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MEMS microphone shipments to top one billion in 2013, says iSuppli

Despite a slowdown in 2009, global shipments of micro-electromechanical system (MEMS) microphones are set to more than triple from 2008 to 2013 thanks to their strong acceptance in handsets and other applications, according to iSuppli.

Worldwide MEMS microphone shipments are set to reach 1.1 billion units in 2013, up from 328.5 million in 2008. This strong growth will come despite a deceleration in shipment growth and a revenue decline in 2009, the first such contraction in the history of the market, iSuppli said.

"MEMS microphones are truly one of the success stories in the MEMS market," said Jeremie Bouchaud, director and principal analyst, MEMS, for iSuppli. "They are becoming less expensive as the volume increases. Silicon microphones also outperform conventional microphones in terms of size, scalability, and sound quality. The simplification of applications like noise cancellation and beam forming for directional microphones using MEMS will further boost their acceptance."

Demand for digital technology microphones also will boost sales of MEMS devices for notebooks and increasingly for mobile phones, iSuppli noted.

Despite the rosy outlook for MEMS microphones, the year 2009 will be a poor one for the market. "After five consecutive years of double-digit growth, global MEMS microphone shipments will rise by only 7.5% in 2009," Bouchaud said. "With the weak rise in unit shipments and decline in pricing, global revenues will drop to US$132.4 million in 2009, down 2.4% from US$135.7 million in 2008."

Bouchaud attributed the market's 2009 sales woes to one company. "Motorola was the first company to widely adopt MEMS microphones, making extensive use of them in its best-selling ultra-thin RAZR handsets," Bouchaud indicated. "The company accounted for about 30% of global shipments of MEMS microphones for mobile handsets in 2008. However, it has suffered a major downturn, having fallen to the world's No.4 position in the global handset market in 2008, down from No.2 in 2006. Motorola is continuing to lose handset share in 2009."

Beyond Motorola, another factor impacting the MEMS microphone market in 2009 is the weakness in the worldwide handset market, according to iSuppli. Global mobile phone shipments are set to decline significantly in 2009. Furthermore, MEMS microphones continue to face competition from older electret condenser microphones. "Electret condenser devices are still significantly cheaper than MEMS and are now available as surface mount devices (SMDs), and thus will remain in the market for many years," Bouchaud added.

Because of the strong promise of MEMS microphones, new suppliers are entering the market and changing the competitive landscape, iSuppli observed. Two large companies - Epcos and Bosch - bought entry tickets into the market during the last six months by engaging in acquisitions.

While Knowles still largely dominates the market with more than 80% of units, two companies are emerging as volume manufacturers next to Knowles: Infineon and MemsTech. Overall, nine companies now are shipping MEMS microphones to customers, according to iSuppli. This is good news for a market that has been suffering from a lack of second sources for volume production.

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