INTRODUCTION

Jacques and Pierre Curie discovered the piezoelectric effect in the late 1800s. In just over 100 years, piezoelectricity moved from being alaboratory curiosity to a big business. During this period, several technologies were developed to use the piezoelectric effect. In turn, eachof these technologies has become an essential component of many types of electronic products.

The U.S. piezoelectric industry has undergone several boom and bust cycles. However, in the last five years several applications forpiezoelectric materials have emerged. This is a result of the revolution in wireless and wireline communications. Markets have boomed inthese areas, especially for piezoelectric crystals. Also, new developments in piezoelectric ceramics and ceramic/polymer composites haveled to new applications and markets. However, piezoelectric quartz crystals and crystal devices still comprise the largest market segmentand with the boom in the wireless industry, the average market growth rate reached double digits over the last five years.

A previous BCC report (GB-064) entitled Piezoelectric Ceramics, Ceramic/Polymer Composites and Polymers - New Developments andMarkets, (published in August 1993 and updated as GB-244 in March 2001), covered piezoelectric ceramics, ceramic/polymer composites,and polymer film materials and their components. In an earlier report on piezoelectricity published in 1987, BCC also includedpiezoelectric crystals. This time, because of a new generation of applications and extensive growth in the piezoelectric crystal market, ithas been included as a separate report based on this study.

STUDY GOALS AND OBJECTIVES

This report was issued because piezoelectric quartz crystals and devices have, during the past five years, become a booming industry. Itcontinues to grow. Also, there have been several new piezoelectric crystal applications and devices for telecommunications andconsumer-related applications. These have contributed to a need to provide a full analysis of technological trends, emerging applications,business issues, and domestic and foreign competition.

This report was prepared with the following objectives:

• to provide an overview of the various piezoelectric quartz crystals and devices, and their production technologies and applications
• to identify the technological and business issues related to commercial applications of piezoelectric quartz crystals and crystal
• devices
• to analyze domestic and foreign competition among companies within each of the piezoelectric quartz crystal and device fields
• to determine the current size and future growth of the markets for piezoelectric quartz crystals and devices
• to determine the current size and future growth of markets for piezoelectric nonquartz single crystals
• to ascertain which piezoelectric technologies and applications will be winners through 2006
• to identify and profile all North American producers and suppliers of piezoelectric crystals and crystal devices
• to identify foreign producers of piezoelectric crystals and crystal devices
• to identify major users of piezoelectric crystals and crystal devices.

CONTRIBUTION TO THE STUDY

BCC's technical/economic study covers the markets, materials, synthesis and fabrication techniques, and new developments inpiezoelectric crystals and crystal devices. It also includes current and emerging applications and a market analysis. Current size and futuregrowth of the markets are estimated for the period 2001 to 2006. The report analyzes the competitive environment within each of themarket segments and applications. It profiles all North American producers and suppliers of piezoelectric quartz and nonquartz crystalsand crystal devices.

FORMAT AND SCOPE

Market segments have been analyzed according to categories, e.g., quartz crystals, crystal oscillators, crystal filters and SAW devices. Inaddition to these, we have provided market numbers for cultured quartz crystals and lumbered bars. Markets for nonquartz single crystalsalso have been estimated.

The qualitative and quantitative judgments embodied in this report are a valuable contribution to current knowledge of piezoelectricquartz crystals, crystal devices and nonquartz crystals. Moreover, this study has been conducted at a vital stage of the booming quartzcrystal device industry. This is where decisions are to be made by a number of companies with regard to their future expansion strategiesand reorientation resulting from a shift from military to commercial market demands.

METHODOLOGY AND INFORMATION SOURCES

The findings of this report are based on information derived from interviews with most of the producers and suppliers of piezoelectricquartz crystals, crystal devices and piezoelectric noncrystals. BCC also spoke to several industry experts. In addition, many end users werecontacted to evaluate current and future demands for these materials and devices. In all, about 120 people from 100 companies and adozen institutions were contacted for this study.

Secondary data were obtained from the World Wide Web, trade publications, technical journals and proceedings, the Quartz DevicesIndustry Handbook, Electronic Market Data 2000 and the U.S. Department of Commerce.

CONTRIBUTIONS OF THE STUDY AND FOR WHOM

This report is directed to the various entities interested in developments in this field, such as:

• companies involved in developing, manufacturing and supplying advanced materials
• companies involved in developing, manufacturing and supplying electronic devices
• manufacturers of cultured quartz crystals and lumbered bars
• manufacturers and suppliers of piezoelectric elements and devices
• manufacturers of transducers, hydrophones, speakers, sonars, sonobuoys, ultrasonic elements and systems, and sensors
• manufacturers of telecommunications equipment and cellular telephones
• companies involved in smart materials, nanotechnology and MEMS devices
• manufacturers of advanced materials and electronic components interested in diversification
• venture capital companies and financial institutions interested in new and attractive investments.

TABLE OF CONTENTS

INTRODUCTION...................VII

• STUDY GOALS AND OBJECTIVES...................VII
• CONTRIBUTION TO THE STUDY...................VIII
• FORMAT AND SCOPE...................VIII
• METHODOLOGY AND INFORMATION SOURCES................... IX
• CONTRIBUTIONS OF THE STUDY AND FOR WHOM................... IX
• RELATED BCC REPORTS AND NEWSLETTERS................... X

EXECUTIVE SUMMARY................... XI

INDUSTRY OVERVIEW................... 1

• INDUSTRY STRUCTURE................... 1
• INTERNATIONAL COMPETITION................... 2
• USER COMPANIES................... 3
• NORTH AMERICAN MARKET................... 3

TECHNOLOGY OVERVIEW................... 5

• PIEZOELECTRIC MATERIALS................... 5
• CURRENT AND POTENTIAL APPLICATIONS................... 7

PIEZOELECTRIC CRYSTALS................... 9

• CRYSTAL SYMMETRY................... 9
• CRYSTAL AXES................... 9
  • BRAVAIS-MILLER (B-M SYSTEM)................... 10
  • ORTHOGONAL SYSTEM................... 11
• CRYSTAL TYPES................... 14
  • QUARTZ................... 14
  • Cultured Quartz................... 15
  • Growth Process................... 15
  • Fabrication................... 16
  • Factors Affecting Crystal Performance................... 17
  • Cut................... 17
  • Aging................... 18
  • Temperature Stability................... 18
  • Load Capacitance................... 19
  • Frequency Tolerance................... 19
  • Drive Level................... 19
  • Crystal Quality Factor (Q)................... 19
    • Fabrication Trends................... 19
    • OTHER PIEZOCRYSTALS................... 20
    • Rochelle Salt................... 20
    • Tourmaline................... 22
    • ADP................... 22
    • Lithium Niobate................... 22
    • Lithium Tantalate................... 23
    • Bismuth Germanium Oxide................... 23
    • Berlinite................... 24
    • Zinc Oxide................... 24
    • PMNT and PZNT................... 24

PIEZOCRYSTAL APPLICATIONS................... 25

• OSCILLATORS................... 25
• FILTERS................... 26
• TRANSDUCERS................... 27
• SURFACE ACOUSTIC WAVES (SAWS)................... 27

PIZOELECTRIC CRYSTAL DEVELOPMENTS................... 31

• U.S. DEVELOPMENTS................... 31
  • NEW5 MM X 7 MM TCXO FROM CTS CORP.................... 31
  • QUARTZ CRYSTAL MONITORS THIN-FILM GROWTH................... 31
  • PIEZO TECHNOLOGY INTRODUCES LC FILTERS................... 32
  • CTS INTRODUCES MINIATURE SURFACE MOUNT VCXOS................... 33
  • ACOUSTIC TECHNIQUES MEASURE PROPERTIES................... 33
  • HIGH-STRAIN PIEZOELECTRIC CRYSTALS................... 36
  • CTS RESONATOR PRODUCTS FOR WIRELESS GSM HANDSET APPLICATIONS................... 37
  • NEW CRYSTAL OSCILLATORS FROM PIEZO TECHNOLOGY................... 38
• FOREIGN DEVELOPMENTS................... 39
  • MASS PRODUCTION TECHNOLOGY FOR LBO
  ................... 39

INDUSTRY STRUCTURE AND MARKETS................... 41

• COMPETITIVE ENVIRONMENT IN THE U.S.................... 41
• NORTH AMERICAN COMPANIES................... 42
  • U.S. PRODUCERS OF CULTURED QUARTZ AND QUARTZ BLANKS................... 46
• FOREIGN COMPETITION................... 51
• PRICES................... 56
• TECHNICAL AND BUSINESS ISSUES................... 58
• MAJOR USER COMPANIES................... 59
  • TELECOMMUNICATIONS EQUIPMENT................... 60
  • COMPUTER NETWORKING EQUIPMENT................... 60
  • PASSIVE AND ACTIVE SONARS AND SONOBUOYS................... 60
  • MEDICAL EQUIPMENT................... 60
  • AUTOMOTIVE COMPANIES................... 61
  • SENSORS................... 61
  • ULTRASONICS................... 61
• U.S. PRODUCTION................... 61
• NORTH AMERICAN SHIPMENTS................... 62
• MARKET SHARE OF NORTH AMERICAN COMPANIES................... 62
• NORTH AMERICAN MARKET FOR QUARTZ CRYSTALS AND DEVICES................... 63
• MARKET SEGMENTS BY APPLICATION................... 66
• MARKETS FOR NONQUARTZ CRYSTALS................... 67
• NORTH AMERICAN MARKET FOR PIEZOELECTRIC CRYSTALS AND DEVICES................... 68
• WORLDWIDE MARKETS................... 68

APPENDIX I: PROFILES OF U.S. AND CANADIAN COMPANIES AND INSTITUTIONS INVOLVED WITH PIEZOELECTRIC CRYSTAL DEVICES................... 69

APPENDIX II: COMPANIES PRODUCING PIEZOELECTRIC SENSORS................... 94

APPENDIX III: COMPANIES INCORPORATING PIEZOELECTRIC COMPONENTS IN THEIR PRODUCTS AND SYSTEMS...................114

APPENDIX IV: COMPANIES PRODUCING PIEZOELECTRIC DEVICES BUT NOT ULTRASONICS AND SENSORS................... 118

APPENDIX V: COMPANIES PRODUCING ULTRASONIC EQUIPMENT AND PRODUCTS CONTAINING PIEZOELECTRIC ELEMENTS................... 123

LIST OF TABLES

• SUMMARY TABLE: NORTH AMERICAN MARKET SIZE AND PERCENTAGE SHARE FOR PIEZOELECTRIC CRYSTALS AND DEVICES, THROUGH 2006...................XII
• 1 NORTH AMERICAN MARKET AND MARKET SHARE FORQUARTZ CRYSTALS AND DEVICES ACCORDING TO PRODUCT TYPES, 2001................... 3
• 2 PIEZOELECTRIC MATERIAL APPLICATIONS IN VARIOUS INDUSTRIES................... 8
• 3 PIEZOELECTRIC CRYSTAL MATERIALS AND THEIR PROPERTIES................... 10
• 4 RECOMMENDED ELEMENT VS. FREQUENCY RANGE................... 17
• 5 PROPERTIES OF VARIOUS PIEZOELECTRIC CRYSTALS................... 21
• 6 SAW MATERIALS................... 29
• 7 MAJOR NORTH AMERICAN PRODUCERS OF QUARTZ CRYSTALS AND CRYSTAL PRODUCTS................... 42
• 8 NORTH AMERICAN PRODUCERS OF CULTURED QUARTZ AND QUARTZ BLANKS................... 46
• 9 NORTH AMERICAN QUARTZ CRYSTAL PRODUCERS................... 47
• 10 NORTH AMERICAN QUARTZ CRYSTAL OSCILLATOR PRODUCERS................... 48
• 11 NORTH AMERICAN CRYSTAL FILTER PRODUCERS................... 49
• 12 NORTH AMERICAN RESONATOR/DISCRIMINATOR PRODUCERS................... 50
• 13 NORTH AMERICAN SAW SUBSTRATE AND DEVICE PRODUCERS................... 50
• 14 NORTH AMERICAN PRODUCERS OF NON-QUARTZ CRYSTALS................... 51
• 15 EUROPEAN PRODUCERS OF QUARTZ CRYSTALS AND QUARTZ CRYSTAL DEVICES................... 52
• 16 PRODUCERS OF QUARTZ CRYSTALS AND QUARTZ CRYSTAL DEVICES IN ASIAN AND PACIFIC COUNTRIES................... 53
• 17 PRODUCERS OF QUARTZ CRYSTALS AND QUARTZ CRYSTAL DEVICES IN THE MIDDLE EAST AND AFRICA................... 55
• 18 SOUTH AMERICAN PRODUCERS OF QUARTZ CRYSTALS AND QUARTZ CRYSTAL DEVICES................... 55
• 19 PRODUCERS OF CULTURED QUARTZ AND QUARTZ BLANKS OUTSIDE OF NORTH AMERICA................... 56
• 20 SPECIFICATIONS OF X-CUT QUARTZ CRYSTALS FROM KTECH INC.................... 57
• 21 X-CUT QUARTZ GAUGE PRICE LIST................... 58
• 22 U.S. FACTORY SALES OF PIEZOELECTRIC CRYSTALS AND DEVICES, THROUGH 1998................... 62
• 23 NORTH AMERICAN COMPANY MARKET SHARE OF PIEZOELECTRIC QUARTZ CRYSTALS AND CRYSTAL DEVICES, 2000................... 63
• 24 NORTH AMERICAN NET MARKET FOR PIEZOELECTRIC QUARTZ CRYSTALS AND CRYSTAL DEVICES, 2000................... 64
• 25 NORTH AMERICAN MARKET PROJECTION FOR PIEZOELECTRIC QUARTZ CRYSTALS AND CRYSTAL DEVICES, THROUGH 2006................... 66
• 26 NORTH AMERICAN MARKET ACCORDING TO PRODUCT TYPES, 2001................... 66
• 27 NORTH AMERICAN MARKET VALUE OF PIEZOELECTRIC CRYSTALS AND DEVICES, THROUGH 2006................... 68

LIST OF FIGURES

• SUMMARY FIGURE: NORTH AMERICAN MARKET FOR PIEZOELECTRIC QUARTZ CRYSTALS AND NONQUARTZ SINGLE CRYSTALS, 2001 AND 2006...................XII
• 1 SHARE OF MARKET SEGMENTS FOR PIEZOELECTRIC QUARTZ CRYSTALS AND DEVICES, 2001................... 4
• 2 RELATIONSHIPS BETWEEN PIEZOELECTRICITY, PYROELECTRICITY AND FERROELECTRICITY................... 7
• 3 A CRYSTAL SHOWING THE B-M SYSTEM................... 11
• 4 CROSS-SECTION OF A CRYSTAL SHOWING THE ORTHOGONAL SYSTEM................... 12
• 5 QUARTZ CRYSTAL STUCTURE, IRE AXES AND ANGLES, AND PRINCIPAL CUTS................... 13
• 6 AT-CUT QUARTZ CRYSTAL................... 18
• 7 ILLUSTRATION OF A SAW IDT................... 28
• 8 NORTH AMERICAN COMPANY MARKET SHARE OF PIEZOELECTRIC QUARTZ CRYSTALS AND CRYSTAL DEVICES, 2000................... 63
• 9 NORTH AMERICAN NET MARKET FOR PIEZOELECTRIC QUARTZ CRYSTALS AND CRYSTAL DEVICES, 2000................... 65