MEMS Revenue Slows in 2005 Despite Strong Shipment Growth

SCOTTSDALE, Ariz., April 17, 2006 – Revenue growth for sales of MEMS (MicroElectroMechanical Systems) devices worldwide slowed dramatically in 2005, despite the fact that unit shipments were very strong, reports In-Stat (http://www.in-stat.com). Nearly 1.8 billion MEMS devices were shipped in 2005, generating revenues of just under $7 billion, the high-tech market research firm says.

In-Stat found that inventory backlogs, weakness in key markets, and lower average selling prices all clearly had an effect. Despite projected unit shipment growth exceeding 11% over the next five years, revenues are forecast to increase at a compound annual growth rate of just 6.8% through 2010 due to continued price reductions, as well as the introduction of new MEMS devices with commodity-like pricing.

Recent research by In-Stat found the following:

- The Top 20 suppliers of MEMS devices maintained their dominance of the industry, accounting for more than 86% of total revenues in 2005.
- The Automotive and Computing segments, long mainstays of the MEMS industry in terms of both unit shipments and revenues, are projected to be displaced by the Communications and Industrial markets within the next five years.
- With optical networking finally emerging as a growth segment, as well as the rapid integration of RF MEMS and microphones in cell phones, the Communications market will be a key driver of overall growth.

The research, “An Industry in Transition: 2006 MEMS Forecast” (#IN0603149ESCA), covers the global market for MEMS (MicroElectroMechanical Systems). It provides a snapshot of the state of the MEMS industry and looks at a variety of trends and issues that will impact its future growth. The research contains more than 50 tables and charts quantifying the growth of MEMS, including worldwide forecasts by major MEMS device category, device type and key markets through 2010. It also includes lists of the Top 20 suppliers in 2005 by both unit shipments and revenues.

For more information on this research, please visit: http://email.in-stat.com/cgi-bin4/DM/y/evmQ0HsuUV0K560Dlty0ET or contact Erin McKeighan at 480-609-4551 or emckeighan@reedbusiness.com. The price is $3,495 (US).

This research is part of In-Stat’s Emerging Semiconductor Chips and Applications service which focuses on the new or changing critical semiconductor applications and technologies that could change the dynamics of the semiconductor industry and drive future demand. Specifically, this service provides reports covering the hot applications, emerging semiconductor chips, and selected high growth areas. The editorial calendar for this service changes throughout the year according to changes in the market, new technologies, and customer requested topics.

About In-Stat

In-Stat (www.in-stat.com) is the leading provider of actionable research, market analysis and forecasts of advanced communications services, infrastructure, end-user devices and semiconductors. Our insights are derived from both a deep technology understanding and comprehensive research, which examines each segment of the value chain for each market. Technology vendors, service providers, technology professionals and market specialists, worldwide, rely on In-Stat’s tenured, experiaqenced staff and in-depth research to support critical business, product and technology decisions.

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