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Proactive MEMS IP Management

GSA MEMS Working Group Meeting

December 10, 2014

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Overview

• IP Management Elements• MEMS Patent Analysis

• MEMS Patent Portfolio Overview• Portfolio analysis by Key Applications

• TPMS (Tire Pressure Monitoring System)• Microphone MEMS• Gyro and Accelerometers

• Portfolio Analysis by Key Companies• InvenSense (U.S.A /Founded in 2003)• Infineon Technologies (Germany/Founded in 1999)• Panasonic (Japan)• Murata (Japan)

• Reverse Engineering and Analysis Examples• Gyro Sensor• Silicon Microphone• Tire Pressure Monitoring System (TPMS)

• Summary and Questions

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IP Management Elements• IP Acquisition

– Organic Development- New and Enhancements– IP Purchases, Licensing, etc.– IP Acquisition via M&A

• IP Management– Portfolio Evaluation and Patent Analysis– Patent Ranking– Patent Maintenance– IP Intelligence– IP Defensive and Offensive Measures

• IP Disposition– Abandon– Sell or License

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Y-axis : Application Ave. G

rowth rate since

2004 X-axis : Application Growth Rate between 2012 and 2013

Group ADeveloping

Group BMature

Group CDeclining

MEMS Patent Portfolio Overview

TPMS

Microphone

Gyro

Inkjet

Acceleration sensor

RF-MEMSDMD

Growth Rate of Patent Applications

LTEC analyzed the MEMS related patent applications between 2004 and 2013 Accelerometer Sensors & RF-MEMS are most developing

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Key Target Applications Smartphone, Automotive and Computing are the growing areas for MEMS We picked the following 3 applications for today’s meeting.

1) TPMS (Tire Pressure Monitoring System)2) Microphone MEMS3) Gyro and Accelerometer Sensor MEMS

Source: Semico Research Corp. (Phoenix, Ariz.)

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TPMS (Tire pressure monitoring system)

Y-axis : Application grow

th rate from the previous year

2004

2005

2006

2007

2008

2009

2010

2011

20122013

X-axis : # of patents filed in the particular yearCircle size : Accumulated # of patents since “04

Top 10 patent playersranks players volume

1 PRECISION MECHATRONICS PTY 962 INFINEON TECHNOLOGIES 233 AMPHENOL THERMOMETRICS 154 SCHRADER ELECTRONICS 135 SEIKO EPSON 136 HITACHI 117 ROBERT BOSCH 98 FREESCALE SEMICONDUCTOR 99 SAMSUNG ELECTRONICS 6

10 ANALOG DEVICES 6

Direct TPMS became mainstream in 2007 Driven by Legislation: USA 2007, Europe 2012, South Korea 2013 Japan & China are now considering legislation Patent application numbers started declining since 2007.

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Microphone MEMS

2004 2005

2006

2007

2008

2009

20102011

2012

2013

Patent Playersranks players volume

1 INVENSENSE 512 KNOWLES ELECTRONICS 403 ROBERT BOSCH 284 ANALOG DEVICES 255 EPCOS 246 INFINEON TECHNOLOGIES 187 STMICROELECTRONICS 178 BSE 159 UNITED MICROELECTRONICS 12

10 WOLFSON MICROELECTRONICS 1111 PANASONIC 11

Mobile products are driving market growth.Patent activity is in upward trend Since 2009,2011 was the innovation year (Many new products and technologies for smartphones).

Y-axis : Application grow

th rate from the previous year

X-axis : # of patents filed in the particular yearCircle size : Accumulated # of patents since “04

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Gyro Sensors

2004

20052007

2008

2009

2010

2011

2012

2013

2006

Patent Playersranks players volume

1 HONEYWELL INTERNATIONAL 652 STMICROELECTRONICS 403 ANALOG DEVICES 264 INVENSENSE 175 MCUBE 176 UNIV OF CALIFORNIA 157 FREESCALE SEMICONDUCTOR 128 FAIRCHILD SEMICONDUCTOR 119 BROADCOM 9

10 TSMC 9

Downsizing since 2011 High reliability & low power are the keys, driven by mobile phones and game consoles Widely adopted in most of the industrial and consumer sectors.

Y-axis : Application grow

th rate from the previous year

X-axis : # of patents filed in the particular yearCircle size : Accumulated # of patents since “04

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Patent Ranking Criteria (Example)

Evaluation point Criteria Weighted value

Inventor level = No of applied, filed, filed ratio, family patent, cited patent by others, claims, remaining period

7

Technical impact = No. of cited by others / Average no. of cited in previous year total patent 6

Technical substantively = Average of year difference between relevant patent and cited patents 5

Marketability = No. of family patents 4

Technical concentration ratio = No. of related patents 3

Novelty = No. of cited patents 2

Impact level to competitors(only for JP)

= No. of cited market information , 4

Classification The ratio

AA 1%<

A+ 1-3%

A0 3-5%

A- 5-10%

B+ 10-20%

B0 20-50%

B- 50-60%

C <60%

Ranking by Comparative Assessment Among Related Patents

This shows one of the methods to evaluate patent values. There are many other ways depending on the objectives.

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InvenSense

Source: FOCUST Search and Analysis Solutions for Global Patents

InvenSense acquired MEMS microphone business from ADI in 2013. The volume of granted patent has rapidly increased since 2011. Granted patent total: 96 InvenSense has strong patents in the area of process technologies

Patent valuation “A- “ to “AA” is 35%.

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InvenSense (rank A+ patent)

ADI had the standard process patent of MEMS microphone such as US7,449,356B2. InvenSense was able to purchase this patent from ADI. InvenSense has very strong patents in the area of process technologies.

US7,449,356B2 is evaluated as “ rank A+“ in the patent valuation. Market impact is a patent of the high score.

rank A+

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Infineon Technologies Patent valuation to “AA “ from “A-” is 3.4%. The volume of granted patent is increasing since 2007. Granted Patent: total 310 Infineon’s patent valuation is lower than the average; however, they still have the advantage of product

development in MEMS market.

Source: FOCUST Search and Analysis Solutions for Global Patents

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Infineon Technologies (rank A+ patent) Infineon has MEMS die and manufacture technologies. Infineon has excellent technologies and strong patents in the TPMS market.

rank A+

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Panasonic Panasonic has technology patent in various areas. They are evaluated as the highest core inventor

valuation among the four players (InvenSense, Infineon, Panasonic, Murata). Patent valuation to “AA “ from “A-” is 9.0%. The volume of granted patent is increasing since 2006. Granted Patent: total 351 The peak volume of granted patent was 2010.

Source: FOCUST Search and Analysis Solutions for Global Patents

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Panasonic has the manufacturing technologies and a various MEMS patent portfolio.

Panasonic (rank A+ patent)

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Murata Murata has very strong patents in the area of RF and antenna Patent valuation to “AA “ from “A-” is 19%. The volume of granted patent has increased since 2010. The peak volume of granted patent is 2014. (Granted Patent: total 31)

Source: FOCUST Search and Analysis Solutions for Global Patents

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Murata acquired the patent from VTI Technologies in Jan. 2012 VTI has 3D MEMS technology of the oscillator/resonator structure as shown below

Murata (rank A+ patent)

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Die ( Back side)

Die back side Observation direction

Cross section

Si

Glass substrate

Si

Glass substrate

Cross section (SEM)

PAD

Injection layerPAD

Electrode

Injection layer

Electrode connecting to

electrode

Analysis example (Gyro)Kionix 3-axis acceleration sensor

Package overview

After removal of the resin

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Analysis example (Microphone MEMS)

Si substrate

Post

PostAir gap

Si substrate

Post (Isolated layer)

Si thin film

Cross section

Air gap

Air gap

Diaphragm

Diaphragm

Back plate

Back plate electrode

Knowles MEMS microphone

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Flexural deformation during the vibration

Min. space

Post

Detect MEMS capacitance change

Stick, short

!Many different implementations!

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Analysis Example (TPMS Tire Pressure Monitoring System)

Control IC Sensor

Air inlet

Air inlet

Pressure sensor

Accelerate sensorGlass cap

Si substrate (MEMS)

Glass base

Air inletPiezo resistances (estimation)

Wires

Connect to external terminal

via injection layer in SI substrate

Infineon’s TPM module

Top view(X-ray)

Side view (X-ray)

Diaphragm

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Pressure sensorAcceleration sensorBoth MEMS

Piezo resistanceMEMS

PressureDetects MEMScapacitancechange

Detect MEMSPiezo resistancechange

What is the principle of operation?What kind of technology is used?What’s new and unique?

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Summary

• IP Management Elements- Acquisition, Management and Disposition• MEMS Patent Analysis

• MEMS Patent Portfolio Overview• Portfolio analysis by Key Applications

• TPMS (Tire Pressure Monitoring System)• Microphone MEMS• Gyro and Accelerometers

• Portfolio Analysis by Key Companies• InvenSense (U.S.A /Founded in 2003)• Infineon Technologies (Germany/Founded in 1999)• Panasonic (Japan)• Murata (Japan)

• Reverse Engineering and Analysis Examples• Gyro sensor• Silicon microphone• Tire Pressure Monitoring System (TPMS)

• Questions?