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Top 30 MEMS Companies 2010: Big four capture a third of the total MEMS market
The MEMS industry had a great 25% growth year in 2010--but the four largest companies grew even faster, to increase their domination of Yole Développement's annual Top30 MEMS company ranking, and of the sector as a whole.
MEMS may still be an industry with a multitude of diverse products, but it’s also increasingly an industry dominated by a limited number of big suppliers.
Blockbuster recovery and inventory restocking from the automotive sector, and the rush to put inertial sensors in every handheld device, drove a healthy 25% jump in total MEMS sales in 2010, to some $8.6 billion. But it particularly meant a boom year for high volume MEMS suppliers to big customers. The big four –Texas Instruments, Hewlett Packard, Robert Bosch and STMicroelectronics—
“It’s very important to be big to succeed in the consumer and automotive markets,” says Jean Christophe Eloy, CEO of Yole Developpement. “A company needs to have size big enough to ramp volume on 8-inch wafers to reduce costs, and to continue to invest in shrinking the die to drive ASP down. Companies with smaller size will remain flat or will get pushed out. We now see clearly 3 groups of MEMS companies, those with sales above $500M (the leaders, involved in consumer electronics and/or automotive businesses), those with sales between $500M and $200M ( the companies that still can become global leaders in MEMS) and those below $200M (companies that have to specialize in specific businesses in order to be profitable)”.
There’s plenty of industry-leading growth among the rest of the Top 30 companies as well. This year it took sales of $52 million to make the ranking, up from only $31 million last year. Five additional players reached $100 million or more in MEMS sales, bringing 21 of the 30 to a level likely needed to stay competitive in the consumer or automotive business. The Top 30 companies now account for about 80% of total MEMS industry sales.
Yole Développement defines MEMS for this listing as three-dimensional structures made by semiconductor processes, with primarily physical or mechanical, not function. This year we also included magnetic sensors because they are becoming so closely integrated with MEMS inertial sensors.
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Beginning in 1998 with Yole Développement, we have grown to become a group of companies providing market research, technology analysis, strategy consulting, media in addition to finance services. With a solid focus on emerging applications using silicon and/or micro manufacturing Yole Développement group has expanded to include more than 40 associates worldwide covering MEMS and microfluidics, Advanced Packaging, Compound Semiconductors, Power Electronics, LED, and Photovoltaic. The group supports companies, investors and R&D organizations worldwide to help them understand markets and follow technology trends to develop their business.