mems foundry Market

The MEMS foundry market is projected to reach US$ 1,332.55 million by 2028, with an estimated CAGR of 9.7% from 2022 to 2028.

Micro-electro-mechanical systems (MEMS) technology refers to the production of miniature mechanical and electro-mechanical elements using microfabrication techniques. MEMS sensors include various types such as accelerometers, inertial measurement units, magnetometers, pressure sensors, oscillators, thermopiles, and gyroscopes, which are used in applications like equipment control and handling, robotics, navigation systems, pressure measurement, airbags in cars, and car grippers. MEMS sensors can either be developed in-house or outsourced to foundries for manufacturing. MEMS foundries provide advanced process development, prototyping, and manufacturing services, and offer substrate material flexibility, including silicon-on-insulator (SOI), gallium arsenide (GaAs), glass, silicon, quartz, and complementary metal-oxide-semiconductor (CMOS) wafers.

Most semiconductor companies cannot afford the high investment cost of over US$15 billion required to establish a foundry, making it impractical for them to manufacture MEMS sensors in-house. Consequently, an increasing number of fabless semiconductor firms like NVIDIA, Qualcomm, and Broadcom are outsourcing their entire production needs to foundries like United Microelectronics Corporation (UMC) and Taiwan Semiconductor Manufacturing Company (TSMC). To cater to the rising demand for MEMS sensors in consumer electronics, MEMS foundries in countries such as Germany, the UK, Taiwan, and the US are developing innovative MEMS solutions, which is projected to drive growth in the MEMS foundry market over the forecast period.

Impact of COVID-19 Pandemic on MEMS Foundry Market Growth

In response to the COVID-19 outbreak, governments worldwide imposed strict measures to curb the spread of the virus. These measures had a significant impact on semiconductor manufacturing and, subsequently, on MEMS foundries. The pandemic had a widespread impact on the economy, transportation, infrastructure, and electronics and semiconductor industries. The restrictions and supply chain disruptions caused significant revenue loss and production delays for MEMS foundries. This scenario continued until mid-2020, with many manufacturers experiencing delays in lead time. However, the situation improved in Q2 of 2020, with the easing of travel bans and containment norms leading to the resumption of semiconductor manufacturing. The increased adoption of remote working led to a surge in demand for electronic products, including semiconductors, which positively impacted the MEMS foundry market from Q3 of 2020 to 2021.

Taiwan is the leading market for MEMS foundries in the Asia-Pacific and Middle East & Africa regions, with Japan and China following close behind. Top MEMS foundries in Taiwan, such as Asia Pacific Microsystems, Taiwan Semiconductor Manufacturing Company, and UMC, are expanding their production capacity due to the increasing demand for MEMS solutions in applications such as consumer electronics and automotive. For instance, in March 2022, UMC announced the opening of a new manufacturing facility in Singapore, which will be the most advanced semiconductor foundry providing UMC's 22/28nm processes. This expansion of MEMS manufacturing capacity is expected to further fuel the growth of the MEMS foundry market in Taiwan. Meanwhile, China has experienced significant growth in microsystem and semiconductor manufacturing infrastructure, largely driven by the consumer electronics and automotive sectors. The growing export of microsystem and semiconductor-enabled products, such as tablets, smartphones, and drones, is also boosting the demand for MEMS solutions. In Japan, the demand for semiconductor and MEMS solutions is being driven by the growing demand for smartphones, laptops, tablets, and autonomous vehicles, which are prominent industries in the country. All these factors are expected to contribute to the growth of the MEMS foundry market.

Based on end user, the global MEMS foundry market is segmented into consumer electronics, automotive, industrial, healthcare, and others. The growing deployment of electronic components that includes various types of microelectromechanical systems across different industries is contributing to the MEMS foundry market growth across the world. The consumer electronics segment accounts for the largest share of the MEMS foundry market. This is mainly due to the rising penetration of different types of consumer electronic devices such as smartphones, tablets, computers, home appliances, electronic gadgets, smart wearables, etc.

The MEMS foundry market is serviced by several notable players, including Asia Pacific Microsystems, Inc., Atomica Corp., Koninklijke Philips N.V., ROHM Co., Ltd., Silex Microsystems AB, Sony Semiconductor Solutions Corporation, STMicroelectronics, N.V., Taiwan Semiconductor Manufacturing Company, Limited, Teledyne Dalsa, and X-FAB Silicon Foundries SE.

To arrive at the market's overall size and growth potential, a combination of primary and secondary research methods were employed. The initial phase of research involved extensive secondary research, incorporating data from various internal and external sources to gather qualitative and quantitative information pertinent to the market. This process aided in gaining a comprehensive overview and forecast of the MEMS foundry market across all market segments. Additionally, industry experts and commentators were consulted through multiple primary interviews to validate the data and gain further analytical insights. These participants included key opinion leaders, research analysts, valuation experts, VPs, business development managers, and national sales managers with expertise in the MEMS foundry market.