Four Major Challenges Facing China’s Sensor Industry

Despite its promising outlook, China’s sensor industry continues to face structural challenges. After years of accumulation, a preliminary industrial chain has taken shape. However, compared with international advanced levels, the gap remains evident. The main challenges include the following.

First, lagging product innovation. Many domestic sensors are still in a follower stage, with performance indicators and reliability falling short of foreign products. R&D capabilities must be further strengthened, especially in multi-sensor fusion and algorithm optimization.

Second, an imbalanced market structure. Products are largely concentrated in the low-end segment, with small enterprise scale and weak profitability. More than 90% of high-end MEMS sensors rely on imports, resulting in high costs and weakened competitiveness.

Third, insufficient industrial chain collaboration. Design and manufacturing are often disconnected, and many innovative products cannot be mass-produced domestically, forcing reliance on overseas foundries. This not only increases risk but also constrains large-scale development.

Fourth, missing key technologies. In areas such as low power consumption, intelligence, and software algorithms, domestic enterprises generally lag behind. In response to the demands of the 5G era, integrated packaging of RF MEMS sensors has become a bottleneck. How to achieve miniaturized, low-cost SoC chips remains an urgent issue.

These challenges are not insurmountable. Through independent R&D and model innovation, Chinese enterprises are gradually narrowing the gap. The IDM (Integrated Device Manufacturing) model is regarded as an effective path, integrating design, manufacturing, and packaging to improve overall efficiency. By 2026, with more production lines coming online, such as 6-inch MEMS wafer lines, China’s manufacturing capacity will be significantly enhanced.

Nexisense addresses these pain points by building a distinctive technology platform. Drawing on international best practices, it deploys MEMS process equipment to reduce the “three highs” barrier—high investment, high risk, and high technical difficulty—accelerating the transition from concept to product.

Advantages and Market Outlook of MEMS Sensors

MEMS sensors are becoming the mainstream direction of sensor development. By integrating micro-electromechanical systems with integrated circuits, they achieve small size, low power consumption, and fast response. Among the “twelve disruptive technologies shaping the future economy,” the Internet of Things, advanced robotics, and autonomous driving all rely on MEMS sensors as a foundational technology.

Market data is optimistic. BCC Research predicts that by 2019 the global sensor market exceeded USD 150 billion, with MEMS accounting for USD 14 billion. China’s market share is expected to approach half by 2026, exceeding USD 70 billion. This growth is driven by surging demand in consumer electronics, healthcare, and automotive sectors. For example, MEMS microphones and gyroscopes enhance user experience in smartphones, while pressure sensors support precise monitoring in medical devices.

In response to 5G communication requirements, RF MEMS sensors have emerged as a standout technology. They provide efficient wireless integration solutions suitable for IoT nodes and edge computing. In the future, MEMS will evolve toward intelligence, enabling multi-sensor fusion and complex data processing.

However, the industry must remain vigilant against conceptual confusion. MEMS sensors are not merely sensors, but system-level integrations. Ignoring this essential nature may cause R&D efforts to deviate from mainstream directions. Nexisense emphasizes that a correct understanding of MEMS complexity is key to success. Through its one-stop platform, it helps enterprises develop complete process chains—from oscillators to gyroscopes—achieving breakthroughs in mass production.

In industrial applications, MEMS sensors enhance robotic perception. In advanced robots, sensors account for a large proportion of system components, ensuring precise operations. With the advancement of China’s smart manufacturing, demand in this field is set to surge.

Platform Development Empowering SME Innovation

Under fragmented market demand, the rise of platform-based enterprises has become a clear trend. These platforms reduce entry barriers for SMEs by sharing resources. Nexisense is a typical example, having built an 8-inch R&D and pilot production line covering MEMS, RF, and 3D integration processes. The line has entered the equipment commissioning stage and is expected to be fully operational in early 2026.

Nexisense’s innovative model includes deep cooperation with global IP and EDA vendors to provide one-stop resources, as well as customized technical support for startups covering the entire process from design to packaging. This not only reduces the “three highs” barrier but also promotes industrial collaboration. Through this approach, SMEs can focus on core innovation while avoiding heavy asset investments.

In the packaging segment, Nexisense has addressed RF MEMS challenges, enabling low-power integration of SoC chips. This aligns with IoT requirements for miniaturization and low cost, expanding application scenarios. By 2026, as the platform matures, China’s MEMS industry is expected to form a more complete ecosystem, significantly enhancing the competitiveness of domestic enterprises.

FAQ: Common Questions About Sensors and MEMS

What are MEMS sensors?
MEMS sensors are integrated systems combining micro-electromechanical structures and sensing functions. They are more complex than traditional sensors, offering advantages in miniaturization and intelligence, and are widely used in IoT and automotive applications.

What policy support exists for China’s sensor industry?
The Ministry of Industry and Information Technology has formulated development plans focusing on MEMS and related fields, providing financial support and tax incentives to promote industrial chain upgrading.

What is the market outlook for MEMS sensors?
By 2026, the global MEMS market is expected to exceed USD 20 billion, with China accounting for more than 35%, benefiting from IoT and 5G demand.

How can SMEs enter the sensor market?
By leveraging platforms such as Nexisense, SMEs can access one-stop support, reduce costs and technical barriers, and accelerate product commercialization.

What are the main challenges facing the sensor industry?
These include lagging innovation, incomplete industrial chains, and missing key technologies. However, these challenges can be gradually addressed through independent R&D and the IDM model.

Conclusion

The sensor industry stands at a new starting point. Development plans from the Ministry of Industry and Information Technology have injected momentum into MEMS sensors. Despite persistent challenges, policy support, market opportunities, and technological innovation will drive leapfrog development of China’s sensor industry.

As a platform pioneer, Nexisense supports more enterprises through lowering the “three highs” barrier and building a collaborative ecosystem. By 2026, China is expected to become a major global sensor powerhouse, with MEMS technology reshaping the IoT landscape. Looking ahead, adherence to independent innovation and strengthened collaboration will be key to achieving sustainable growth.