China will buy about 10% more micro electro mechanical systems (MEMS) in 2011 year-over-year, which is slower expansion than the 33% leap from 2009 to 2010. China’s efforts to dampen inflation are having an effect, shows data from the IHS iSuppli China Research report, which suggests that the market is “expanding at a healthy rate.”
China MEMS revenue will reach $1.6 billion in 2011, growing to $2.6 billion in 2015, a 5-year compound annual growth rate (CAGR) of 12.1%.
The 33% growth seen in 2010 was driven by an expansion of China’s manufacturing capacity for MEMS-integrating products: mobile phones, automotive electronics, and consumer electronic devices. This, combined with financial incentives from a lending-inclined Chinese government, created an expansion that is unlikely to be repeated, IHS reports.