This market research report was originally published at Yole Développement’s website. It is reprinted here with the permission of Yole Développement.
With an unprecedented growth period, MEMS sensors and actuators have become part of everyday life and are found in a variety of systems.
OUTLINE:
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The MEMS industry is expected to exceed the $22 billion mark five years from now, growing annually at about 9% between 2021 and 2027.
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The leading MEMS players:
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Bosch continues to be the MEMS leader, with an exceptional business and growth.
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Similarly, STMicroelectronics and TDK sales grew significantly in 2021.
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Broadcom’s, Qorvo’s and Skyworks RF MEMS filters continue to ride on the 5G wave…
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The list of the top MEMS manufacturers is now available.
2021 was an exceptional year for MEMS companies. Firstly, revenues were driven by the continuous sensorization of both consumer and automotive applications and advances in the medical and industrial end markets and associated applications. Secondly, ASPs of some MEMS devices, such as inertial and pressure MEMS, increased slightly in 2021 due to the chip shortage and global allocation problems, creating additional revenue growth in the market.
Against this highly dynamic background, Yole Intelligence, part of Yole Group, today announces its annual and best-selling MEMS report, which was first released in 2004: Status of the MEMS industry. This new edition details the latest updates on MEMS volumes, ASPs, and revenues for calendar 2021. It provides an overview of MEMS’ best future growth opportunities and key market drivers for the next 5 years. This new edition also offers a detailed view of the ecosystem development in terms of both products and funding and the main stakeholders involved. A detailed analysis of MEMS market shares is included, along with an analysis of the foundry business, giving a comprehensive view of the MEMS ecosystem.
“Globally, MEMS players’ revenue grew by 17% YoY, up from $11.5B in 2020 to ~$13.6B in 2021. This revenue is associated with 1st-level packaged MEMS devices sold by IDMs and fabless companies to OEMs/integrators, but also including revenue from MEMS foundries.”
Dimitrios Damianos
Senior Technology & Market Analyst at Yole Intelligence
But who is supporting and profiting from the current and future growth?
Of course, mainly the incumbents in the top-10, which has not changed drastically in the past couple of years: Bosch, Broadcom, STMicroelectronics, Qorvo, TDK, Goermicro, Texas Instruments, HP, Infineon, Knowles, etc. But let us not forget the long tail of other smaller specialized MEMS players, also poised to enjoy growth owing to emerging MEMS devices and applications: SiTime, USound, xMEMS, OQmented, Sensirion, etc…
Of the total revenue, $570 million in 2020 and $690 million in 2021 were generated by players offering foundry services to fabless companies and those IDMs that cannot fulfill 100% of sensor manufacturing internally. Until a couple of years back, the top MEMS foundries had little revenue (typically less than $60 million). Now, as new companies sprout with an appetite for outsourced MEMS manufacturing, MEMS foundries are reaping the fruits, growing their revenues strongly. Silex, Teledyne MEMS, and TSMC are part of this segment.
Ensuing the unprecedented demand for MEMS sensors, MEMS players are currently investing in new production fabs: Bosch, SilTerra, Silan Microelectronics (160kwpy), FormFactor… However, increasing capacity is currently the general trend in the semiconductor domain following the chip shortage, and the equipment market is fully saturated with high equipment prices and >15 months’ delivery times. Acquiring MEMS businesses from other companies may be an option. Yole Intelligence’s analysts identified several significant examples: Silex acquired Elmos’ 200mm wafer line, and Mitsumi acquired Omron’s MEMS business… In parallel, Bosch announced the construction of a 300mm MEMS line that will open in 2026 to consolidate its leading position.
But what should we expect in 2022 and beyond? Well, currently, the market is driven by three forces:
- A strong demand for MEMS, with some MEMS foundries’ schedules already filled to end-2023.
- Decreasing margins because of higher operating costs due to the current microeconomic and macroeconomic situation leading to an increase in ASP across some MEMS devices.
- And future inventory over-stocking by integrators stockpiling chips (among them MEMS), potentially leading to a downturn in MEMS players’ activities in 2023 and later.
Thus, a message to the participants in the ever-evolving MEMS industry: please tread carefully ahead.
