Minshen shares exclusive interview with China Securities Journal: Using MEMS to add sensing capabilities to the digital world

With a side length of no more than 5 millimeters and a thickness of less than 1 millimeter, a small square thin film incorporates a complex three-dimensional mechanical structure. When sound enters, the diaphragm deforms. Using MEMS technology, it is converted into an electrical signal after a series of changes. This miniature sensor, known as a silicon microphone, is now widely used in electronic products such as mobile phones. MEMS-based sensors have high requirements for processing technology and supply chain systems.

In 2007, Li Gang, who had studied MEMS-related majors from undergraduate to doctoral studies, started his entrepreneurial journey in this field. "At that time, it felt that the MEMS era was about to come, but due to the lack of a mature supply chain, the designed products were difficult to implement." Li Gang said that from the initial chip design to finding foundries and testing and packaging service providers, it took the company several years to produce products that could be delivered to customers, paving the way for the domestic MEMS supply chain.

During this process, Minsic gradually accumulated basic research work and core technologies in MEMS sensor chip design, wafer manufacturing, packaging, and testing. Today, 60% of the company's patents are related to chip architecture and manufacturing processes. The independently researched and produced MEMS acoustic sensor products are at the industry's leading level in terms of product size, sensitivity, and other indicators.

With its product design gradually leading the industry, Minsic began investing more resources in manufacturing. "We invested a lot of money to master the packaging process." Li Gang told the reporter that MEMS sensors are very sensitive to particles, so the packaging process determines the product quality and stability. The company's newly commissioned packaging line has reached the highest standard in the domestic industry, achieving an ultra-clean environment, and each process is meticulously polished to ensure that the products meet design standards.

In the future, Minsic plans to extend to other links in the supply chain to become a MEMS platform company with independent core technologies in chip design, wafer manufacturing, packaging, and testing.

The downturn in the consumer electronics industry has put pressure on the industry chain. Li Gang frankly stated that the domestic MEMS industry has encountered its first adjustment cycle, and the industry landscape is facing reshuffling.

"Companies with good cash flow have the opportunity to wait for the industry to rebound, and those with strong technical capabilities can still make small profits when others are not making money." Li Gang believes that the size of MEMS sensors is becoming smaller and smaller, and the space for cost reduction through technological advancements in the short term is not large, which further tests the comprehensive operational capabilities of enterprises in terms of packaging and testing efficiency.

In the face of the current industry landscape, Minsic has proposed a large customer strategy, paying more attention to the development of first-tier domestic and international manufacturers.

"Developing foreign customers is difficult, but from the perspective of long-term development, we still need to strive to "get in." " Li Gang said that foreign customers can provide higher product premiums, which is conducive to improving the company's profit margins. "More importantly, without contacting major foreign customers, we cannot better understand their needs. If we wait until others release products before conducting research and organizing forces for production, there will be at least a year and a half gap." It is reported that Minsic has gradually adjusted its R&D strategy, striving to achieve world-class product lines this year and accelerating product pre-research through cooperation with major customers.

Developing leading customers requires facing the competition of international MEMS providers. In Li Gang's view, domestic MEMS companies, which started late, still have a certain gap compared with international first-tier manufacturers, but the gap mainly comes from the limitations of the supply chain model on manufacturing capabilities. "This gap cannot be eliminated in the short term, but the company's service capabilities can enhance its competitive advantage."

It is reported that compared with foreign MEMS providers, the engineering teams of domestic manufacturers such as Minsic can quickly respond to customer needs, provide on-site services, and actively grasp new demands in the downstream market.

When will the consumer electronics industry recover? Li Gang told reporters that, on the one hand, technological innovation will drive consumer desire; on the other hand, it is hoped that domestic brands can improve their value and bring greater profit margins to companies in the industry chain. "We are optimistic about the wearable device field. As more and more vital signs are monitored, the demand for sensors will increase. Our products for well-known companies in this field are gradually increasing in volume, and the benchmark effect helps the company expand to other brand customers."

In addition, MEMS sensors are currently widely used in automobiles, industry, medical care, communications, and other fields. With the development of artificial intelligence and the Internet of Things, MEMS sensors, as the foundation and core of the perception layer, will have more diverse application scenarios. Against this backdrop, Minsic is gradually expanding into other areas, looking for more profit growth points.

Acoustic sensors, pressure sensors, inertial sensors, force sensors...With a multi-product line layout, Minsic maintained steady growth in its MEMS acoustic sensor business in 2022, while the devices launched in the e-cigarette field have begun shipping to internationally renowned e-cigarette manufacturers; the shipment volume of pressure sensors used in blood pressure monitors has ranked among the top in the industry; and module products have made breakthroughs in the automotive field. "This is a multi-billion dollar market, and domestic MEMS companies with core technologies will usher in greater development opportunities in the next 10 years." Li Gang is full of confidence in the future development of his company and the industry. (China Securities Journal Meng Peijia)