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GLOBAL WATCH MISSION REPORT

Integration and exploitation of microsystems (MEMS)sensor technologies– a mission to Europe

NOVEMBER 2003

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Global Watch MissionsThe UK government Department of Trade andIndustry (DTI) Global Watch Service provides funds toassist small groups of technical experts from UKcompanies and academia to visit other countries forshort, fact finding missions.

Global Watch Missions serve a number of relatedpurposes. These include establishing contacts withoverseas organisations for the purposes ofcollaboration; benchmarking the current status of UKindustry against developments overseas; identifying keydevelopments in a particular field, new areas ofprogress or potentially disruptive technologies; studyinghow a specific industry has organised itself for efficientoperation or how governments, planners or decisionmakers have supported or promoted a particular area ofindustry or technology within their own country.

DisclaimerThis report represents the findings of a technologymission organised by Intersect Faraday Partnership(Intersect) with the support of the UK Departmentof Trade and Industry (DTI). The views expressedrepresent those of the mission team and should notbe taken as those of DTI, Intersect or the employersof the individual team members.

Unless referenced to a secondary source, theinformation contained within this report is based onmaterial gained during the mission. Information isgiven in good faith but no liability can be accepted forits accuracy or for any use to which it might be put.

Comments, views and opinions attributed to organisationsthat were visited in the course of this mission are thoseexpressed by personnel interviewed. Unless explicitlystated to the contrary, they should not be taken as thoseof the organisation as a whole, its board or management.

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Integration and exploitationof microsystems (MEMS)

sensor technologies – a mission to Europe

NOVEMBER 2003

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CONTENTS

Preface 4

Executive summary 5

1 Context and Scope 61.1 Terminology 61.2 Applications of MEMS 61.2.1 Pharmaceutical drug discovery 61.2.2 Automotive industry 8

2 Organisations visited 112.1 ZEMI, Berlin 112.2 ETH, Zurich 122.3 IBM, Zurich 132.4 IMT, Neuchatel 132.5 CSEM, Neuchatel 142.6 Colibrys, Neuchatel 152.7 CEA-LETI, Grenoble 152.8 Minatec, Grenoble 152.9 MEMSCAP, Grenoble 16

3 Technology aspects 173.1 Physical properties sensing 173.2 Chemical (including gas) sensing 183.3 Biosensors 203.4 Imaging sensors 213.5 Supporting technologies 223.5.1 Microfluidics 223.5.2 Processing technologies 22

4 Business aspects 244.1 Comparison of business 24

inter-relationship models4.1.1 The French model 244.1.2 The Swiss model 254.1.3 Conclusion 264.2 Comparison of MEMS start-ups 264.2.1 Colibrys (Switzerland) 264.2.2 MEMSCAP (France) 284.2.3 Tronics (France) 294.3 Comparison of start-up 32

business models4.3.1 Role of parent organisation 324.3.2 Character and role of investors 324.3.3 Business strategies 324.3.4 Conclusion 34

5 Investment aspects 355.1 ZEMI, Berlin 355.2 ETH, Zurich 365.3 IBM, Zurich 375.4 IMT, Neuchatel 385.5 CSEM, Neuchatel 385.6 Colibrys, Neuchatel 395.7 CEA-LETI/Minatec, Grenoble 395.8 MEMSCAP, Grenoble 405.9 Conclusions 41

6 MEMS manufacturing and 42UK opportunities

6.1 MEMS subcomponents 426.2 Complete MEMS sensor systems 436.3 Prototype systems manufacture 44

versus volume commercialproduction

6.4 Manufacturing and product 44pipeline strategy

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INTEGRATION AND EXPLOITATION OF MICROSYSTEMS (MEMS) SENSOR TECHNOLOGIES – A MISSION TO EUROPE

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7 Conclusions and 47recommendations

7.1 Meeting the needs of industry 477.2 Funding 487.3 Investment timescales 487.4 Spin-outs 497.5 Education and training 497.6 The UK within Europe 507.7 Key conclusions/ 50

recommendations

AppendicesA Acknowledgments 51B The mission team 52C Host organisation contacts 54D Glossary 56E List of tables and figures 59F Further Information 60

PREFACE

The Intersect Faraday Partnership, managedby Sira Ltd and the National PhysicalLaboratory (NPL), is the UK focus for theresearch and application of sensing,measurement and instrumentationtechnologies, primarily in the process andmanufacturing industries.

Supported by the Department of Trade andIndustry (DTI) and the Engineering andPhysical Sciences Research Council (EPSRC),Intersect is working to bridge the gapbetween academic research and industrialapplication, enabling novel sensingtechnologies to be exploited.

The Intersect Farady Partnership undertook aDTI Global Watch Mission to Europe inNovember 2003 to examinecommercialisation and integration of sensortechnologies based on micro-electro-mechanical system (MEMS) devices. Sensors based on MEMS technologies havewidespread use in automotive, defence,pharmaceutical, biotechnology andenvironmental applications.

The mission compared the UK exploitation ofthese technologies with the experience ofother European countries, with the aim ofestablishing best practice for the UK and toencourage further government funding of themicro-sensor industry. The report makesrecommendations in the context of UKdevelopment initiatives such as DTI’snanotechnology and microsystemstechnology programme.

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EXECUTIVE SUMMARY

In November 2003, ten representatives fromvarious industry sectors includingautomotive, agrochemical, pharmaceuticaland process chemical, under thecoordination of the Intersect FaradayPartnership, undertook a DTI Global WatchMission to review MEMS sensor technologyand its commercialisation in Europe.

The schedule of visits took in the ZEMIcluster in Berlin; ETH and IBM researchcentre in Zurich; CSEM, Colibrys and theUniversity of Neuchatel; and MEMSCAP,Minatec and CEA-LETI in Grenoble. In eachof these locations, the objective was tounderstand not only the state of the art inMEMS sensor research and technology, butalso the business models andorganisational inter-relationships whichwere being applied successfully incommercialising this technology.

As a result, the team was able to identifykey factors in the infrastructure and supportfor MEMS technology which have made itsexploitation possible, as well as identifying anumber of technology capabilities of interestto UK industry, and niche areas where theUK might consider focusing investment.

The UK MEMS initiatives can learnsignificant lessons from models in otherEuropean countries, especially byconsidering the best practice businessmodels and most importantly, the keyrelationships between organisations insuccessful clusters, the best examplesbeing those focused around CSEM(Switzerland) and LETI (France).

Incubators are a key factor in thedevelopment of new MEMS enterprises totake technology from the laboratory to themarket. Each of the successful clusters hasa support package for new ventures whichenables them to access facilities andsuitable private investment, and is highlyactive in generating spin-out companies toexploit the technology they are developing.In these cases there exists a balancebetween technology push and market pull,the most successful businesses being thosewhich are creating products with embeddedMEMS technology, as opposed tocommercialising MEMS devices.

The MEMS technology infrastructure inEurope is mature, and the UK wouldbenefit significantly from greaterinternational partnership, due to thediversity and complexity of the range oftechnologies and markets for MEMSdevices. Similarly, in niches such asmicrofluidics and fabrication on substratesother than silicon (eg plastics, glass), thereis a role for the UK to generate businessfrom Europe as well as at a national level.

It is concluded that significant and rapidstrategic activity is required in order toposition the UK technology base to exploit the future global and all-pervasiveMEMS market.

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1 CONTEXT AND SCOPE

1.1 Terminology

The terms MEMS (micro-electro-mechanicalsystems) and MST (microsystemstechnologies) are often usedinterchangeably, with our Europeancolleagues more commonly referring to MSTand our US counterparts making MEMS themore common usage.

MST is generally taken to include a widerdefinition of miniature devices, both passiveand active, and the systems which makeuse of them. NEXUS – the EuropeanMicrosystems Network – provides adefinition for MST: ‘Microstructure productshave structures in the micron range andhave their technical function provided by theshape of the microstructure. Microsystemscombine several microcomponents,optimised as an entire system, to provideone or several specific functions, in manycases including microelectronics.’

For the purposes of this mission, with itsfocus on sensor technologies, both MEMSand MST are suitable terms in common UKusage, and the former has been adopted inthis report.

1.2 Applications of MEMS

MEMS sensors comprise only a smallfraction of the diverse applications of MEMStechnology. While some of the more highprofile commercial successes have beensensor technologies (notably accelerometersand collision sensors for airbags), theestablished leading commercial markets forMEMS technology are hard disk drive heads,inkjet print heads and cardiac pacemakers.

Sensors are expected to be among thefuture growth areas; not just in terms ofphysical properties sensing (such aspressure and acceleration), but also chemicalsensors, in-vitro diagnostics,microspectrometers, and a major emphasison fluidic MEMS supporting biological andmedical applications. As illustrative exampleswe highlight the role of MEMS within twomarket sectors:

• Pharmaceutical drug discovery• Automotive industry

1.2.1 Pharmaceutical drug discovery

In its simplified form, the drug discoveryprocess comprises:

• Identification and validation of a disease-associated target, which is nearly alwaysa protein or protein complex

• Synthesis of compounds • Assay of compounds against the target • Iteration of synthesis-assay loop until

a compound with appropriate activity is found

The final product is a chemical entity thatcures people of disease.

In recent years, investment in thetechnology used in pharmaceutical R&D hasincreased considerably without concomitantincrease in the number of drugs launched.Miniaturisation of components that are usedin the drug discovery process without long-term storage of compounds is one approachthat may provide increased output without

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huge increment in costs. A microscale,iterative system would require only theinformation on compound activity and notthe surrounding infrastructure that is oftenassociated with analysis and storage ofcompounds. MEMS and MEMS-basedsensors comprise the key enabling hardwarefor realisation of the miniaturisation of thedrug discovery process.

To enable the pharmaceutical industry toharness the full potential of genomicinformation, devices and systems must beproduced that provide high quality (drug)target validation, synthesis of compounds,assay, analysis and characterisation ofcompounds. Such systems should haveminimal reagent usage and minimal reagentand product storage, whilst being managedby intelligent decision-making informatics.For instance, microanalytical systems shouldbe capable of collecting data from singleprotein molecules, which requires thedevelopment of corresponding proteinhandling and microsensing technologies.

Whilst recent high throughput chemicalsynthesis and assay technologies arecharacterised by parallel processes,microsynthesis-assay systems wouldprovide a fast sequential and iterativeapproach for compound optimisation, hitsearching and compound structurediversity profiling with activity againstspecific drug targets. Such sequential real-time iterative systems would facilitatemore intelligent strategies using highinformation content screening with moremodest numbers of experiments ratherthan the massively parallel, slowly iterative‘scattergun’ approach.

The development of microsynthesis-assaysystems, which require micro- and/ornanofabrication, surface functionalisation andbiomolecular engineering, requires strong,flexible and physically close interdisciplinarylinks between chemistry, physics, biology,microelectronics and informatics withoutdilution of basic scientific expertise.

At the component level of such systems,microtechnology facilitates integration ofcomponents with external media/reagents,whilst nanotechnology facilitatesdevelopment of materials that enablemanipulation of and compatibility withreagents (eg nanoceramics, the surfacechemistry of which may be controlled anddoped with catalysts). MEMS-basedsensors are envisaged to provide variousmodes of detection (eg optical forfluorescence detection and pressure tomeasure flow), whilst an appreciation ofnanotechnology will facilitate manipulationof surface properties to control wettabilityand adhesion and allow control of howproteins/cells adhere to a surface.

These overlapping technologies wouldprovide compact, possibly hand-held hybridmicrosynthesis and assay systems that haveexquisitely controlled fluidic manipulation,high efficiency separation, sensitivity,selectivity, fast response and low powerusage. Total integrated chemical analysissystems, components must be capable ofdetecting and quantifying a signal accuratelyin ‘noisy’ media, which may be achieved atthe nanoscale.

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In contrast to the vast majority of MEMSdevices, which are fabricated from silicon,the chemical compatibility and opticalcharacteristics of glass make it the preferredmedium for microfabricated devicesdesigned for chemical synthesis andbiological assays. Polymer-based systemsare likely to be avoided due to poorchemical compatibility. Such devices wouldgenerally be microfluidic and may take theform of liquid-liquid, liquid-gas and liquid-membrane-liquid.

A key characteristic of microfluidic devices,whether for chemistry, biology or both, isthe scale matching. For instance, the small amount of reagents required toperform compound syntheses or biologicalassays must be closely matched by theamounts used by the system. There is nopoint in providing a nanovolume-scalesystem if the liquid handling of such asystem can only manipulate one thousandtimes greater volumes.

Integration of pulse-free pumping systemswith modest back-pressure tolerances (ie 200psi) along with flow sensors of appropriatedimensions are also a prerequisite.

The packaging of glass-based MEMS andintegration with microfluidic pumps,sensing systems and the macro world arealso of key importance and do not appearto have been addressed by suppliers atpresent, although as detailed in this report,many of the institutes/sites visited hadcomponents that would prove useful forthe realisation of a miniaturised integrateddrug discovery platform.

UK companies and universities were theearliest to exploit high throughputtechnologies (HTT) in research withinpharmaceutical drug discovery, whilst theUK has a well-established and strongbackground in health science research,particularly in pharmaceuticals andbiotechnology. As such, the UK is well

positioned to implement newly developedmicrotechnology-based approaches withindrug discovery and gain subsequently in theform of high value therapeutic products.

1.2.2 Automotive industry

The main market drivers for the automotiveindustry are the growing expectations fromcustomers who demand increased safety,convenience and comfort at lower prices,while at the same time the vehiclemanufacturers must comply with legislationin the areas of emission control, fueleconomy, safety and security.

The most prominent trends in automotiveapplications are to:

• Reduce cost• Increase safety and reliability• Increase comfort• Reduce fuel and raw material

consumption• Reduce traffic congestion

As an example of legislative pressure,European car manufacturers must reduceaverage emissions of carbon dioxide from180 to 140 g/km by 2008. This means areduction in average fuel consumption from7.6 to 5.8 l/100 km.

Over the last few decades, the protection ofcar occupants has improved significantlythanks to anti-lock brakes, airbags, new seatbelt features and anti-whiplash systems.Road safety has been identified as one ofEurope’s primary objectives, and theEuropean Commission (EC) aims to improveroad transport safety by 30 – 50% within the2008 – 2012 timeframe.

Increasing numbers of electronic systemscomprising sensing, actuation and controlfunctions will be needed to achieve theseaims. The key advantages of MEMStechnology in helping to provide a solution tothese technology trends are:

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• Ideal for sensing applications• Possibility of integrating electronics• Small physical size• Robustness• On-chip self-test and diagnostics

Once the manufacturing process is in place,large numbers of identical devices can bemade – this leads to low cost.

The present….

The small size and functional integrationpossibilities of MEMS, along with the lowcost of manufacture in high volumes, havealready created many automotive marketopportunities. The automotive industry isone of the largest volume users of MEMStechnology, mainly for sensing applications.Various reports forecast that the electroniccontent of a car (including sensors) willaccount for ~30% of vehicle cost by 2005.

Every modern vehicle already containsseveral MEMS devices. MEMS componentssuch as pressure and acceleration sensorshave been used for many years for enginemanagement and airbag safety systems. Keycurrent automotive applications include:

• Pressure sensors• Manifold absolute pressure (MAP)• Tyre pressure• Brake system pressure• Accelerometers• Airbag triggers• Lateral acceleration for vehicle stability

enhancement• Inertial sensors• Yaw rate for vehicle stability enhancement• Dead-reckoning navigation• Roll-over sensors• Airflow• Manifold air flow (MAF)

The vast majority of automotive MEMSdevices are currently made from silicon.Surface or bulk micromachining techniquesare used, each manufacturer having theirown favourite technology. Depending on theexact application, it can sometimes bebeneficial to include electronics on the samechip as the MEMS device, but in manycases it is cheaper to have a separateprocessing chip (usually in the samepackage) as fewer process compromiseshave to be made. Most automotive MEMSsensors operate using a piezo-resistive orcapacitive sensing technique.

As always in the automotive industry, thekey driver is to reduce cost. Themanufacturing volumes are sufficient tojustify the investment in MEMS technology,and to take full advantage of the capability tomake many millions of identical devices.

The future…

An increasing number of intelligent functionswill be employed in the future, and MEMSdevices will be crucial.

Bulky and expensive mechanical andhydraulic functions will be replaced byelectronic solutions, comprising sensing,actuation and signal processing. This willlead to ‘X-by-wire’ systems wheremechanical control functions are completelyreplaced by electronics. Completely newfunctions will be available in the car, such asdriver assistance and collisionwarning/avoidance systems, innovativehuman-machine interfaces (HMIs),telematics, multimedia andentertainment/information functions. Newsystems for monitoring and control will alsobe necessary for the introduction ofelectrically or fuel-cell powered vehicles.

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The following technology trends will furtherincrease the market penetration of MEMS devices:

• Cost reduction, miniaturisation, higherreliability of components

• Distributed, modular architecture:distributed electronic control units (ECUs)will manage several functions; thisrequires a higher degree of networkingbetween modules

• Higher complexity of modules comprisingself-test, self-calibration, data reduction,bus interface; the consequence is higherfunctional integration

• Integration of modules into completemechatronic systems; this requires,amongst other things, higher temperatureresistance and more compact packaging

MEMS devices, particularly sensors, haveideal properties to meet these requirements.The automotive industry will continue todemand more complex, more reliable, saferand cheaper products, so increasingvolumes of MEMS devices will be crucial.

To achieve this, the following developmentswill occur:

• Increasing numbers of ‘conventional’MEMS devices (silicon pressure sensorsand accelerometers)

• Improved accuracy, lower manufacturingcost and better integration of MEMSdevices

• Devices for more hostile environments(temperature, pressure, vibration)

• Development of new types of sensorsusing MEMS technology (eg gas sensors,biometrics)

• Increased use of non-silicon MEMS (egsurface acoustic wave (SAW) devices,microwave MEMS)

In conclusion, MEMS technology is alreadywidely used in the automotive industry andwill be crucial to future success andprofitability.

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2 ORGANISATIONS VISITED

This chapter provides an overview of theorganisations visited. Contact details may befound in Appendix C.

2.1 ZEMI, Berlin, Germany

ZEMI (Zentrum fur Mikrosystemtechnik) issituated in the Science and Technology Park‘Berlin Adlershof’, which was formerly part ofEast Berlin.

The Science and Technology Park wasfounded in 1991 after German reunification,based on a local tradition of science andtechnology. There are 18 researchinstitutions and approximately 650companies with 10,000 employees situatedon the 4.2 km area. Businesses and institutesat the park focus on the following fields:

photonics and optical technologies;microsystems and materials technology;information and media technology;environmental, bio and energy technology.

The ZEMI cluster provides a platform formicrosystems technology, aimed at settingup a network for the region. ZEMIcooperates with industrial partners duringproduct development in the microsystemssector, and MST education and training.ZEMI partners are co-located at Berlin-Adlershof; their areas of competence arelisted in Table 2.1.

Partner Competence

BAM: Federal Institute for Materials Research Ceramics; surface technologies, eg CVD, and Testing sol-gel, substrates

FBH: Ferdinand Braun Institute for 4-inch semiconductor line, CAD simulation to 20 GHz; High Technology micro-optical technology

BESSY: X-ray Synchrotron Centre Synchrotron radiation for scientific basic research (1.7 GeV, 250 mA ring) in physics, chemistry biology, materials science

and MST

IFMT: Institute for Engineering Design, Micro and precision engineering; submicron Micro and Medical Technology (TU Berlin) engineering for sensors, optical instruments,

catheters and endoscopes; LIGA (ultra deep X-ray lithography); liquid crystal technology

IPK/IWF: Fraunhofer Institute for Production Application-oriented basic research and development Systems and Design Technology/ Institute for of new technologies in close collaboration with Machine Tools and Factory Management (TU Berlin) industry, eg virtual reality and image analysis systems

IZM/FSP-TMP: Fraunhofer Institute for Reliability Microelectronic and microsystem interconnect and Microintegration/Research Centre for and packaging technologiesMicroperipheric Technologies (TU Berlin)

Table 2.1 ZEMI partners and their areas of competence

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ZEMI’s main objectives are:

• Focusing Berlin’s R&D potential in thefield of microtechnology at one location

• Technological support for firms in thedevelopment, manufacture and testing ofproducts (from the realms of micro,precision and microsystem technology upto small series production)

• Overcoming innovation barriers formicrosystems technology with regard tohigh investment requirements and marketpotential assessment

The mission team met with ZEMI’sManaging Director, Dr Otto Richter, and twoExecutive Managers from WISTA-MANAGEMENT GMBH, who manage theCity of Science, Technology and Media atBerlin Adlershof. A tour of some of ZEMI’spartners – the IPK group and the BESSYsynchrotron facility – was also included inthe visit.

Optec-Berlin-Brandenburg optics cluster activity

As well as the MST activities at ZEMI, thereis also an optical technology cluster calledOptec-Berlin-Brandenburg (OpTecBB:www.optecbb.de) which exists to:

• Bring together partners• Target funding from the

Federal Ministry of Research• Support trade shows and conferences• Facilitate the use of shared resources

OpTecBB is an initiative of companies,universities and scientific institutes tostrengthen the economic power of theBerlin-Brandenburg region by joint activitiesin using the potential of optical technologies.It is one of the eight competence networksfor optical technologies in Germany whichemerged from the OptecNet competition ofthe Federal Ministry of Education andResearch (BMBF) in 2001.

The Photonics Cluster(www.photonicscluster-uk.org) based atAston Science Park exists for similar reasonsin the UK. The potential for an alliancebetween the two organisations mightusefully be considered.

2.2 ETH, Zurich, Switzerland

The mission team visited the PhysicalElectronics Laboratory (PEL) at ETH Zurich.PEL includes 30 people organised in teamsled by the director Professor Henry Baltes,and Dr Andreas Hierlemann, Dr TobiasVancura, Dr Jan Lichtenberg, Dr Kaay-UweKirstein and Dr Stefano Taschini. PEL’sresearch and teaching activities are in the areaof microsystem technology and microsensors.

Research is targeted to complementarymetal oxide semiconductor (CMOS)-basedmicro and nano transducers in collaborationwith silicon integrated circuit (IC)manufacturers and microsystem users.Since 1993, PEL has produced 37 doctoraltheses, over 500 publications, 17 patentsand a spin-off company. The researchmission statement is to translate physicaland chemical knowledge into silicon-integrated micro and nanotransducers basedon industrial silicon IC technology combinedwith compatible micro and nanomachining,deposition, and packaging techniques.

Fields of research include:

• Biomedical sensors• Bioelectronic interfacing• Diagnosis tools• Tactile sensors for medical applications• Microsensor packaging• Chemical sensors• CMOS-based capacitive chemical

microsystems• CMOS-based metal oxide sensors• CMOS-based mass-sensitive chemical

microsystems• Application specific sensor systems• Anisotropic etching

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• Physical sensors• Thermosonic ball-bonding sensors• Trench Hall sensor technology• Circuit design and simulation

The mission team met with Professor HenryBaltes, Dr Andreas Hierlemann, Dr TobiasVancura, and Dr Jan Lichtenberg.

2.3 IBM, Zurich, Switzerland

IBM’s Zurich Research Laboratory inRuschlikon, Switzerland, is the Europeancentre of IBM Research. The work focus ofIBM’s research laboratories combines long-term scientific activities with technologydevelopment and services for current andfuture markets. The spectrum of researchprojects encompasses the fields of physicsand mathematics, the development ofcomputer systems and software, and thedesign of novel solutions and services foremerging businesses.

IBM established the Zurich ResearchLaboratory in 1956, with the campus atRuschlikon being opened 1962. By 2000, allthe Research Laboratory employees wereaccommodated at this facility on theoutskirts of Zurich. Today, the laboratoryemploys approximately 300 staff.

As the European arm of IBM Research, themission of the Zurich laboratory, in additionto research, is to cultivate close relationshipswith partners from academia and industrythroughout Europe, to source researchtalent, and in particular to keep abreast ofrelevant technical fields.

The scientists at IBM develop prototypes todemonstrate the applicability of theirfindings and they are also involved inintegrating product design features at earlystages of development. IBM researchers areactive members of the internationalscientific community. For example, theZurich laboratory is involved in over 80 jointprojects with European universities, in

European Union (EU) and Swiss researchprogrammes and also in cooperationagreements with research institutions ofindustrial partners.

The Zurich Research Laboratory comprisesthe following departments:

• Computer Science – focus areas are IT security, privacy, mobile and pervasive computing

• Communication Systems – main focuson semiconductor components andenabling software

• Science and Technology – basic researchand the development of new technologiesto support IBM’s hardware businesses

• Industry Solutions Laboratory

2.4 IMT, Neuchatel, Switzerland

The Institute of Microtechnology (IMT) at theUniversity of Neuchatel was formed as apart of the Faculty of Science in 1975. It is aleading teaching and research institution anda link between the university and otherregional R&D institutions, such as CSEM(see Section 2.5).

IMT has built up significant technologicalfacilities such as COMLAB (shared withCSEM), a technological facility for waferprocessing and microsystems fabrication,containing state-of-the-art equipment fornanofabrication and micro/nanostructuralanalysis which parallels the processingcapabilities of Colibrys (see Section 2.6),allowing new processes to be designed in COMLAB and transferred to Colibrys as required.

150 staff work at IMT in the following areas:

• Applied optics• Sensors, actuators and microsystems

(SAMLAB – see below)• Electronics and signal processing• Thin-film silicon and photovoltaics• Pattern recognition

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IMT is involved in international collaborationswith the EU, NASA, and universities andresearch institutes from all over the world. Italso collaborates with industrial partnerssuch as ABB, Asulab, Novartis, Fisba,Gretag, Leica Geosystem, IBM, Hamilton,and Technion.

The Sensors, Actuators and MicrosystemsLaboratory (SAMLAB) was founded in 1982.Current research activities include:

• Process development for M(O)EMS• Tools for nanoscience• Micro(bio) electrochemical systems• Miniaturised total analysis systems• Micro-instrumentation for space research

The mission team met with Dr Urs Stauferand Associate Professor Milena Koudelka-Hep from SAMLAB.

2.5 CSEM, Neuchatel, Switzerland

CSEM (Centre Suisse d’Electronique et deMicrotechnique) is a privately held companyworking in the fields of micro andnanotechnology with links to variousresearch institutes. It employs 300 stafffrom diverse science, technical, businessand management backgrounds, and from 20 different countries.

CSEM is active in the fields of:

• Microsystems• Photonics• Communication technologies• Nanotechnology• Systems engineering• Biosensing• Information technologies• Microelectronics

CSEM develops and makes prototypes ofinnovative products and solutions, its missionon behalf of Swiss industry being to identifyand develop future enabling technology andapplication platforms, and to assistestablished industry to develop new andimproved products. It is also involved intechnology licensing and transfer, and hascreated at least 14 start-up and spin-offcompanies, providing incubation and coachingin order to enhance commercial success.

CSEM follows a market-driven researchstrategy in collaboration with IMT (seeSection 2.4), and participates widely in theseminars and conferences of the scientificcommunity. CSEM also participates in Swissgovernment MST programmes (SwissCommission for Technology and Innovation,and Swiss national Science Foundation) andEU Framework research programmes. Forexample, CSEM participates in a number ofcollaborative projects under Europractice,including Liquid Handling, BiomedicalDevices, Microactuators and MOEMS(micro-opto-electro-mechanical systems).

The sources of finance for CSEM are brokendown as follows:

Basic government funding 39%Cantons 5%EU projects 7%Priority programmes 2%CTI 8%Industrial income 39%

The total annual income to CSEM is currentlyof the order of 52 million Swiss francs.

The misson team met Jean-Francois Chapuis(Senior Manager in Communication andPublic Relations) and Dr Xavier Arreguit(Senior Vice-President in Strategic Marketingand Business Development).

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2.6 Colibrys SA, Neuchatel,Switzerland

Created by CSEM (see Section 2.5) in January2001, Colibrys SA is now Europe’s largestindependent manufacturer of silicon MEMSand micro-optical components, employing 125staff and undertaking design, development,wafer fabrication, packaging and test ofMEMS components. The company is focusingits efforts on areas of high market salesgrowth potential, in particular professionalinertial navigation systems, industrialapplications, life sciences, telecommunicationsnetworks and avionics.

The investors of Colibrys are Intel Capital,Aventic (UBS), Banexis (bnp Paribas), TAT, BCV,CSEM, and Innoventure (CSFB). The customerbase is established ‘blue chip’ clients such asBAE Systems, Sagem/Leica, Systron, Trimble,Agilent, CERN, ISS, Fermi Labs, Zeiss, Dicon,and Intel.

Colibrys’ vision statement is to be a ‘one-stop-shop’ for MEMS solutions. They seekto exploit applications that demandinnovative, high performance, total solutionsin medium-to-high volume quantities.Colibrys will work on custom designsdirectly for key clients, depending onapplication and the need to protectintellectual property rights (IPR), to providethe total solution. They also work as acontract manufacturer with preferredcustomers, providing applications knowledgeto global end-users. In addition, Colibrysmanufacture their own product based on IPRtransferred from CSEM.

Colibrys is the leader of one of the EU’sManufacturing Clusters – CEMEMS –organised under the EU’s EuropracticeCollaboration (www.europractice.com).

The mission team met with Sean Neylon,CEO of Colibrys, and his Operations andProcess team, and visited the manufacturingand packaging and testing facilities.

2.7 CEA-LETI, Grenoble, France

LETI (Laboratoire d’Electronique deTechnologie de l’Information) is operated bythe Technology Research Directorate (DRT)of the French Atomic Energy Commission(CEA). One of the largest applied researchlaboratories in electronics in Europe, its mission is to help companies increasetheir competitive position by technologicalinnovation and transfer of its technical know-how to industry.

LETI works in the following areas:

• Silicon technologies• Microsystem technologies• Optical components and multimedia• Transmission and

telecommunications systems• Heathcare• Imaging systems• Design

It has 8,500 m2 of clean room in Grenoble,with a total value of equipment amountingto more than €200 million. Each year, €20 million is spent on new processinginfrastructure. In 2002, CEA-LETI had abudget of €110 million and worked with 180 industrial partners.

The mission team met with David Holden.

2.8 Minatec, Grenoble, France

In November 2002, CEA-LETI in partnershipwith INP Grenoble and with support fromnational and local authorities undertook amajor initiative in the establishment ofMinatec, which is aimed at being Europe’s leading centre for micro andnanotechnology. €150 million ofregional/national funding will have beeninvested by 2005 to fund the newinfrastructure, with an additional €250 million invested by CEA-LETI and INP Grenoble.

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By 2005, Minatec will have a researchplatform based on existing CEA-LETIfacilities involving 3,500 engineers,researchers and academics. It willaccommodate laboratories, start-upcompanies and researchers all in onephysical centre. The focus spans fromadvanced microelectronics through tonanotechnology, but the emphasis isexpected to be on the nanotechnologies.

2.9 MEMSCAP SA, Grenoble, France

MEMSCAP provides innovative solutionsbased on MEMS. The company enablescustomers in high-growth markets toincorporate strategic MEMS technology intotheir systems as a means of addressingcritical technical and cost challenges.MEMSCAP offers MEMS services thatinclude component identification, componentdesign, prototyping and manufacturingservices using the polysilicon surface-micromachining and the MUMPs® multi-userwafer system, and CAD software suites.

MEMSCAP supplies its solutions primarily tothe following industries:

• Optical and wireless communications• Aerospace• Biomedical• Pharmaceutical

MEMSCAP is also the only Europeanprovider of CAD and simulation software forthe microelectronic and MST industries.MEMSCAP’s CAD suite is also one of thebest known, now being available in threeversions with increasing capability and onPC and UNIX platforms. Recently MUMPs®

has been made available in SOI (silicon-on-insulator) and metal versions, and designscan be submitted via a web-based system atwww.MEMSrus.com

Collaboration with academia is through theEU’s Europractice, where preferential rateshave been negotiated enabling Europeanuniversities and publically-funded researchlaboratories to be trained on commonsoftware. Commercial terms are the normalmechanism for industry.

MEMSCAP works with Fortune 500customers including leading networkequipment suppliers, wireless IC developers,medical equipment manufacturers, aircraftmanufacturers and cosmetics companies aswell as specialised system houses, majorresearch institutes and universities.

The MEMSCAP MEMS foundry in Bernin,France, has recently been closed, andmanufacturing is focused at its othermanufacturing facilities. The companydeploys proprietary high-yield and high-volume production processes that offerlower costs per unit. The company alsoprovides foundry services through its teamof fabrication specialists who overseeproduction at each site.

The MEMS mission met with GaetanMenozzi, Director Major Programmes fromMEMSCAP SA at the CEA site in Grenoble.

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3 TECHNOLOGY ASPECTS

In this chapter, industrial members of themission team indicate technologies andtechnical capabilities that wereencountered which have particularcommercial potential, either generally or inspecific markets of interest.

We group the technologies by category:

• Physical properties sensing • Chemical sensing • Biosensors • Imaging sensors

In addition we indicate areas of supportingtechnology for these sensing modalities,such as microfluidics and delivery systems.

3.1 Physical properties sensing

3.1.1 High temperature (300 C) sensorstructures for automotiveapplications

The BAM group, part of the ZEMI cluster(see Section 2.1), has high temperaturesensors for automotive applications based on ceramics rather than silicon. BAM also have extensive automotive sensor testing facilities.

3.1.2 Micro power wireless sensornetworking systems (WISENET)

CSEM is involved in an interestingprogramme to look at arrays of micropowersensors, intended to support a 10-year lifefrom a 1.5 V battery. Sensors can operate asa self-organised array to relay messages toand from a remote base station in order tominimise transmission power and hencepower consumption. Custom protocols areused, optimised for this particular application.

3.1.3 Capacitive sensors for humidity

Within ETH, the PEL research group pursuesdevelopment and application of capacitancesensors, utilising interdigitatedmicroelectrodes. Essentially the sensingcapacitor has a polymer layer to adjustspecificity (based on rates of penetration),and a capacitive reference. On-chipelectronics are needed because of very lowsignals (capacitance changes are in the orderof attaFarads), so it is necessary to processand digitise on-chip.

The ETH spin-off company Sensirion(www.sensirion.com) markets thesesensors. Examples of application includehumidity sensors that are sensitive over thewhole humidity range.

3.1.4 Fluidic flow sensors

Sensirion (an ETH spin-off co-founded byProfessor Henry Baltes) provides ultra-lowvolume fluidic flow sensors (>1 nl/min) thatmeasure flow by change in temperature.These devices are excellent for use in aconstant medium, but accuracy and stabilityin applications where the medium changesis likely to be less good.

3.1.5 Thermal conductivity sensors

Thermal conductivity gas sensors based onCSEM technology, developed andmanufactured by Microsens (a spin-off fromCSEM), could also be useful in many fields.

Typical applications would be monitoring ofmethane concentration in natural gas for gasengine control, or detection of refrigerantgases such as Freons, CFCs or fluoroethanefor leakage monitoring of cooling systems.

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The technology could also offer a low costindoor air quality carbon dioxide sensormodule for ventilation or heating controlinstrumentation. A sensor operating on thesame principle has been used in the last 5 – 7 years for measuring sub-atmosphericpressures down to 10-3 mbar.

3.1.6 ‘Millipede’ thermo-mechanicaldata storage system

An unusual example of application ofthermal sensing on a microscale isprovided by IBM’s millipede project. IBM has been working on a micro-machined array of micro-cantilevers,arranged to store digital information bythermally indenting a substrate. The entirearray is moved over the surface of thesubstrate to address the storedinformation. One cantilever can read/writedata at up to 100 kbit/s. With claimed datastorage density of up to 1,000 Gb/in2, it isintended to challenge semiconductor flashmemory. 10 Gb of ‘millipede’ memorycould fit into the SD memory card format.

The millipede represents a new way ofstoring data, using an atomic forcemicroscope (AFM) to write with hot tipdimples in an area of polymer surface (theglass transition temperature Tg is 120 – 200 oC; the polymer needs to be easilywritable, but not to flow). An array of AFMtips each with 100 µm x 100 µm addressablespace is used. 4,096 cantilevers areenvisaged. Readback uses the same tip –hot but not hot enough to melt the polymer.In a dimple the cooling effect is greater thanwhen the tip is just touching the surface, soheat loss reads back the written information.The temperature drop is 1 part in 105 whichcan be read with good S:N. The dimples are20 – 30 nm apart and a few nm deep. Tipsare 300 nm long and with ~10 nm tip radius.

The millipede gives much better informationdensity than an optical disk (x 50). Thedesigned media table is 6 mm x 6 mm andmoves +/-100 µm. Cantilevers are 100 µmapart and hence have their own 100 µm x100 µm area to write. A typical commercialdevice will be 10 Gb with all correction andoverhead space included. The industrystandard for bit errors is ~1 in 104: tests of adata image encoded on one of thesedevices showed a final error rate lowenough for error correction software to giveperfect data image recovery. The memoryhas a limited lifetime, 105 – 106 cycles forthe AFM tips. This represents the samelifetime target as flash memory, but won’tcompete with magnetic memory.

The technology will not be ready forcommercialisation until 2006 at the earliest.A market is envisaged for the device since itis three times better than the best currentstorage capacity, eg magnetic write. Marketapplications might include MP3 playerswhere a range of several Gb is optimal, orvideo recording devices where currentmemory is too small but 10 Gb could storehours of good quality video.

3.2 Chemical (including gas) sensing

3.2.1 Specific gas sensors

Research undertaken by the PEL at ETHZurich could have wide applications in thegas detection/monitoring field; in particularthe work on metal-oxide-based chemicalmicrosensors as well as polymer-basedchemical microsensors.

To meet the requirements of suchapplications the devices would need tomeasure contaminants in the lower ppm oreven ppb levels, which would require furthersensitivity improvements. These types ofsensors could be very useful, eg for thesemiconductor industry for continuousmonitoring of the purity of various gasesrequired for semiconductor processing.

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ETH’s range of devices include SnO2 gassensors using integrated micromachinedhotplates, capacitive chemical sensors withinter-digitated electrodes, calorimetricsensors with integrated thermopiles, andresonant cantilever sensors.

Chemical sensors based on thick film SnO2

on a smarter substrate are used to detectCO, NOx, highly volatile hydrocarbons suchas methane, and other environmentallyimportant species which can’t be detectedusing polymer films. The hotplate part of thesensor needs to operate at 200 – 400 oC. A temperature control loop precisely adjusts the SnO2 temperature.

Detection of tens of ppm of methane, andbelow 1 ppm for NOx and CO are possible,and have been demonstrated at up to 40%relative humidity. By cycling the hotplatetemperature and looking at differentialrelease temperatures it is also possible tospeciate the gases.

The SnO2 sensors are capable of continuousoperation and prototypes are available. The device is aimed at the automotivemarket and developed under an EU projectwith an industrial partner wanting tomeasure oil content in compressor air. .Different sensing modalities can also becombined on the same chip and inferencesmade from the combined outputs of thesensors. ETH have developed a chip with anumber of the above modalities integrated.

The ETH cantilever-based systems are basedon technology developed for AFMs – thecantilever is shorter and wider, and arranged,for example, as four cantilevers in an array.Each is deformed by heater actuators anddetected by a Wheatstone bridge circuit.These sensors can differentiate 5, 10, 20ppm of n-octane. A polymer layer on thecantilever (polyurethane) absorbs the analyteand changes the cantilever mass and henceits resonant frequency.

Such sensors can get down to single ppmlevels, however this is only comparable withthe performance of SAW and quartzmicrobalance devices, and MEMS cantileversensors are not likely to be better than this.What is measured is a few Hz shift in aresonant frequency of around 360 kHz. It isalso possible to activate the cantilevermagnetically. A current loop is used to setup a Lorentz force, driving deformation ofthe cantilever.

3.2.2 Liquid phase sensing

ETH cantilever systems have been extendedinto the liquid phase also. There is a need tokeep the frequency below where acousticradiation occurs, but deal with resonancedamping by the fluid. The measurementpeak is much sharper than in gas phase. The technology is considered for disposablemedical devices – electrochemical reactionscould be used to clean the Au surface and tomonitor re-coating, but this is not a keyresearch thrust. Antigen immobilisation isnot the focus here. By tailoring the polymer,the sensor can select or reject analytesbased on polarity – water, alcohols etc canbe rejected and non-polar molecules seen.

3.2.3 Artificial olfaction

In common with ETH, IBM has ongoingtechnology development in the area ofnanomechanical sensing, cantilever arraysensors being created for chemical sensingartificial olfaction applications. In this areaIBM collaborates with NCCR in Basle.

The device is a silicon micromachined arrayof cantilevers each 500 µm long, 100 µmwide and 0.5 µm thick with a resonantfrequency of 4 kHz. The consistency of themanufacturing process is such that thisvaries by only 0.5% within an array of eightcantilevers. Differential polymer coating givesa specific pattern recognition for differentchemical species. A couple of internalreference cantilevers are needed also.

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The key step is individual coating of thecantilevers (a non trivial process). This isdone by inserting each cantilever into amicrocapilliary containing the coating fluid,or by inkjet spotting. Unlike the ETH devices,the cantilevers are optical read-out, withlaser reflection off the cantilever, from aVCSEL array, being picked up by a linearposition-sensitive detector (one laser percantilever, time multiplexed).

Outputs from the position sensitive diodearray are fed to a PCA program forprocessing. The volume of the analysischamber is between 40 and 300 µl. For anair quality sensing device, the differentpolymer thin layers used include: PU/PS,PMMA, PU, PVP, PS/PMMA,PVP/PU/PS/PMMA, PS, and PU/PS/PMMA.The device has been shown to be capable ofdiscriminating dichloromethane from tolueneand ethanol in the vapour phase.

3.2.4 Spectrometric techniques

Use of MEMS technologies to miniaturisespectrometers, such as the microminiaturemass spectrometers developed by Dr SteveTaylor at Liverpool University, arereasonably well known. The IMT at theUniversity of Neuchatel, under ProfessorHertzig, has developed opticalspectrometry (an FTIR – Fourier transforminfrared spectrometer) on a chip. Thisdevice has a 40 µm optical path difference,and an 80 µm opd device is underdevelopment. Lamellar gratings are alsoused for enhanced sensitivity.

The MicroParts spin-off from ZEMIproduces a microspectrometer diode array(200 – 600 nm wavelength) that could formpart of a detection component formicroanalysis systems.

3.3 Biosensors

3.3.1 Gene detection

IBM have developed a biosensor for genedetection applications. This is a liquid phaseapplication where the gold surface of acantilever is coated with a thiol modifiedDNA oligomer which preferentially binds tothe target DNA fragment. The project is incollaboration with a start-up (Concentrys)who plan to commercialise the technologyand who are at prototype stage.

3.3.2 Biomolecular sensing

The ETH PEL group are also working withmagnetically driven cantilevers for liquidsamples to measure the free surface energyby bio-molecule binding. This work is verymuch in the academic phase at the momentbut could be interesting to nurture forsensitive analysis of disease interaction withcrops or protein/ligand binding.

Arrayon (a spin-off from CSEM) provide adevice for parallel, label-free detection ofprotein-drug interactions using changes in theevanescent field that is associated with suchbinding. Although this technology is not novel,the sensitivity of the system may conferadvantages over present commercial systems.

In collaboration with ETH, IMT is working onCMOS electrochemical array sensors forimpedance analysis of whole cells, combinedwith microfluidic nutrition and bio-chemicaladdition technology. This is particularlyinteresting on two counts: first, the cells arekept alive so long term effects of chemicalinteraction are possible; and second, thearray structure and micro-needles could allowwhole organs to be immobilised on thematrix and the effects spatially mapped. Insupport of agrochemical applications, theseorganisms could be in the form of a skinstructure from a crop ‘pest’ or a plant leafsurface, so as to analyse the uptakemechanisms for formulated products.

LETI have developed chip-based single-cellassays facilitated by improved opticalcomponents that increase sensitivity tofluorescence. These are used to investigateeffects of compounds on intracellularexpression of labelled biomarkers. Timelinesfor commercialisation were unclear.

The Amadeus Project (LETI in collaborationwith Biomerieux) gave rise to the magneticmicroconcentrator chip, which, in conjunctionwith single-molecule fluorescence detectionand a novel micropump concept, facilitatesthe characterisation of drug-proteininteractions at the nanolitre scale.

3.3.3 Bio-active textiles with embeddedenzymes

CSEM has been working on smart textiles,having embedded sensors for a number ofmedical and sports applications, eg for non-invasively monitoring physiologicalparameters. Detection uses surface plasmon techniques.

3.4 Imaging sensors

3.4.1 1.2 mm diameter micro-motor formedical catheters

While not in itself an imaging sensor, ZEMIpartner IFTM is commercialising MEMSactuator technology in support of medicalimaging applications. The drive motor wasdeveloped first as a research challenge, butis finding application, eg in ultrasoniccatheters. This is done with the very smallmotor driving a piezo-transducer and is nowbecoming a commercial product.

Another application of the same very smallmotor is in an endoscope with themicromotor driving the zoom mechanism.The applications centre of IFTM has alsomade a flat motor (1.5 cm diameter, 3 mmthick, with 12 times the conventional torqueof a device of this volume). The motor canbe used as a generator also.

3.4.2 Biomimetic camera

CSEM has a novel optical imaging system –looking not at intensity but at contrast todefine the image. The device is biologically-inspired with calculation done on-chip, andhas a 128 x 128 pixellar array. Because ofthe detection mechanism, this type ofcamera is largely unaffected by lightintensity changes.

3.4.3 Partial-depth camera

CSEM has also developed (at their Zurichsite) a camera chip which has partial depthcapability. The basis is a time-of-flightcamera: each pixel detects at 20 – 30frames per second, and utilises theDoppler optical effect – time/frequency oflight bouncing off the subject. Images arecolour-coded to indicate depth/movement.Near-infrared LEDs are mounted aroundthe camera for illumination. The partial-depth camera was selected for the ISTprize 2004.

The project was initiated 10 years ago as aresult of application problems that were fedback to CSEM regarding image dataextraction/extrapolation favouring thisapproach (eg determining intent, for door-opening algorithms or automotive occupant position detection). The camera now is in beta-test.

3.4.4 Optical ASIC and artificial retinatechniques

CSEM has a long tradition of opto ASICs andusing novel techniques such as the artificialretina to get the best out the system. An example is the optical system in theLogitech mouse; another is the Bishoptorque sensor.

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3.5 Supporting technologies

3.5.1 Microfluidics

Electro-osmotic pumping

Research at IMT has demonstrated trapping ofcolloidal particles by integrating pressure-drivenflow and electro-osmotic fluid drive. This is apertinent use of the micro-environment whichtakes advantage of the strong electrical fieldstrength available at small scale and exploitsthe flow properties of small channels to carryout cell trapping. Trapping of absorbent beadsfor preconcentration as well as trapping ofDNA has been demonstrated.

The ability to manage particle/liquidinteraction in this highly controlled mannerhas implications in various areas, eg buildingup solid supported libraries of compounds ina precise manner or isolating, producing andmanipulating specific crystalline polymorphs.

Microdosing

CSEM has demonstrated microdosing ofchemicals using adapted AFM probes.If this can be proven to work then theability to target the spatial addition ofbioactive molecules onto an organism withhigh accuracy could create new laboratorysensing capabilities. For example, toanalyse the interaction of active ingredients with specific cells and thenfacilitate the design and characterisation of formulations to preferentially focus ongiven biological structures.

Interface to mass spectrometry

The BioChiplab project (LETI in collaborationwith Sanofi-Synthelabo, Osmooze) hasproduced a microfluidic system for couplingto a mass spectrometer. This is useful forcharacterisation of drug-protein interactions,but use of electro-osmotic flow limits its useto biologicals and will not enable it to beused for chemical synthesis.

3.5.2 Processing technologies

Integration of CMOS electronics

A common theme from ZEMI, LETI,Colibrys and CSEM was that, even forplanar silicon MEMS designs, anyelectronics should not be located on thesame substrate as the MEMS sensor asthe potential for parasitic interaction wastoo great. This was not the case at ETH andfor their collaborative projects with IMT,where it was seen as a critical element ofthe MEMS system functionality to co-locate CMOS electronics with the planarMEMS sensors.

The ETH sensors are made with integratedCMOS analogue and digital electronics tocarry out calibration, linearisation and toprovide a digital interface to the outsideworld. ETH integrates processing circuitrywith the sensors in the one package,realising improvements in sensitivity as a result.

The successful integration of thesemodalities at ETH and IMT may be partlydue to the adoption of lower tolerance 0.8and 0.6 mm CMOS circuitry in the design,however it was stated that successfulsealing of the electronics could be anissue, especially from the aqueousenvironment found, for example, inbiosensing applications.

Micro-EDM (electro-discharge machining)and micro-milling techniques

The IPK group at ZEMI provides manyinteresting ways of making smallcomponents from metals and otherconductive substrates. Both 2D and 3Dstructures can be made. These techniquesare ideal for low volume and prototyping,since, although the process is slow, theset-up and tooling costs are low.

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IPK has developed machining below +/-50 nm resolution (and if pushed can gobelow +/-10 nm). Surface precision of thislevel implies optically active surfaces withoutpolishing (even for X-ray diffraction).

The related diamond turning and mouldingprocess was also impressive, enablingoptical quality parts to be directly moulded incomplex shapes, with surface qualityclaimed to be better than 5 nm.

Micro optical bench

A ZEMI collaboration between BESSY andFBH has resulted in an interestingmicrosystems assembly technique for micro-optical components – the micro-opticalbench. Laser diodes can be cascaded to getmore and more output, but divergence killsthe application unless a solution such as the micro-optical bench is engineered.Stacks of up to 20 laser diodes have been demonstrated.

If high power is needed, the requirement is to focus the laser from stage to stage. With such focusing the device may generate200 times the power of a laser pointer. This technology is not yet at industryexploitation but close.

Packaging toolkit

The IZM group at ZEMI has produced aseries of standard packages and processesfor packaging various types of MST devices.

Processing at BESSY

The LIGA process at BESSY has been usedto make a microspectrometer (visible region,flat design with a dispersive element andintegrated onto a chip). The size isapproximately 10 x 15 x 2 mm and theoperating range 350 – 780 nm with 7 nmresolution. The structure is PMMA coatedwith Au. The device is commercialisedthrough MicroParts GmbH.

BESSY is also used to manufacture thegears used for the no-backlash mechanicalsystems used in precision micropositioning(nanomovers). This is done with negativephotoresist and uses SU8 polymer. Gearsare 6 mm or 10 mm diameter.

Diamond coating

CSEM provides facilities for diamond surfacecoating of non-electrically conductive media.The unique properties of diamond – highlychemically tolerant, steriliseable andmechanically robust whilst also opticallytransparent in most of the MIR, NIR, UV andvisible regions – open up a number of newspectroscopic opportunities.

Traditionally this has been a very expensiveoption for chemical process monitoring aswhole diamonds have had to be employedbecause reliable, pin-hole free, coating ofsubstrates has been difficult for non-conducting supports such as ZnSe. IfCSEM’s technology can address this thenthere is potential to open up new marketopportunities not just in sensing but also inoptical initiation of reactions.

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4 BUSINESS ASPECTS

4.1 Comparison of business inter-relationship models

Key to understanding how MEMSinfrastructure support functions is anunderstanding of the inter-relationships ofthe organisations, their funding, and theiroperational models. Here we compare andcontrast the operational models of twogroups of organisations. The chosenmodels are based around CEA-LETI(France) and CSEM (Switzerland). The descriptions are necessarilygeneralised, and somewhat simplistic,describing principles rather than detail.

4.1.1 The French model

CEA-LETI is set up as a national facility forMEMS research; the French policy being thatall national funding for MEMS-related researchis for activities in conjunction with LETI. As aresult of LETI’s research activities, commercialproducts are created and opportunities arisefor spin-out companies. These companies areincubated by LETI, being able to use LETIinfrastructure for manufacturing until theirdemand volume determines that they createmanufacturing facilities of their own. Whereinvestment in the spin-off companies isdifficult to find, CEA-LETI operates aninvestment fund which it can co-invest.

Figure 4.1 CEA-LETI operational model

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The strategy of the spin-off companies andof LETI is interlinked, in that while the spin-outs concentrate on the exploitation of theirfirst-generation technology, LETI’s researchprogrammes support the creation of next-generation technology for these products,keeping the product pipeline flowing withoutdistracting from the commercialisation effortsof the new and very small businesses.

LETI also operates fabrication facilities whichare parallel to those of others in themanufacturing domain, allowing LETI todevelop new state-of-the-art processingtechnology which is easily transferable intothe manufacturing domain, thus ensuring

that the commercial fabrication facilitiesremain competitive and able to meetevolving market requirements.

4.1.2 The Swiss model

CSEM operates with a mixture ofgovernment and industry funding, itsmission being to undertake technologyforesight activities for Swiss industry and todevelop the platform technologies whichSwiss industry will need in the future as aresult of this foresighting. A mixture ofdevelopment models are used, someresulting in CSEM spin-outs and others injoint commercialisation of research.

Figure 4.2 CSEM operational model

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CSEM also assists in the development ofspecific products based on the developedplatform technologies.

In order to maintain an inflow of researchideas, CSEM works collaboratively with IMTat the University of Neuchatel, and thesetwo organisations have commonly sharedlaboratory facilities equipped for fabricationof MEMS devices. CSEM incubates its spin-out companies, and retains a stakeholdingso that their success also feeds fundingback into CSEM. In order to help obtainsuitable investment, CSEM is a partner withother organisations in managing regionalinvestment funds.

In addition, CSEM has recently created a newcompany, Innobridge, which is contracted bylarger industrial organisations to undertakedetailed opportunities analysis and technologyrequirements audits and to guide theseorganisations through the process oftechnology acquisition and embedding.

The COMLAB facility shared betweenCSEM and IMT is set up to parallel thefabrication facilities of CSEM spin-outColibrys. In this way, independently ofColibrys’ commercial operations with otherclients, CSEM can use COMLAB to developnew process technology which supportsthe products CSEM is bringing to market,then transfer these into Colibrys. As aresult Colibrys maintains a leading edgewith its state-of-the-art manufacturingtechnology and CSEM prepares afabrication facility to receive the products itis commercialising with its clients. CSEMhas a shareholding in Colibrys, so again thesuccess of Colibrys is designed to supportthe broader business developmentactivities of CSEM.

4.1.3 Conclusion

The common factor in both these models isthe way in which national investment is usedto provide an ‘engine’ for innovation which

results in end-user companies gaining newproduct technology. In both cases thelinkage to the research base is strong and ofa strategic nature, and the Swiss model oftechnology roadmapping and investment inplatform technologies for Swiss industry isparticularly effective in bringing research,intermediary and industrial organisations intosuccessful partnership.

The other key feature in both instances isthe mechanism which has been put in placeto ensure that the related MEMS fabricationfacilities remain competitive through thecontinual inflow of new state-of-the-artprocess technology. This is developedoutside of the fabrication facilitiesthemselves, allowing them to focus on theircore business, and transferred in fromparallel research-oriented (lower volume)facilities which are linked to the nationalresearch infrastructure and ongoing public-sector investment.

4.2 Comparison of MEMS start-ups

Here we compare and contrast the businessmodels for a number of MEMS start-ups.Those chosen were Colibrys (Switzerland),MEMSCAP and Tronics (France).

4.2.1 Colibrys (Switzerland)

Background

Colibrys have been in existence for less thanthree years, having been spun out fromCSEM in January 2001. The first roundfunding was $13 million, and the secondround $10 million, the investors being: IntelCapital, Aventic (UBS), Banexis (bnp Paribas),TAT, BCV, CSEM, Innoventure (CSFB).Furthermore, the employees have a 13%stock option. The investor profile is given inTable 4.1.

The investment of $15 million in buildingsand facilities represents the major part ofthe investment capital.

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Colibrys aims to break even in 2004, and hasa vision for a turnover of between $50 – 100million per annum. The strategy is toconsolidate market leading position, andtake to an IPO when the market is ready.

Business model

Key features of the Colibrys business model are:

• Spun out from a strong and experiencedhigh technology parent (CSEM)

• Inherited staff, expertise, patents,software and funding from parent

• Activities of CSEM through COMLAB ableto develop new processing capabilities fortransfer into Colibrys

• Mixed business model – product, and fulldevelopment service

• Targeted marketing strategy to highadded value products in low/mediumvolumes

• Continued link with parent gives longevityof experience and access to specialistexpertise

• Supportive investment from largely Swissnational investors

• Large employee share option helps toretain and motivate workforce

• Facilities are medium scale and designedfor flexibility

• Strong in-house design capability

• Full design through manufacture service offering

• Quality standards open high performanceapplications markets such as avionics,defence

• Strong patent portfolio – 120 patents

Product positioning

Colibrys offer a whole-service product range comprising:

• Product design• Process design• Fabrication• High precision packaging• Testing facilities

Colibrys therefore can offer a one-stop-shopservice to customers. In terms of capacity,Colibrys claim to be Europe’s largestindependent MEMS facility, with a capacityof the order of 20,000 silicon MEMS wafersper year.

Market positioning

What makes Colibrys different from otherMEMS suppliers is their clear strategy toonly work on certain types of projects andwith certain customers in order to build longterm profitable relationships. Colibrys arefocusing their efforts where they believe the

Company Type/Affiliation Nationality

Aventic Swiss venture capital arm of UBS Swiss

Banexi Ventures VC French

Banque Cantonale Vaudoise Bank Swiss

Intel Capital VC US

TAT Investments Investment fund Swiss

Innoventure Capital Associate of Credit Suisse Swiss

CSEM Independent RTO Swiss

Colibrys employees 13% stock option

Table 4.1 Colibrys investor profile

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potential for market sales growth remainsvery high, especially in professionalnavigation and guidance systems, lifesciences, telecommunications networks andindustrial imaging and display applications.

They do not want to operate as a ‘jobbingshop’ and will only take on projects wherethere is a clear route to profitable, long-term,volume manufacture. They also offerpackaging and testing services, as well asthe manufacture of the MEMS chipsthemselves. Offering more than just chipmanufacture seems to be a key factor forcommercial success.

Collaboration

Colibrys and Coventor Inc(www.coventor.com), another Intel Capital-funded company based in Cary (NorthCarolina, USA), teamed up to developMEMS for optical communications. Colibryswill use Coventor’s design software todevelop custom MEMS devices for opticalapplications.

Role of parent organisation

CSEM has played a significant role in theformation of Colibrys, and remains a keycollaborator, and part owner.

4.2.2 MEMSCAP (France)

Background

MEMSCAP was launched in 1997 as a fullyprivate company and received $2.2 millionfirst round venture capital funding in 1998from SPEF Groupe Banques Populaires(France) and Innovacom (France). Secondround venture capital funding in April 2002raised $11 million from the initial investorsplus ETF Group, and funding wasoversubscribed by $24 million in a bullishmarket. In March 2001 the IPO raised €101million (~65 million shares) and capitalisationof €43 million.

Led by Jean-Michel Karam, Chief ExecutiveOfficer, MEMSCAP has pursued an activedevelopment and acquisition policy asfollows:

2000/09 Strategic OEM agreement withAnsys Inc

2000/10 ADC teams with MEMSCAP2001/04 Partnership with Walsin Lihwa 2001/06 Fabrication facility €67 million2001/07 Set up Japanese subsidiary2002/02 Acquired CAPTO for €9.3

million2002/07 Lease contract €37.5 million2002/10 Acquired Cronos/JDSU for

€10.5 million2003/08 Developed GalayOR for €6.5

million2003/10 Acquired Opsitech Grenoble –

SOI

Turnover for 2003 was €10 – 12 million, with192 employees in 6 countries.

Marketing strategy

MEMSCAP set out to be market leader inthe telecoms and optical communicationsmarkets in the late 1990s, anticipating thatMEMS would be a key enabling technology.These markets were soon to suffer asignificant downturn. The MEMSCAPphilosophy was to capture a significant partof these markets on a global scale. Theytherefore developed a requisite businessmodel for scalability and growth withpotential for international expansion.

MEMSCAP’s main markets are:

• Communications (optical and wireless)• Foundry and associated services

(including MUMPs®)• Medical/biomedical• Aerospace industry• Computer-aided design (CAD)

Business model

Key elements of the original business modelare:

• Scalability – large volume• Global market coverage and market

leadership• Patent portfolio• Acquisition to achieve the above

The current business model features someof the above, plus:

• Achieve profitability in 2004 throughcutbacks

• Strategic partnership and collaboration

Product offerings

MEMSCAP initially focused on opticalMEMS devices. A key feature of theirproduct offering was sophisticated CADdesign software and expertise. Products andcapabilities were added to their portfoliothrough acquisition, which was a rapid wayto access new markets with newtechnologies. The range of sectorssupported is illustrated in Table 4.2.

Collaboration

MEMSCAP is collaborating with ESIEEParis (Ecole Superieure d’Ingenieurs enElectrotechnique et Electronique), and is a

founding member of the ‘Club ESIEE-Partners’. In the research sector,MEMSCAP has partnered with FujitaLaboratories for complementary opticaland assembly technology and with Frenchresearch labs IRCOM and CNES forproduct testing. MEMSCAP collaborateswith eight foundries for specific processes,and with design houses to offer a range ofdesign tools.

The MEMSCAP foundry at Crolles hasbeen recently closed, withmanufacturing being centred at itsother facilities. MEMSCAP Grenoblenow focuses on design services andMEMS design software sales and sales support.

4.2.3 Tronics (France)

Background

Tronics Microsystems SA was spun-off fromCEA-LETI in May 1997 with CEA Valorisationas a shareholder. Tronics raised ~€0.4 million in its first round of venturecapital funding. The financing was led byCDC Innovation 2000 FCPR. It was the firsttime that Tronics had opened its capital toinvestors, as up until then it was owned byCEA who keep the majority of the shares.

In July 2001, Tronics raised €10.5 million inits second round of funding. The round wasclosed with CDC Innovation 2000 FCPR(Tronics’ historical investor), SercelHolding, Credit Lyonnais Venture Capital,Schneider Electric Ventures and onebusiness angel. Key Tronics personnel areStephane Renard (founder, president andCEO), Christian Pisella (CTO), and PeterPfluger (CEO).

Tronics Microsystems is a MEMS andoptical MEMS foundry, and a contractmanufacturer of high added-value customMEMS components.

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Q3, 2003

€ million US$ million

Sensor solutions 0.9 1.0

Wireless communications 0.2 0.2

Optical communications 0.1 0.1

Software 0.2 0.2

Foundry services 0.5 0.6

TOTAL 1.9 2.1

Table 4.2 MEMSCAP financial performance

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Business model

Key elements of the business model are:

• Specialist expertise • Strong IP portfolio• Research links with CEA

Business plan

Elements of the business plan areas follows:

• Establish long-term commercial relationsworldwide with well establishedcompanies that are at the forefront oftheir market

• Middle term perspectives to increaseproduction capacities

• Develop a 6-inch wafer production line forvolume manufacturing of MEMS

Product offerings

Services offered by Tronics include productdevelopment from design to manufacturingfor small to medium runs. Examples ofdevice applications include:

• Sensors• Optical MEMS• RF MEMS• Microfluidic devices• Precision microstructures• High sensitivity accelerometer• Miniature pressure sensor• Geophone

Tronics prototypes, develops andmanufactures a range of MEMScomponents from silicon chips to highlyminiaturised packaged devices, using twobasic silicon MEMS manufacturingtechnologies – surface micromachining andbulk micromachining – as well as standardand proprietary packaging solutions: waferlevel packaging, under vacuum packages,and flip-chip interconnections

MEMSOI is a low-cost prototyping serviceoffered by Tronics for its surfacemicromachining technology on epitaxial SOIwafers (Epi-SOI) and the Multi-Project Wafer (MPW).

Markets

Tronics targets devices for high-endapplications such as medical,telecommunication and instrumentation, andrecently in geo-surveying. This is illustratedin Figure 4.3.

Technology platform

Tronics have used facilities for 4-inch MEMSwafers at LETI using dedicated developmentand production lines. Tronics opened a newfacility in July 2003 in Crolles, and this wastargeted for full production by end 2003. Thenew facility comprises a production area of7,000 ft2 with 4,300 ft2 of clean roomdedicated to the production of high-endMEMS based custom components. It willhave a capacity of 10,000 wafers per year.

Partnerships

Tronics has signed two distributionagreements in Japan with MarubeniSolutions Corporation and Seika Corporation.They work closely with eight Europeandesign-houses under the Europractice ISTprogramme, Tronics is networked with eightdesign houses across Europe in developingMEMSOI devices (Acreo, AML, CEA-LETI,CNM, FhG ISiT, CNRS-LAAS, NMRC,SINTEF). Collaboration with Sercel SA hasled to the geophone development.

Research cooperation

Tronics Microsystems and CEA-LETI havesigned a three-year MEMS R&D agreement.A joint research team has been created toprepare the next generation technologies.Tronics also cooperates regularly with otherresearch institutions (EPFL, ESIEE, LAAS).

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Role of parent organisation

CEA-LETI has a long history of encouragingspin-outs, and LETI judge that a typicalstart-up requires investment of €120 million(ie 100 person-years) and takes eight yearsto establish. LETI have spun out 25 start-ups in total, of which two havesubsequently shut down.

LETI provide a number of facilities:

• Staff can spin-out – but have security inthat their job at LETI is kept open forthree years

• An incubator service (GRAIN) – thiscomprises venture funding from CEAValorisation, an internal VC company forCEA activities which has around €15million, or seed capital from EMERTEC

• Accommodation – LETI rents lab andoffice space and offers night-shiftproduction use of foundry and equipment

• R&D agreement – LETI may take on 2ndgeneration product development onbehalf of an SME

Recent start-ups include: Soisic, ActiCM,Antec, Tronics, Apibio, Beamind’ PHS,InCam, Aldtech, Nanolase, Intexys, Opsitech,Ulis, Tracit.

LETI may take shares in spin-outs. CEAValorisation is an internal VC company thatwas allocated €15 million, which has mostlybeen used up, although the income stream isnow growing. Their remit is to evaluate thetechnology, and if is found to be good and noVC funding can be found, they fund it.

Use of manufacturing facilities

The technology platforms in LETI aremaintained and operated by dedicatedtechnicians. SMEs can submit a request for a manufacturing run to be carried out by these staff. For specialised manufacturing requirements, SMEs buy their own equipment.

LETI want start-ups to become successful,as LETI will then become the researchpartner funded by the SME.

Figure 4.3 Tronics target markets

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4.3 Comparison of start-up business models

It was widely commented that MEMS is theleast successful area for start-ups, sincenew applications need a lot of justification togo forward. There are not many successstories in MEMS, and investment is highsince different MEMS devices may needdifferent manufacturing facilities. As anexample, Analog Devices manufactures bothMEMS and operational amplifiers, andalthough they have 70% of the market fortheir MEMS device, this is not reflected inthe financial return.

4.3.1 Role of parent organisation

The start-ups show an interesting range inthe role of parent organisation:

MEMSCAP is an example of a companywith little relationship with a parentorganisation; it started from the outset as aprivately funded venture.

Tronics by comparison has remained in theCEA incubator for five years before settingup autonomous facilities, and as it is partowned by CEA, has a three-year R&Dagreement to work together in the future.

Colibrys is between these two extremes,since it set up its own premises quite soonafter being formed (although is located nextdoor). Though having a great deal ofautonomy from its parent, CSEM, theworking relationship is still close.

4.3.2 Character and role of investors

MEMSCAP raised a large amount of privatefunding (€22 million + €42 million IPO),which it then used to develop a state-of-the-art facility and to pursue an acquisition strategy.

Colibrys has a smaller number of investors(€19 million), all Swiss, and has been lessspeculative with funds. An importantstrategy has been to issue employees with13% stock options, which gives them adirect stake in the future of the company.

Tronics has required the least investment(€12 million) but has been using facilitiessubsidised by the parent, CEA, until thisyear when new facilities have been built.The structured approach of the CEAValorisation venture fund has probably takenaway much uncertainty over funding, andthe incubator status has reduced the burdenof CAPEX amortisation while the companywas developing.

4.3.3 Business strategies

MEMSCAP has adopted a veryentrepreneurial business model, based onstrategic acquisitions. Unfortunately, thetarget markets of telecomms and opticalcommunications have both underperformedcompared to expectation. A major benefit ofinternational acquisition is facilitation ofglobal marketing, which MEMSCAP canexploit for mass market applications.

By comparison, Colibrys have adopted arelatively cautious mixed model approachbased on a product and a service. They haveclose links with their indigenous marketthrough Swiss companies, and have a highlytargeted marketing strategy.

Tronics has built up slowly, a situationallowed by the protective incubator system.

Tronics and Colibrys both have a strongresearch/IP element which gives them aninnovative edge to new productdevelopment. MEMSCAP have bought into IP, which is a cash hungry and morerisky option.

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Both Tronics and Colibrys benefit from thetransfer of new process technology fromtheir owner/partner companies (LETI andCSEM respectively). Such processtechnology is developed with public sectorfunding support to advance the state of theart (eg at COMLAB, the shared facility ofCSEM and IMT), and can be transferred inas required. MEMSCAP has no such directlink, and therefore has to develop its ownnew process technology or form strategiclinks to acquire it.

Facility costs

MEMSCAP has invested most heavily in alarge facility, which cost over €60 million.Colibrys also invested in their facility (~€15 million initially), and Tronics hasinvested in a facility after five years in theCEA incubator.

Marketing strategies

MEMSCAP initially targeted thetelecomms and optical communicationssmarkets, and invested much effort in beinga major player in high volume, low costdevices, unfortunately just before themarkets reduced.

Tronics have had a more device-orientedstrategy, looking for any markets whichthey could exploit with their specificexpertise. The markets appear thereforeto be niche, but this allows high addedvalue products to be sold. A good exampleof a new niche market is their recentgeophone product.

Colibrys positions itself at the moderatevolumes and higher added value end of themarket (more comparable to Tronics thanMEMSCAP) but is very selective in thebusiness relationships it takes on.

Collaboration

Tronics actively pursue collaboration withother research laboratories. Colibrys haveteamed up with a US company (CoventorInc) to develop an optical MEMS device,which reduces the risk in such developmentwork leading to own-product manufacture.

Networking

Tronics have an active networking policy,reflecting the involvement of its parent.Colibrys appears to developing networkingmore slowly, and MEMSCAP is closelylinked with NEXUS and EURIMUS. In allcases, network participation and visibility isan essential element, although much ofColibrys’ network benefits are actuallyachieved through CSEM networking.

IP portfolio

Tronics and Colibrys have inherited strong IPportfolios from their parent organisations,and this is a valuable asset in a high-techfield where the cost of developing the IPmay have been high, but was subsidised bythe state (CEA) or the industry and state(CSEM).

The strategy of buying in IP, as adopted byMEMSCAP, is an expensive one.

Colibrys have actively sought key marketsand have developed niche markets for low-medium volumes. They appear to have anopportunistic approach to spotting andmeeting market needs when they arise.

Staff

Tronics and Colibrys have close links withresearch and university and hence haveaccess to skilled staff. Colibrys have a shareoption scheme which will have an effect inincreasing employee loyalty.

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An obvious factor is that MEMS fabricationrequires a very low staff count per deviceproduced due to the relatively largenumbers of devices per wafer, and theautomation inherent.

4.3.4 Conclusion

We find the important factors to be thosewhich allow the business to concentrateon its core offerings – fabrication andsupply of MEMS based devices orproducts. Not surprisingly, the morecomprehensive the support infrastructure,the better this focus becomes.

The key enabling elements of supportinfrastructure are the relationships with,and access to, research organisations suchas CSEM and LETI which provide newprocess technologies, potential IPR, skilledstaff and extensive external networks ofcontacts. Equally important, these parentorganisations provide intelligent investmentcapital with realistic expectations oftimescale and risk.

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5 INVESTMENT ASPECTS

This chapter summarises the investmentand financial information of the variousplaces visited. The information isnecessarily somewhat varied in its levelof detail, depending on the amount ofpublic-domain material supplied by thevarious institutions.

5.1 ZEMI, Berlin

5.1.1 Funding model

ZEMI started in 2001 with three years offunding, and was publicly funded until theend of 2003. Although negotiations areongoing, no funding agreement was yet inplace for 2004 at the time of the missionvisit. Several new business models are inpreparation, but it is proposed that ZEMIwill be converted in 2004 into a GmbH withthree stakeholders: the Fraunhofer-Gesellschaft (FhG), the ForschungsverbundBerlin eV, and TU Berlin.

The situation is complicated by the factthat each of the partners in ZEMI hasdifferent accounting rules over charging ofoverheads etc. However, the funding rulesstate that all ZEMI partners must belocated on the Berlin Adlershof campus(which is why, for example, the materialsinstitute BAM have opened a satelliteoffice at Adlershof). ZEMI takes advantageof the special status of the former GDR,which removes many of the normalrestrictions on public funding. This specialstatus ends in 2006.

5.1.2 Financial aspects

ZEMI has received €10 million of specificfunding, 84% of which has been toimprove the infrastructure and 16% forsalaries. This has come from a number ofdifferent sources, since although theEuropean Regional Development Fund(EFRA) has provided much of the money,50% co-funding is required. Berlin localauthority has contributed around 16% ofthe total.

5.1.3 Public sector support

The development of ZEMI must beconsidered in the context of the investmentbeing made in the Berlin Adlershoftechnology park, having substantialincentives from the German government toattract technology businesses (some 90%of the costs are subsidised). Tables 5.1 and5.2 are taken from the Adlershof website(www.adlershof.de) and give some idea ofthe total being invested in the technology park.

Roughly half of the investment to dateseems to have come from the publicsector with the rest from various privatesources. The proportion of privateinvestment will increase in the future.

5.1.4 Sustainability after investment

There is obviously an uncertainty over thefuture funding for ZEMI as the current dealexpired at the end of 2003 and the newarrangements are not yet in place. Theimportance of microsystems technology isstill growing but the economic climate isdifficult and SMEs cannot afford muchresearch work.

The current situation is that each partnerwill look for industrial partners and thentake the lead to create collaborativeprojects for EU funding. Commerciallyfunded projects are more difficult as thepartners tend to operate in competitionwith each other to maximise their ownprofits. ZEMI are trying to set up astakeholder network structure where eachpartner can invest in the network tomaximise cooperation.

There is almost no venture capital now inGermany, but there are banks set up fortechnology companies which are staffed byscientific and technical people. These aregenerally looking for a 3 – 5 year paybackbut it can be as long as eight years or asshort as two years.

After ten years of investment, theAdlershof park now generates moremoney for the taxman than it costs. 2002 was the first year in ‘profit’ and thiswill now rapidly increase. It is anticipated

that the overall financial breakeven pointwill be reached in about eight years time,giving a 20-year period before theinvestment will be fully repaid. The timescale of such returns oninvestment is not thought to be atypical.

5.2 ETH, Zurich

5.2.1 Funding model

ETH Physical Electronics Laboratory (PEL)is a university research institute. It doesnot have the same commercial pressures, but projects that bring inmoney can finance other fundamentalscience projects.

For collaborative projects with industry, thecriteria are:

• Can we publish?• Is it of scientific interest? (If it is just a

commercial service then the price wouldbe higher)

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Staff

As per 10/2003 Planning up to 2010

353 Companies 3,600

12 extra-university 1,508research institutes

MediaCity 124 ~1,000

Business park 175 ~4,000and services

Humboldt 6 Institutes 713 scientific employeesUniversity and professors

7,000 students 7,000 students

Table 5.1 Companies, institutes and workplaces at Berlin Adlershof technology park

Table 5.2 Investment at Berlin Adlershof technology park

20,000

including 7 institutes with 620 employees

and professors

up to 2003 ~€1.2 billion

1991-2010 ~€2.5 - 3 billion

Companies/

Institutes

Science and

technology park

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ETH is not really interested in doingshort-term commercial projects, theywant to partner with industry for longer-term research.


PEL has 24 positions paid for by externalfunding, but only one of these is paid forby industry. Eight teaching positions arefunded by ETH itself.

Project costs are calculated at CHF100,000 per man-year plus CHF 50,000 perwafer run.


Funding for the department comes fromEU programmes, the Koerber foundation,CTI, SNSF, TopNano21, and from ETH itself.

5.3 IBM, Zurich

5.3.1 Funding model

IBM represents one of the last of thegreat corporate research laboratories, butis working strategically with customersand other research institutions. IBMcannot do everything itself and needs toform partnerships. The laboratory employsabout 300 people comprising 240 regularstaff, 30 pre-doctoral students and 30 post-doctoral researchers. They havecollaborations with 80 universities and 30 companies.

The Industry Solutions Lab (ISL) is a jointeffort between IBM Research and IBM’sGlobal Industries and Servicesorganisations. There are two ISL locations:one in Hawthorne, New York, and the otherat IBM’s Zurich Research Laboratory.


IBM’s worldwide research, developmentand engineering (RD&E) spend is almost$5 billion per year. From the IBM 2002Annual Report: ‘RD&E expense was $4,750million in 2002, $4,986 million in 2001 and$5,084 million in 2000.’

The company incurred expense of ~$4.3 million in each year from 2000-2002for basic scientific research and theapplication of scientific advances to thedevelopment of new and improvedproducts and their uses. Of these amounts,software-related expense was ~$2 millionper year. In comparison, expense forproduct-related engineering was $503million, $665 million and $783 million in2002, 2001 and 2000, respectively.


IBM participates in collaborativeprogrammes, and so leverages theirinvestment using public funds.

An interesting IBM policy development istheir entry into the sensor design andfoundry business. They see this as a naturaldevelopment of their collaborative workover the last 30 years, starting with R&Dand technology transfer (1970), collaborationthrough the formation of joint researchteams (1980), working on specific Industrialcustomer problems (1990) and now theformation of external partnerships (2000).

IBM have recently changed the role of theirhard-disk drive head factory in Mainz,Germany after the sell-off of their hard-diskbusiness. This has now become a flexibleMEMS facility called Naomi (Gesellschaftfur Nano-, Oberflachen- und Miktrotechnik,www.naomi-mainz.de), and is supported bythree years of finance from the localgovernment in Mainz, starting at the end of2002. It must be self-supporting after this.

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5.4 IMT, Neuchatel

5.4.1 Funding model

IMT is a university research institute andtherefore receives part of its income fromthe university, part from public funding andpart from industrial collaboration. IMTcollaborates with a variety of companies ata local/cantonal, national and internationallevel.


The research project income for IMT for2002 was around CHF 11 million. Thiscame from the sources listed in Table 5.3.


The majority of IMT’s income comes frompublic funds. Only 25% comes fromindustry projects. Like ETH in Zurich, theycarry out longer-term research projectswith industry and are not interested inshort-term, purely commercial activities.

5.5 CSEM, Neuchatel

5.5.1 Funding model

CSEM is a privately held company. It is anot-for-profit organisation with 70shareholding companies. A substantialproportion of its income comes from publicfunds (Swiss government), but this is not adirect grant and must be re-applied forperiodically against defined and agreedperformance targets. The total number ofemployees at the end of 2002 was 271.


Total income for 2002 was CHF 52 million(~€35 million). The breakdown by source isshown in Table 5.4.

In 2002, revenues from public projectsgrew by 25% and industrial revenuesincreased by 2%. Difficulties faced bysome of CSEM’s spin-off companies led toa write-off of CHF 3.4 million. Overall, thecompany made a loss of CHF 1.4 millionlast year.

Table 5.3 Breakdown of IMT research projectincome by source (2002)

Source Amount

FNSRS 5.1%

CTI (Swiss Commission for Technology 18.3%and Innovation) and EUREKA

OFES – EU funding 16.1%

OFEN (Federal Energy Office) 7%and foundations

NCCR – TOPNANO project 3.1%

Industry (including 25%European Space Agency)

Comlab/SMN (shared lab facilities) 9.5%

CSEM 15.9%

Table 5.4 Breakdown of CSEM income by source(2002)

Source Amount

Basic government funding 39%

Cantons 5%

EU projects 7%

Priority programmes 2%

CTI (Federal Technology Fund, 8%Swiss Commission for Technology and Innovation)

Industrial income (contract basis) 39%

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Around 60% of CSEM’s income comesfrom public programmes of some sort.The 39% from government funds is not agrant as such but is covered by a four-year customer/supplier contract to keepSwiss technology up to date via futureindustrial needs landscaping and appliedresearch strategy leading to enablingplatform technologies.

For EU projects, the 50% matchingfunding comes from CSEM’s own funds(profit margin). This is spent on strategicor networking programmes.


CSEM’s strategy is to create spin-offcompanies in which it retains ashareholding, and then to realise anincome from those shares as the spin-offcompanies become successful.Incubation and mentoring is provided byCSEM in order to lower the risk andenhance the potential returns. Fifteensuch companies have been launched inthis way since 1990. As the number ofsuccessful spin-offs increases, this is setto become a greater proportion ofCSEM’s income.

However, the climate for spin-offs andstart-ups is difficult at present, so thisincome stream has not increased as fast ashad been anticipated. CSEM are pursuing along term strategy and are thereforeprepared to accept any necessary shortterm losses. The not-for-profit status is akey enabler since it means that there areno commercial pressures to pay dividendsto shareholders.

5.6 Colibrys, Neuchatel

5.6.1 Funding model

Colibrys is a spin-off from CSEM, foundedin January 2001 and involving about 80people and $15 million worth ofinfrastructure in the initial spin-off. Theinvestors are all non-government (venturecapitalists and banks). The 1st round offunding raised $13 million, the 2nd roundraised $10 million. A 3rd round of funding isnot anticipated unless to pay foracquisitions; the company is currentlyoperating close to breakeven. Employeesown 13% of the stock options, althoughColibrys is a private company and is not onthe stock market.


85% of Colibrys’ business is currently inEurope, but the US proportion is growing.The current turnover and other financialinformation is not publicly available.


There is no direct public sector support forColibrys, all the customers are industrial.Nonetheless, substantial benefit accruesthrough the relationship with CSEM andthe parallel fabrication facility COMLABoperated jointly by CSEM and IMT.

5.7 CEA-LETI/Minatec, Grenoble

5.7.1 Funding model

LETI is a laboratory operated by theTechnology Research Directorate (DRT) ofthe French Atomic Energy Commission(CEA). It is one of the largest appliedresearch laboratories in electronics inEurope. Its mission is to help companiesincrease their competitive position bytechnological innovation and transfer of itstechnical know-how to industry.

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At the pre-competitive stage, LETI carriesout research projects involving severalpartners within the framework of Frenchand European programmes or targetedcollaborative actions. LETI also undertakesresearch work in partnership with industrywithin a specific contractual framework.Such work is carried out with a guaranteeof non-disclosure and specific provisionsto suit the requirements and constraintsof partners.

Technology transfer is covered by a licencewhich entitles partners to draw on LETIknow-how and patents (LETI is the 7th

largest producer of patents in France with118 in the last year). The income streamgenerated by this patent portfolio outstripsthe maintenance costs currently by a factorof two. The revenue derived fromtechnology industrialised by licence-holdersis used to fund new research projects.


CEA as a whole has budget of €3 billion,and employs 16,000 people. Around 1,200people work at LETI, of which around 850are CEA staff who are ‘almost civil servants’.

LETI’s budget for 2003 was around €115million. External funding for LETI is about€73 million per year, made up of about 350contracts with 180 industrial partners.


LETI gets €46 million from the FrenchMinistry of Research and New Technologyover three years for basic research intomicro- and nanotechnology. The next biginvestment in LETI will come with theconstruction of the Minatec facility, whichwill employ 4,000 people by 2006. Thisfacility is funded mainly by €200 million oflocal public investment for the infrastructure.The local authority are not looking for shortterm returns, but are looking for a 20-yearpayback through local economic growth.

LETI is also part of the French network ofMicro-NanoTechnology (MNT) centres, theothers being in Paris (IEF/LPN – nano-optics), Lille (IEMN – nano electronics) andToulouse (LAAS – nano systems). Thecluster receives €140 million of publicfunding from 2003 – 2006.


LETI is part of CEA and therefore has asecure long term commitment. The levelof public funding received by theorganisation will ensure its future,however the Minatec facility now beingconstructed constitutes a significantlyhigher risk taken by the local authority.

5.8 MEMSCAP, Grenoble

5.8.1 Funding model

MEMSCAP is the first and only publiclylisted pure-play MEMS company in theworld. It was founded in 1997 as a spin-offof the French research organisation TIMA inGrenoble. Since then, MEMSCAP claims tobe the leading provider of commercialMEMS solutions for the communicationsindustry. MEMSCAP provides MEMSfoundry services and also one of the best-known suites of MEMS CAD tools.MEMSCAP trades on the Nouveau Marche,part of the Euronext exchange. It currentlydoes not pay dividends on its shares.


The following information is taken from aMEMSCAP press release, 22 January 2004:

‘The revenue for Q4 2003 amounts to €2.1million (US$2.5 million), representing thethird quarter of sequential growth. Thisquarter brings the consolidated full yearrevenue of the company to €7.7 million(US$8.8 million), showing a year-to-yeargrowth of 35% in euros and 47% in USdollars, despite the drastic cost-cuttings

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and reorganisation measures that havebeen conducted throughout the year.’

‘Following a previous necessarydiversification, 2003 was dedicated toreorganisation and focus around thecompany’s most high growth businesses.MEMSCAP has during that time significantlyreduced its operating costs, while increasingits revenue and preparing a solid backlog for2004, thus setting the foundations for a2004 strategy that seeks to meetprofitability within the year. The company’smain operations remain established in fourcountries, namely France, United States,Norway and Egypt with a headcount around150 people. In parallel, and as a necessaryelement to finalise this reorganisation, thecompany is reviewing with its financialpartners the status of the Frenchmanufacturing site, whose operations hadbeen suspended mid-2003.’

As can be seen, MEMSCAP has had tocarry out some rationalisation and re-organisation, but is now back in growth andgenerating significant revenues. It is hopedthat MEMSCAP will become profitableduring 2004.


MEMSCAP are involved in a number ofpublicly funded activities such as NEXUSand EURIMUS, as well as manufacturingdevices for many different researchprogrammes in Europe and the USA.


The economic climate for companies such asMEMSCAP is difficult at present, and likemany others it is having to rationalise andconsolidate its activities. MEMSCAP’stechnology, based on surfacemicromachining, does not suit all applicationsand there appears to be an over-capacity inthe market, hence the suspension ofmanufacturing at MEMSCAP’s French plant.

However, the MEMSCAP management arenot afraid to make the necessary changes tothe company structure and strategy to makethe company profitable.

The software tools division of the companyprovides a very useful revenue streamindependent of manufacturing activities,and this broadening of focus away from apure manufacturing strategy seems to becrucial to success.

5.9 Conclusions

For organisations supplying MEMSdevices, the primary conclusion is thatthere appears to be no organisationworldwide making money out ofmanufacturing and selling MEMS devicesalone. The most successful examples arethose where MEMS devices are beingembedded in a product which is sold.

The second significant conclusion is thatthe success of individual organisationscannot be considered in isolation, as eachis heavily dependent on other organisationsfor its operational performance. In thiscontext, the mechanisms for harnessingand directing the application of publicsector support are also vital, ensuring thatsuch funding is effective in producingcommercial benefits.

Generic roles of fundamental researchprovision, industrial awareness andsupport, low volume prototyping, designand development, process technologydevelopment, and higher volumemanufacture can be identified but it is theeffective inter-relation of these which setsapart successful MEMS clusters.

The example of CSEM/IMT/Colibrys is agood illustration of such an integratedsystem, where the financial mechanismsmust be considered collectively in order tounderstand the mutually supporting role ofeach individual organisation.

6 MEMS MANUFACTURING ANDUK OPPORTUNITIES

During the mission, the breadth ofinstitutes and companies visited provided avaried perspective on the ability to makeMEMS devices. This ranged from themanufacture of prototype units through tovolume commercial production and fromthe manufacture of MEMS subcomponentsthrough to the delivery of completeassembled systems.

The following text has been subdivided soas to reflect these distinct productionactivities and is then followed by thegeneral learning gained on the softertopics associated with manufacturing andproduct pipeline strategy. In this chapterthe term ‘foundry’ is used loosely todescribe all MEMS manufacturingfacilities, irrespective of what substrate orproduction technology is utilised.

6.1 MEMS subcomponents

All the MEMS innovation and designgroups visited had a route to fabricate thefinal system’s subcomponents. In thecases of ZEMI, IBM, CSEM and LETI theywere located within walking distance of theresearch groups. However, this was not aprerequisite for a successful facility as theETH model showed that manufacturing ofsilicon components could be outsourcedreadily. In the latter case this was not evenwithin the same national boundary, ie inAustria rather than Switzerland,

This indicates that though there may wellbe benefits of personnel interactionassociated with a very close geographicallink to a fabrication facility, once thedecision is taken to locate the design houseremotely from the foundry it can equallywell be in another region or country.

The conclusion to be drawn from theseobservations is that it is highlyquestionable whether more than marginalbenefits to the UK economy could beachieved by investing significant capital inthe building of new green-fieldsubcomponent foundries, given the pre-existence of various facilities in the UKwith varying degrees of utilisation.

This is especially true given the opposingrequirements from the end-user sectors tomanufacture MEMS devices fromnumerous substrates and with a range ofmachining approaches, as dictated by theportfolio of potential applications. The costsassociated with setting up a number ofnew parallel foundry facilities for variousglass, silicon or polymer substrates wouldbe significant and has been avoided byothers in the EU.

This view was supported by the LETImodel in which it was claimed that therewas little synergy between the differentfabrication methodologies. Provided UKMEMS practitioners can access a networkof providers at low cost and with enoughflexibility to adjust the nascent designs,then these may be drawn from thedemonstrable spare capacity offered by theexisting EU facilities, including andcomplementing those in the UK.

Within the prototyping MEMS fabricationfacilities visited at ZEMI and LETI, it wasapparent that the infrastructure was run by aprofessional production team who werededicated to that one task. They provide theservice at a revenue cost to the users, theinitial capital investment and ongoingdepreciation costs being underwritten via acentral fund. If new UK MEMS research and

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design centres are linked so as to haveaccess to these facilities, there may bevalue in ‘retaining payments’, so as to allowUK based practitioners to then utilise theinfrastructure at a per-device cost similar tothat for local users, and with the samepriority and turn-around times. This wouldindicate a need to set up strategic longerterm contracts with the various providersand a network of these so that the full rangeof MEMS technologies may be serviced.

For planar silicon substrates, as commonlyemployed within physical parameter sensors,MEMS manufacturing tends to be based onprevious generation IC processes. In the caseof the CMOS based MEMS designs beingprogressed at ETH, these were typically at a0.8 to 0.6 mm tolerance. The team at ETHsuggested that there may be issues overaccess to these ‘low grade’ techniques in thelonger term as the commercial, electronicsfocused, foundries move on to the nextgeneration technologies. That being the casethere may well be opportunities for a UKgroup to purchase a redundant facility on theglobal market at a much reduced cost, inorder to secure future delivery of thecapability specifically for the MEMS sector.

6.2 Complete MEMS sensor systems

Where silicon MEMS manufacture is uniquefrom the electronics sector is in thefrequent need to construct 3D out-of-planestructures. This element of the process wasclearly demonstrated as being around halfof the overall activity at Colibrys and alsothe high added value element. Fortuitously,the infrastructure required to carry outthese tasks, at both the prototyping andproduction scale, was considerably lessthan for the wafer manufacture.

This is an activity which is uniquelycharacteristic to MEMS and there is anargument that a number of relatively lowcost packaging and assembly plants couldbe located in strategic locations near theproposed UK centres of innovation,research and development. The case forthis is supported by the evidence fromColibrys, ETH and ZEMI that the packagingtechnology is both the most significantcost associated with the MEMS devices,and by inference the source of addedvalue, and is also an intimate part of thefinal device functionality. Rather thancompeting, each UK assembly plant couldbe specialised in the assembly of aparticular form of MEMS technology, egglass, bonded silicon, moulded polymersetc, and operated in a networked mode toaccommodate the overlaps.

For the pharmaceutical and biotechnologysensing and systems duties, though SU8had been used by the likes of IMT andshown to be non-toxic in some of theirprototype sensor arrays, 2D and 3D glassand polymer manufacturing wasconsiderably more prolific due to thegreater biocompatibility. This form ofmanufacturing is not derived from theelectronics sector but is available throughcommercial suppliers in the UK, in the caseof some injection moulding or etched glassapproaches, and through flexible, but highcapital cost facilities in the EU, such as theBESSY 2 synchrotron at ZEMI.

As demonstrated at CSEM, IMT, ETH andLETI, it is through the close and localinteraction of various disciplines, egphysics, chemistry, engineering,biotechnology etc, where innovative MEMSsensors and systems concepts are created.

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These cross-functional groups are alsokeenly aware of what is possible throughusing MEMS techniques as theirunderstanding is underpinned by an abilityto make a number of iterations of theprototype devices.

A significant deterrent to the realisation ofprototype MEMS devices is in the one-offtooling costs. UK based MEMS centresshould ideally have the in-house capabilityto carry out those tooling design activitieswhich can be achieved remotely from thefoundry, both to reduce the entry costs forprototyping and to build up an awarenessin the research teams of the sensitivitiesand pitfalls associated with the variousmanufacturing techniques.

A feature peculiar to microfluidic MEMSsensors is the need to create macro-microinterconnects to link the devices to theexternal world. Though this was coveredto an extent by the ETH and IMT groupsin their projects concerning both electricalimpedance spectroscopy as applied toimmobilised neuron cells, and the trappingof colloidal systems via hybridised electro-osmotic and pressure driven flows, theseprojects were in the research phase ratherthan commercial devices. The engineeringof these interconnects and the balancingof internal flows within a marketablemicrofluidic sensor may provide technical niche opportunities for future UK MEMS companies.

6.3 Prototype systems manufacture versus volumecommercial production

The numbers of MEMS sensors andsystems being manufactured by the EUestablishments visited tended to berelatively small as compared to themicroelectronics sector, the production runsbeing of the order of thousands or tens ofthousands of units per year. Both Colibrysand ZEMI have the ability to produce tens

of thousands of wafers per year on thesame manufacturing facilities that wereused for producing the few tens of devicesrequired at the system prototyping phase.Spare capacity within these units could beaccessed by MEMS sensor companiesdomiciled in the UK to carry out small tomedium size production runs.

Similar methodologies and manufacturingvolumes were apparent at LETI, with thecapability to fabricate in glass and silicon,however these facilities were principally forinternal use by researchers and theirresulting start-up businesses. It wasindicated that access to these facilities bynon-resident researchers and companieswould require a significant financial andlong term commitment before LETI wouldentertain any proposals.

Where there are larger markets requiringspecialised mass-volume foundry facilitiesthen outsourcing to Asian manufacturersappears to be the stronger model. Asstated during the visit to Colibrys, thecosts of manufacturing in the EU arerelatively high and so dictate that MEMSsensors are only targeted at very highadded value niche product lines. This EUfocus on small to medium scale MEMSproduction does offer the advantage intime to market and design costs of nothaving to re-engineer the process whentaking the transition from R&D through toproduct commercialisation.

6.4 Manufacturing and productpipeline strategy

A modular approach to manufacturing wasprevalent across a number of theorganisations, so as to reduce time tomarket, design risk and costs. In the caseof ETH this was based on structuring alltheir MEMS sensors on CMOS technologyand then creating a common set ofbuilding-block electronic circuits whichcould be employed within a range of

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sensor systems, eg a uniform FPGA designfor final signal conditioning andcommunication with a host PC. Thisapproach was also extended to the overallsensors packaging, which was fabricatedin-house and embedded within an industrystandard TO transistor casing.

A slightly different angle on modularmanufacturing was adopted by CSEM,whereby a common base device orprocess would be adapted to meet theneeds of a range of diverse end uses. Twoillustrative examples were the retinalsensing system and the production ofdiamond coatings.

In the former, an optical sensing devicewas designed and fabricated under aspeculative research project, identified bythe CSEM Research Board as havingpotential applications. Later in thedevelopment of this sensor a commercialproposal was subsequently created toembed the technology within a non-contacttracker ball, following a plea from LogitekInc to find a solution for the large numberof computer mouse failures that they wereexperiencing. Following this highlysuccessful application the same basesensor module has now been adapted forcombined non-contact gearbox shaft torqueand rotation sensing, in collaboration withthe Australian company Bishop Ltd.

A similar modular manufacturingphilosophy is being progressed at CSEMfor a novel diamond coating process. Herethe original speculative applied research isnow being utilised to access the uniqueproperties of diamond for sensors withimproved functionality, reversibleelectrolysis cells for chemical freesterilisation and creating bearings withextremely hard wearing cases.

A common theme arising from all theMEMS groups was the length of timerequired to translate a device design into a

credible commercial entity, often stated asbeing between 5 – 8 years. Alongside thiswas the understanding that to be in thissector within the EU there was a need tothink long term and develop a productpipeline strategy accordingly.

At Colibrys the belief was that they shouldonly partner with end-user companies whocould allow them to access new marketsand who could be proven to have criticalmass whilst also being financially viable fora number of years in advance. Thisphilosophy was overlaid with anunderstanding that the optimum targetmarkets for EU manufactured MEMSwould be of small to medium volume,10,000 to 50,000 units per annum, andwith an appreciable per unit sales cost ofUS$10 to US$100. This was alsounderpinned by the realisation that EUsupplied MEMS devices must comply withISO 9001 quality standards and dovetailwith the just-in-time manufacturingapproaches adopted by international multi-supplier companies, despite the costsassociated with setting up the softwaresystems such as SAP.

A similar longer term viewpoint wasprofessed at LETI, whereby the spin-outMEMS sensor companies wouldcommercialise the present generation ofthe technology whilst the internal coreresearch groups would continue parallelwork on creating the next generation ofdevices for feeding into the futureproduct pipeline.

A stark message from those groups whohave created successful, wealthgenerating, MEMS businesses is the needto be recognised as a global leader in themanufacture and supply of a given MEMStechnology. This was clearly exemplified bythe CSEM and Colibrys project to create amicro-positioning system for Agilent Inc,who are a North American domiciledcompany and world leader in analytical

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laboratory equipment but who chose tosource their MEMS subsystem for a liquidchromatography detector from Switzerland.Agilent Inc required that the Swiss teamsupply a complete subsystem, includingactuators and gearing, not just the coremonolithic silicon MEMS mechanism. Thiswas achievable using in-house designcompetencies and local precisionmechanics suppliers.

In this case study the location of theMEMS group in Neuchatel builds upon thereputation and capabilities in precisionengineering and production derived fromthe surrounding watch industry. For UKMEMS manufacturers to enjoy a similarglobal leading reputation there is anargument that the research and productiongroups should be located close toconurbations of industry and researchwhere the UK has existing strengths, forexample in pharmaceuticals, biotechnology,chemicals or defence.

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7 CONCLUSIONS ANDRECOMMENDATIONS

7.1 Meeting the needs of industry

Exploitation of MEMS research hasgenerally tended to be technology push,exploring what the technology might do. Bycontrast, CSEM operates an industry pullapproach, where MEMS is not assumed tobe the solution before the problem isarticulated. In this respect CSEM fulfil theirwider remit on behalf of the Swissgovernment in identifying and providingfuture technology platforms that Swissindustry may need. Research objectives aredefined using sophisticated futurerequirements projection tools, andvalidated by a committee which includesacademia, research and industry.

CSEM undertakes this technologyroadmapping in order to determine whichtechnologies are going to be important forSwiss industry in the future, agrees theroadmaps with the Swiss government, anduses national funding (~ 20 million per year)to invest in the R&D of these technologies atCSEM and in collaboration, eg with IMT.

A similar strategic relationship in the UKmight be built up utilising the experienceand expertise of independent organisationswith government funding andcomprehensive industrial networks such asthe Faraday Partnerships.

MEMS research is typically high risk andexpensive. Industry therefore needsfacilitated access to MEMS research andproduct development. Evidence from LETIspin-outs supports the view that MEMS isnot likely to be successful as a core business,but may be as an enabling technology for anorganisation whose products incorporateMEMS (eg analogue devices).

UK industry is generally unaware of thepotential of MEMS, or does not have thein-house technical expertise to evaluateMEMS as a potential solution. UK industryis risk averse, but the risks can bemitigated by better education (ieuneconomic MEMS developments are lesslikely to be initiated).

UK industry therefore needs to beinformed in a manner that changes internaltechnical awareness and competence.Accessibility to outputs from feasibilitystudies is a possible enabler. The UK lacksa good facility which demonstrates the artof the possible, and part of the job ofinforming industry would be aided by sucha showcase, and intelligent access to it.

MEMS is more than just silicon technologyand CMOS devices – plastic and glass havegreat potential, eg in microfluidics andbiotechnology applications. Flexibility inprovision of UK infrastructure needs to takefull account of the various MEMSsubstrates which may be required.

MEMS in physical sensing could beconsidered to be an establishedtechnology, whereas MEMS for lifesciences is not. In the UK we thereforehave the opportunity to focus on incubatingnew opportunities for life sciences. There isgreat potential in the application ofmicrofluidics and associated sensing, egfor scale-out of protein manufacture, andsimilar systems. MEMS technologyconcepts might be employed to create anew paradigm for fast time to market ofvery high added value molecules (tens ofthousands of pounds sterling per gram)and especially in progressing them throughphase 2 and 3 regulatory compliance.

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The majority of successful Europeancentres are physically co-located, based at‘bricks and mortar’ real centres with designand prototyping facilities which are run bymultidisciplinary highly skilled personnel.There are no cases where a virtual centrehas been successful.

7.2 Funding

CSEM shows a highly effective fundingstrategy, but this is dependent on theirstrategic relationship with the Swissgovernment. Research is undertaken withthe expected output of a spin-out whichpays back into the research organisation.This has the effect of selecting the bestresearch, good supervision, and paybackinto the research organisation, which is akey stakeholder in the success of thespin-outs.

CSEM funding is not ‘blind’ but reviewedagainst hard targets agreed annually withgovernment. While the CSEM model is notto generate profit itself but to generateprofit for the companies it works with,CSEM performance measures includetracking the leverage on money put intoCSEM in terms of wealth creation in widerindustry. Leverage of 100:1 is reported.

The CSEM model is effective, meetsindustry needs, helps pull through trainedengineers, creates wealth, and there is adeliverable and quantifiable payback frommoney invested in research. CSEMsuccessfully combine the roles and skillsof technologists with entrepreneurs. Theway in which these characteristics areachieved may provide a suitable basis forconstructing similarly effective UKsupport infrastructure, since it alsodemonstrates effective working with bothregional (Cantons) and national (Swissgovernment) funding.

In essence, the key steps in this value-creation process are:

• Roadmapping to project future technology requirements

• Developing technology platformsanticipating market innovation needs(national/regional funding)

• Providing R&D work for, and subsequently technology transfer to, industrial customers

• Creating start-ups and spin-offs to exploittechnical potential and initiate technologysupply, retaining a stake for reinvestment,and providing incubation and mentoring

It must be borne in mind, however, thatCSEM does not do this alone, but instrategic collaboration with Colibrys andIMT through the shared COMLAB facility.

7.3 Investment timescales

Common experience is that the timescalefor turning research into spin-offs which areprofitable is a minimum of five years, andtypically eight to ten. (Supporting data fromLETI has been show consistent withfindings in the US from MIT.) Infrastructureprojects, such as the Minatec model,indicate breakeven in 20 years, and this hasbeen seen to be the same for the Adlershoftechnology cluster where ZEMI is located.

Realistic timescales for return on investmentare therefore required of investors. Investorexpectations (private and institutional) needto be aligned with historical experience, andthe models of LETI and CSEM, both ofwhom have established linked investmentfunding which is aware of this specifictechnology area, provide examples of howthis can be accomplished.

Regional funding has played a significant rolein the likely success of multifacetedinfrastructure projects (eg Minatec, whichcombines teaching, R&D and industry on onesite). Such institutions are seen as a source oflocal pride, enabling long term success. In thiscontext, the mixed economy model as usedby Colibrys has been shown to be successful.

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7.4 Spin-outs

Spin-outs and start-ups in MEMS are highrisk. Original projections from CEA-LETIwere that 50% of its spin-outs wouldn’tmake it. The best placed are the spin-outsproducing products which incorporateMEMS. There are examples in theautomotive industry where suppliers arenot making money out of making MEMSsensors but are making money out ofsubsystems containing MEMS. It ispossible to draw the conclusion that tomake money, MEMS needs to beintegrated vertically, not horizontally.

All the successful models includesubstantial incubation and support for spin-outs:

• Access to nationally-funded infrastructure– eg BESSY lab facilities used by ZEMIprojects

• Mentoring, business training and support• Incubation facilities, eg LETI supplied

Tronics for three years on the basis of at-cost rent

• Shared manufacturing facilities, orsubsidies to support their use

• Access to and use of other facilities freeor at-cost

• Pay-as-you-go use of facilities• Off-peak use of facilities. eg Tronics’ use

of LETI facility at night• Facilities operation by trained technicians • Safety net – at LETI, research job is kept

open for three years for spin-out staff• Tax incentives• Technically competent investors

LETI was the only place visited whichexplicitly stated that they carry out researchon 2nd generation products using nationalfunding after a spin-off company has beencreated. This is to keep the ‘productpipeline’ flowing. This was interesting asmany start-ups are one-product companiesand have no time or resources to developfollow-on products by themselves.

In the UK it is recommended that researchfunding be made available to spin-outs/start-ups (a model such as the successful USSBIR programme may provide a suitablestarting point). Spin-outs need to be set upwith realistic support mechanisms, whichare likely to be realised only in proximity toMEMS facilities. A stepped tax incentivescheme to reduce overheads for start-ups(eg subsidised rent) would be beneficial toencourage young entrepreneurs.

Mechanisms for ensuring investors canmake technically informed decisions needto be provided as part of widerinfrastructure. Who will provide thisexpertise to the private and institutionalinvestors as a non-interested party?

A successful spin-out must be highlyfocused in its product portfolio and mustmeet a real market need. Flexibility tochange according to the market, or a multi-product portfolio, might provide protectionfrom market fluctuations. Investmenttimescale is also key factor, as private andpublic sources are required over a mediumto long duration as mass markets develop.

7.5 Education and training

While raising industry awareness isessential in the short term, the longer termembedding and adoption of MEMstechnologies requires a flow of technology-aware and competent staff. Hands-ontraining is needed for skilled engineers andscientist to generate a sustainable future.

ETH and IMT support undergraduatedegrees around MEMs technology whichgive hands-on experience during training.CSEM also operates non-university,industry focused research projects withtraining elements and accepts internationalstudents. The Minatec model promisesgood integration between industry andacademia and research – the universityengineering school being co-located.

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In the UK, microsystems technology coursesare offered at Imperial, Cranfield, Heriott Wattand Edinburgh, and the aspect which couldbest be built on is that of providing trainingthrough industry focused research done atindependent research centres. IndustrialCASE studentships, Knowledge TransferPartnerships and EC Marie Curiemechanisms all provide starting points forsuch programmes which could be deliveredin association with existing organisationssuch as Qinetiq, Rutherford-Appleton labs,Sira, Pera or CRL. Such training programmesshould build on existing local academic linksand develop relationships with regionalMEMS infrastructure.

7.6 The UK within Europe

The mission team received strong feedbackthat European MEMS organisations havedifficulty seeing how the UK is structuringits investment, and where the funding willbe going. This is leading to a reluctance toengage with the UK. They are also cautiousbecause the ‘National Centre’ model usedelsewhere is not being progressed, and areconcerned about the UK not achieving thecritical mass necessary to be able toparticipate with other national centres. TheEuropean key players (LETI, Minatec,CSEM and Fraunhofer) stress a strongneed for the UK to deliver a briefing inEurope with regard to:

• Certainty and security of the UK plan• Level of investment, initially and ongoing

USPs of UK capability• Centres/network structure• How the UK sees its investment in the

context of European infrastructure andintegration

7.7 Key conclusions/recommendations

• The UK MEMS initiatives can learnsignificant lessons from models in otherEuropean countries

• Incubators are a key factor in thedevelopment of new MEMS enterprisesto take technology from the laboratory tothe market

• The UK would benefit significantly fromgreater international partnership due tothe diversity and complexity of the rangeof technologies and markets for MEMSdevices

• Various models have been observed forpublic and private investment in MEMS –identifying and adopting the successfulelements (‘best practice’) would appear tohave great merit

• By comparison with other Europeancountries, it is concluded that significantand rapid strategic activity is required inorder to position the UK technology baseto exploit the future global and all-pervasive MEMS market

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Appendix AACKNOWLEDGMENTS

The mission team extend their thanks andgratitude to the following representatives ofthe host organisations visited:

Dr Otto RichterZEMI, Berlin, Germany

Dr Walter Hehl IBM Research Lab, Zurich, Switzerland

Dr Andreas Hierlemann ETH, Zurich, Switzerland

Sean Neylon Colibrys SA, Neuchatel, Switzerland

Dr Urs StauferIMT, Neuchatel, Switzerland

Jean-Francois Chapuis & Dr Xavier Arreguit CSEM, Neuchatel, Switzerland

Gaetan MenozziMEMSCAP SA, Grenoble, France

David HoldenCEA-LETI, Grenoble, France

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Appendix BTHE MISSION TEAM

Dr Andrew CrookellManaging DirectorSira Innovation Ltd/Intersect Faraday PartnershipSouth HillChislehurstKentBR7 5EHUK

T +44 (0)20 8467 2326F +44 (0)20 8467 [email protected]

Dr Martin KempDTI International Technology Promoter (ITP)for Advanced Materials – EuropePera Innovation LtdPera Innovation ParkNottingham RoadMelton MowbrayLeicestershireLE13 0PBUK


Dr Andrew BurgessCompany Research AssociateICI Strategic Technology GroupRoom R322Wilton CentreWiltonRedcarTeessideTS10 4RFUK

T +44 (0)1642 [email protected]

Julie DeaconGroup DirectorCRL LtdDawley RoadHayesMiddlesexUB3 1HHUK


Dr Bruce GrieveSenior Engineering ScientistSyngenta LtdPO Box A38Leeds RoadHuddersfieldWest YorkshireHD2 1FFUK


Roger HazeldenSensors & Optoelectronics TechnologyLeaderTRW ConektStratford RoadSolihullWest MidlandsB90 4GWUK


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Dr Christopher HoyleSenior ScientistGlaxoSmithKlineNew Frontiers Science Park (North)Third AvenueHarlowEssexCM19 5AWUK

T +44 (0)1279 622 [email protected]

Professor Ron LawesHead of Central Microstructure FacilityRutherford Appleton LaboratoryChiltonDidcotOxfordshireOX11 0QX

T +44 (0)1367 240 [email protected]

Dr Waleed A QaderSenior Development EngineerBOC Edwards15 Marshall RoadEastbourneEast SussexBN22 9BAUK


Ken WittamoreDirectorTriskel Consultants Ltd12 St Finbarrus RoadFoweyCornwallPL23 1JJUK


Appendix CHOST ORGANISATION CONTACTS

ZEMI, Berlinwww.mst-berlin.de

Dr Otto RichterManaging DirectorZEMI-GeschaftsstelleRudower Chaussee 1712489 BerlinGermany

T +49 3063 923 390

ETH, Zurichwww.ethz.ch

Dr Andreas HierlemannPhysical Electronics Laboratory (PEL)ETH Hoenggerberg, HPT-H 4.2, IQECH-8093 ZurichSwitzerland

T +41 1 633 [email protected]

IBM, Zurichwww.zurich.ibm.com

Dr Walter HehlIBM Zurich Research LaboratorySaumerstrasse 4CH-8803 RuschlikonSwitzerland

T +41 1 724 8645

IMT, Neuchatelwww-imt.unine.ch

Dr Urs StauferSAMLABInstitute of Microtechnology (IMT)University of NeuchatelPO Box 3Rue Jaquet-Droz 1CH-2007 NeuchatelSwitzerland

T +41 32 720 5357F +41 32 720 [email protected]

CSEM, Neuchatelwww.csem.ch

CSEM – Centre Suisse d'Electronique et de Microtechnique SARue Jaquet-Droz 1PO BoxCH-2007 Neuchatel

T +41 32 720 5111F +41 32 720 5700

Jean-Francois ChapuisSenior Manager, Communication & PRT +41 32 720 [email protected]

Dr Xavier ArreguitSenior VP, Strategic Marketing & Business DevelopmentT +41 32 720 5660 [email protected]

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Colibrys SA, Neuchatelwww.colibrys.com

Sean NeylonCEOColibrys SA Maladiere 83PO Box 20CH-2007 Neuchatel Switzerland

T +41 32 720 5424F +41 32 720 [email protected]

CEA-LETI, Grenoblewww-leti.cea.fr

David HoldenCEA-LETI17 rue des MartyrsF-38054 Grenoble Cedex 9France

T +33 438 789 372

Minatec, Grenoblewww.minatec.com

Minatec Innovation Centre17 rue des MartyrsF-38054 Grenoble Cedex 9France

[email protected]

MEMSCAP SA, Grenoblewww.memscap.com

Gaetan MenozziDirector Major ProgrammesMEMSCAP SA17 rue des MartyrsF-38054 Grenoble Cedex 9France

[email protected]

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Appendix DGLOSSARY

µl microlitreµm micrometre 2D two dimensional3D three dimensionalA amp(ere)AFM atomic force microscopeASIC application-specific integrated circuitAu goldBAM Federal Institute for Materials Research and Testing (Germany)bar = 105 N/m2

BESSY X-ray Synchrotron Centre (Germany)BMBF Federal Ministry of Education and Research (Germany)C CelsiusCAD computer-aided designCEA Atomic Energy Commission (France)CFC chlorofluorocarbonCMOS complementary metal oxide semiconductorCO carbon monoxideCoE centre of excellenceCSEM Centre Suisse d’Electronique et de Microtechnique (Switzerland)CTI Innovation Promotion Agency (Switzerland)CVD chemical vapour depositionDNA deoxyribonucleic acidDRT Technology Research Directorate (CEA, France)DTI Department of Trade and Industry (UK)EC European CommissionECU electronic control unitEDM electro-discharge machiningEFRA European Regional Development FundETH Eidgenossische Technische Hochschule (Zurich, Switzerland)EU European UnionFBH Ferdinand Braun Institute for High Technology (Germany)FhG Fraunhofer-Gesellschaft (Germany)FPGA field programmable gate arrayFSP-TMP Research Centre for Microperipheric Technologies (TU Berlin, Germany)ft foot/feetFTIR Fourier transform infraredg gram(me)Gb gigabitGDR German Democratic Republic (former)GeV giga-electronvoltGHz gigahertzHMI human-machine interface

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HTT high throughput technologiesHz hertzIFMT Institute for Engineering Design, Micro and Medical Technology

(TU Berlin, Germany)IMT Institute of Microtechnology (Neuchatel University, Switzerland)in inchIntersect Intelligent Sensing Faraday Partnership (UK)IP intellectual propertyIPK Fraunhofer Institute for Production Systems and Design Technology (Germany)IPO initial public offeringIPR intellectual property rightsISL Industry Solutions Laboratory (IBM)ISO International Standards OrganisationITP International Technology Promoter (DTI)IWF Institute for Machine Tools and Factory Management (TU Berlin, Germany) IZM Fraunhofer Institute for Reliability and Microintegration (Germany)kbit kilobitkHz kilohertzkm kilometrel litreLED light-emitting diodeLETI Laboratoire d’Electronique de Technologie de l’Information (CEA, France)LIGA ultra deep X-ray lithographym metremA milliamp(ere)MAF manifold air flowMAP manifold absolute pressurembar millibarMEMS micro-electro-mechanical system(s)min minuteMIR mid infraredmm millimetreMOEMS micro-opto-electro-mechanical system(s)MST microsystems technologiesMUMPs® Multi-User MEMS ProcessesNASA National Aeronautics and Space Administration (US)NCCR National Centre for Competence in Research (Switzerland)NEXUS European Microsystems NetworkNIR near infrarednl nanolitrenm nanometreNOx nitrogen oxidesNPL National Physical Laboratory (UK)

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OEM original equipment manufactureropd optical path differenceOpTecBB Optec-Berlin-Brandenburg (Germany)PC personal computerPCA principal component analysisPEL Physical Electronics Laboratory (ETH, Zurich, Switzerland)PMMA polymethylmethacrylateppb parts per billionppm parts per millionPS polystyrenepsi pounds per square inchPU polyurethanePVP poly vinylpyrrolidoneQ4 fourth quarterR&D research and developmentRD&E research, development and engineeringRF radio frequencyRTO research and technology organisations secondSAMLAB Sensors, Actuators and Microsystems Laboratory (IMT, Switzerland)SAP leading (producer of) integrated business software solutionsSAW surface acoustic waveSBIR Small Business Innovation Research (programme) (US)SD Secure Digital (top selling memory card format co-developed by Panasonic,

Toshiba and SamDisk)SME small or medium enterpriseSn tinSnO2 stannic oxideS:N signal-to-noiseSOI silicon on insulatorTg glass transition temperatureTO industry standard package for electronic devicesTU Technical UniversityUK United KingdomUS(A) United States (of America)USP unique selling pointUV ultravioletV voltVC venture capitalVCSEL vertical-cavity surface-emitting laserWISENET wireless sensor networkingZEMI Zentrum fur Mikrosystemtechnik (Germany)ZnSe zinc selenide

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Appendix ELIST OF TABLES AND FIGURES

Tables

2.1 page 11 ZEMI partners and their areas of competence4.1 page 27 Colibrys investor profile4.2 page 29 MEMSCAP financial performance5.1 page 36 Companies, institutes and workplaces at Berlin Adlershof5.2 page 36 Investment at Berlin Adlershof5.3 page 38 Breakdown of IMT research project income by source5.4 page 38 Breakdown of CSEM income by source

Figures

4.1 page 24 CEA-LETI operational model4.2 page 25 CSEM operational model4.3 page 31 Tronics target markets

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Appendix FFURTHER INFORMATION

For further information about this particular mission, please contact:

Alison GordonInnovation Network FacilitatorSira Innovation LtdSouth HillChislehurstKentBR7 5EHUK


For further information about Global Watch Missions in general, please see the inside frontand inside back covers of this report.

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The DTI's Global Watch service provides asuite of programmes dedicated to helpingBritish businesses improve theircompetitiveness by identifying and accessinginnovative technologies and practices. Thesuite includes:

www.globalwatchonline.com – a revolutionary internet-enabled Global Watchservice delivering immediate and innovativesupport to UK companies in the form of fast-breaking worldwide business and technologyinformation plus unique coverage of DTI,European and international research andbusiness initiatives, collaborative programmesand funding sources.

Global Watch – the website’s sisterpublication, showcasing innovation in action.Distributed free to 20,000 UK high-techorganisations, the magazine features thelatest technology developments and practicesgleaned from Global Watch service activitiesaround the world and now being put intopractice for profit by British businesses.

Contact:[email protected]

UK Watch – a quarterly magazine, publishedjointly by science and technology groups ofthe UK government. Showcasing Britishinnovation and promoting inward investmentopportunities into the UK, the publication isavailable free of charge to UK and overseassubscribers.


Global Watch Missions – enabling teams ofUK experts to investigate innovation and itsimplementation at first hand. The fact-findingmissions – about 30 each year – allow entireUK sectors and individual organisations togain international insights to guide their ownstrategies for success.

Contact: [email protected]

Global Watch Secondments – providingfinancial and practical assistance to enablesome 60 individuals each year to spend fromthree to 12 months with an overseasorganisation to transfer a technology, gainnew knowledge or bring best practices backto Britain. This service is designed to fast-track progress, improve performance orsecure competitive edge. There is also aninward secondments programme.


Global Watch Technology Partnering –providing free, flexible and direct assistancefrom commercially-aware technologyspecialists to raise awareness of, and provideaccess to, technology and collaborativeopportunities overseas. Delivered to UKSMEs by a team of 16 InternationalTechnology Promoters, with some 6,000current contacts, the programme providessupport ranging from information andreferrals to more in-depth assistance with, forexample, licensing arrangements andtechnology transfer.

Contact: [email protected]

Information exchange – the Global Watchservice promotes and encourages themutually beneficial exchange of informationand facilitates UK technology partneringopportunities through the support of UKbilateral international science and technologyactivities, including high technology forums,seminars and workshops. This includesstaging high-level technology events withRussia, Japan, China, South Korea andGermany.

For further information on the Global Watch service please visitwww.globalwatchonline.com

Printed in the UK on recycled paper with 75% de-inked post-consumer waste content

First published in April 2004 by Pera Innovation Limited on behalf of the Department ofTrade and Industry

© Crown copyright 2004

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