Mig Executive Congress 2009 Rev.B

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This presentation provides a brief description of the barriers to the commercialization of MEMS and focuses on the theme of MEMS-based system solutions. It provide new application and product opportunities for MEMS

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Mig Executive Congress 2009 Rev.B

  1. 1. MEMS Industry Group Executive Congress Marketing Panel Sonoma, California November 6, 2009 Roger H. Grace President, Roger Grace Associates [email_address] www.rgrace.com
  2. 2. ROGER GRACE ASSOCIATES <ul><li>Founded in 1982 </li></ul><ul><li>Offices in Naples Florida and San Francisco California </li></ul><ul><li>Over 25 years experience in the MEMS industry…an industry pioneer </li></ul><ul><li>International clientele of companies, laboratories and government s </li></ul><ul><li>Focus on </li></ul><ul><ul><li>Custom market research </li></ul></ul><ul><ul><li>Strategic marketing </li></ul></ul><ul><ul><li>Due diligence for M&A </li></ul></ul><ul><ul><li>Company and product positioning/branding/promotion </li></ul></ul><ul><ul><li>Business development </li></ul></ul><ul><ul><li>Distribution channel development </li></ul></ul><ul><li>For more information…www.rgrace.com </li></ul>
  3. 3. PRESENTATION OBJECTIVES <ul><li>Address barriers to MEMS commercialization vis-à-vis MEMS Report Card </li></ul><ul><ul><li>Focus on design for manufacturing/assembly/test </li></ul></ul><ul><li>Recommend strategies for success </li></ul><ul><ul><li>“ think outside the chip” </li></ul></ul><ul><li>Provide new business opportunity recommendations </li></ul><ul><li>Make prognostications for the next 12 months </li></ul>
  4. 5. DESIGN FOR MANUFACTURING/ASSEMBLY/TEST <ul><li>1998 Grade= C+, 2007 Grade= B, 2008 Grade=B+ </li></ul><ul><li>The way it was… </li></ul><ul><li>little to no concern for packaging and testing in initial design…purely an afterthought </li></ul><ul><li>small number of “killer apps”…about 8 </li></ul><ul><li>packaging and testing not considered a major product differentiator </li></ul><ul><li>packaging and testing 60-70% of cost of manufacture </li></ul><ul><li>The way it is… </li></ul><ul><li>packaging and test integral in the design of virtually all high volume applications </li></ul><ul><li>new and innovative e.g. wafer scale technology/TSV being adopted by high as well as lower volume applications </li></ul><ul><li>packaging and testing now being considered as differentiators </li></ul><ul><li>migration from 6 inch to 8 inch fabs </li></ul><ul><li>new approaches changing the paradigm of cost structure e.g. Invensense gyros, Freescale chip- stacking accelerometer, SiTime stacking ASIC/resonators, Ziptronix stacking chips in general </li></ul><ul><li>Availability of infrastructure for test…e.g. SPEA,Acutronic </li></ul>
  5. 6. “ THINK OUTSIDE THE CHIP” <ul><li>Most MEMS designs are device centric and do not consider the various other “solution” components </li></ul><ul><ul><li>Signal conditioning…amplification, A/D, temp.comp.,linearization </li></ul></ul><ul><ul><li>Energy management…harvesting, storage </li></ul></ul><ul><ul><li>Networking…wireless or wired </li></ul></ul><ul><ul><li>Packaging and interconnects/Testing </li></ul></ul><ul><li>The majority of the cost of a MEMS solution is the packaging and test…approximately 60-75% of the total cost based on the specific design </li></ul><ul><li>Design considerations for manufacturing/assembly and testing needs to happen on “ day one” of the design process </li></ul><ul><li>The need to consider the “systems solutions” approach will result in </li></ul><ul><ul><li>Lower cost/higher margin </li></ul></ul><ul><ul><li>Faster time to market </li></ul></ul><ul><ul><li>Optimum design for reliability and large scale production </li></ul></ul><ul><ul><li>Greater opportunity for product differentiation/minimizes commoditization </li></ul></ul><ul><ul><li>Reference: Small Times Nov. 2008, Sensors March&April 2008,Euro Asia Semiconductor April 2008, MST News Dec. 2009 (available on my website) </li></ul></ul>
  6. 7. EMERGING OPPORTUNITIES* “TAKE ME OUT TO THE BALL GAME” <ul><li>*Vis-à-vis ability to be funded perspective </li></ul><ul><li>market size/growth </li></ul><ul><li>competitive landscape/ </li></ul><ul><li>defensibility of IP </li></ul><ul><li>Not exhaustive list </li></ul><ul><li>Single…MEMS-based system solutions </li></ul><ul><li>Double…Magnetic MEMS </li></ul><ul><li>Triple…Point of care bio, Energy harvesting/storage </li></ul><ul><li>Home Run…Integrated IMU…startups/traditional players </li></ul><ul><li>Strikeout…Accelerometers, Gyros, Microphones </li></ul><ul><li>The jury is still out on </li></ul><ul><ul><li>Oscillators </li></ul></ul><ul><ul><li>Pico projectors/displays </li></ul></ul>
  7. 8. PROGNOSTICATIONS (next 12 months) <ul><li>Venture capital will continue to be elusive </li></ul><ul><ul><li>Limited number of new startups </li></ul></ul><ul><ul><li>Possible failure to fund advanced rounds </li></ul></ul><ul><ul><li>Industrial funding partners </li></ul></ul><ul><li>Increased M&A activity e.g. Kionix, Akustica, LV Sensors, Sunion,Miradia </li></ul><ul><li>MEMS market will begin emergence from slowdown in late Q-2 2010 </li></ul><ul><li>Market to grow at 3-5% over 2009 (sales) </li></ul><ul><li>Entry of additional Asian 8- inch foundries e.g. Sony, Macronix, Maxchip </li></ul><ul><li>Participation of traditional semi players in the market </li></ul><ul><li>Wafer scale packaging/chip stacking and TSV on rise </li></ul><ul><li>Higher value added/systems solution approach adoption </li></ul><ul><ul><li>Establish product differentiation/competitive advantage </li></ul></ul><ul><ul><li>Minimize commoditization </li></ul></ul>
  8. 9. SUMMARY/RECOMMENDATIONS <ul><li>The overall grade downgraded from “B-” in 2007 to “C+” in 2008 with changes amongst the individual grades…marketing, creation of wealth and VC attraction continue in the “C’s” with established infrastructure and R&D continuing in the “A’s”/ high” B’s” </li></ul><ul><li>MEMS still has a long way to go to meet the challenges of commercialization especially in the marketing, management and capital formation areas </li></ul><ul><li>Numerous “lessons learned” to date from the semiconductor industry </li></ul><ul><li>Companies need to think “”outside the chip” and be more responsive to customer needs…provide “solutions” with well defined product differentiation based on thorough market research approaches </li></ul><ul><li>Companies need to better support marketing and promotional activities </li></ul><ul><li>Commoditization of MEMS vis-à-vis auto and consumer applications has “raised the bar” for the adoption of design for manufacturing and test concepts in order to survive in the constantly increasing cost pressure environment </li></ul><ul><li>Even in a market downturn many opportunities exist …CARPE DIEM </li></ul><ul><li>Stay the course…things will get better…the only question is when and to what degree/rate </li></ul>
  9. 10. . <ul><li>THANK YOU/ DANKE/MERCI/HSIEH HSIEH/SHOKRUN/GRAZIE </li></ul>
  10. 11. FOR MORE INFORMATION <ul><li>Copies of the presentation will be available on www.rgrace.com/MIGEXEC2009.html in approximately one week. </li></ul><ul><li>Any questions…please contact me at rgrace@rgrace.com </li></ul>

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