EMERGING SEMICONDUCTOR APPLICATIONS

MEMS Industry Matures, Big Changes Lay Ahead

SCOTTSDALE, Ariz., April 25, 2001 - Having plugged away for the last decade, MEMS (microelectromechanical systems) technology is about to shrug off the flash-in-the-pan mantle some have bestowed upon it, and emerge as a bona fide industry, according to Cahners In-Stat Group (www.instat.com). As the technology enters its second decade of commercialization, the industry is taking on an entirely new look with significant levels of venture capital funding, the emergence of brand new markets, and even increased collaboration amongst companies.

"It's been a long time coming, and the effort is about to pay off," says Marlene Bourne, Senior Analyst for the high-tech market research firm's Emerging Semiconductor Applications Service. Over the next 18 months or so, an incredibly diverse array of products will move into volume production, and the impact is expected to be far-reaching as current MEMS markets expand and new ones emerge. "As a result, this industry will look very different in five years' time," says Bourne. In-Stat expects a fundamental change in device complexity and cost to help worldwide MEMS revenues nearly quadruple by 2005.

In-Stat has also found that:

• Sensors, which generated the bulk of sales in 2000, will take a back seat to actuators in 2005, dramatically changing the top ten applications.
• The telecommunications market will account for nearly a third of total MEMS consumption by 2005, up from less than 1% in 2000.
• Currently, the MEMS market is largely comprised of sensors with an ASP of $5-$20. In-Stat expects some to go well below $1 in the next year or two.

The report, "The Little Chips That Could: A MEMS Industry Overview and Forecast", (#EA0102MF) provides an overview of MEMS and offers the who, what, why, when, where, and how of this evolving industry. Forecasts of sensors, actuators, major markets, and key applications are provided through 2005. To purchase this report, or for more information please contact Erin McKeighan at 480.609.4551; emckeighan@instat.com. The report price is $2,995 USD.

Cahners In-Stat Group (http://www.instat.com) covers the full spectrum of digital communications research from vendor to end-user, providing the analysis and perspective that allows technology vendors and service providers worldwide to make more informed business decisions.

For more information, contact:

Marlene Bourne, Senior Analyst - Emerging Semiconductor Applications
Phone: (480) 609-4541
Email: mbourne@instat.com

Kirsten Skedd, Marketing Manager
Phone: 480.609.4534
Email: kskedd@instat.com