Hearing, Touching, Smelling, Seeing... What will be the next improvement MEMS will bring to our senses? MEMS is a “transfer function” using semiconductor micro-machining based technologies to create devices replacing more complex, bulky or less sensitive devices. •The 5 criteria that determine a MEMS success: size reduction, potential cost reduction, “good enough” specifications, simpler manufacturing compared to existing solutions (less mechanical parts for e.g.) & reliability. •Among all the different MEMS devices in development that could have a significant growth in the future, we foresee gas sensors as the next success for the MEMS industry. •In any case, at least 10 to 15 years of development are necessary to achieve all the successful criteria. Gas sensors are likely to have a marketrampup.

1. July © 2015
Hearing,Touching,
Smelling, Seeing...
What will be the next
improvement MEMS
will bring to our
senses?
Dr. Eric Mounier
Yole Développement

2. 2
CONTENT
• MEMS & Sensors markets & applications
• The MEMS ecosystem
• MEMS for our 5 senses
• MEMS & Sensors for wearables

3. 3
MEMS & SENSORS ROADMAP
From Moore to More than Moore to Beyond …
MEMS & Sensors
enable key
functionalities…
Current
battleground of the
industry
1980 2010 2020
Industry competition
Moore
Industry competition
More than Moore
Industry Competition
Beyond Moore
LaptopPersonal Computers
Smartphones
Autonomous
vehicles
Robotic
Servants
Quantified
self
Drones
Acceleration of time
Sensing
Interaction age
Processing
Information age
Actuating
Enhancement age
Tablets
Smart
homes
2040+
Telekinesis
From sensing to sensing + reacting for first robots (autonomous cars …)

4. 4
2015-2020 MEMS MARKETS
Consumer is still the main driver
Consumer
(incl.
wearable) is
more than
60%

5. 5
THE ACCELEROMETER EXAMPLE – HISTORICAL DATA OFVOLUME GROWTH:
FROM 50MUNITS TO 5BUNITS IN 15YEARS
Until 2008,
market was
driven by
automotive, then
consumer came
0
500
1000
1500
2000
2500
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Accelerometer volume market evolution (Munits) from 2002 to 2015
Accelerometer Accelerometer Automotive Accelerometer Consumer
Market driven by Automotive Market driven by Consumer
1st Phase
“Protected” market
3th Phase
“Integration”
Combos
replacement
2nd Phase
“New application”
(e.g. Smartphone)
Smartphone wave
Game changer: ASP
Autonomous car as
the next ramp-up?

6. 6
WHY SOME DEVICES ARE SUCCESSFUL, SOME OTHERS NOT
The 5 criteria for MEMS success
Gas sensors are
likely to have a
market ramp up.
• MEMS is a “transfer function” using semiconductor micro-machining based technologies to create devices
replacing more complex, bulky or less sensitive devices.
• The 5 criteria that determine a MEMS success: size reduction, potential cost reduction,“good enough”
specifications, simpler manufacturing compared to existing solutions (less mechanical parts for e.g.) & reliability.
2015 SITUATION SIZE REDUCTION COST REDUCTION
« GOOD ENOUGH »
SPECS
SIMPLER
MANUFACTURABILITY
RELIABILITY
Energy harvesters POSSIBLE POSSIBLE NO NO ?
Gas sensors YES POSSIBLE YES - (already a semiconductor techno) YES
MEMS-based
touchscreens NO NO NO NO ?
MEMS for Photonics
(Si optical benches) YES POSSIBLE YES YES YES
Microspeakers YES POSSIBLE NO NO ?
Auto Focus NO (added thickness) NO YES YES YES
RF MEMS YES POSSIBLE YES NO NO
• Among all the different MEMS devices in development that could have a significant growth in the future, we
foresee gas sensors as the next success for the MEMS industry.
• In any case, at least 10 to 15 years of development are necessary to achieve all the successful criteria.

7. 7
2014 HAS BEEN A GOODYEAR FOR THE MEMS INDUSTRY.
MEMS business size vs. 2014 / 2013 GAGR
Most of the
MEMS
players had
a positive
growth in
2014
+100%
$100M $1B$50M
+10%
-10%
2013/14 CAGR
2014 MEMS
Sales
+50%
$500M
0%

8. 8
UNCHALLENGED TOP 5 LEADERS
TOP 5
account for
$3.8B MEMS
sales!
• TOP 5 remains unchanged compared to 2013 but Bosch now accounts for one-third of the $3.8B MEMS
revenues shared by the top 5 MEMS companies (accounting for about one third of the total MEMS
business).
2013
$11B business
TOP 5 ~ $3.8B (1/3)
TOP Leader ~ $1.3B (1/3)

9. 9
DEVICESVS. SYSTEMS MAKERS & NUMBER OF MEMS DEVICES
The 3 « GreatWalls of MEMS » rule!
Entering the
MEMS
business and
being
successful is
a long &
complex
process!
SYSTEMMAKERSDEVICESMAKERS
1 MEMS product line 2 to 3 MEMS products line > 4 MEMS products line
MEMSrevenues The « Devices
to Systems »
barrier
The « from 1 to more MEMS product lines » barrier
The « MEMS business entry » barrier

10. 10
A BRIEF HISTORY OF WEARABLE ELECTRONICS
Wearable
devices are
not new, but
have become
smarter
Source: MaRS
Digital Single function
not connected
Multi-function
not connected
Multi-function
partially
connected
Always-on
smart
connected
Evolution of features
Evolution of technologies
Not new but smarter (and you look less dumb as well …)

11. 11
KEY ATTRIBUTES OF WEARABLE TECH PRODUCTS
Six key
attributes
that make a
big difference
Hands-
Free
Always-On
Environment
-Aware
Connected
Attention-
Getting
Ecosystem/
Development
Platform
Source: MIT, KPCB
Voice/Gesture
recognition Low Power consumption
Instant wake
Background working/sensing
Accelerometer
Gyroscope
IMU
Compass
Camera
Microphone
Environmental sensor
Wi-Fi
Cellular
Bluetooth
NFC
Less distracting with notifications
Short interaction
Invisible - useful data
3th party apps
API partners
Accessories

12. 12
CHALLENGES FOR THE WEARABLE MARKET
Wearables have specific technical requirements
• Some
requirements
are relevant
to sensors
Ultra Low Power
Low power consumption
Accuracy
Reliable data
Low noise
4
Requirements
Useful insights
Multiple parameters
Non-invasive sensing
Sensors’
Packaging
Small size, almost invisible
Reliable and low cost
No specific challenge ! No technological breakthrough

13. 13
INTEGRATE MORE AND MORE SENSORS…
• Reduced
size
• Added
sensors
• Added
features
Number of
sensors
System
Size
Smartphone
Portable
systems/Analyzer
EXAMPLE: Blood Pressure Monitor
2002
Wearable
EXAMPLE: Apple iPhone
2007
Wearable
EXAMPLE: Fitbit band
2007
EXAMPLE: Microsoft Hololens
2020
Wearable
EXAMPLE: Apple Watch
2015
1 5 8
Smartphone
EXAMPLE: Samsung S5
2014
EXAMPLE: MC10 Body
temperature
2013
100 cm3
60 cm3
15 cm3

14. 14
DRIVERS FOR WEARABLE AND MOBILE CARE APPLICATIONS
Two markets are
coming together,
and are already
mature enough to
perform well
Wearable
and Mobile
Care
Point of Care
Hospital Care
Everywhere Care
Smartphone &
Tablet revolution
TimeLevel of integration
Feature
Phones

15. 15
MIMICKING THE 5 SENSES…
MEMS devices
and other
sensors bring
increased
functionality…
Smell
Hearing Taste
Sight
Touch
microphones
Gas sensors
Force & touch sensors
Humidity sensors
microbolometersCMOS Image
sensor

16. 16
… TO MORE
…and are
aiming for
greater
external
interaction…
Smell
Hearing Taste
Sight & focus
Touch
microphones
microbolometers
micromirrors
Pressure
Gas sensors
Pressure sensorsFluids
Biochips
Force & touch sensors
Humidity sensors
Balance
Inertial systems
RF communication
Oscillators, tuners & filters
Speech
Microspeakers
CMOS Image
sensor
Micropumps
Autofocus

17. 17
THE 5 SENSES FORECAST
Wellness is
becoming
predominant
$0
$200
$400
$600
$800
$1 000
$1 200
$1 400
$1 600
2015 2016 2017 2018 2019 2020
The « Augmented Perseption » MEMS & Sensors Forecast
IMPROVED WELLNESS
INCREASED FITNESS
Touching
Tasting
Smelling
Hearing
Sight

18. 18
THE 6TH SENSE: NIGHTVISION
Market forecast in shipments (units) – Optimistic scenario: what will happen if smartphones integrate microbolometer.
• CAGR 2015–
2020 will be
about + 77%
in units: ≈ 15
x growth
between
2015 - 2020.
• Ultra low-resolution
sensors shipments are
boosted by sensor
integration into
smartphones in 2019 and
will represent more than
80% of total shipments in
2020.
• We assumed that only
ultra low end
microbolometers could
be integrated into
smartphones thanks to
high resolution (80x60)
and small size that is
mandatory for
smartphone integration.
• Huge price erosion
assumed due to high
volumes forecasted : - 33
% for ultra low end
microbolometers.
CAGR 2015-2020
76.8%
21.8%
16.8%
42.9%
170.0%
34.8%

19. 19
NEW KEY PRODUCTS INTRODUCED SINCE ONEYEAR
• Smartphone
and ultra low
end segment
has been
very dynamic
in 2014-2015
Seek Thermal
FLIR One Gen 2
Bosch Power Tools NEC VGA 12 micron
FLIR C2
FLIR TCX
I3 system
For smartphones

20. 20
WEARABLES:A 285M UNIT PERYEAR MARKET BY 2020
Wrist-worn
devices will
represent
86% of the
wearable
market by
2020.
• We estimate that the
wearable sales hit 83M units
this year, with 88% of the
sales originating from wrist-
worn devices.
• These wrist-worn devices
will represent 86% of the
wearable market by 2020, a
volume of 244M units.
Other devices will add 40 M
units.
• We don’t expect high
volumes of smart clothing to
be sold until after 2017.

21. 21
WEARABLES FOR CONSUMER MARKET,A SUCCESSFUL MARKET
Healthcare and industry also, but with a slower rhythm
Wearable
industry for
consumer could
reach $88B by
2020
• Consumer market is clearly
one of the winners of
wearable industry, with a
value ranging from $1B in
2012 to $80B by 2020.
CAGR2015-2020=32%
• Healthcare market is
expected to grow from
$0.98B in 2012 to $7B in
2020. CAGR2015-2020=24%
• Regarding the industrial
market, its value will expand
from $0.4B in 2015
to $3.61B by 2020.
CAGR2015-2020=58%
• Consumer market will
experienced in 2015 a huge
increase due to the new
entrant Apple, with the Apple
Watch.
Logarithmicscale

22. 22
SENSORS MARKET FOR WEARABLE
• Successful
businesses in
wearables:
inertial,
pressure,
biosensor
and
microphone
market
• Sensors for wearables could reach a total number of 1.2Bunits by 2020.

23. 23
CONCLUSION
• Wearable
market
could be
worth
$88B by
2020!
Sensors Units
2.9B
Systems Units
600M
MarketValue
$128B
Sensors Units
1.2B
Systems Units
284M
MarketValue
$88B
Sensors Units
213M
Systems Units
83M
MarketValue
$23B
2015 2020 2024Year Year Year

24. 24