The document discusses how the MEMS industry can extract more value from customers. It notes that while MEMS markets and volumes are growing, the value is shifting from individual sensor devices to integrated sensor functions and data processing. The document advocates that MEMS companies change their mindset from selling standalone sensors to developing integrated sensor functions through packaging, combining multiple sensors, and adding software for data processing and new applications. This will allow MEMS players to better capture value in the growing markets for wearables, mobile devices, and other electronic products.

1. July © 2015
How the
MEMS Industry Can
Extract MoreValue
From its Customers ?
JC. Eloy
Yole Développement
eloy@yole.fr

2. 2
CONTENT
• Yole introduction
• MEMS & Sensors markets & applications
• The MEMS ecosystem
• MEMS for our 5 senses
• The 3 sensor clusters

3. 3
MEMS &
Sensors
LED
Compound
Semi.
Imaging
Photonics
MedTech
Manufacturing
Advanced
Packaging
PV
Power
Electronics
FIELDS OF EXPERTISE
Yole Développement’s 30 analysts operate in the following areas
Energy storage

4. 4
A GROUP OF COMPANIES
Market, technology
and strategy
consulting
www.yole.fr
M&A operations
Due diligences
www.yolefinance.com
Maturation of companies
IP portfolio management &
optimization
www.bmorpho.com
Manufacturing costs analysis
Teardown and reverse engineering
Cost simulation tools
www.systemplus.fr
IP analysis
Patent assessment
www.knowmade.fr

5. 5
SERVING THE ENTIRE SUPPLY CHAIN
Our analysts
provide market
analysis,
technology
evaluation, and
business plan
along the entire
supply chain
Integrators and
end-users
Device makers
Suppliers: material, equipment,
OSAT, foundries…
Financial investors,
R&D centers

6. 6
SERVING MULTIPLE INDUSTRIAL FIELDS
We are
working
accross
multiples
industries to
understand
the impact of
More-than-
Moore
technologies
from device
to system
From A to X…
Transportation
makers
Mobile phone and
consumer
electronics
Automotive
Medical systemsIndustrial and
defense
Energy

7. 7
YOLE REPORTS ON MEMS RELATED TOPICS
©2015 | www.yole.fr | IWLPC 2015 Yole Développement
Market & Technology  Sensors for Wearable Electronics & Mobile Healthcare
 High-End Gyroscopes, Accelerometers and IMUs for Defense, Aerospace & Industrial
 Technologies & Sensors for the Internet of Things: Businesses & Market Trends 2014-2024
 Status of the MEMS Industry 2015
 New Detection Principles & Technical Evolution for MEMS & NEMS
Teardown & Reverse
Costing
 AMS AV-MLV-P2 VOC MEMS Gas Sensor
 Fairchild FIS1100 6-Axis MEMS IMU
 Opgal Therm-App Infrared Camera & Ulis IR Microbolometer
 SiTime Corporation SiT1552 MEMS Oscillator
 Cavendish Kinetics 32CK417R MEMS Antenna Tuner
 STMicroelectronics LSM6DS3 6-Axis MEMS IMU
 Samsung Galaxy S6 Fingerprint Sensor - New Synaptics Design
 mCube MC3413 3rd Generation 3-Axis Accelerometer
 STMicroelectronics HTS221 Humidity and Temperature Sensor
 Mobileye EyeQ3® Automotive Vision-Based SoC
 Bosch SMI130 6-AXIS Automotive MEMS IMUBosch Sensortec BME280 - Integrated Environmental Sensor
 Bosch Sensortec BMI160 6-Axis MEMS IMU
 InvenSense MP67B - 6-Axis MEMS IMU in iPhone 6 & 6 Plus
 Freescale FXTH87- Tire Pressure Monitoring Sensor (TPMS)
 Apple iPhone 6 & 6 Plus Rear Camera Modules from Sony
 InvenSense ICS-43432 Digital MEMS Microphone
Patent Investigation  9-Axis MEMS IMU Technology and Patent Infringement Risk Analysis
 MEMS Microphone Patent Infringement
 Emerging MEMS Patent Investigation 2014
 MEMS Gyroscope Patent Investigation report

8. 8
2015-2020 MEMS MARKETS
Business is increasing and consumer and automotive are still the main drivers
Consumer
(incl.
wearable) is
more than
60%

9. 9
EXAMPLE OF NIGHTVISION
When unit price is decreasing, the growth could be incredible, if the use case is identified…
• CAGR 2015–
2020 will be
about + 77%
in units: ≈ 15
x growth
between
2015 - 2020.
• The price decrease has
started 5 years ago
• The use case have been
identified:
thermography and face
recognition
• We can expect a
strong market growth
within 3 years
maximum…
CAGR 2015-2020
76.8%
21.8%
16.8%
42.9%
170.0%
34.8%

10. 10
NEW KEY PRODUCTS INTRODUCED SINCE ONEYEAR
• Smartphone
and ultra low
end segment
has been
very dynamic
in 2014-2015
Seek Thermal
FLIR One Gen 2
Bosch Power Tools NEC VGA 12 micron
FLIR C2
FLIR TCX
I3 system
For smartphones

11. 11
THE ACCELEROMETER EXAMPLE – HISTORICAL DATA OFVOLUME GROWTH:
FROM 50MUNITS TO 5BUNITS IN 15YEARS
Until 2008,
market was
driven by
automotive, then
consumer came
with the right use
cases.
0
500
1000
1500
2000
2500
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Accelerometer volume market evolution (Munits) from 2002 to 2015
Accelerometer Accelerometer Automotive Accelerometer Consumer
Market driven by Automotive Market driven by Consumer
1st Phase
“Protected” market
3th Phase
“Integration”
Combos
replacement
2nd Phase
“New application”
(e.g. Smartphone)
Smartphone wave
Game changer: ASP
Autonomous car as
the next ramp-up?

12. 12
BUT…
• MEMS is becoming a few 10cts business, a couple of million times per day…
©2015 | www.yole.fr | Name of the report

13. 13
UNCHALLENGED TOP 5 LEADERS
TOP 5
account for
$3.8B MEMS
sales!
• TOP 5 remains unchanged in 2014 (and certainly in 2015) but Bosch now accounts for one-third of the
$3.8B MEMS revenues shared by the top 5 MEMS companies (accounting for about one third of the total
MEMS business).
2013
$11B business
TOP 5 ~ $3.8B (1/3)
TOP Leader ~ $1.3B (1/3)
2013
2014

14. 14
2014 HAS BEEN A GOODYEAR FOR THE MEMS INDUSTRY.
MEMS business size vs. 2014 / 2013 GAGR
Most of the
MEMS
players had
a positive
growth in
2014
+100%
$100M $1B$50M
+10%
-10%
2013/14 CAGR
2014 MEMS
Sales
+50%
$500M
0%

15. 15
DEVICESVS. SYSTEMS MAKERS & NUMBER OF MEMS DEVICES
The 3 « GreatWalls of MEMS » rule!
Entering the
MEMS
business and
being
successful is
a long &
complex
process!
SYSTEMMAKERSDEVICESMAKERS
1 MEMS product line 2 to 3 MEMS products line > 4 MEMS products line
MEMSrevenues The « Devices
to Systems »
barrier
The « from 1 to more MEMS product lines » barrier
The « MEMS business entry » barrier

16. 16
WHAT DRIVES THEVALUE OF A SENSOR?
• The ability to deliver a function!
• The sensor is the way to understand what is happening. Selling sensors without the brain is putting
the MEMS industry in a low cost, commoditazation corner where the Moore’s Law is not helping you
compared to the semiconductor business.
©2015 | www.yole.fr | Name of the report

17. 17
REQUIREMENTS FOR THE WEARABLE MARKET
Wearables have specific technical requirements
• Some
requirements
are relevant
to sensors
Ultra Low Power
Low power consumption
Accuracy
Reliable data
Low noise
4
Requirements
Useful insights
Multiple parameters
Non-invasive sensing
Sensors’
Packaging
Small size, almost invisible
Reliable and low cost
No specific challenge ! No technological breakthrough

18. 18
REQUIREMENTS FOR THE WEARABLE MARKET
Value is coming by the combination of sensor and data analysis
• Some
requirements
are relevant
to sensors
Ultra Low Power
Low power consumption
Accuracy
Reliable data
Low noise
4
Requirements
Useful insights
Multiple parameters
Non-invasive sensing
Sensors’
Packaging
Small size, almost invisible
Reliable and low cost
No specific challenge ! No technological breakthrough

19. 19
FUTURE MEMS INDUSTRY GAME CHANGERS:THE IMPORTANCE OF SOFTWARE
MEMS and CMOS Image Sensors (CIS) are following the same path
• As for CIS,
software is
gaining
more
importance
in MEMS.
CIS
Image
Sensor
Optics
Software
(e.g. computational
imaging)
MEMS
Sensor
Packaging
Software
(e.g. sensor
fusion)
For CIS, optics is becoming an essential part of the module for
high quality pictures. But because of form factor issues, the module
height is now larger than the smartphone thickness. Adding new
functionalities (auto focus …) will require more software
importance.
For MEMS, software can be the solution to have multi-axis
detection when packaging cannot lower the senor size enough
(e.g. mcube sensor). As software is today an essential part for
future sensors, we have entered a acquisition time (e.g. Movea
with Invensense).

20. 20
-
2,0
4,0
6,0
8,0
10,0
12,0
14,0
2012 2013 2014 2015e 2016e 2017e 2018e 2019e 2020e
AverageellingPrice($)
CCM ASP Assumption - Main applications
Smartphones Main Smartphones Sub Market Average
Current Camera Module
industry is dominated by
mobile
The demand is for high quality
main camera modules in a
constrained footprint
o Resolution
o Pixel size
o Module size
The secondary camera is
becoming better quality
o Resolution
CMOS CAMERA MODULE (CCM) ASP FORECAST 2012-2020
ASP trend & assumption
Mobile ASP
assumptions is
key
Yole Développement © August 2015
©2015 | www.yole.fr | Camera Module Industry

21. 21
Embedded 3D
computationalPhotography
& video
EXAMPLE FROM THE IMAGE SENSOR FIELDS
The mobile camera could become a multi sensor optronics interface
Technology is
almost ready
Players are
working on
the killer
applications
# of sensors
1 sensor
2 sensors
3 sensors
3+ sensors
20202012 2014 2016 2018 2022
• Main & sub
camera
• LED Flash
• Main & sub
camera
• Range finder
• LED Flash
• Dual main &
sub camera
• 3D mapping
• LED Illuminator
Catching up with
DSLR and video
cameras
New embedded 3D imaging
Courtesy of Panono
Courtesy of Canon
©2015 | www.yole.fr | Camera Module Industry
Embedded 3D
Interactive
The world becomes interactive
• Dual Main & sub
camera
• 3D mapping
• LED Illuminator
• Iris recognition ?
• Motion sensor ?
• Far Infrared ?
• Hyperspectral ?
Courtesy of Microsoft

22. 22
FROM MULTIPLE SENSORSTO THE FEW SENSOR CLUSTERS IN MOBILE PHONE
How these
changes will
happen?
©2015 | www.yole.fr | Name of the report

23. 23©2015 | www.yole.fr | Name of the report

24. 24
WHAT WILL HAPPEN ?
• MEMS is growing as a market, both in volume and total value
• But the value is moving from devices to functions and few MEMS players are taking benefit of this value flow
• Very limited number of companies are entering the field, the last success has been Invensense
• The last really new device was Knowles silicon microphone in 2003
• So it is now important to change the MEMS mindset and to move to functions development…
©2015 | www.yole.fr | Name of the report
MEMS
Sensor(s)
Packaging and integration of multiple devices in SiP
Software providing data
processing and enabling
functions

25. 25
• Open for questions…
©2015 | www.yole.fr | Name of the report