The cell phone industry is currently seen as the biggest growth relay for MEMS devices in the coming years. Few MEMS based sensors and actuators have found the right business model to penetrate the wireless handset market today and over 10 other devices are investigating the opportunity. For example silicon microphones and FBAR/BAW filters have experienced an incredible growth since their introduction in 2003 and are now entering the maturity stage. While MEMS accelerometers are expected to follow the same evolution, few other MEMS products (micro autofocus, micro zoom, gyroscopes, varicaps, …) are at the emerging stage.

Knowles Acoustics booming growth since the first introduction of MEMS microphones in 2003 and the very fast adoption of Avago Technologies FBAR duplexer technology in WCDMA front en modules are representative success stories of the replacement of functions with MEMS based products. In each of the new potential applications, Yole has analyzed how the leading MEMS companies (Siimpel for micro autofocus, EPCOS and Wispry for Varicaps, STM, ADI, Bosch, Kionix and InvenSense for inertial clusters…) are positioned to benefit from the dynamic of the cell phone industry.

The cell phone industry complexity increase with MEMS products. On one hand, MEMS manufacturers are very focused in finding the adapted price, power and size ratio to enter the cell phone application. But they face the challenge of evaluating the diffusion rate of their MEMS product in their business plans. One the other hand, wireless handset manufacturers experience very different product development cycle in MEMS than the IC industry. They are therefore very concerned to find the right MEMS partners and have access to a precise product roadmap.

Yole Developpement forecast a 40% AAGR growth rate for MEMS components in the cell phone market. 2007 cumulated sales have reach 440M$ in 2007 for only three MEMS products in cell phone applications (silicon microphones, FBRA/BAW filters, accelerometers). The market opportunity will represent over 2,5B$ by 2012.

The growth is coming both from replacement products and new functions. MEMS is expected to be a key innovation driver in the cell phone industry. New features are expected to account for 60% of the total MEMS market by 2012.

Additionally the report focus on the diffusion rate of MEMS in cell phone applications and how companies have reached the 100M$ sales level (e.g. Knowles Acoustics and Avago Technologies, …).