【Media Focus】Minshen Shares: "Pioneer" of Localized MEMS Sensor Industry Chain

Minsin shares is located in Suzhou Nanometers City. It is one of the earliest MEMS companies established in China and has spearheaded the construction of a localized MEMS sensor full industrial chain. R&D driven is the company's distinct characteristic. In 2018, 2019, and 2020, the company's R&D expenses totaled 27.3949 million yuan, 35.6704 million yuan, and 42.0434 million yuan respectively, accounting for 10.84%, 12.56%, and 12.74% of operating revenue respectively. By the end of 2020, the company had a total of 40 domestic and foreign invention patents, 53 utility model patents, and was applying for 113 domestic and foreign invention patents and 129 utility model patents; the three product lines of MEMS acoustic sensors, MEMS pressure sensors, and MEMS inertial sensors cover consumer electronics, medical, industrial control, and automotive electronics, etc.

Microelectromechanical systems (MEMS) are a new type of sensor manufactured using microelectronic and micromechanical processing technologies. They are characterized by their small size, low power consumption, high reliability, and ease of integration.

"Small machines" contain "great opportunities". At the beginning of the 21st century, the global MEMS industry ushered in a wave of commercialization. Foreign companies such as Knowles and Infineon successfully applied MEMS technology to consumer electronics such as smartphones, attracting market attention.

“When we just graduated, the overseas MEMS industry was developing rapidly, but there were few related companies in China, and there were not many job opportunities. However, I believe that this industry will definitely develop in China in the future.” After being cultivated by prestigious universities such as University of Electronic Science and Technology of China, Peking University, and Hong Kong University of Science and Technology, Li Gang, the current CEO of Minsin shares, chose the MEMS field as his entrepreneurial direction.

In 2007, Li Gang and his entrepreneurial team were awarded the title of the first batch of leading scientific and technological talents in the park and received a start-up fund. In the same year, the company's three founders used self-made rudimentary experimental equipment to conduct scientific research experiments, completing the company's early technological exploration and accumulation.

In the past 13 years, Minsin shares has started from scratch to open up the MEMS industrial chain, completing the basic R&D work and core technology accumulation of the existing MEMS sensor product chip design, wafer manufacturing, packaging, and testing links, and has paved a path for the localization of the MEMS full industrial chain that is suitable for local conditions and takes advantage of the situation.

Initially, the company continuously developed and explored products and production processes, promoted the mass production of MEMS products, and used market opportunities to complete its initial accumulation, continuously integrating the industrial chain and improving its products; 2012 was a landmark year, the company successfully achieved mass production of MEMS products and changed its original business model, choosing to directly face the consumer market.

Picture: Founding team of Minsin shares

Over the years, the company has survived in the face of fierce market competition by using mid-to-low-end applications as a point of entry. Currently, the company is undertaking its final "decisive battle," striving to break into the supply chain system of internationally renowned consumer electronics brand clients.

After more than ten years of persistence, the company has successfully entered the ranks of leading enterprises in the domestic MEMS industry. Currently, the shipment volume of its MEMS acoustic sensor products ranks fourth globally, second only to Knowles, GoerTek, and AAC. In recent years, the company has also expanded into new markets such as acceleration sensors, bone conduction sensors, e-cigarettes, pressure sensors, and thermopile sensors in response to market demand.

"It's fortunate to grow up in this era. China's vast market has given MEMS startups like ours the opportunity to grow, and there are matching customers at different stages of development." said Zhang Chenliang, vice president of market sales at Minsin shares.

Since the outbreak of the epidemic, many companies have had their production interrupted due to insufficient supply, but Minsin shares has maintained relatively stable orders, with all production lines operating at full capacity, demonstrating strong risk resistance. The company accelerated the mass production of non-contact infrared thermometers, micro-differential pressure sensors, and other products, providing strong support for epidemic prevention and control.

The ultra-strong development resilience benefits from the company's long-term layout in the field of independent and controllable industrial chains.

As a special process, MEMS has highly customized characteristics, not only is the design difficult, but the production process also needs to be developed on demand. When Minsin shares was founded, domestic wafer manufacturing and packaging companies generally lacked professional MEMS production experience. Building a localized supply chain system means having to pay more patience and persistence.

Picture: Minsin shares intelligent factory

In 2008, Minsin collaborated with the Suzhou Institute of Nano-Tech & Nano-Bionics, Chinese Academy of Sciences (hereinafter referred to as "Suzhou Nano Institute") to develop 4-inch MEMS products and processes. On this basis, the company has successively participated in major national projects and major scientific and technological projects in Jiangsu Province, cooperating with leading domestic wafer manufacturing companies and packaging plants to explore the construction of a localized MEMS product supply chain system.

"From the beginning, we chose to cooperate with domestic suppliers. When manufacturing and packaging plants encountered process difficulties, our engineers went to help debug the process immediately. We have shared weal and woe for so many years, and this has formed our independent chip design and process development capabilities." Li Gang said that compared with cooperating with foreign giants, this road is more difficult, but after persevering for so many years, it has become a competitive advantage for the company.

In 2019, in order to guarantee production capacity, the company also invested in the construction of a packaging and testing enterprise, achieving independent and controllable control of the entire production process from MEMS product chip design, wafer manufacturing, packaging, and testing.

"In the process of the rise of the domestic MEMS industrial chain, we have been fortunate to participate deeply and play an important role." Dong Mingyan, secretary of the board of directors of Minsin shares, said that after listing on the STAR Market in 2020, the company has entered a new development stage. Based on the full industrial chain R&D and technical strength, the company hopes to seize the domestic import substitution opportunities and use the power of the capital market to further consolidate the layout of the downstream production and manufacturing of MEMS.

Courage to struggle and dare to be the first have always been the cultural heritage of Suzhou spirit. In recent years, Suzhou has been working with great enthusiasm to create a "paradise for entrepreneurs and a happy place for innovators".

"Among the first batch of leading scientific and technological talents, our semiconductor group is developing quite well, with two out of three companies completing IPOs and another one being acquired by MediaTek. The overall entrepreneurial success rate is quite high. This is thanks to the leading talent policy." Li Gang said that in 2007, local governments in China rarely invested in semiconductors, and the capital market preferred equity investment to venture capital. Suzhou's forward-looking vision to propose transformation and development and provide full-process support for high-tech startups was truly invaluable.

Over the years, Suzhou has focused on factors such as talents, universities, research institutes, industrial services, and incubators, systematically introducing supporting policies for innovation and entrepreneurship, forming a unique industrial cultivation mechanism and gradually becoming a region where high-end innovative carriers gather, high-end entrepreneurial talents are favored, the innovation ecosystem is excellent, and innovative achievements are abundant. To this day, Suzhou's new generation of information technology industry has grown in scale and is increasingly becoming a new engine for local economic development.

Suzhou's venture capital industry started relatively early. The government mainly cultivates the environment and soil, focusing on providing services to meet the needs of enterprises' independent innovation, rather than directly using money to heavily invest in projects, which is not a long-term solution." An official from the Electronic Industry Department of Suzhou's Ministry of Industry and Information Technology said that many of the companies that were listed on the STAR Market in Suzhou last year were established two or three decades ago. These private enterprises generally have solid scientific research capabilities.

Along the way, Minsin's exploration of independent innovation has also been supported by the park. Shortly after settling in, the company cooperated with the Suzhou Institute of Nano-Tech & Nano-Bionics to achieve mass production of MEMS microphones; subsequently, it also cooperated with the Suzhou Industrial Park Nano-Industry Technology Research Institute Co., Ltd. to complete the research and development of MEMS microphone chip technology.

In 2020, with the support of Suzhou Nano City, Minsin's new R&D building was laid. In the first quarter of this year, the company, together with the Suzhou Industrial Park Industrial Investment Fund and other institutions, jointly invested in the establishment of an industrial investment fund, and plans to invest in the establishment of a "MEMS Industrial Research Institute Co., Ltd.". The establishment of this industrial research institute will further accelerate the company's research and development and pilot testing of new technologies and products, laying a solid foundation for the company to participate in international competition in MEMS chips. New Yuan is also providing all-round support for the construction of MEMS wafer fabs for the MEMS Industrial Research Institute.

The image shows a conceptual drawing of Minsin's new building.

In China's 14th Five-Year Plan and the Outline of the Long-Range Objectives Through the Year 2035, integrated circuits are listed as one of the areas for breakthroughs in cutting-edge technologies. As a special process for integrated circuits, MEMS is also specifically mentioned. Vigorously developing the MEMS smart sensor industry has become a consensus among local governments. According to SaiDi, in 2020, there were 116 mergers and acquisitions in China's MEMS field, with a total value of 34.7 billion yuan, showing explosive growth.

"Suzhou's industrial ecosystem is excellent, especially for the MEMS industry. There's the research-oriented Nano Institute, the pilot-testing Nano City, supporting facilities, and funds. The preferential policies support the long-term development of enterprises, and its proximity to Shanghai, coupled with a pleasant living environment, is very attractive to talent." An official from the Suzhou Industrial Park Economic Development Commission said, "Those who stand still will fall behind." In the future, the park will seize its first-mover advantage and leverage the exemplary and driving role of companies such as Minsin to develop this special industry to a world-leading level.