What 's the reason for that?
Because the price of MEMS sensor components is likely to be eroded rapidly and largest part of the value is perceived to be in the services that can be based on the data acquired by those sensors.
"Yes the value is the data rather than the hardware," said Abdi. "We do plan to bring end-to-end solutions to market in multiple vertical markets," he told delegates at the European MEMS Summit, an event that was organized by SEMI on September 17 and 18 in Milan, Italy. "It requires a lot of investment but we have to take this chance and try. Otherwise it's a race to the bottom."
IoT revenue in billions of dollars by point in value chain. Source: GSA, McKinsey, IHS, InvenSense.
Abdi portrayed the issue as "the good, the bad and the ugly" of MEMS. The good is that there are plenty of predictions of strong compound annual growth rates (CAGRs) for unit shipments. In 2016 this could produce 16 billion shipments of MEMS units with an average selling price of $1, Abdi said.
Next: the bad and the ugly