In contrast to the findings in Part 1, Yole Intelligence, part of Yole Group, analysis of the MEMS market was quite different [1]. It found that 2021 was an exceptional year for MEMS companies. Its annual and best-selling MEMS report [2], which was first released in 2004, projects that an almost $22B MEMS market will materialize in five years. This is attributed to emerging applications and combined intelligence that provide more added value in MEMS sensors.
Globally, MEMS revenue grew by 17% year-over-year (YoY), up from $11.5B in 2020 to approximately $13.6B in 2021. Of the total revenue, companies offering foundry services to fabless companies and integrated device manufacturers (IDMs) that could not fulfill 100% of their sensor manufacturing internally generated $570 million in 2020 and $690 million in 2021. Until just recently, the top MEMS foundries had typically less than $60 million revenue. However, new companies that require outsourced MEMS manufacturing have provided MEMS foundries, such as Silex, Teledyne MEMS, and TSMC, with growth opportunities.
Similar to the industry supply problems of the semiconductor industry in general, MEMS players are currently investing in new production fabs. The report cites Bosch’s announcement of the construction of a 300-mm MEMS line that will open in 2026 to consolidate its leading position.
Expectations in 2022 and beyond are based on three driving forces:
- A strong demand for MEMS, with some MEMS foundries’ schedules already filled to the end of 2023.
- Decreasing margins because of higher operating costs due to the current microeconomic and macroeconomic situation leading to average selling price (ASP) increases for some MEMS devices.
- Future inventory over-stocking by integrators stockpiling chips (including MEMS), potentially leading to a downturn in MEMS suppliers’ activities in 2023 and later.
The reports message to the participants in the MEMS industry: please tread carefully ahead.
References:
[1] https://www.yolegroup.com/press-release/2021-was-an-exceptional-year-for-mems-companies-what-is-next/ [2] https://www.yolegroup.com/product/report/status-of-the-mems-industry-2022-mis/?cn-reloaded=1