China promoting development of MEMS industry
Tuesday, September 16, 2014
Posted by: MEMS Industry Group
Josephine Lien, Shanghai; Steve Shen, DIGITIMES [Tuesday 16 September 2014]
In view of strong demand for MEMS components from China-based smartphone vendors, the China government has been promoting the development of the local MEMS industry by teaming up its wafer foundry houses, IC design companies and semiconductor equipment suppliers with needed financing, according to industry sources.
Apple and Samsung Electronics are currently the top-two major buyers for MEMS components, with Bosch, STMicroelectronics, Texas Instruments (TI) and Hewlett-Packard (HP) serving as major MEMS component suppliers, the sources noted.
However, the rise of China-based smartphone vendors, including Lenovo, Huawei, ZTE, Xiaomi Technology and Oppo, will make China the third largest handset manufacturer globally, driving up its demand for MEMS components, the sources added.
In addition to the establishment of a CNY120 billion (US$19.51 billion) national fund to finance the development of its semiconductor industry, the government-sponsored Shanghai Industrial Technology Research Institute (SITRI) has begun building a 8-inch wafer fab for trial production of MEMS parts.
SITRI is planning to set up an IoT (Internet of Things) industry park in Shanghai, aiming to accommodate upstream and downstream semiconductor firms to facilitate the development of the local semiconductor industry.
SITRI also runs an investment fund of its own and has so far committed investments in Leadcore Technology, QST Corporation, Xinhe Technology, EnPow Microelectronics, Iotelligent and Ciyu Information Technologies.
SITRI and the MEMS Industry Group (MIG) also joined hands to sponsor a MIG Conference to discuss IoT and related MEMS technologies in Shanghai from September 11-12.
Steve Whalley, chief strategy officer of MIG, believes that the use of MEMS chips will continue to enjoy fast growth in consumer products and electronic medicare applications.
While smartphone applications currently account for the highest portion of MEMS chip demand in the consumer product segment, wearable, telematics and IoT devices are also potential areas for MEMS applications, Whalley said on the sidelines of the conference.
China's MEMS production currently accounts for 2% global OEM MEMS production, with main players including IC-design houses QST Corporation and MEMSIC, as well as foundry houses Semiconductor Manufacturing International Corporation (SMIC) and Huahong Grace Semiconductor Manufacturing.