Burgeoning demand for a host of new products enabled by MEMS devices means the sector will likely see a healthy increase this year despite any general semiconductor slowdown. The sector is expected to maintain its 17% average growth for the next five years, according to the 2008 Global MEMS/Microsystems Markets and Opportunities report. SEMI and Yole Développement produce this report each year to meet the need for detailed information on how specific MEMS applications will drive equipment and materials demand. SEMI provides the full report to its members as a benefit of membership, by download from the SEMI website. Others can purchase it directly from Yole Développement.

With popular consumer applications like the Wii and iPhone in high-volume production—and sparking a jump in interest from other consumer gear designers in similar new MEMS-based features— MEMS device production hit 2 billion units in 2007, and looks to jump 25% to 2.5 billion in 2008. But these consumer market volumes bring consumer price pressures as well, holding total MEMS revenue growth to 14% this year.

As an increasing number of these new consumer designs ramp volume production, revenue growth will accelerate to18%-19% in 2010-2012, even with the price pressure. By 2012, MEMS makers will be shipping 8.1 billion units a year, worth some $15.5 billion— and nearly half that market, or some $7.3 billion worth, will be consumer devices. Major market drivers will include silicon microphones, micro displays, RF MEMS and even microfluidics for biomedical applications. RF MEMS and silicon microphones alone will account for more than 45% of unit demand from 2011.

Totals $7,035M 8,017 9,311 10,998 13,090 15,554

Being able to take advantage of mature semiconductor process technology means MEMS makers can get by with spending a remarkably small 4% of revenues on equipment, and similarly 4% to 5% on materials. The $8.0 billion in MEMS device sales this year is expected to generate $320 million in demand for equipment, and $380 million in material sales. Yole Developpement revised its forecasting methodology this year to better take into account how much actual usage of each tool was required for specific MEMS device structures, resulting in lower but more realistic figures than in some past projections.

But MEMS equipment sales can also expect healthy 17% average annual growth through the next five years as it keeps pace with strong device market growth. The equipment market will slow to 3% growth this year, but then accelerate sharply as consumer devices now in development move to high volume production. Equipment sales should see 9% growth next year, then see demand jump 26%-28% in 2010 and 2011.

Etching tools and materials are the largest, and one of the fastest growing opportunities for MEMS process technology suppliers. Sales of etch tools will outpace the overall tool market with 12% growth this year, to $72 million. Device testing equipment should see 5% growth to $66 million, and wafer bonders a 9% increase to $43 million in 2008.

With MEMS devices like silicon microphones for cell phones, gyroscopes for game controllers, and digital micromirrors for displays reaching real volumes, traditional semiconductor equipment suppliers like Tegal, Lam Research and ASML are starting to pay more attention to this market, and MEMS tool suppliers will have to start paying more attention to service and support and reliability issues to compete with the big IC suppliers. Conversely, MEMS tool makers are penetrating semiconductor niches requiring deep etching or wafer bonding, such as through-silicon vias, advanced packaging, and photovoltaics. The severe cost pressures of consumer markets, meanwhile, are driving device makers to smaller geometries, creating requirements— and opportunities— for new kinds of etch and clean technologies.

More closely linked to total wafer starts, materials for MEMS can expect a more stable growth pattern, with 12% CAGR over the five year period, to $603M. Materials sales should increase at close to that long term rate in 2008, with about 11% growth, to $380M. The MEMS materials market is currently fairly evenly divided between gases and chemicals, photomasks, and substrates, but photomasks will see a slower 9% five-year growth, while demand for specialty chemicals and substrates outpaces the general market. Silicon-on-insulator (SOI) wafers will see a 14% annual increase, primarily as substrates for accelerometers, and demand for glass wafers will grow at 19% a year, for capping pressure sensors, accelerometers and gyroscopes, albeit from very small levels.

MEMS devices will consume 6 million silicon wafers in 2012, worth some $136M. Production will mostly shift to 6” wafers, with increasing use of 8”.

MEMS materials will see steadier 12% CAGR

MEMS’ mainstay automotive market will only see modest 3.5% average growth from 2007-2012, but a number of consumer-oriented markets are poised for big growth, paced by 30% average annual growth for wireless telecommunications applications, 19% for biomedical applications, and 16% for other consumer gear. Consumer applications—including ink jet heads, inertial MEMS, micro-displays and emerging devices such as energy harvesting and autofocus systems—will account for more than 40% of the total MEMS device market by 2012.

New MEMS devices hitting the market in 2007 included auto-focus systems, oscillators, and dual-axis gyroscopes. Gyroscopes for cell phones and low-cost micro-mirrors for pico projectors currently present strong emerging business opportunities for MEMS suppliers. Best five-year growth prospects for specific products will be RF MEMS and, somewhat surprisingly, microfluidics for drug delivery at > 40% per year.

Silicon microphones will continue to see fast growth (32%), as will microfluidic chips for diagnostics (25%), micro tips and probes (22%) and microdisplays (21%). Defense markets will also average strong 21% five year growth, from demand for things like high-value inertial MEMS devices for munitions guidance systems.