MEMS defy market downturn
2 September 2009
News
Defying the downturn in the overall electronics industry, the market for micro-electromechanical systems (MEMS) used in consumer electronics and wireless products is expected to generate 6,4% growth in 2009, according to iSuppli. 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% decline in overall semiconductor revenue expected in 2009. It also flies in the face of the predicted 8,2% and 13,1% drops in consumer electronics and wireless equipment revenue in 2009.
“On the consumer side, gyroscopes are helping to drive the growth of MEMS, with revenue rising at a compound annual growth rate (CAGR) of 18% 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 cellphone camera image stabilisation 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 smartphones like Apple’s iPhone and Palm’s Pre, accelerometers are expected to appear in one third of mobile phones shipped next year, up from one fifth in 2009. In such smartphones, accelerometers support features like screen-orientation adjustment when the handset is turned to the side. These capabilities are now spreading beyond smartphones to other types of handsets.
Other MEMS products experiencing fast growth in the wireless market include bulk acoustic wave (BAW) filters used in CDMA and UMTS phones, whose unit shipments grew faster than 50% in the first half of the year. The downside of this fast MEMS unit growth is rapid price erosion. Accelerometers in cellphones now sell for 25% to 30% 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 cellphones in the fourth quarter of 2009 or in the first quarter of 2010.
For more information visit www.isuppli.com
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