MEMS-based Market to Generate $13 Billion Supply Chain Revenue in 2012


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MEMS-based Market to Generate $13 Billion Supply Chain Revenue in 2012

MEMS-based systems were a $46 billion business in 2008, and despite the recession should still see 12% compound average annual growth through 2012, burgeoning to an $83 billion industry. That will mean a $13 billion market for MEMS devices and the equipment and materials needed to produce them, according to this year’s annual report on the MEMS supply chain from SEMI and Yole Développement.

MEMS systems used some $6.9 billion worth of MEMS devices last year, and will likely maintain a similar level of demand this year, before a sharp recovery in 2011 and 2012 expands the market to some $12.4 billion, generating average 12% CAGR for the period.

Demand for materials for MEMS should generally continue to increase in line with increasing unit volumes, but the relentless drive to reduce die size to squeeze into handsets and portable gear, and to reduce costs, is limiting growth in materials consumption. Total MEMS materials demand should maintain relatively stable 8.8% CAGR through the next five years, rising from $309 million in 2008 to some $470 million in 2012.

On the equipment side, however, existing overcapacity in the face of the recession continues to limit capital expenditures. Tool demand dropped to $142 million in 2008, but should jump back up to $510 million by 2012.

SEMI puts together this market study each year with Yole Développement to meet members expressed need for better information on how the developments across the diverse range of MEMS applications are impacting manufacturing technology, and what the means for MEMS equipment and materials markets. This year’s report emphasizes the changes in the business since last year’s report. For detailed background information, please refer to last year’s more extended report.

For more information about MEMS, visit www.semi.org/mems. To download the reports, SEMI members can sign in at the “Members Only” website. The reports are offered as a complimentary benefit of membership. Non-members can purchase the reports directly from Yole Développement by contacting David Jourdan (jourdan@yole.fr).

August 4, 2009