For the first time STM is the 3rd MEMS manufacturer worldwide. Overall sales of the TOP30 MEMS manufacturers decreased by 2% compared to previous year, reaching 5.5BUS$. The current economic crisis strongly impacts the 2009 edition of the top 30 MEMS manufacturers.

In 2008, the MEMS market has seen significant changes in the ranking of the TOP 30 MEMS companies:
• STM has become, for the first time, the 3rd MEMS manufacturer by $ revenue in 2008
• Delphi and Sanyo are moving out of the TOP 30 MEMS ranking
• Kionix and IMT are entering the Top 30 MEMS ranking for the first time
• IMT is again the world leader in the independent MEMS foundry business
• HP and Texas Instruments, despite decreases in sales, are still numbers 1 and 2 of the TOP 30 MEMS ranking.

2008 has been a year of unusual movement in the industry:
• The winners: 18 companies have shown growth ($ revenue) in 2008 compared to 2007, with Kionix leading the way with 70%, and also Measurement Specialties, STM, Panasonic and Murata, to name a few.
• The loosers: 12 companies have shown a decrease in sales ($ revenue) in 2008 compared to 2007 (in addition to Sanyo and Delphi exiting the TOP30 ranking), with FormFactor, Silicon Sensing Systems and Lexmark showing the largest decrease in sales.

The economic crisis, which impact on each MEMS sector ?
The economic crisis has definitively had an impact on MEMS companies’ financial results, specifically during Q4 2008. But this impact is very different according to the various MEMS players’ markets. The automotive business is probably the most dramatically impacted by the downturn. In terms of units, it is in the range of -10% to -20% less compared to previous years. However, some companies suffer less than others (as is the case for Robert Bosch for example) but all of them are impacted. The impact is also different according to the maturity of MEMS products. Established devices such as airbag accelerometers are suffering more than emerging devices (e.g. TPMS).
The consequences in consumer markets are also different, depending on the MEMS products. Manufacturers of ink-jet heads are suffering a lot, with a decrease of about 15% IJH production for 2008. On the other hand, inertial MEMS products for the consumer market are still growing (in the range of a several %) with some players (e.g. STMicroelectronics and ADI) showing pretty good results.

The major MEMS facts to be highlighted in 2008 are:
• Systron Donner Automotive had a very strong decrease because of its automotive business (- 14% in US$). This moves it from 10th position in 2007 to 13th in 2008.
•  IJH players are dramatically impacted with a decrease in both sales and units (this is the case for HP and Lexmark, the latter undergoing the strongest decrease for IJH). However, HP is still the number one MEMS company for 2008.
• Texas Instruments has seen decrease in its DLP chip sales by about 13% (in US$).
• Thanks to its growth of the consumer market, STMicroelectronics’ MEMS business had a profitable 2008 with US$200M for its accelerometer business (twice 2007 sales). This is + 42% in euros. STMicroelectronics moves from 4th position in 2007 to 3rd in 2008.
• Although it is probably the automotive MEMS player performing the best in 2008, Robert Bosch underwent a -10% decrease in euros compared to 2007. Its 8’’ fab is now ready but production will start only when the economic conditions improve. So Bosch is moving from 3rd position in 2007 to 4th in 2008.
• Avago has bought the BAW activity of Infineon in Q4 2008, however this sales volume (Yole Développement estimates to be US$38M) has been consolidated into Infineon's 2008 financial results.
• VTI is suffering because of the automotive market slowdown (- 10% in euro).
• Boeringher Ingelheim microParts showed good performance (+ 9% in euro), showing that the biomedical market was not impacted by the crisis.
• Panasonic had a very good 2008 with a 10% increase in yen compared to 2007. Yole Développement believes Panasonic has taken market shares in gyroscopes from Murata and SSS which show - 4% and - 12% decreases in yen respectively. Panasonic is now in 16th position (19th in 2007).
• MEAS’s good performance (+ 57% in US$) is explained by the integration of Intersema's sales results. MEAS is now in 19th position (24th in 2007).
• FLIR and Ulis had good results showing that the microbolometer market has not been impacted so much.
• FormFactor underwent the strongest decrease (- 51% in US$). This moves it to 27th position (20th in 2007).
• IMT did quite well (+ 15% in US$) while Colibrys was affected (- 19% in US$ and closing of its US activity).
• This year Sanyo and Delphi have disappeared from the 2008 ranking: Sanyo has stopped its foundry activity and Delphi has dramatically reduced its MEMS staff. Yole Développement believes that only development/assembly will be kept.

How will the future be ?
Such a crisis will come to an end only when device stock levels fall. Some information from Taiwanese players seems to indicate a restart of semiconductor production. Although it could also be the case for MEMS, Yole Développement thinks that 2009 will be a flat year for the MEMS market.
This preliminary Top 30 MEMS Manufacturers is based on Yole’s market research and expertise covering the MEMS field with more than 2,500 contacts per year. Yole Développement continues to analyze in detail the MEMS market and to follow the Top 30 MEMS manufacturers to deliver the most accurate information available, specifically in these times of big changes.
Detailed analysis will be available soon in the next MEMSEntry issue, including the “Annual growth rate 2008/2007” sheet and 2008-2012 market data on the MEMS market.

Yole Développement analysis will be available soon in the report, Status of the MEMS Industry 2009. For more information, please contact David Jourdan at jourdan@yole.fr.