Large MEMS companies are challenged by low-cost solutions

According to Yole, as a result of consumer applications volume growth and price pressure. 2013-2019 consumer market revenue will grow, reaching 13%. However, the company also found that although the MEMS sector achieved 10.4% overall growth in 2013, reaching $12b, established players are struggling to continue their usual consumer applications growth.

”If we look at the top MEMS players, we see that STMicroelectronics, while still producing at high volume, is struggling to stop the decrease of the price of its own products – even though it’s shown impressive growth over the last several years, and reached $1b sales in 2012 – the first MEMS company to do so”, explains Dr Eric Mounier, Senior Technology & Market Analyst, MEMS Devices & Technologies, Yole.

Meanwhile, Texas Instruments’ DLP sales are flat, since pico projection applications are long to take off, and the professional/commercial projection market is growing at slow speed. Also, Hewlett-Packard, the major inkjet heads player, has seen sales decline, as have most other inkjet heads companies.

Another characterisation of the current MEMS industry is the fact that there are limited big companies entering the business. Instead, newcomers have opted for a fabless model, thus minimising their infrastructure investments. mCube is one example of such company.

According to Yole, to be more successful, MEMS companies should diversify their portfolios, share product infrastructure between multiple markets and deliver functions and not devices.