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MEMS Foundry Outsourcing market size & share analysis to 2020 just published

Industrial and Manufacturing

The global MEMS foundry outsourcing market is expected to increase from $685.9 million in 2014, and reach $860.4 million in 2020. The average selling price (ASP) of MEMS product declined with 7% each year from 2011 to 2014. The trend is expected to be same during the forecast period.

Growing with a CAGR of 3.7% during 2015-2020. The global market of MEMS foundry outsourcing is mainly driven by the growth of the fabless business model segment in the MEMS industry.

The fabless MEMS players, such as Knowles Electronics, InvenSense Inc., along with Goertek Inc., have witnessed significant growth in their revenue during 2011-2014. The continuously dropping average selling price, emerging new application of MEMS, along with looming adoption of 300mm technologies for MEMS are expected to be the growth drivers for the global MEMS foundry outsourcing market during the forecast period. 

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The new entrants in the MEMS industry are expected to adopt the fabless business model, in order to compete with the falling profit margins, and reduce the overall economy of scale by eliminating capital investment in tools, design support, and foundry setup and maintenance.

This is expected to boost the growth of pure-play MEMS foundries, during the forecast period. Nevertheless, the opportunities still exist for the IDMs especially in the application specific MEMS manufacturing. 

The high cost of fabrication, lack of absolute cost advantage, along with low profit margin from economies of scale due to application specific design requirement of MEMS is hindering the growth of the global market of MEMS foundry outsourcing.

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Unlike integrated circuits technologies, MEMS cannot be manufactured in standardized manufacturing processes. This has led to the growth of fabless MEMS design houses during the recent years.

In 2011, IDMs accounted for the majority of market share in the global MEMS foundry outsourcing market. However, during the past four to five years the market of MEMS foundry outsourcing has shifted towards the pure-play business model, owing to the falling average selling prices of MEMS, in addition to the emergence of major IC foundries, such as Taiwan Semiconductor Manufacturing Company, Silex, and TeledyneDASLA.

The major companies operating in the global MEMS foundry outsourcing market include STMicroelectronics NV, Sony Corporation, Taiwan Semiconductor Manufacturing Company Limited, Teledyne DALSA Inc., Silex Microsystems AB, Asia Pacific Microsystems Inc., and X-FAB Semiconductor Foundries AG.

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