MEMS market grows steadily, ST and Bosch compete for the top spot

　According to the latest report on the microelectromechanical systems (MEMS) market published by market research firm IHS iSuppli, supplier InvenSense's sales grew 30% in 2012 to US$186 million, making it "the most successful MEMS startup ever." However, InvenSense's performance ranked only the 13th largest MEMS supplier in the world in 2012.

　　InvenSense's success comes from its Nasiri process technology, which was invented in 2009. It uses wafer bonding to place ASIC wafers on MEMS wafers, thereby avoiding contamination and reducing overall packaging costs. The Nasiri process technology is named after InvenSense founder Steve Nasiri (now working at Nasiri Ventures). This process allows InvenSense to manufacture precise, low-power MEMS components at a low cost that can meet the needs of consumer applications.

　　According to IHS iSuppli statistics, the global MEMS chip market grew by about 5% in 2012, reaching US$8.3 billion. Bosch and STMicroelectronics performed similarly, each claiming to be the world's largest MEMS supplier, with Bosch's annual revenue growth rate of 23% and STMicroelectronics' annual growth rate of 8%.

　　IHS iSuppli Announces the Ranking of the Top 20 Global MEMS Suppliers in 2012

　　Earlier this month, InvenSense announced that it would expand its MEMS product reach from the original low-precision/low-price consumer application market to the high-precision, high-price industrial application market, and released two entry-level products, including the ITG-31Nx three-axis gyroscope and the MPU-61Nx six-axis accelerometer/gyroscope combination component.

　　Both of these new InvenSense products offer industrial-grade performance for harsh environment applications, including extreme temperature ranges and high shock resistance. The drift of the industrial-grade gyroscope is 25 degrees per hour, the noise of the accelerometer is 25% lower than that of consumer components, and the offset stability is only 0.01 milligram.

　　InvenSense has diversified its product strategy from gaming applications to mobile phones and tablet devices, and has further ventured into industrial applications. Its modular MEMS solutions are emerging in the market. According to IHS statistics, InvenSense's revenue from modular MEMS sensors in 4x4mm packages for consumer applications contributed 50% of the company's overall revenue in 2012, and its new nine-axis modular component - combining an accelerometer, gyroscope and magnetometer in a 3x3mm package - will capture the market next year.

　　Texas Instruments' (TI) MEMS product revenue shrank in 2012, mainly due to the decline in demand for its DLP chips as consumers shifted from projection TVs to flat-panel LCD TVs. HP's (HP) MEMS business revenue also declined in 2012. Its MEMS products mainly come from the demand for inkjet printer print heads, a market that is also gradually shrinking.

　　Overall, the top 20 MEMS suppliers in the world account for 77% of the global MEMS market in terms of revenue, while the top four manufacturers contribute 64% to the overall MEMS market with a total size of US$8.3 billion.