© 2012

MEMS Everywhere: Making the world more sensitive!

Semicon Taiwan 2012 – baron@yole.fr

© 2012 • 2

MEMS Sensor & Actuator Applications

• The application scope for MEMS sensors and actuators is broad

but highly fragmented!

• Gyroscopes

• Accelerometers

• Magnetometers

• Fusion sensor

combos & IMUs

• Pressure

-sensors

• TPMS

modules

• Oscillators /

Resonators

• RF-MEMS

switches

• FBAR / BAW

filters

• SAW filters

• Micro-

mirrors

• Micro-

bolometers

• Ink-jet MEMS

modules

• Microfluidic &

Bio-chips

• µ-Displays,

MEMS

• Auto-focus

actuators

• Humidity

sensors

• Silicon

microphones

Voice /

Sound

Pressure

monitoring Motion /

position

Projecting /

receiving Light

RF related

functions Managing

fluids

Emerging

MEMS…

Sensing applications

© 2012 • 3

Inkjet printheads

An Expanding Array of Products maturity of selected MEMS devices

with expected CAGR to 2015

Microdisplay / 110%

Auto Focus / 348%

Silicon oscillators Energy harvesting

Development Decline

MEMS Speakers

Microphones / 11%

BAW duplexers

Emerging Mature

Accel/Gyro combos for mobile / 80%

9/10DOF inertial combos / 105%

Optical MEMS for projection / 6%

MEMS mirrors picoprojectors

Optical MEMS switch / 19%

RF-MEMS for radio front end module / 171%

Microbolometers / 12%

Automotive TPMS

Accel / Gyro combos (ESC…) / 49%

© 2012 • 4

$0M

$5 000M

$10 000M

$15 000M

$20 000M

$25 000M

2010 2011 2012 2013 2014 2015 2016 2017

MEMS Market forecast 2009-2017 value (in M$)

Oscillators

RF MEMS

Microdispensers (microfluidics)

Microfluidics for IVD

Microfluidics for Research

Other optical MEMS

Projection systems

Micro displays

PIR & Thermopiles

Microbolometers

Inertial combos

Digital Compass

Gyroscopes

Accelerometers

Microphones

Pressure Sensors

InkJet Heads

Other

Continued Strong Growth 2011-2017 Forecast (in US$M)

Yole Developpement © March 2012

© 2012 • 5

• Mobile applications are driving >50% of the volume with a CAGR ~ 13%

– Telecom and medical will grow ~20% in the next 5 years

– Industrial also significant with growth of ~13% expected

$0M

$5 000M

$10 000M

$15 000M

$20 000M

$25 000M

2009 2010 2011 2012 2013 2014 2015 2016 2017

Re

ven

ues

(in

M$

)

MEMS Market Value Evolution (in $M)

Telecom

Medical

Industrial

Aeronautics

Defense

Consumer

Automotive

Yole Developpement © March 2012

Consumer Market Builds Dominance

© 2012 • 6

TOP 30 MEMS Players Global ranking

91

3

90

7

76

2

73

8

36

2

33

6

28

4

27

9

26

1

25

5

25

1

25

0

23

7

17

4

15

3

15

0

14

4

14

4

13

6

12

1

11

0

10

2

90

77

76

75

62

56

55

51

$0

$200

$400

$600

$800

$1 000

$1 200

US$

M

2011 TOP 30 MEMS Players Yole Développement March 2012 Yole Developpement © April 2012

© 2012 • 7

2011 MEMS Ranking – 2011/2010 CAGR TOP 30 Ranking

-40%

-20%

0%

20%

40%

60%

80%

100%

2011/2010 CAGR Ranking TOP 30 MEMS Players

Yole Developpement © April 2012

© 2012 • 8

TOP 30 MEMS Foundries Global ranking

24

5

49

47

37

26

24

23

20

17

16

15

15

12

12

9

9

8

7

7

6

4

4

4

3

2

2

$0

$50

$100

$150

$200

$250

US$

M

2011 MEMS Foundries Ranking Yole Développement March 2012

Yole Developpement © April 2012

© 2012 • 9

Putting the “Smart” in Smart Phones consumer mobile devices driving demand

MEMS & sensors in mobile phone

© 2012 • 10

2011-2017 Market Overview Application trends

$500M

2012-2015 CAGR (in value)

Market $300M $100M $20M

150%

-15%

100%

Gyros.

Magnetometers

Combos A+M

Accel.

Combos A+G

Combos 9DOF

Microdisplays

BAW filters

BAW duplexers

Psensors

Other emerging MEMS

Micromirrors

50%

2011-2017 Market Trends for MEMS in cell phones and tablets

Arrows show market size evolution from 2011 (start of arrow) to 2017 (end of arrow)

AF

Oscillators / resonators

RF MEMS switches / capacitors

Microphones 10%

© 2012 • 11

Key MEMS suppliers to cell phone makers (as of May 2012)

For Nokia:

• ST Micro, Analog Devices (MEMS

acceleros)

• ST Micro (MEMS gyros)

• AKM, Aichi MI (magnetos)

• Knowles, ST Micro (MEMS microphones)

For Samsung:

• ST Micro, Bosch Sensortec, Kionix

(MEMS acceleros)

• ST Micro, InvenSense (MEMS gyros)

• AKM (magnetos)

• Knowles (MEMS microphones)

• TriQuint, Avago (BAW filters)

• Wispry (RF-MEMS antenna tuner)

• TI (micromirrors)

For Apple:

• ST Micro (MEMS acceleros)

• ST Micro (MEMS gyros)

• AKM (magnetos)

• Knowles, AAC Acoustics (MEMS microphones)

• TriQuint, Avago (BAW filters)

For LG:

• Bosch Sensortec,

Kionix, Freescale (MEMS

acceleros)

• InvenSense (MEMS gyros)

• Knowles (MEMS

microphones)

• TriQuint (BAW filters)

For ZTE:

• Kionix, Freescale

(MEMS acceleros)

• InvenSense (MEMS

gyros)

• TriQuint, Avago (BAW

filters)

For RIM:

• Bosch Sensortec,

Freescale (MEMS

acceleros)

• InvenSense

(MEMS gyros)

• TriQuint (BAW

filters)

For HTC:

• InvenSense (MEMS gyros)

• Avago, TriQuint (BAW

filters)

For Motorola:

• Kionix, ST Micro (MEMS acceleros)

• InvenSense (MEMS gyros)

• AKM (magnetos)

• Knowles, Wolfson (MEMS

microphones)

• TriQuint, Avago (BAW filters)

Nokia 27%

Samsung 21%

Apple 6%

LG 4%

ZTE 4%

RIM 3%

HTC 3%

Motorola 2%

SonyEricsson 2%

Huawei 2%

Others, Counterfeit

& Unlicenced 26%

2011 Cell Phone Market Shares (in volume) - Total = 1511M units -

Source Yole développement, IDC, Gartner © May 2012

© 2012 • 12

Penetration Rate: Replacement power of incumbency

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012e 2013e 2014e 2015e 2016e 2017e

Pe

net

rati

on

in m

ob

ile p

ho

ne

s an

d t

able

ts (

%)

Silicon microphones penetration - % (historical data)

BAW filters penetration - % (historical data)

Yole développement © May 2012

© 2012 • 13

Penetration Rate: New Function Acceptance = takeoff

0%

10%

20%

30%

40%

50%

60%

70%

80%

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012e 2013e 2014e 2015e 2016e 2017e

Pe

net

rati

on

in m

ob

ile p

ho

ne

s an

d t

able

ts (

%)

Magnetometer penetration - % (historical data)MEMS gyroscopes penetration - % (historical data)MEMS accelerometers penetration - % (historical data)

Yole développement © May 2012

© 2012 • 14

The Growing Billion Unit Club

0

500

1000

1500

2000

2500

3000

MEMS cumulative shipments by selected companies (Munits)

Knowles microphones Avago FBAR shipments Freescale MEMS

ST MEMS Bosch MEMS SiTime MEMS oscillators

Poly. (Knowles microphones) Poly. (Avago FBAR shipments) Linéaire (Freescale MEMS)

Poly. (ST MEMS) Poly. (Bosch MEMS) Linéaire (SiTime MEMS oscillators)

Yole développement © May 2012

© 2012 • 15

“Alpha” MEMS Companies Top 4 suppliers have >50% market share

in 5 different MEMS markets

© 2012 • 16

2009-2011 market shares evolutions ST is growing, Avago decrease InvenSense appears

© 2012 • 17

•MEMS timing devices

•MEMS switch / variable capacitors

•BAW filters

•BAW duplexers

•Accelerometers

•Magnetometers

•Gyroscopes

•6 to 9DOF inertial combos

•Auto-Focus

•Microdisplay

•Micro-mirror for

picroprojectors

•Energy harvesting

•Environmental sensors

(temperature, humidity…)

•Micro fuel cells

•Microspeakers

•Touchscreen

•Joystick

•…

Global MEMS Market for Mobile Phones / Tablets Breakdown by product category

•Silicon microphones

•Pressure sensors

© 2012 • 18

2011 market shares for discrete inertial sensors

© 2012 • 19

Motion sensors Still the hottest sensors in mobile devices

• Market for motion sensors in mobile devices is both

large and still quickly expanding

– Driven by the increase of the attach rate (even

gyroscopes are now accepted in the market)

– And by the global increase of the smartphone and

tablet market

• Market for discrete inertial sensors is predicted to

decrease from 2014

– Discrete MEMS accelerometer maturates

– Discrete gyroscopes and magnetometers still growing

for a few years

– However technical evolutions are still observed:

towards 1x1mm² accelerometers and 2x2mm²

gyroscopes within a few years

• Global market will stabilize after 2014

– Continuous growth in volume, but prices will keep

decreasing

– Combo sensors will grow: each element will be more

mature, integration is combo will lead to cost reduction

0

200

400

600

800

1000

1200

1400

1600

1800

2000

2009 2010 2011 2012e2013e2014e2015e2016e2017e

Mar

ket

($M

)

Motion sensors for mobile phones and tablets - 2009-2017 market ($M)

MEMS accelerometers MEMS gyroscopes

Magnetometers Combos accelerometers magnetometers

Combos accelerometers gyroscopes Combos 9DOF

Yole développement © May 2012

© 2012 • 20

Key elements of a MEMS microphone module

Note: some elements described here can be optional or redundant depending

on the exact design choices made by each MEMS module manufacturer

Substrate (PCB laminate, Ceramic, Leadframe)

Die attach material

MEMS die

Wire-bond interconnect

Encapsulation (metal lead, molding compound, PCB)

ASIC die

Glob-top material

MEMS microphone module (Source Knowles Acoustics)

© 2012 • 21

Microphones for mobile applications Value chain estimation in 2017

2012 market: $508M, 1421 Munits 2017 market: $829M, 3227Munits

MEMS manufacturing

$130M - $140M

ASIC manufacturing

$100M - $110M

Assembly & packaging

$210M - $230M

Final test, yield losses

$25M - $40M

Gross Margin

$300M -

$320M

MEMS die, test, dicing

(with foundry overhead if

any) 16,5%

ASIC die, test, dicing (with

foundry overhead if

any) 11,6%

Final packaging 25,2% Final test &

yield losses 3,6%

Gross margin (Cost of sales,

G&A, R&D, Operational

margin) 43,0%

MEMS Microphone Cost Structure in 2012

© 2012 • 22

2011 Key MEMS Player Activity Estimate

outsourced packaging assembly,

test & calibration

MEMS

foundries IDMs OSATs

WLP

houses

BE & Test

houses Substrate

houses Fabless /

Fab-light

* R

eve

nu

e e

stim

ate

s r

ela

ted

to

ME

MS

~

$0.2B

~

$8B

~

$2B

~

$1B

~ $0.4B

ASIC

foundrie

s

~

$0.4B

© 2012 • 23

Next WAVE of emerging MEMS…

Sensirion Humidity Sensor

AudioPixel microspeaker

NextInput SoftTouch

interface

TI temperature sensor versus a

competing thermopile sensor Polight MEMS autofocus

Samsung Galaxy Beam features

TI DLP

Sand 9 MEMS Oscillator DelfMEMS switch

Oscillators + micromirrors + displays +

switches & variable capacitors + temperature

sensors + AF + microspeakers + other

emerging MEMS

From $13M to $2.3B market (2017)

(in cell phones and tablets)

Wispry antenna tuner on

cell phone board

Implantable pressure sensor (from Sensimed)

© 2012 • 24

Conclusion & Perspectives

• After 3 relatively flat years, MEMS sales jumped 25% in 2010 and the 2011

market kept increasing

– Consumer market has the strongest influence on the MEMS industry

• Inertial combos will account for more than 1/3 of the global inertial MEMS

market in 2017

• It is now challenging for newcomers to enter the mobile market

– Newcomers can target new applications, in this case they need to create a new

market

– For existing applications there are already several solid suppliers and prices are

already low. The only possibility for newcomers is to introduce radical changes

• High volume MEMS is not limited to 3 categories of MEMS (inertial, BAW,

microphones)

– SiTime: the first player to pass the 100M units barriers for those emerging MEMS

markets

– Who’s next?

© 2012 • 25

Thank you very much for your attention!

Visit us during Semicon’Taiwan 2012 @ Booth #1327