by 
GENEVA and KYOTO, Japan -- STMicroelectronics (NYSE: STM), a leading supplier of IC solutions for metering applications, and Omron, a world leader in automation technology, today announced that the two companies have collaborated to provide a complete solution for electronic gas meter flow sensors. The flow sensor they have developed is a key component for the smart turn-key gas meter solution that ST is developing.
Like electricity meters some years ago, gas metering is beginning to move from traditional mechanical meters to sophisticated new electronic solutions incorporating functions such as Automatic Meter Reading (AMR). ST estimates that there are some 500 million mechanical gas meters in the world and most major gas providers are preparing programs to replace their traditional meters with more accurate, reliable and efficient electronic meters.
At the heart of the unique cooperation between a leader in metering devices and a leader in automation technology is a proprietary Omron transducer and a companion analog front-end chip developed by ST. These valuable technologies have been integrated into a complete stand-alone subsystem. The resulting flow sensor, which incorporates leading-edge MEMS (Micro-Electro-Mechanical Systems) micro-thermal sensor technology, is intrinsically compensated for both temperature and pressure variations, while a built-in circuit compensates for the variation of multiple gas composition. The sensor is dust-resistant to comply with international gas-meter standards.
"Building on our successful collaboration with ST in MEMS microphones, we are confident that this new collaboration will put both partners at the forefront of the emerging market for electronic gas meters," said Yoshio Sekiguchi, Senior General Manager of the Micro Devices Division of Omron Corporation.
{complink 5218|STMicroelectronics NV}
{complink 3964|Omron Corp.}
Hi Jenn, interesting article. I could see a steady stream of revenue for the local niche players in Europe for the foreseeable future, but I am not sure I see stellar performance. I still see Asia as the giant for some time to come. We always hear about China, which of course is the current leader in this space, but I wouldn’t be surprised to see India become a major player, if they could get their infrastructure up to speed. India’s foundry business is experiencing a revival mainly due to the automotive industry and the high demand for cars in the region, despite the downturn in the world economy. Would be interesting to see how it plays out over the next few years.
Jennifer,
My feeling is that the proximity of these facilities to the Fast growing markets of Africa,Middle East and Eastern Europe mean that they do have a major advantage over Asian foundries.Especially as Shipping costs and delays rise considerably(thanks to Increased checks on account of bomb threats as well as due to weather problems).
Proximity to markets is a major advantage(especially if they manage to keep their products cost-competitive with Asian Suppliers).
regards
Ashish.
Hi Dave,
Thanks for the post. True, India will be a country to watch for many reasons, including the ones you mention. I think their ability and effectiveness in pulling off production for the region's growing low-cost car segment will be something device makers will want to keep tabs on. That, combined with their relatively strong software development background and customer service call center niche may make for an interesting all-services outsourcing locale.
We'll see how it unfolds.
Jenn
Hi Ashish,
Thanks for the post. I agree that shipping costs are a huge expensive that has to be considered in the total cost picture. Like you said, supply chain disruptions (whether caused by weather, terorism-linked customs delays, transportation/infrastructure issues, or any number of other issues) will continue to occur in some way, shape or form, regardless of the all the steps taken to prevent them. It seems like this costs vs promixity debate will be with us for quite some time, and companies will still have to weigh the pros and cons of each.
Jenn