Archive for the ‘Jérémie Bouchaud’ Category

MEMS market overview: IHS iSuppli

November 14, 2011 2 comments

The  MEMS Executive Congress, MEMS Industry Group’s annual executive conference, was held on Nov. 2-3, 2011, in Monterey, USA. Here are the excerpts from a presentation on the MEMS market overview by Jérémie Bouchaud, director and principal analyst, MEMS & Sensors, IHS iSuppli. Thanks are also due to Maria Vetrano for providing me with this opportunity.

Source iSuppli MEMS Market Tracker – Q2 2011.

Source iSuppli MEMS Market Tracker – Q2 2011.

The market for MEMS has been growing, and is slated to grow at a CAGR of +10.5 percent from 2010-2015. Consumer and mobile MEMS market is slated to grow 22 percent CAGR from $1.5 billion in 2010 to $4.4 billion in 2015.

Smart phones remain the locomotive. MEMS content has increased in smart phones. The Accelero has migrated to feature phones. There will be limited opportunity in the gray handset market. Tablets are providing an additional market boost. There will likely be 275 million media tablets in 2015. The ‘full PC tablets’ in consumer laptops segment will also be impacted positively. Dangerous games — they peaked in 2010, will be down in 2011-2012, and go up again in 2014.

New MEMS devices in 2011 include MEMS thermopiles in handsets (TI), MEMS joysticks (Knowles) and RF MEMS switch/varactors. There will be new opportunities in sport/reha. However, IHS iSuppli not too excited about motion sensors for remote controllers and MEMS speaker — there will be no revenue by 2015.

Hottest of the hottest include motion sensors in handsets and tablets. There are likely to be a few more fat years’ for consumer MEMS. The fat years include the period from 2010-2013, which translates into robust smart phones sales and skyrocketing media tablets shipment.

The automotive MEMS market will grow at 8.5 percent CAGR from $1.90 billion in 2010 to $2.86 billion in 2015. Safety applications dominate, often with mandates. Examples are: ESC with (MEMS gyro, accelerometer, pressure sensors), airbags (accelerometer, pressure, ultrasound), and TPMS mandate in US since 2007, EU from 2012 and now China (from 2015).

Japan caused 2.2 million production drop globally, in 2011. Car production forecast has also been revised down in for 2012. China is driving sensor sales, e.g., basic MAP to lower emissions. Combo sensors are accelerating price erosion (7-8 percent, instead of 4 percent). Newcomers are finally breaking into safety sensor markets. Some examples are SensorDynamics for gyro, MEMSIC accelerometer in airbag-based ESC systems from Autoliv. Also, ST and Epson are gunning for safety applications. Read more…

MEMS likely to see strong recovery in 2010!

November 27, 2009 1 comment

Recently,Jérémie Bouchaud – Director and Principal Analyst, MEMS, iSuppli, ran a program on High-margin MEMS: Medical, Industrial and Aerospace.

According to Bouchaud, the MEMS market is not immune to the downturn and is down 8 percent in 2009. The bottom was hit in Q1-09. However, the MEMS segment is likely to see strong recovery and regain double digit growth in 2010.

The high end markets enjoy similar growth as consumer and mobile MEMS markets. It has grown at 16 percent CAGR from 2008-2013. There are opportunities for small companies and foundries. Volume manufacturers have also come to high end markets.

Overview for high-margin MEMS
Providing a market and suppliers overview for high margin MEMS from 2008-13, he said: “We don’t believe MEMS market is immune to the current market conditions. It went down 5 percent in 2008 and 8 percent in 2009. The last quarter of 2008 was very bad.

Not only automotive applications are suffering, the entire industry is suffering. Only a few segments in consumer electronics and cell phones, etc., are doing better. However, going 2010 onward, MEMS industry will see +11.5 percent growth from 2009-2013.

Coming to MEMS market by applications, mobile and CE are driving growth. They are not going down in 2009, but slightly growing by 4-5 percent. Most of the other applications are going down, however. Areas such as military and civil aerospavce, medical electronics, industry and process control, are interesting.

High margin MEMS is growing as fast as CE and mobile MEMS — 16 percent CAGR from 2008-2013. Industry and process control will be biggest part of the market by 2013. Also, medical electronics and military and civil aerospace should do well, added Bouchaud.

This market should be more stable than what it is presently. MEMS wafer probe cards, e.g., is extremely dependent on the memory market, which has been going up and down. Demand for memory has been bad in 2008 and 2009.

He also presented a brief overview of the top suppliers for high margin MEMS — such as Formfactor, Honeywell, GE Sensing, FLIR Systems, Epson, DRS, JDSU, BAE Systems, MEAS and Panasonic.

Formfactor is the leading manufacturer, especially in wafer probes. Honeywell is a significant player, strong in accelerometers, gyroscopes for aerospace and defense applications. GE Sensing is a leader for pressure sensors for medical applications. FLIR Systems is a leader in microbolometers for industrial and defence application. Epson is a leader for professional inkjet applications. Panasonic is a key player in pressure sensors, accelerometers, etc. JDSU is a purely fabless optical MEMS company. MEAS has a number of products — accelerometers, vibration sensors, flow sensors, etc.

Bouchaud also discussed the leading MEMS foundries for higher MEMS, where iSuppli calculated the revenue for high margin MEMS products only. These include companies such as Microalyne, Silex, IMT, Tronics, GE Sensing, Coilbrys, Menscap, Dalsa, Honeywell, Semefab, Microfab Bremen, X-Fab, MEAS and APM.


This is a very diverse picture, he said. “We have pure play foundries — purely focused on high end MEMS markets, such as Micralyne, IMT, Tronics.” Another group is covering both high end and volume markets such as consumer and automotive — like Silex, Dalsa, APM, etc. Then, there are those with mixed models, which are IDMs, such as GE Sensing, Colibrys, Memscap, Honeywell, etc.

Read more…

Consumer MEMS shine amid gloom: iSuppli

January 28, 2009 Comments off

I was fortunate enough to attend a webinar on MEMS organized recently by iSuppli. The webinar looked at the growth potential of this segment, especially during the downturn, as well as some top MEMS suppliers.

According to Jeremie Bouchaud, director & principal analyst, both consumer and mobile MEMS supply has been exploding. The overall MEMS market is likely to grow from $1 billion in 2006 to $2.5 billion in 2012! There will be strong acceleration due to growth of cell phones — a hotbed for MEMS, he said.

However, the share of MEMS for rear projection TV is vanishing. A market worth $300 million in 2006 is slowly disappearing, and will, in fact, disappear by 2012. Among other growth areas, personal navigation devices (PNDs) and remote controllers will also see growth.

Consumer and mobile market by MEMS device
The main segments include accelerometers, as well as gyroscopes, RF MEMS switches and capacitors, microphones, etc. The penetration of MEMS devices in CE products is said to increase quite fast.

MEMS growth in cell phones will be faster. It will grow from 3 percent in 2007 to 10 percent in 2008. All of the new, best selling smartphones, such as the iPhone, Nokia N95 and N96, Samsung Omnia, HTC Diamond, Google G1, Blackberry Storm, new Palm OS, etc., have accelerometers. A number of mid range phones also have accelerometers, eg. Sony Ericsson’s models.

MEMS usage is also growing in gaming. From 1998-2005, there was technology push with limited success. However, in 2006, Nintendo showed the way with its Wii, as did the Sony PS3. Microsoft did not enter this field back then!

Interestingly, 2006-08, motion sensing unveiled new, untapped target groups for gaming — the so called casual gamers. In Xmas 2008, Microsoft also embraced motion sensors with accessories. Hence, the penetration of motion sensors has really improved. The next third generation platform will include accelerometers and gyroscopes.

Top 15 MEMS suppliers
The key question: who all are shipping these products? According to iSuppli,The top 15 MEMS suppleirs for CE and mobile phones are: STMicroelectronics, Texas Instruments, Avago Technologies, Knowles, Analog Devices, Murata, Kionix, Epson Toyocom, Invensense, Panasonic, Bosch Sensortec, Freescale, Hokoriku, VTI and Memsic.

Some other companies to watch are:
Accelerometers and gyroscopes: Qualtre, Oki, Wacon, Alps, Virtus, Ricoh.
Pressure sensors: Intersema (MEAS), Metrodyne.
Microphones: Infineon, Wolfson, Memstech, Yamaha, Omron, Panasonic, MEMSensing, AAC, Goertek.
Pico-projectors and other MEMS displays: Microvision, Nippon Signal, Samsung, Konica Minolta, Scanlight, Qualcomm, Pixtronix, Unipixel
RF MEMS switches and capacitors: Wispry, Epcos, RFMD, Baolab.
MEMS oscillators: SiTime, Discera, NXP, Seiko, Intel.
BAW filters: Triquint, Skyworks, MEMS Solutions.
MEMS actuators for autofocus and zoom: Simpel, Sony.
Micro-fuel cells: Angstrom, Tekion, Medis.

It is understood well that not all of these companies will be successful. However, they all need to be monitored carefully.

Commenting on cell phones as a hotbed for inertial and magnetic sensors, Dr. Richard Dixon, senior analyst MEMS, iSuppli, said that the market for accelerometers, gyroscopes and magnetometers is in cell phones. This market will reach $730 million in 2012. Gyroscopes are not in the market yet, and are likely to enter by 2010. The total growth rate is very fast. In units, the annual growth rate is said to be 97 percent.

Interestingly, Apple has contributed significantly to growth of MEMS. The iPhone had a great application. Other vendors followed suite with a ‘me too” strategy. Apple also had sustainable business model with downloads on the Apple Store. The chicken and egg issue of price was solved. Also, with the iPhone, there was a free field test of motion sensing based applications.

Major suppliers of accelerometers for cell phones today, include STMicroelectronics, Bosch Sensortec, Analog Devices, Hokuriku, Kionix, MEMSIC, Freescale, Oki. Of these, ST has really been very impressive, while Bosch saw impressive growth in 2008. MEMSIC dropped share in 2008.

Navigation in cell phones next big thing
According to Dixon, navigation in mobile phones is the next big thing. Leading navigation markets by platform are: mobile phone navigation, smartphone navigation, PNDs, car aftermarket and car OEM in-dash, respectively. By 2010, the mobile phone/smartphone navigation segment will account for over 60 percent of the market.

Similarly, magnetic sensors will take off in 2009 for e-Compass. There has been penetration of magnetometers in GPS phones. They have been around since 2003 in Japanese phones. These rather esoteric applications and also had technical issues.

There were successful implementations in 2008 for navigation. Eg., the G1 Street View, and the Nokia 6210. Also, 3D compass in combination with 3D accelerometers.

The leading suppliers in this space today, include AKM, Honeywell, Yamaha, Aichi Steel. In the R&D segment, the leading players are said to be Alps, Omron, Memsic, Oki, ST, Freescale, Demodulation. Growth will be steep from 2009 onward, and take off from 2010 up to 2012.

Another growth are is the multi-sensor packages and IMUs (Inertial Measurement Unit) for navigation. Today, we have six-axis e-compass combining magnetic sensors and accelerometers. In future, there will be IMU for LBS and indoor navigation also using gyroscopes.

The issue with gyroscopes is of: performance, price, size, power consumption and no availability of three-axis. Companies that need to be watched in this space are said to be Invensense, ST, Bosch Sensortec, Qualtre, Oki, Virtus.

Other opportunity areas
Later, Jeremie Bouchaud highlighted two other opportunity areas.

MEMS microphone market presents a major opportunity. It will reach close to $400 million by 2012. In 2008, already 325 million units were selling in cell phones and laptops. Leading players in this segment are said to be Knowles, Akustica, Infineon, Sonion, Memstech, AAC. Knowles has over 90 percent of the market share.

MEMS pico projectors is another growth area. Companies have made lot of progress in this segment. The pico projectors come in various varieties.

In the MEMS scanner based segment, the R&D is led by firms such as Microvison, Konica, Minolta, Scanlight, Nippon, Signal, Symbol. These solutions came first as stand alone projectors. Later, it will come on cell phones. The best opportunity is said to be at the module level.

Another sub-segnent is the DLP based projectors. First it will be in form of a pico-projector, later, followed by usage in cell phones.

Bouchaud advised watching out for non-MEMS alternatives, such as Light Blue Optics,
3M and Logic Wireless.

Coping with commoditization and price erosion
The ASP of MEMS devices for CE and mobile phones is dropping at -13 percent per year. So, what are the ways to get profitable?

To be profitable, there is a need to achieve economies of scale by combining consumer and automotive. Also, there is a need to move wafer size to 8-inch. Next, there is a need for externalizing to foundries. ADI and TSMC have already showed the way. Now, USMC, Tower, Dongbu, Magnachip, Omron, etc., are following.

Innovation, in terms of packaging and 3D integration, test, multi-sensor packages, is another way for making profits. There is an opportunity for the equipment suppliers as well.

Consumer MEMS is currently glowing as a light in today’s dark times! It is said to grow from $1 billiom in 2006 to $2.5 billion in 2012, with 19 percent CAGR. This optimistic forecast has already started. Accelerometers are present in 10 percent of cell phones in 2008 as against 3 percent in 2007.

There exist a number of opportunities. Small companies can be successful, eg. Kionix and Invensense. There are still opportunities for newcomers. These can be large companies, fabless startups, foundries, software companies, equipment suppliers, etc. Consumer MEMS is an extremely dynamic market, having fast design cycles.

Motion sensors driving MEMS growth

September 8, 2008 Comments off

In a recent report, iSuppli predicted that driven by new demand from consumer electronics (CE) and wireless applications, the global market for microelectromechanical systems (MEMS) will expand to $8.8 billion in 2012, up from $6.1 billion in 2006.

I caught up with Jérémie Bouchaud, Director and Principal Analyst, MEMS, iSuppli Corp., to find out more about the dip in the fortunes of the mainstay products and the latest trends in the MEMS market, especially, the significance of consumer electronics applications such as motion sensors for gaming, laptops and DSCs, and mobile handsets.

Will the mainstay products for MEMS actuators, inkjet heads and DLP chips, will lose market share? Or, is it a slight dip?

Jérémie Bouchaud says that MEMS actuators, include inkjet and DLP, and also RF MEMS switches. While selling prices stay constant, MEMS inkjet heads are losing shipments at a rate of 6 percent per year over the forecast period, so the market grows only slightly at 0.4 percent CAGR from 2006-2012.

DLP shipments continue to grow, but price erosion is running at 10 percent CAGR, which means that the market is shrinking at close to 5 percent per year to 2012. RF MEMS switches are the one bright spot that helps the market for this type of MEMS device to recover slightly in 2012. RF MEMS switches will grow at 100 percent CAGR over this time to top $260 million in 2012.

The new wave is partly founded in the rapid rise of consumer electronics applications such as motion sensors for gaming, laptops and DSCs, and mobile handsets. How much share are these segments likely to garner?

According to the analyst, all types of sensors in wireless communications and consumer electronics (inertial, pressure, microphones, filters, oscillators etc) exceed $1,5 billion: or 17 percent of the total MEMS market.

“Specifically, the motion sensing opportunity, including accelerometers and gyroscopes, for consumer applications like MEMS accelerometers for mobile phones (e.g., image rotation such as in iPhone and Nokia phones), gaming (Nintendo Wii, Playstation 3), etc., and gyros (mostly digital still cameras and camcorders, gaming like Playstation 3) will grow at over 20 percent CAGR from 2006 to 2012 to exceed $680 million, about 8 percent of the total market,” he said.

iSuppli has also mentioned automotive as a key area for MEMS. What kind of growth does it see for automotive?

Bouchaud adds that automotive will grow at 8 percent CAGR to reach $2.1 billion in 2012, up from 1,3 billion in 2006. The market is largely driven by mandates for tire pressure monitoring, electronic stability control systems and reduced emissions, accelerating growth for pressure and inertial sensors.

So, will “new players have a chance to address a relatively open market”, and if yes, what would those markets be?

Bouchaud indicates that the consumer electronics market is more open than the automotive sector, which features established, long-term supply arrangements, and production cycles lasting five or more years.

CE applications are characterized by fast time-to-market and short product lifetimes. For example, mobile phones that change yearly or even more frequently, and supply agreements satisfied by fast manufacturing ramp-up and ability to meet seasonal demand spikes, and often several suppliers in the same product, (e.g. ST and ADI in Wii). As sensor specifications are more relaxed than automotive, price and footprint are most decisive.

Will there be a growth in dedicated mass production facilities then?

According to him, several large MEMS players, e.g., STMicroelectronics, Freescale and Bosch Sensortec, have or are now invested in upgrading to 8″ production facilities to meet the higher demand from the consumer sector. By 2011, at least 12 companies will operate at this larger wafer size.

“Some companies like Analog Devices are at the limit of their current capacity, due to its strong automotive sensor offering, and has recently decided to work with non-MEMS CMOS foundries like TSMC, a first in the industry. UMC will also join the MEMS community, partnering with Asian Pacific Microsystems,” he says.

And, how would the new entrants be investing in R&D? Will they be doing enough?

The analyst says that R&D rates run high in automotive (12-15 percent of MEMS revenues) and even higher in consumer (can be 15-20 percent). The high R&D rate is needed to sustain leading edge products in fast moving markets. Deep R&D pockets are needed, a luxury that is not available to all.

Elaborating a bit more on the market consolidation, he says: ” Today, the share of the MEM revenues in the hands of the top 30 MEMS companies grew at about the same rate as the market. The markets that drive growth in MEMS are consumer electronics and automotive sensors.

“The sensors will be increasingly commoditized due to extreme price pressure in both sectors, and iSuppli expects the production of MEMS devices for these two markets to be concentrated among fewer companies in the future. One facet is manufacturers attempting economies of scale by combining sales in automotive and consumer areas, e.g. at Bosch, and in future with Freescale and ST.

“Other companies are pioneers and hold a strong market position for a relatively long time. Examples are TI with DLP chips and Knowles with MEMS microphones. We also expect more M&As in the near future to exacerbate the consolidation.”

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