New opportunities and emerging applications continue to boost the MEMS microphone market with strong new players MEMS MICROPHONE MARKET GROWTH WILL CONTINUE TO SOAR OVER THE NEXT SEVERAL YEARS MEMS microphone market has been growing since its first appearance. The huge worldwide adoption of smartphones, each using more than one MEMS microphone, creates the wide integration and rocketing growth of the MEMS microphone market. Some smartphones are now using three microphones: one for voice capture, one or two for noise cancellation and one for voice recognition improvement. The Internet of Things (IoT) and wearable electronics applications are emerging markets for MEMS microphones: new opportunities will create new momentum in this fast growing business. Smart watch, smart glasses, smart home & building, and vehicle voice control will be promising applications in the next few years. Yole Développement believes that the MEMS microphone will remain one of the fastest growing MEMS components due to existing and new opportunities. The market will grow from $785M in 2013 to $1.65B by 2019. Shipments are expected to grow from 2.4B in 2013 to 6.6B units in 2019 which points to a market filled with opportunities for existing and new players. In this report, Yole Développement has completely re-examined and updated the MEMS microphone market data to provide you with a clear 2013 to 2019 market forecast. Medical and automotive MEMS microphone markets will grow, but the current markets are still small. The Internet of Things will definitely result in new opportunities for the automotive market. MEMS microphones facilitate man-machine communication and enable voice detection and control to make devices more effective. Increased device effectiveness will lead to greater opportunity. In this report, we will provide a complete overview of traditional applications – mobile phone, notebook, camera and tablet, other consumer electronics, medical applications, and automotive applications – as well as identify emerging applications. KNOWLES IS STILL ALIVE AND KICKING, BUT COMPETITION IS INCREASING! The MEMS microphone market is huge and has many opportunities. Big players compete with different approaches and new comers keep entering the market. The market is changing: Knowles’ domination is weakening; it has about 61% of the market now down from the 83% it had in 2010. However, total market expansion has increased Knowles’ MEMS microphone revenue from $173.5M in 2010 to $477M in 2013. Even though Knowles is still the market leader, other players are competing to take its market share. However compared to 2012, Knowles managed to regain some market share in 2013: iPhone 5S and 5C are using two microphones from Knowles and one from AAC Technologies (AAC). Other players still have a long way to go if they want to take market share from Knowles...

1. © 2014
MEMS Microphone 2014
Multi-mic smartphones, tablets and emerging consumer applications
keep making the market booming: reaching $1.65B by 2019…
Apple
Samsung
Wolfson Audio Hub
Knowles mic – System
Plus Consulting
AAC mic - System Plus
Consulting
Bosch Akustica
REPORT SAMPLE

2. © 2014• 2
Yole Developpement SA – Copyright 2014 - All right reserved. MEMS microphone report
About the Author
Wenbin Ding
– Wenbin is responsible for MEMS market research at Yole Développement. She
previously worked at research enter CEA, Grenoble France. She holds a
Microelectronics Engineering degree from the National Engineering School in
Caen, plus a Master of Business Administration from IAE Caen, France.
– Contact: ding@yole.fr
Frédéric Breussin
– Frédéric Breussin is responsible for the MEMS and Sensors activity. He has
supported many companies in their innovation and product development strategy
in making the bridge between micro systems technologies and their applications in
consumer, automotive, industrial, Life sciences, diagnostics and medical device
industries. He holds an Engineering diploma from INSA Rouen & a DEA in fluid
mechanics from University of Rouen.
– Contact: breussin@yole.fr

3. © 2014• 3
Yole Developpement SA – Copyright 2014 - All right reserved. MEMS microphone report
Report Objectives
• This report covers:
– MEMS microphones
– All types of applications:
• Mobile phones
• Tablets
• Other consumer applications: Notebook, camera, camcorder…
• Medical
• Automotive and others
• The report objectives are:
– To provide an update of the global MEMS microphone market – key market metrics & dynamics
• 2013-2019 unit shipments and revenue by level of integration (3/6/9-axis)
• Average selling price analysis and expected evolution
• Market share for each level of integration
– To describe main applications, focusing on key existing markets, and those that are emerging and showing the most promise
• Functionalities provided, status in 2013, key players as well as global system trends
• Emerging applications drivers, detection of new functionalities
– To provide in-depth teardowns of current microphones used in main smart phones
• Technology trends, packaging evolution
• Teardown and reverse costing/engineering
– To provide an in-depth analysis of the competitive landscape of the industry
• Main players and their market share for each application
• Recent M&A, new comers and disappearance
• Emerging Chinese players

4. © 2014• 4
Yole Developpement SA – Copyright 2014 - All right reserved. MEMS microphone report
What’s new since 2011 for MEMS microphone business
What We Saw? What We Missed?
• Yole Développement has followed the consumer MEMS microphone market for many years and publishes reports
on this topic regularly.
• Compared to the analysis performed in 2011:
– We saw:
• Huge adoption of MEMS microphones in all consumer applications, especially for smart phone and tablets
• Rocketing growth of global MEMS microphone for consumer market
• Aggressive price decrease because of high level competition
• Medical, automotive and other markets are still in their infancy: not the focus of most players
• Trends of integrating several microphones in one device to improve the performance
• Big effort of manufacturers to make microphones smaller and more robust
• Packaging patent disputes between main players (Knowles, AAC Technologies, Analog Devices…)
• Dominant market place of Knowles with numerous emerging players all over the world
• New business model, successful case of Infineon: supply of MEMS and ASIC dies to conventional microphone
players
• Arise of traditional ECM players in Asia
– We missed:
• Knowles lost its market share faster than expected
• Audio hub to integrate several microphones in one device
• Prices for high volumes decreased more sharply than expected
• A larger amount of Chinese players appearing than expected because of the huge growth of Chinese smart phone
market

5. © 2014• 5
Yole Developpement SA – Copyright 2014 - All right reserved. MEMS microphone report
Total Market Forecast 2013-2019 in $M
• Because of the price decrease, the market in value is growing more slowly than in volume. We believe it will
grow from $785M to $1.65B by 2019.
– CAGR: 13%
2013 2014 2015 2016 2017 2018 2019
Total market ($M) 785,0 929,0 1050,2 1173,7 1317,6 1482,8 1651,4
0
200
400
600
800
1000
1200
1400
1600
1800
$M
MEMS Microphone Market in $M
2013-2019
Yole développement © February 2014

6. © 2014• 6
Yole Developpement SA – Copyright 2014 - All right reserved. MEMS microphone report
MEMS
Microphones
Earphone
handsets
Cellphones /
Smartphones
Laptop /
Notebook
Consumer
electronics
Medical
Automotive
MEMS Silicon Microphones
Microphone definition
Applications Overview
IoT

7. © 2014• 7
Yole Developpement SA – Copyright 2014 - All right reserved. MEMS microphone report
Multi-Microphone Trend in Smartphones
• Example: Evolution of iPhones
– IPhone 5 uses 3 MEMS microphones from Knowles, AAC Technologies and Analog Devices
• The primary microphone is used at the bottom of the phone to capture voice
• The second one is located on the back and used to cut out ambient noise and improve sound quality
• The third one (from ADI) is located beside the front camera in order to improve Siri’s (voice control) performance.
• Chipset from Audience for CAN
– Iphone 5S uses also 3 MEMS microphones from Knowles and AAC Technologies
• Multi-microphone trend brings out fiercer competition!
– When using 2 or more MEMS microphones in the cell phone, players prefer to buy them from different companies: it is always
better to have a second source or a third source
• Players are trying their best to reduce cost and improve performance to be differentiated from others
– At the chipset level (Audience, Wolfson…), competition could also increase
iPhone 4S:
2 mics from AAC and
Knowles
iPhone 5:
3 mics from AAC
Knowles and ADI
iPhone 5S:
3 mics from AAC
Knowles

8. © 2014• 8
Yole Developpement SA – Copyright 2014 - All right reserved. MEMS microphone report
Knowles is Still Leader but Competition Intensifies

9. © 2014• 9
Yole Developpement SA – Copyright 2014 - All right reserved. MEMS microphone report
$785M
61%
13%
8%
7%
5%
2%
1%
1%
1%
1%
Global MEMS Microphone Market Share in Value ($M)
2013
Knowles
A
B
C
D
E
F
G
…
…
…
…
…
Yole développement © February 2014
Global market share in 2013Global market share in 2013

10. © 2014• 10
Available MEMS Reports
MEMS Cosim+
MEMS Manufacturing
Cost Simulation Tool
Ferro-Electric
Thin Films
Inertial MEMS
Manufacturing
Trends 2014
Thin Wafer
Handling
Technology Trends
for Inertials MEMS
RF Filters, PAs,
Antenna Switches &
Tunability for Cellular
Handsets
Trends in MEMS
Manufacturing &
Packaging
Ferro-Electric
Thin Films
Motion Sensors for
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applications
Uncooled Infrared
Imaging Techology &
Market Trends
IMU & Gyro for
Defense, Aerospace
& Industrial
Status of the
CMOS Image
Sensors
New!New!
Sensor fusion of
acceleros, gyros &
magnetometers
Infrared Detectors
Technology &
Market Trends
New!
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MEMS Front-End
Manufacturing
Trends
MEMS for Cell
Phones and Tablets
MEMS Pressure
Sensor
Status of the
MEMS Industry
New!
New!
Emerging MEMS
New!
New!

11. © 2014• 11
Yole activities in MEMS
www.yolefinance.com
YOLE FINANCE
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Technology brokerage
PARTNERS
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& Strategy/Patent Investigation/
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www.yole.fr
MEDIA
News portal/Technology magazines/
Webcasts/Communication services
REPORTS
Market & technology/Patent
Investigation/Reverse costing
Status of the
MEMS Industry

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Our Offices & Contact Information
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• Michael McLaughlin, Business Development Manager, Phone: (650) 931 2552 - Cell: (408) 839 7178 -
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• For custom research: Yutaka Katano, General Manager, Yole Japan & President, Yole K.K.
Phone: (81) 362 693 457 - Cell : (81) 80 3440 6466 - Fax: (81) 362 693 448 - Email: katano@yole.fr
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• Yves Devigne, Europe Business Development Manager, Cell : +33 6 75 80 08 25 - Email :
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• Yole Développement Headquarter, France: David Jourdan, Sales Coordination & Customer
Service, Tel: +33 472 83 01 90, Email: jourdan@yole.fr
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• Hailey Yang, Business Development Manager, Phone : (82) 2 2010 883 - Cell: (82) 10 4097 5810
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