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Investing.com -- SiTime Corporation (NASDAQ:SITM), a prominent supplier of MEMS oscillators, is expected to experience robust growth in the coming years, according to TF International Securities analyst Ming-Chi Kuo. The growth is driven by new orders from Apple (NASDAQ:AAPL), which recently revealed that its iPhone 16e uses SiTime’s oscillators.
Apple has chosen SiTime as the exclusive supplier of MEMS oscillators for its in-house modem. The decision to switch from traditional quartz crystal oscillators to SiTime’s MEMS oscillators aligns with Apple’s design priorities of miniaturization and power efficiency.
The relationship between SiTime and Apple dates back to when Apple acquired Intel (NASDAQ:INTC)’s modem business in 2019. Prior to the acquisition, Intel’s modem division had collaborated closely with SiTime, making the integration of SiTime’s MEMS oscillators into Apple’s modem design a logical progression.
The transition to MEMS oscillators, however, has reshaped the supplier landscape. While SiTime emerges as the clear winner, suppliers such as TXC, Epson, KED, NDK, and KDS, which previously supplied quartz crystal oscillators for Qualcomm (NASDAQ:QCOM) modems, have lost out.
Apple’s in-house modem now uses one 24MHz quartz crystal oscillator, replacing the other two (32KHz and 76.8MHz) with SiTime’s MEMS oscillators. Despite the switch adding about $0.8 to modem oscillator costs, Apple is expected to save $10-15 in material costs per unit by moving away from Qualcomm’s solution.
The new orders from Apple are expected to significantly boost SiTime’s revenue. Shipments of Apple’s in-house modems are forecast to reach 42 million units in 2025, 110-130 million in 2026, and 250-300 million in 2027, primarily for iPhones. Each modem pairs with two SiTime MEMS oscillators (32KHz and 76.8MHz), priced at $0.9-1.0 combined.
As a result, SiTime’s revenue is projected to increase to roughly $40 million in 2025, $110 million in 2026, and $240 million in 2027. This Apple-driven boost signals robust growth for SiTime through 2027, considering its 2024 revenue stood at $200 million.
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