MEMS industry looks promising, reports Cahner's In-Stat Group

May 1, 2001
Apr. 30, 2001--Having plugged away for the last decade, MEMS technology is about to shrug off the flash-in-the-pan mantle some have labeled it, and emerge as a bona fide industry, according to Cahners In-Stat Group.

Having plugged away for the last decade, MEMS (microelectromechanical systems) technology is about to shrug off the flash-in-the-pan mantle some have labeled it, and emerge as a bona fide industry, according to Cahners In-Stat Group. In its recently issued report, "The Little Chips That Could: A MEMS Industry Overview and Forecast," Cahner's states that as the technology enters its second decade of commercialization, the industry is taking on an entirely new look with significant levels of venture capital funding, the emergence of brand new markets, and even increased collaboration amongst companies.

"It's been a long time coming, and the effort is about to pay off," says Marlene Bourne, Senior Analyst for the high-tech market research firm's Emerging Semiconductor Applications Service. Over the next 18 months or so, an incredibly diverse array of products will move into volume production, and the impact is expected to be far-reaching as current MEMS markets expand and new ones emerge. "As a result, this industry will look very different in five years' time," says Bourne. In-Stat expects a fundamental change in device complexity and cost to help worldwide MEMS revenues nearly quadruple by 2005.

In-Stat has also found that:

* Sensors, which generated the bulk of sales in 2000, will take a back seat to actuators in 2005, dramatically changing the top ten applications.

* The telecommunications market will account for nearly a third of total MEMS consumption by 2005, up from less than 1% in 2000.

* Currently, the MEMS market is largely comprised of sensors with an ASP of $5-$20. In-Stat expects some to go well below $1 in the next year or two.

About Cahner's In-State Group:

Cahners In-Stat Group covers digital communications research from vendor to end-user, providing analysis and perspective. In-Stat is a unit of Cahners Business Information, a provider of information and marketing solutions. The report, "The Little Chips That Could: A MEMS Industry Overview and Forecast," provides an overview of MEMS and offers the who, what, why, when, where, and how of this evolving industry. Forecasts of sensors, actuators, major markets, and key applications are provided through 2005. For more information, visit www.instat.com/catalog/cat-esa.htm#ea0102mf.

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