The Zhitong Finance App learned that Huaan Securities released a research report saying that according to Yole's data, the MEMS market space will increase from 13.6 billion US dollars in 2021 to 22.3 billion in 2027. The overall CAGR growth rate was 9% CAGR. By 2027, the largest market is the RF MEMS market, with an overall space of 4.664 billion US dollars; the second largest market is the inertial market, with a total market space of 4.433 billion US dollars for IMU inertial and accelerometers; the third largest market is pressure MEMS, with a market space of 2,624 billion US dollars; and the fourth largest market is silicon MEMS, with a market space of 2,333 billion US dollars.

The main views of Huaan Securities are as follows:

Future direction of focus in the MEMS segment (RF, inertia, pressure)

By 2027, the largest market will be the RF MEMS market. Filters are one of the most important and most used devices for building RF microwave subsystems. RF microwave filters in the civilian market are mainly SAW, BAW filters, and FBAR filters in recent years. The filter market space is huge, and there is plenty of room for domestic replacement. According to Yole's data, BAW filters (BAW-SMR and FBAR) will increase from 2,313 billion in 2021 to 3,644 billion in 2026, and BAW's revenue share will also increase from 35% in 2021 to 44% in 2026. In the era of high-frequency communication, supply chain security makes downstream customers urgently need domestic filter replacements. As local manufacturers continue to accumulate technology, it is expected to break the market pattern dominated by Japanese and US manufacturers in the future.

The second largest market is the inertial market. The total market space for IMU inertial and accelerometers is 4.433 billion US dollars. The development and construction of technology in the field of MEMS inertia relates to the national economy and national security construction. MEMS inertial sensors are critical to the miniaturization of inertial navigation systems.

MEMS has created new markets for inertial navigation applications, such as tactical-grade guided munitions and personal navigators that can navigate in combination with GPS chips. Judging from the global market and China's achievements in the field of MEMS inertial navigation, high-performance MEMS inertial sensor products have been popularized and applied. It has mastered the main technical aspects of MEMS inertial sensor design, manufacturing, packaging and testing domestically, and has the ability to develop high-performance MEMS inertial sensor products.

The third largest market is Pressure MEMS, with a market space of 2,624 billion US dollars. Looking at the overall industry application of MEMS pressure sensors. The main downstream applications of pressure MEMS sensors include automotive, biomedical, and aerospace applications. Currently, with the booming development of China's aerospace industry, domestic MEMS pressure sensors have ushered in historical opportunities. In applications in the aerospace field, pressure sensors can be used to control the attitude of spacecraft and spacecraft, and pressure on the surface of heat-resistant cavities such as rockets, satellites, jet engines, and high-speed aircraft can be measured. In the development of China's aerospace industry, with the improvement of technological level and process technology, MEMS pressure sensors have also been used on spacecraft such as manned spacecraft, space laboratories, and space stations.

Investment advice

Among the high-reliability sensors in the MEMS field, it is recommended to focus on Gaohua Technology (688539.SH) (layout for commercial aerospace), Microelectronics (688582.SH) (layout autonomous driving), and Saiwei Electronics (300456.SZ) (ranked first in the world for MEMS pure foundry).

Risk warning

Technology development fell short of expectations, competition intensified, and demand fell short of expectations.