MEPTEC. Ecosystem for MCU, Sensors and MEMS for IoT Tony Massimini Chief of Technology Semico Research Corp. May 20, 2015

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1 MEPTEC Ecosystem for MCU, Sensors and MEMS for IoT Tony Massimini Chief of Technology Semico Research Corp. May 20, 2015

2 Outline Impact of Sensors Basic Building Blocks for IoT Sensors and IoT Sensor Fusion MEMS and Sensors Market Trends Sensor Hub and MEMS Ecosystem IoT Issues Summary 2

3 IPI report About Semico Research Premier Semiconductor Market Research & Consulting Company IPI Model accurately predicts semiconductor revenue inflection points four quarters in advance Map Model: Comprehensive, online, end market database Research Portfolios Semiconductor Manufacturing: Wafer Demand, Fab Database Semiconductor IP and Design ASICs/SoC s MEMS Analog Custom Consulting» Data» Analysis 3» Knowledge

4 Impact of Sensors Connecting to the Real World More Data, More Functions, More Features New Market Opportunities 4

5 MEMS and Sensor Vendors Semico s MEMS and Sensor Database MEMS vendors > 80 Non-MEMS Sensor vendors > 130 Automotive > 80 suppliers IoT security, environmental, industrial >125 Mobile and wearables 70 suppliers 5

6 Broad Range of MEMS and Sensors Accelerometer Gyroscope Magnetometer Pressure Microphones Light GPS RF MEMS Ultrasonic UV Image Hall Effect Proximity (incl. 3D) IR Temp/Humidity Bio sensors Gas sensors Biometric (finger print scan) EKG/EMG/EEG Heart rate Blood pressure 6

7 Basic Building Blocks for IoT Low cost end node devices, portable or battery powered 7

8 Sensors are the basis for IoT Sensor + Controller + connectivity Power mgt, algorithm, security Wireless sensor nodes Infrastructure, smart cities, smart buildings Sensors and IoT 1.8 billion households worldwide, by 2020 Smart lighting, security, appliances, personal electronics, wearables, cars, smartphones, etc. 36 billion connected devices by billion in home automation Smartphones will interact with more devices Embedded intelligence and context awareness 8 WSN Source: Bosch

9 Sensor Fusion Objective: combine data to extract and use information. Derive intelligence Encompasses both HW and SW elements Combining three or more sensors MEMS, non-mems, cloud based, wearable Improve power savings Sensor Fusion algorithm is the key element which adds value 9

10 Embedded Security IoT will generate huge amount of data Industry concerned with hacking Consumers concerned with privacy Most IoT devices will be resourced constrained due to cost Ecosystem for embedded security IP Powerful but proprietary encryption technology 24 chip vendors and 19 IP suppliers Source: Semico Report MP IoT Security: At What Cost? 10

11 Sensor Fusion Market Trends Focus on High End Solutions Smartphone market has driven innovation Large volumes, fast design cycles Increasing MEMS and sensor penetration Other markets will leverage smartphone designs: wearables, IoT IoT driving future innovation Fragmented markets Increasing number of MEMS per system Eroding ASPs Always On, Always Aware, Contextual Chip vendors designing specifically for sensor hub

12 Total MEMS Shipments by End Markets IoT drives Industrial, and Mobile Health & Fitness to outpace cell phones MEMS Market Update: The New Driving Forces, February 2015 MP Source: Semico Research 12

13 Total MEMS Shipments by Type Source: Semico Research 13

14 Falling prices driven by high volume consumer markets Smartphones drive technology and innovation Increasing integration and package innovations Other markets take advantage of trend MEMS ASPs Total MEMS Market Consumer MEMS Market *consumer includes cell ph, tablet, and PCs Source: Semico Research

15 Health and Fitness highest growth Mobility Driving Growth Avg. MEMS per device 1.25 (2013) grows to 5 per device (2018) Tablets Avg. MEMS per device 3.7 (2013) grows to 7.6 per device (2018) Wearables, Tablet and Smartphones MEMS and Non-MEMS Sensors reach $23.3B (2018) Source: Semico Report MP Sensors in Wearables and Mobile: The Many Players Cell phones Notebook, Tablet, Health & Fitness CAGR ( 13 18) Source: Semico Research 15

16 Sensor Hub Innovations bit CPU or equivalent Focus on Low Power New designs with sensor peripherals Offload apps processor Sensor hubs that support apps processor and standalone CPU in wearable and IoT Combo solutions Hub + sensors Apps processor with integrated hub Multiple hubs per device

17 Sensor Fusion Ecosystem (2014) Lines indicate formal relationships, e.g. development and eval kits Source: Semico Research 17

18 Sensor Fusion Ecosystem (2015) Lines indicate formal relationships, e.g. development and eval kits 18 Source: Semico Research

19 Driving Forces in Sensor Fusion Falling ASPs enable more sensors commoditization MEMS vendors need to add value to silicon to differentiate Key acquisitions of sensor fusion companies Modules combining MEMS and sensor hubs Reduce cost, board space Smaller vendors need to partner Always On, Always Aware, Contextual Power savings Wearables and IoT fueling growth 19

20 Sensor Fusion Adds Value Key acquisitions to add value and differentiation Fairchild! Xsens InvenSense! Movea and Trusted Positioning Audience! Sensor Platforms Knowles! Audience New players emerge for 3 rd party development CyWee Sensor hub vendors internal algorithm development Partnering with 3 rd party and customers Accelerated Innovation Community (AIC) Developing algorithms for new markets IoT 20

21 Sensor Hub Markets Source: Semico Research 21

22 Sensor Hub Solutions Source: Semico Research 22

23 Collaboration in MEMS and Sensors MIG MEMS standards First MEMS standard for testing Nov 2012 IEEE 2700 (Sept. 2014) Close working relationship with IEEE Working on security standards MIPI sensor interface standard MIPI I3C, increases number of sensors Spec ratification Sept Accelerated Innovation Community (AIC) First open source sensor fusion algorithm cooperative Announced Nov

24 Factors for IoT to Takeoff Security Connectivity & privacy IoT Security: At What Cost? MP Interoperability Manageable number of standards What Does the Internet of Things Need to Grow? MP Open source framework for apps Reduced costs of sensors, MCUs, RF, LEDs Lower manufacturing, packaging and test costs Move to larger wafers for efficiency, high volume Low Power Embedded Processing Distributed intelligence Reduce load on bandwidth 24

25 MEMS and Sensors address high volume markets MEMS ASPs falling fast Sensor Hubs are evolving and specializing Combo solutions Sensor fusion focused on power savings Always On, Always Aware becomes more prevalent Summary Security key factor for IoT growth Sensor Fusion ecosystem is growing and changing rapidly MEMS and Sensor Hub vendors look to add value to silicon Sensor Fusion algorithm adds value Standards emerging for MEMS and sensors New end use markets driving high growth Wearables, Industrial controls, consumer, IoT 25

26 Recent Semico Reports: Thank You The Smart Economy: The Internet of Everything IoT Security: At What Cost What Does the Internet of Things Need to Grow? Sensor Fusion Pulls in More Players Augmented Reality: Envision a More Intelligent World NFC: Security at Hand Mobile Healthcare: New Technology for a Healthy Lifestyle MEMS Market Update: The New Driving Forces More information contact: Rick Vogelei / Data» Analysis» Knowledge 26

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