Apple determines MEMS microphone market
The top four MEMS microphone suppliers were all suppliers to Apple, reports IHS
No. 1 was Knowles Electronics, No.2 AAC of China, No.3 ADI and No.4 Goertek of China.
These top 4 players last year had combined revenue of $513m, equivalent to 88% of total MEMS microphone industry revenue of $583m.
Top 12 MEMS microphone suppliers.
“Multiple microphones now are being adopted in smartphones to cancel ambient sounds—crucial for handsets when carrying out voice command systems, such as Apple’s Siri,” says Jérémie Bouchaud at IHS.
While midrange to high-end smartphones mostly used two microphones in 2010 and 2011, three microphones are fast becoming standard ever since Apple introduced a third device on the back of the iPhone 5 for high-definition video recording.
Noise suppression and voice commands also are seeing increased adoption in tablets and Ultrabooks, resulting in the use of multiple microphones as ultrasonic transducers for hand-gesture commands.
Aside from handsets, MEMS microphones are used in headsets, gaming, cameras, televisions and hearing aids.
Knowles dominates the MEMS microphone sphere, outflanking all other suppliers with revenue last year of $291m – practically half of the industry total.
But while it has the most comprehensive product portfolio and ships to virtually every original equipment manufacturer, Knowles has seen its MEMS microphone market share tumble by 16 percentage points from 2011 to 2012 because of erosion in its business with Apple.
Knowles is still the first supplier for the iPad mini, but has slipped to second place behind AAC in providing MEMS microphones for the iPhone.
Knowles, however, has exerted efforts to remain competitive, reducing the size of its MEMS die and most likely migrating soon to larger wafer sizes from 6 to 8 inches as it engages with new foundry partners.
No. 2 and No. 4 AAC and Goertek share similar profiles, both being Chinese electret condenser microphone (ECM) suppliers that now rely almost exclusively on MEMS die technology from Infineon.
AAC is the top source for the iPhone and iPad 3 with revenue last year of $98m, while Goertek is No. 1 for iPhone headsets with $46m in revenue. Apple was the biggest client in both cases, supplying more than 40% of MEMS microphone revenue in 2012 for each company.
Third-ranked ADI had revenues of $78m, thanks to its role as lone supplier of the third microphone for the iPhone 5 and the iPad. The company focuses on high-performance parts and sells at significantly higher prices than other suppliers.
Infineon has hit upon a successful formula for operating in the market. The German manufacturer focuses only on silicon, developing and then selling MEMS microphone dies as well as application-specific integrated circuits to traditional ECM companies, which then package the chips into MEMS microphones that are sold afterward under their individual brands. Infineon’s customers include AAC and Goertek, as well as two other Top 12 MEMS microphone suppliers—sixth-ranked Hosiden of Japan; and No. 7 BSE of South Korea.
Rounding out the Top 5 and becoming a serious challenger last year to the incumbents was ST which sold 60m MEMS microphone units in 2012, up from zero in 2010.
Unlike AAC and Goertek that buy their MEMS dies from Infineon, STM sources from Omron Electronics in Japan and also relies on its own application-specific integrated circuit, producing innovatively assembled MEMS microphones that enable a high signal-to-noise ratio.
Nokia is STM’s top customer, but STM also supplies product to HTC, Amazon’s Kindle tablet as well as laptops from HP, Dell, Lenovo and Asus.
The other ranking suppliers in the Top 12 provided MEMS microphones for a range of other electronic devices made by companies besides Apple. Hosiden supplied to Nintendo handheld game players and Sony handsets; BSE provided for Samsung and LG smartphones; Germany’s Bosch played mostly in the laptop segment for HP and Dell; and Scotland-based Wolfson Microelectronics broke through at the end of last year by supplying to the Microsoft Surface tablet.
The newcomers to watch included a clutch of Chinese companies. Among them were startups NeoMEMS and MEMSensing, as well as ECM manufacturers Gettop, XingGang and Kingstate. Other new entrants of note besides the Chinese included TDK-EPC from Germany, Solid State Systems from Taiwan, and Tokyo-based New Japan Radio.
Panasonic of Japan shipped MEMS microphones in 2007 for a limited time like fellow Japanese maker Yamaha, but then exited the market due to high costs. While the company had planned to return in 2011 with new product offerings, IHS believes that Panasonic has given up altogether on the MEMS microphone market.
See also: Top 20 MEMS foundries
Tags: apple 2c, knowles electronics, microphone, microphones