Austria-based USound raises €25M to ramp up manufacturing of its MEMS-based speakers for wearables and hearables

USound, an Austrian fabless audio company offering high-performance silicon speakers and sound solutions based on MEMS technology, has raised €25M in a fresh round of funding. With this new investment, the company is preparing to ramp up manufacturing and meet demand for its second-generation MEMS technology.

According to IDC, the hearables category accounted for 64.7 percent of total wearable device shipments during the third quarter of 2021. With the hearables category growing in volume, USound is gearing up to offer its second-generation MEMS loudspeakers to several global companies.

USound and MEMS technology: what you need to know

USound is a fast-growing audio company that designs and develops its sound solutions and speakers based on MEMS technology. The MEMS technology allows companies to design loudspeakers that take up 50 per cent less space and use 80 per cent less energy, and yet offer a greater frequency response than traditional speaker products.

With true wireless earbuds becoming the go to audio device in the industry, MEMS loudspeakers are regarded as an ideal solution. Since these MEMS loudspeakers are smaller, they impact the size and weight of the final device. They have been found to be ideal for use in TWS earphones, headphones, smartphones, VR/AR glasses, wearables, and hearing aids.

MEMS, or Micro-Electro-Mechanical Systems, is a technology that miniaturises mechanical and electro-mechanical elements using microfabrication techniques. This allows MEMS devices to vary in size and can range from those without any moving parts to ones with multiple moving elements. The common element among all MEMS devices is that they have at least some elements with mechanical functionality even if the elements do not move.

The MEMS speakers from USound reduce system costs with the help of its surface-mount reflow capability and allow for fully automatic assembly of audio products to achieve highest quality and performance. Their compact form factor does not impact performance with USound claiming its MEMS speakers offer “higher sound pressure levels, better sound quality, and lower manufacturing costs.”

Fund utilisation

With €25M in funding, USound has announced that it will start mass production of its second generation MEMS loudspeakers for several global companies. The second generation MEMS loudspeakers was developed by USound with the support in part of a €2M grant from the European Commission’s Horizon2020 program.

The second generation piezoelectric silicon MEMS speakers from USound can be submerged up to 3 metres for about 30 minutes, allowing it to meet IPX8 standards. This allows companies to reimagine performance of their devices close to water or underwater. These speakers are also capable of producing spatial audio and allow for flexible design.

“We are pleased to announce the launch of our second-generation MEMS loudspeakers that will further extend our product portfolio. With the steady growth of customers, USound is further extending the manufacturing network that already includes STMicroelectronics for the First Generation of MEMS loudspeaker and TSMC (Taiwan) for the ASIC Audio Amplifier,” said Ferruccio Bottoni, Chief Executive Officer at USound. He added, “Collaborating with world-leading manufacturing companies, enable us to increase production volume, be more efficient, and improve the logistics process to reach our global customers.”

While the primary goal of this funding is to ramp up manufacturing, USound will also focus on extending its product portfolio. The company is already manufacturing MEMS micro speakers for global TWS earbuds brands and hearing aid companies like Shenzhen Magnet Technology Co., Ltd. It is also working with a major technology company for augmented reality glasses. USound’s MEMS speakers are also found on audio glasses made by consumer fashion technology brand Fauna.

Investors

The investment round was led by eQventure, the leading venture capital firm in Austria. The VC firm was joined by venture capitalists Hermann Hauser, who is the co-founder of ARM and Longzhong Yang, who co-founded Chinese manufacturing company BYD. The investment round also saw participation from the European Investment Bank.

With the conclusion of this round, USound now counts Austria Wirtschaftsservice Gesellschaft mbH (aws), eQventure, the Austrian Research Promotion Agency (FFG) and Hermann Hauser among its main investors. With hubs in Austria, Germany, UK, Israel, USA and China, eQventure is one of Austria’s leading venture firms.

The VC firm offers young Austrian high-tech companies with a strong global network and operational support to accelerate their growth. The firm invests in early stage venture, late stage venture and private equity seed. Founded by Bernhard Astner, Christian Klemm, Herbert Gartner and Joerg Schoenbacher, these successful entrepreneurs invest their own money and take a hands-on role with their portfolio companies.