skin so that it can close display screen automatically, and the electricity source can be saved.

Impacted by global economic downturn in 2008, both global consumer electronics and automobile sale have dropped, which further continues in 2009. The two American auto giants are faced with bankruptcy, which has given a heavy blow to MEMS market application.

However, MEMS still has a bright prospect since the rising portion of MEMS application in single products in spite of a decline in consumer electronics shipment.

Moreover, the compulsory configuration regulations launched by the countries in Europe and America in auto ESC and TPMS fields have secured the steady supply of MEMS products.

MEMS products are mostly customized, which has higher requirements on wafer fabs. Therefore, Scarcely wafer fabs in Mainland China have entered the field. However, at the end of Oct, 2008, SMIC announced to enter MEMS OEM, and in early 2009 the top visiting group of Founder Microelectronics INC visited many MEMS companies in Taiwan.

As it is said that Shanghai and Wuxi are planned to establish MEMS industrial parks, and China’s MEMS insiders are also seeking chances to share opportunities that MEMS industry has brought.

MEMS markets on the rebound!

NEW TRIPOLI, USA: The MEMS device market is faring much better than the overall semiconductor industry but, the MEMS processing equipment market is suffering the same fate as the semiconductor equipment market, according to the report: The Global MEMS Device, Equipment, and Materials Markets: Forecasts and Strategies for Vendors and Foundries, recently published by The Information Network.

MEMS devices cover a broad spectrum of products such as accelerometers, digital mirror displays, gyroscopes, micro fluidic devices, microphones, and pressure sensors.

Since they are such a diverse lot, the have fared better than the overall semiconductor industry. The semiconductor industry declined 2.8 percent in 2008 and is projected to drop another 21.6 percent in 2009. The MEMS device market, in contrast, grew 1.2 percent in 2008 and is projected to increase 1.7 percent in 2009, according to the report.

"The MEMS equipment market dropped 37.5 percent in 2008 and we project a further drop of 31.2 percent in 2009, decreases similar to the 32.5 percent drop in 2008 and our projected 41 percent drop in 2009 for semiconductor equipment," noted Dr. Robert Castellano, president of The Information Network.

“Fortunately, the MEMS equipment market started to rebound in Q2, while we don’t see an uptick in the semiconductor equipment market until mid-Q3,” he added.

Exclusive analysis of MEMS Foundry 2009: Yole Développement

LYON, FRANCE: Whether companies are setting the strategy for a foundry, or selecting a foundry partner for their product, now more than ever before, the choices made today will de‐termine their future survival.

With competition increasing from a variety of players, MEMS foundries need to solidify their business model, clarify their positioning and streamline their offering to insure long-term success.

Yole Développement has released a new study dedicated to the MEMS foundry business: MEMS Foundry 2009. Supported by Yole’s MEMS expertise, this report presents key market and technologies trends for MEMS foundries.

The report will help the MEMS companies to un‐derstand characteristics of foundries: they will be able to identify their future production part‐ners easily, understand the key MEMS foundry dynamics today and gain insights into the evo‐lution of the MEMS Foundry business.

MEMS foundries new key partners of MEMS Industry
MEMS foundries are the new key players of the MEMS industry. Major open MEMS foundries are now profitable and most are moving to upgrade to 8-inch production lines.

Top 20 MEMS Foundries - 2008/2007 (Estimations)Source: Yole Développement

Growth of consumer applications and other high potential market opportunities have attracted new entrants coming from mainstream semiconductor, leveraging their high volume production lines combining CMOS technology and MEMS.

A heated competition will start between es‐tablished MEMS foundries and these new players experienced in volume production. The MEMS Foundry market is still very fragmented.

The largest markets for MEMS foundries are inkjet printheads using mainly “exclusive” foundry services, but open foundries are developing innovative platforms addressing new applications like RF-MEMS or microphones and de‐veloping different approaches of product platform from fixed process to Multi-project Wafer (MPW).

MEMS foundries business: +22 percent in 2008. What’s next?
With over 50 companies identified worldwide, MEMS foundries are the new key partners of the MEMS industry.

“While the foundry business experienced a booming 22% growth to reach $480 million in 2008, MEMS foundries do not expect more than single digit revenue increase for 2009 with low visibility on bookings”, says Jérôme Mouly, Technology & Market Analyst at Yole Développement.

MEMS market share captured by foundries is increasing for most products because the struc‐ture of the MEMS industry is stabilizing with emerging MEMS companies choosing “fabless” or “fablite” business models and sharing the production risks of new products with the MEMS foundries.

• “MEMS Foundries 2009” focuses on the segmentation of this part of the MEMS val‐ue chain, highlighting MEMS foundry markets and trends.

• “MEMS Foundries 2009” is the only report highlighting how foundries will gain mar‐ket share in the MEMS market, and the key criteria to understand why MEMS com‐panies are more interested in Foundries today.

• Acquiring “MEMS Foundries 2009”, will allow you to quickly identify major MEMS foundries and the most dedicated foundry partner for your activity.

MEMS Foundries 2009 report spotlights an original business model of the MEMS industry, highlighting major players and ranking 2008 sales with a comparison to 2007.

MEMS foundries 2009 report gives information on how typical foundry rev‐enues are generated, from development services to wafer processing, the latest trends and information on MEMS foundry activities.

MEMSIC launches tri-axis magnetic sensor

ANDOVER, USA: MEMSIC Inc., a leading MEMS solution provider, combining proprietary MEMS technology with advanced mixed signal processing and system solutions, has released its new Tri-Axis Magnetic Sensor, the MMC3120XM, which will enable the integration of digital compass functionality into a broad range of industrial, consumer, and mobile handset applications.

MEMSIC’s new MMC3120XM augments its family of magnetic sensors and is a key component for developers to provide cost-effective solutions which offer greater precision and ease-of-use.

The MMC3120XM can measure the earth’s magnetic field regardless of the orientation of the device, which is critical for hand held applications.

In addition, when the product is used in conjunction with MEMSIC’s dynamic compensation and automatic calibration software, it is able to correct for the effects of local magnetic interference and provide the user with gimbaled compass functionality without required rigorous procedures for manually calibrating the device.

These capabilities lead to a more robust and user-friendly solution, while providing the end-user with much more accurate heading information.

This new magnetic sensor will draw only 400 uA of current, making it highly suitable for power sensitive designs. The MMC3120XM is available today and pricing for the product starts at $2.25 per unit.

Freescale ships one billionth sensor!

DENVER, USA: Freescale Semiconductor’s sensor technology innovation has helped global customers differentiate their automotive, consumer, industrial and medical products throughout the past three decades. Building on its heritage of sensor leadership, Freescale recently reached a major milestone of one billion sensors shipped.

Offering one of the broadest sensor portfolios in the industry, Freescale has achieved strong growth in well-established sensor markets, such as industrial, automotive safety and medical, as well as emerging consumer applications. Freescale is a leading supplier of MEMS acceleration and pressure sensors. According to the industry analyst firm iSuppli, Freescale ranks as the industry’s No. 1 merchant automotive sensor supplier.

“With the current global economy, we expect the MEMS market to reinvent itself and move away from being largely automotive and toward the growing consumer electronics and industrial control markets,” said Jérémie Bouchaud, iSuppli principal analyst for MEMS. “Freescale is well positioned to leverage its experience in high-volume manufacturing for automotive applications into sensor product solutions to take advantage of these growth opportunities.”

The extensive Freescale sensor portfolio includes MEMS-based acceleration and pressure sensors, as well as CMOS-based proximity (touch) sensors. Freescale MEMS sensors combine rich integration, embedded software and digital interface capabilities with intelligent communication to help developers create differentiation for their products.

“Shipping one billion sensors represents an important milestone for Freescale and our customers,” said Demetre Kondylis, vice president and general manager of Freescale’s Sensor and Actuator Solutions Division. “It signifies Freescale’s long-term commitment to creating innovative sensor products, as well as ease-of-use solutions like our new Sensor Toolbox, that help our customers excel in competitive global markets.”

Streamlining embedded designs with Sensor Toolbox
To help make sensor application development easier and faster, Freescale has introduced the Sensor Toolbox, a unified set of development software, hardware (including interchangeable daughter cards), documentation and accessories for Freescale acceleration, pressure and proximity sensors.

The customizable, plug-and-play Sensor Toolbox is compatible with multiple toolsets and can demonstrate end application capabilities for each sensor type (acceleration, pressure, proximity) on a common platform. Multiple USB-enabled sensor evaluation kits are available as part of the toolbox.

Each kit uses a common graphical user interface (GUI) that requires one software installation, reducing complexity and improving reliability through periodic software updates. The GUI includes demo, evaluation and tutorial modes.

The Sensor Toolbox also includes complimentary sensor algorithms to help developers get the most from the Freescale sensor functions such as orientation, shake, tap, freefall, motion, tilt, positioning, shock or vibration with inertial sensors; PSI conversion for gauge pressure and altimetry for absolute pressure with pressure sensors; and water level monitoring, switch replacement and touch pad implementations with proximity sensors.

Pricing and availability
Five Sensor Toolbox evaluation kits are available now.
LFSTBUSB: Accelerometer Interface Board with USB Communication available at a suggested resale price of $50.
LFSTBEB7660: MMA7660FC Accelerometer Development Board available at a suggested resale price of $75.
KITPRESSURE1EVB: Pressure Sensor Interface Board with USB Communication available at a suggested resale price of $79.
KITMPXV5004DPEVB: MPXV5004DP Pressure Sensor Development Board available at a suggested resale price of $49.
KITMPR03xEVM: MPR03x Proximity Sensor Kit available at a suggested resale price of $99.

Freescale plans to add evaluation kits to the Sensor Toolbox in early Q3 2009 and beyond.

One billion sensors and counting
Freescale entered the MEMS sensor market in 1980 with its first pressure sensor product. The company introduced temperature-compensated pressure sensors in the mid-1980s and began developing its first surface micro-machined acceleration sensors for the automotive airbag market in the late 1980s.

Today, Freescale offers an extensive acceleration sensor portfolio, including 2- and 3-axis devices with g-select and power-select features that allow developers to choose the right level of acceleration sensitivity and low-power consumption for their application requirements.

Freescale’s MEMS sensors are combined in the MPXY8300 TPMS system-in-package solution, which integrates a pressure sensor, an XZ-axis accelerometer, an 8-bit MCU and an RF transmitter. Freescale recently introduced its first digital barometric pressure sensor, the MPL115A, for a variety of consumer and industrial applications.

Freescale’s broad portfolio of acceleration sensors is ideal for a diverse range of existing and emerging applications that require accurate detection of small changes in force. Applications include:

Freescale sensors complement the company’s broad portfolio of MCUs, microprocessors, digital signal processors, analog and power management ICs, and ZigBee wireless technology. The combination of these products and technologies with Freescale sensors provides customers with comprehensive system-level embedded control solutions for a wide range of applications.

Freescale at Transducers 2009
Freescale is demonstrating its latest sensor technology and enablement tools at Transducers 2009 in booth #3, June 22-25. Demonstration highlights include:

* Sensor Toolbox accelerometer, pressure and proximity sensor USB communication boards that connect to the MMA7660FC, MPXV5004DP and MPR03x development boards.
* MMA7660FC smart motion accelerometers with power-select for orientation, shake and tap functions.
* MPXV5004DP pressure sensors –- on-chip signal conditioned, temperature compensated and calibrated.
* MPR03x compact, low-power proximity sensors.
* MPL115A digital barometer for cost-sensitive applications.
* Low-g inertial sensors for electronic stability control in automobiles.

Discera expands MEMS oscillator product line

SAN JOSE, USA: Discera, a recognized leader in MEMS oscillator technology, has expanded its PureSilicon product offering to include industrial temperature ranges with +/- 50ppm and +/- 25ppm frequency stability.

Designers of computing, communication, portable and other electronic systems -- for both consumer and industrial applications -- now have access to the significant cost and power advantages offered by MEMS oscillator technology.

Discera’s PureSilicon MEMS oscillators are pin-compatible with popular crystal oscillators and have low operating current specs (3mA typ. at 40MHz), while consuming just 1uA in standby mode. Discera oscillators are also practically impervious to shock, vibration and fractures that can affect crystal parts.

The combination of high reliability and very low power consumption make MEMS oscillators ideal for portable and battery operated applications. And with MEMS oscillators now costing 20 percent less than comparable crystal oscillators, they are also far more cost-effective for almost any application.

"2008 was long anticipated as the crossover year when MEMS oscillators would overtake crystal oscillators on a cost basis. Using industry standard CMOS processing techniques and plastic packaging, MEMS enjoy several important cost advantages over conventional crystal oscillators. As process geometries scale, these cost advantages will only grew more pronounced over time," said Rich Miller, Discera’s Vice President of Marketing. "With the addition of industrial temp ranges to Discera’s product line, all system manufacturers can now enjoy the cost, power, reliability and lead time benefits of MEMS oscillators."

According to a leading research firm, the market for MEMS oscillators is expected to grow at more 100 percent per annum through 2013 as this new technology rapidly expands its share of the $3 billion global frequency control market.

Discera’s PureSilicon product line includes oscillators that support frequencies from 1 to 150 MHz; supply voltages of 1.8v, 2.5v, 2.8v, 3.0v and 3.3v; and industrial -40° to +85° C. temperature ranges, in addition to -20° to +70° C. extended commercial and 0° to +70° C. standard commercial temperature ranges.

PureSilicon industrial temperature range oscillator samples are currently available with production volumes available in 3Q of this year. PureSilicon oscillators are available in 2.5x2.0mm, 3.2x2.5mm, 5.0x3.2mm and 7.0x5.0mm plastic packages. With +/-25ppm frequency stability over the industrial temperature range, the 1.8v, DSC1018 device in a 5.0 x 3.2mm package is priced at $1.10 /ea. in 1,000 piece quantities.

ST intros new family of single- and two-axis MEMS gyroscopes

SINGAPORE: STMicroelectronics has introduced a new family of single- and multi-axis MEMS (Micro-Electro-Mechanical Systems) gyroscopes.

Underpinned by the Company’s market-proven micromachining technology, which utilizes the unique mechanical properties of silicon by producing structures within the semiconductor chip to measure movement, ST’s gyroscopes deliver superior performance and reliability for angular-motion detection in human-machine interface applications, personal and car navigation systems, and image stabilization for digital still and video cameras.ST's Gyroscope portfolio.

Gyroscopes complement acceleration sensors in ever more popular man-machine interfaces, making gaming and remote-pointing more exciting, enhance car navigation applications for dead-reckoning and/or map-matching, and counteract digital video or still camera shaking for sharper shots.

ST’s complete family of single-axis (yaw) and two-axis (pitch-and-roll, pitch-and-yaw) MEMS gyroscopes offers the industry’s widest full-scale range, from 30 to 6,000 dps (degrees per second). The innovatively designed sensors can provide two separate outputs for each axis at the same time -– an unamplified output value for general detection of angular motion and a 4x amplification for high-resolution measurements that enhances design flexibility and the user experience.

ST’s new gyroscopes boast excellent stability over a wide temperature range and time, with variation typically lower than 0.05dps/°C for zero-rate level, eliminating the need for further temperature compensation in the application. Measurement precision is ensured with the negligible level of noise that affects the output signal (0.014dps/sqrt(Hz) at 30dps full-scale).

The high-performance MEMS gyroscopes are resistant to mechanical stress thanks to the robust process already successfully applied to the several hundred million ST accelerometers sold in the market and are able to operate with any supply voltage in the range of 2.7 to 3.6 V.

The 5x5 mm LGA package, together with the innovative design approach, ensures a high level of integration in space-constrained designs as well as better performance and soldering stability compared with bulkier ceramic packages.

Samples of the complete family of MEMS gyroscopes (yaw, pitch-and-roll, and pitch-and-yaw) with full scales ranging from 30dps to 6000dps are available now and mass production is expected to start in Q3 2009. Examples include LPR503AL, a two-axis pitch-and-roll gyroscope with 30dps and 120dps full scales, and LPY550AL, a two-axis pitch-and-yaw gyroscope with 500dps and 2,000dps full scales.

Unit pricing is $2.5 for quantities of tens of thousands pieces.

MEMS players: Analysis of financial performance

LYON, FRANCE: Yole Developpement has released a new study dedicated to help decision makers evaluate MEMS companies’ corporate value and growth strategies.

Supported by Yole’s powerful MEMS industry analysis, this report presents key metrics that are used to evaluate corporate financial performance and valuation.

This report includes: the analysis of MEMS industry corporate performance with market, technology and financial perspectives; two complete databases of MEMS companies’ financial transactions (fundraising and M&A); and, a benchmark of MEMS companies multiple value and financial performance ratios by business model.

Designed as a tool to support both MEMS companies and investors in their decision making process with the relevant key indicators, this report will help determine:
o Where to invest in the MEMS area.
o The best business model for MEMS today.
o How to benchmark a MEMS company.
o How to optimize MEMS company value.

MEMS remains an attractive industry for financial and strategic investors
Several market segments are well‐positioned for high growth in the coming years as the MEMS industry continues to expand. Companies founded in early 2000 have now entered the top 30 MEMS manufacturers alongside the large established players.From the latest cell phones and gaming devices to vehicle safety and environmental sensing, the MEMS industry now provides mission critical functionality for a vast array of products and applications in defense, automotive, medical, industrial, communication and consumer markets.

The MEMS industry contains several high‐growth opportunities for financial and strategic investors. “Our analysis shows that in the past three years, more than 35 strategic investments have been made through acquisitions and VCs have invested more than $800 million in the industry” explained Géraldine Andrieux Gustin, Partner at Yole Finance. VCs are still actively investing in next generation solutions, especially in the cleantech sector.

As the economic cycle moves towards recovery, M&A activity will accelerate too. Now is the time for MEMS companies to adapt their growth strategy in leveraging their value with the help of Yole Développement’s report.

The economic cycle will impact the financial transaction market. Opportunities will arise rapidly for MEMS companies as investors seek to solidify positions necessary for future growth.

Execution of corporate strategy will require additional capital. “More than ever, companies will need to consider their value creation process while considering acquisition, selling out or consolidation strategies. They will need to leverage their corporate value with the best dedicated business model”, said Géraldine Andrieux Gustin.

Yole Développement’s analysis provides MEMS companies with key data to conduct their own benchmarking and first assessment of their company’s value. Companies and investors will also have a clear picture of what happened in the MEMS area with a detailed database of more than 400 financial transactions since 1998.

Yole Développement provides fundraising and M&A services
Yole Finance is the corporate finance unit of the Yole Group addressing the needs of customers at various stages of their growth: early stage, expansion and maturity.

Yole Finance focuses on fundraising and M&A activities with additional capabilities in IP value creation, growth strategy development and implementation. It includes supporting clients in the establishment of strategic partnerships all along their development.

Yole Finance works with seed and early stage companies with next generation solutions for the semiconductor sector especially equipment and materials, MEMS, microfluidics, photovoltaics, compound semiconductors, power electronics and advanced packaging. The Yole Finance team brings together a unique combination of experience and skills in advising clients on global cross‐border transactions in the technology industry for the past 20 years.

Accelerometers set to become leading MEMS device in 2013

EL SEGUNDO, USA: When you turn your iPhone to the side and the screen automatically adjusts from portrait to landscape view, there’s an accelerometer at work. When you swing your Wii controller and bowl a virtual strike, there’s an accelerometer at work.

Indeed, accelerometers in recent years have emerged as a critical input device for some of the world’s hottest electronic products, causing shipments to boom. This will make accelerometers the top-selling Microelectromechanical System (MEMS) device by 2013, according to iSuppli Corp.

The global MEMS accelerometer market will expand to $1.7 billion in 2013, up from $947.7 million in 2007, as presented in the figure.Source: iSuppli

“Due to this rapid sales growth, accelerometers by 2013 will displace the current leading MEMS products—inkjet heads and Digital Light Processing (DLP) chips—to become the dominant type of MEMS device sold worldwide in 2013,” said Jérémie Bouchaud, principal analyst, MEMS, for iSuppli. “Consumers’ desire for motion-sensing in smart phones and video game systems will boost demand for accelerometers.”

The boom in accelerometer demand will come as a boon to the health of the overall MEMS market. Although global MEMS revenue will decline by 8 percent in 2009—the second decline in market history following a 7 percent decrease in 2008—accelerometers will still manage 1.8 percent growth. Accelerometer revenue will rise by 14.1 percent in 2010 and will maintain double-digit percentage growth in 2011 and 2012.

“A major catalyst for the rise in accelerometer sales is pricing,” Bouchaud noted. “Accelerometers broke the magic $1 barrier in 2008, making them attractive in a larger number of products. Their prices will continue to decline in the coming years, widening their appeal beyond smart phones to reach the wider mobile handset market.”

In 2009, revenue from consumer and mobile applications for accelerometers is expected to exceed that of automotive applications. Until now, Automotive has been the biggest application by far for accelerometers, but this area now is suffering from the global collapse of car production.

Automotive applications accounted for 40 percent of global accelerometer revenue in 2008, down from 78 percent in 2006. In contrast, consumer electronics and wireless accelerometer revenue rose from 22 percent to 58 percent during the same period.

STMicroelectronics rides consumer wave to top of accelerometer market
In 2006, the top five accelerometer suppliers -- Freescale, Analog Devices, Bosch, VTI and Denso -- almost exclusively served the automotive market. However, by the end of 2008, STMicroelectronics had taken the lead in accelerometers based on its significant success in supplying the burgeoning consumer and wireless communications markets.

STMicroelectronics’ global accelerometer revenue rose to $220 million in 2008, up by nearly a factor of eight from $29 million in 2007. The company’s accelerometer market share rose to 20 percent in 2008, up from 4 percent in 2006.

MEMS inertial sensors market: Business potential and key challenges

LYON, FRANCE: Yole Développement has released its new report dedicated to MEMS accelerometers, gyroscopes and IMU Market from 2008 to 2013. The French consulting company has presented its marketing and technological analysis on MEMS inertial market with a strong focus on the consumer market.

How is the consumer electronics changing the MEMS motion sensor industry? Does the Automotive market affect the MEMS Inertial suppliers? Yole updated its figures, marketing and technological trends. And for the second time, the market analysts are giving today its expertise on the market, which is the one of the most important in the MEMS industry.

Motion sensing devices are not new. They have been used since the 50s in aerospace and defense fields for navigation functions. MEMS versions of accelerometers and gyroscopes have only been developed more recently, bringing two key advantages: cost and size reduction.

While not as accurate as the devices used for military applications, MEMS‐type accelerometers and gyroscopes are well adapted to be integrated into cars and many consumer electronic products. MEMS accelerometers have been extensively used since the 90s in light vehicle airbags, as crash sensors.

Since then many other devices have benefited from the use of motion sensors. The latest and most striking examples are their use in Nintendo Wii game controllers and in Apple iPhone and iPod devices.Source: Yole Développement

MEMS accelerometers and gyroscopes: already a 1.80B$ market in 2008
MEMS inertial sensors now represent a serious business: “752M units of MEMS accelerometers and gyroscopes were produced worldwide in 2008, corresponding to a 1.80B$ market already”, says Laurent Robin, MEMS Market Analyst at Yole. “The major part of this market still comes from automotive applications; however consumer applications should overtake this by 2011”, explains Laurent.

This is not only due to the current downturn which is impacting the automotive world: massive use of accelerometer and gyroscope is likely to stay limited to current established applications such as airbag, ESC and TPMS.

The annual growth rate will be limited to 3.6 percent up to 2013, compared to 21.1 percent for the consumer area. Indeed, the adoption rate of motion sensors on many consumer electronics products is rising faster than ever.

For example, Bosch (including its Sensortec division) and ST Microelectronics are leading the global MEMS accelerometer market with about 35 percent of market share together. Indeed, STM has recently benefited from key contracts such as the one with Apple. Its main challengers are ADI, Freescale, VTI and Infineon, and new players continue to enter the market.

From the gyroscope side, three players dominated the market in 2008: Bosch, Systron Donner and Panasonic had, on average, 20 percent market share each. However the automotive part of Systron Donner shut down in the beginning of 2009, which is greatly impacting the automotive electronics field.

Cost and intelligence are driving development of future product generations
Successful MEMS providers will be the ones able to deal with this changing economic landscape.

Some devices now integrate MEMS sensors as a commodity product. In other cases, integration of MEMS is driven by regulation and the user is not willing to pay a price premium for additional sensors. Pressure on cost is thus enormous in the last two cases. Successful players are the ones able to decrease manufacturing costs.

One strategy is to produce on 8” infrastructure. This has been chosen by several players: ST Microelectronics, Bosch Sensortec (Fab is ready, but not in use yet), Freescale, TSMC (foundry service).

Other players have moved to a technology renowned to be more able to handle cost reduction. A nice example is Panasonic which has successfully moved its gyroscope production from quartz to silicon substrates.

When it comes to very high volumes, big IC players are often preferred. Besides been able to sustain high price pressure, they are used to delivering very reliable products, to managing efficiently the supply chain and to ramping up production easily.

Being able to add intelligence to the sensor is also a means to offer strong product differentiators. From supplying only a component, many players are now supplying a solution. Algorithms are commonly integrated at the chip level: for screen rotation, drop detection… This is why a company such as Kionix has been successful in the HDD protection market: notebook free‐fall scenarios have been successfully implemented.

Providing software and system development around the sensor is also essential. It is thus not surprising that in many companies today, more people are working on the software side than on the process side!

MEMS Inertial Sensors Market 2009 Report will be available in June 2009, The catalog price: EURO 3,990 (single user license).