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Dark Horse Enters MEMS Market

A dark horse in the optical components industry, Megasense Inc., yesterday announced that it had completed the construction of its MEMS (micro-electro-mechanical system) wafer fabrication facility (see MegaSense Makes Some).

Megasense was founded in late 1999 and has kept a low profile since then, starting off with plans to mass-manufacture MEMS-based sensors (hence its name) and then moving on to the idea of making telecom components instead.

A case of a solution looking for a problem? It's tough to tell, because Megasense won't say what type of components it's making, but there are least a couple of reasons why the company deserves to be taken seriously.

First, the folk running Megasense have some impressive credentials. They include Vladimir Vaganov, CEO, who was chief scientist at IC Sensors, the first company to mass produce MEMS based accelerometers. They also include Jim Northington, COO, a former VP of manufacturing operations at E-TEK Dynamics, now part of JDS Uniphase Inc. (Nasdaq: JDSU; Toronto: JDU); and Derek T. Harrar, VP of business development, formerly a VP with Morgan Stanley Dean Witter & Co.

Vaganov says the secret of success with MEMS components is a "systems approach" to manufacturing. This means designing components so they can be made in large batches using automated equipment, in a way that minimizes any work that has to be carried out on individual components.

Using this approach enabled IC Sensors to churn out millions of MEMS-based accelerometers at a cost of between $5 and $8 each, according to Vaganov, who's brought a bunch of his IC Sensors colleagues with him to Megasense. If anything, the telecom components being made by Megasense are less complex and thus easier to make, Vaganov adds.

Vaganov isn't expecting to make such massive numbers of telecom components but says that he can achieve "more than a tenfold reduction" in prices. Components similar to the ones that Megasense will make currently cost about $5,000, Vaganov says. He expects to bring the price down immediately to $3,000 with low volumes, then get it down to $1,000 with "not very high volumes" and eventually get the price down to $100.

The other reason why Megasense should be taken seriously is that it's got some smart money behind it. It raised $10 million last February from Bay Partners and Texas Pacific Group, and Gordon Stitt, chairman and president of Extreme Networks Inc. (Nasdaq: EXTR), sits on the board.

"We'll probably start looking for a second round later this year," says Vaganov. He says Megasense will break even after that, and won't require a third round.

— Peter Heywood, Founding Editor, Light Reading
http://www.lightreading.com
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self 12/4/2012 | 11:02:19 PM
re: Dark Horse Enters MEMS Market Does anyone know anything interesting about Umachines? They just came out of stealth as a 2D MEMS switching component maker. The specs don't seem that much differnt than OMM and Onix. (Maybe they can actually make components that meet their specs).
Peter Heywood 12/4/2012 | 11:02:11 PM
re: Dark Horse Enters MEMS Market I've learned a lot from this thread. Thanks everybody.

Ames, I'm sure Megasense has read your question and maybe I can persuade it to answer it on this board.

From my viewpoint, I'm thinking of hanging loose until Megasense is ready to announce what its first product/s will be (which might be in the next few months). At that stage, it'll be worth me doing another story and it'll be easier to dig into this issue because we'll be able to relate it to specific aspects of a specific product.

Peter
sridude 12/4/2012 | 11:02:08 PM
re: Dark Horse Enters MEMS Market Analog Devices makes millions of Si accelerometers every year for the Auto industry. Hardly an industry that has evaporated.
- SD
toddoptical 12/4/2012 | 11:01:59 PM
re: Dark Horse Enters MEMS Market I checked out their website and they have an informative White Paper on MEMS techonlogies for small port count switches (in the "Technology" section of the website.

Talked to Umachines at Photonics West and they look like a smart MEMS company that plans to generate revenues from the smaller port count switches(1x2, 2x2, 1x8 & arrays which they have available. ~$100M market for 2002 according to RHK) then move to the 16x16 & 32x32 switches when the market is ready for these "larger" switches. From what I've read, the market for the 16x16 & 32x32 switches are in the very early stages and will only require serious volume in ~2003.

Todd
hawkman 12/4/2012 | 11:01:27 PM
re: Dark Horse Enters MEMS Market GǣGǪMegasense won't say what type of components it's making, but there are least a couple of reasons why the company deserves to be taken seriouslyGǪGǥ

MEMS Sensors..been there, Accelerometers...Done that, its not the same, its not even close. Since they wont say what components they are making, one can only can assume that they dont even know what they will be making. Compare the press release to the article quote:
"The MegaSense executive team, fab, and intellectual property position the company as a leading provider of advanced photonics modules and subsystems..." It should read "Well, we wont say what we are doing but we can do it cheaper and oh yeah, we are going to be the leader.." In this day and age, show me the money or remain in stealth mode until you can. MEMS is very promising, but to arrive on the scene with virtually no industry experience and expect to be the market leader is both arrogant and ignorant. www.dovebid.com
lame_duck 12/4/2012 | 11:01:23 PM
re: Dark Horse Enters MEMS Market I neither wrote nor meant to imply that a market or industry for Si accelerometers had evaporated, rather that any presence that ICSensors had in it did. Touting their ICSensors' heritage (of unproven manufacturing expertise) as proof that MegaSense will be able to shrink costs out of fiber optic components is ludicrous.
self 12/4/2012 | 10:52:58 PM
re: Dark Horse Enters MEMS Market They seem to be leading with VOAs followed by OADM modules in a year or so.
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