MEMS Still Solid Business Opportunity, Says In-Stat

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Scottsdale, Ariz. — Although a number of significant milestones were achieved in 2002, this past year was one of the toughest, to date, for those in the MEMS (microelectromechanical systems) industry, reports In-Stat/MDR.

The high-tech market research firm reports that year-over-year revenues grew just 4.4 percent — from $3.8 billion in 2001 to $3.9 billion in 2002 — even though unit shipments increased 47.6 percent.

Despite the mixed news, MEMS remain a solid business opportunity, for both customers and suppliers alike. As such, revenues are forecast to increase at a CAGR of 15.9 percent to $8.3 billion in 2007, with unit shipments growing at a CAGR of 26.1 percent, from 1 billion units in 2002 to 3.3 billion units in 2007.

In-Stat/MDR also reports that:

  • VC funding in this market for the first six months of 2003 was just $52.2 million, on track to be the lowest level since 1998.
  • Nearly two dozen companies have gone out of business, including at least four fabs. To add to the strain already being felt in the fab sector, only 11 percent of companies supplying MEMS devices are currently outsourcing their fabrication needs.
  • Over the course of the next five years, there will be some fairly radical shifts in market shares. RF MEMS will see the biggest gains (in terms of unit shipments), with optical MEMS gaining the most, on a revenue basis.
  • As for end-use markets, industrial will gain the most, from a unit shipment standpoint, while communications will see their share of the market jump, based on revenues.



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