In 2005, the ITU (International Telecommunication Union) introduced the concept of the “Internet of Things”. What it simply means is that “Things” can talk to “Things”. For instance, if something (maybe raining) just happened in SF, a “Thing” (Car windshield?) detected it, and sends this information from “Thing” to “Thing”. Maybe you were driving from San Jose to SF, you will know this information in advance so you may decide to head back home or continue to drive to SF. This is just one application. There are probably millions of other applications. To be able to connect things to things, chips or sensors will need to be embedded massively. This is an ongoing technology. It is not completely new. So, what’s the point of discussing it right now? The answer is China!
China started its "Five-Year Plans" since 1953, and it is basically like a wish list regarding to its future economic, policy, medical, and technology...etc. developments. This year is the end of its “Eleventh Five-Year Plan (2006-2010)”. China is in the process of making its 12th Five Year Plan (2011-2015). Guess what, Internet of Things will most likely be included in the plan. Premier Wen mentioned about it in an interview last year. It has not been officially included yet, but seems like it is definitely going to be in the plan.
Who benefits from it? China’s most successful MEMS sensor maker, MEMSIC would. MEMSIC is Chinese company based in US, China, and Japan. Its customers include Lenovo, Haier, TCL, Sony, Panasonic, Nikon, Epson, Autoliv, and more. Its products are used in mobile phones, GPS devices, Industrial, and automotives. As you can see, MEMSIC is competing at a global scale, not just a local provider. Not to mention that it is able to make sensors at lower costs using its "special" manufacturing technology.
It also recently bought Crossbow who is a solution provider in WSN and Inertial MEMS sensor. WSN (Wireless Sensor Network) is essential for Internet of Things. You can put temperature, pressure, sound, light, and all kinds of sensors in one devices and put it on a bridge, lion cage, or even outer space, and have the device send back to result to you. WSN does the sending. So the purchase of Crossbow adds a lot of value to MEMSIC. Now it can take it further.
China has been trying to create its own standard for everything (like USA did), such as TD-SCDMA, WAPI, and even its own RFID. MEMSIC is a leader in the Chinese MEMS industry, and doing rather well in global markets. It stands in a very good position to help China to create its own standard if it is asked to do so.
3 things that led me think MEMSIC is one of the dreamer companies.
1. It makes MEMS sensors at lower prices
2. The purchase of Crossbow
3. China may include the “Internet of Things” in its 12th Five-Year Plan
Above all 3 reasons, I value #3 the most. If China did include the “Internet of Things” in its 12th Five-Year Plan, MEMSIC will definitely prosper considering its leading position in China. One thing that I noticed about Chinese government is that when China wants something done, it pushes harder than anyone.
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