Category Archives: LED Manufacturing

Displaybank’s recent market report on the cost competiveness of LED chips. This report conducts a thorough analysis on the supply price history, trends and forecast of main materials that compose packaged LEDs across the entire LED value chain. The key materials include sapphire ingot, substrate, LED chip (or die), frame (PCB, lead frame, ceramic), phosphor (YAG, silicate, nitride), and encapsulation. The supply price of the key materials used in the production of a packaged LED was assumed as the production cost. In addition, IHS has researched the average selling price (ASP) of a packaged LED every quarter since 2010, aside from this report.

In 2012, the 4-inch ingot/substrate lost its price premium compared to the 2-inch product, and the 6-inch product had to lower its margin because of excess supply in 2013. However, such drastic fluctuations in price are not expected to occur after 2014.

The LED chip suppliers have reaped great benefits with the falling production cost of 4-inch-substrate-based LED chips. However, it is expected that they will convert their production systems over to 6-inch or 8-inch substrates in the near future, with the falling prices of 6-inch substrates and enhanced yield rates. According to the report, the production cost competitiveness of LED chips produced on 6-inch substrates will outstrip that of 4-inch, by as early as 2015.

In addition, the report compares the production cost and selling price of packaged LEDs by application; analyzes the margin and cost structure; and forecasts for the cost and price until 2020.

Global demand for precursor, a material used in manufacturing of light-emitting diodes (LEDs), is set to more than double from 2012 to 2016, as the market for LED lighting booms, according to a new report entitled “Precursor for LED MOCVD–Market and Industry Analysis,” from Displaybank, now part of IHS.

The market for precursor used in the metal-organic chemical vapor deposition (MOCVD) manufacturing process for making LEDs will rise to 69 tons in 2016, up a notable 114 percent from 32 tons in 2012.

“The boom in the precursor market reflects the rising operating rate of MOCVD as the LED lighting market grows,” said Richard Son, senior LED analyst at IHS.

Precursor is a core material that ensures the optimal light efficiency for each LED epi layer. It is used in the MOCVD process, which is the most important process in manufacturing LED chips. Major precursors include trimethylgallium (TMGa), trimethylindium (TMIn), trimethyl aluminum (TMA), triethylgallium (TEGa) and C2Mg2. Among these, TMGa is the most widely used and commands about 94 percent of total demand.

Read more: Epi-wafer market to grow to $4 billion in 2020 as LED lighting zooms to $80 billion

Global shipments of MOCVD equipment are on the rise, with shipments expected to climb by 17 percent in 2013.

The largest buyers of MOCVD equipment—South Korea, Taiwan and China—account for about 80 percent of the global demand of precursors. China, which is generating the highest growth in installation of MOCVD equipment among the three countries, is expected to make up 45 percent of the global demand of precursors in 2016.

In the nascent stage of the LED market, Dow Chemical Co. was the unrivaled leader in the precursor market. However, with the recent growth in precursor demand, new players have been investing in R&D and manufacturing facilities while aggressively breaking into the market with low prices for similar-quality product. Such developments will intensify competition further among precursor makers.

Colors are playing an increasingly important role in the automotive sector. Consumers can not only choose the exterior color of the vehicle, you can also tailor the interior lighting to the customer’s individual taste. Thanks to the very wide blue color range of the new RGB MultiLED from Osram Opto Semiconductors, lighting designers have a virtually unlimited choice of colors for ambient lighting, including customer-specific colors. Color design now covers cluster lighting to an increasing extent, notably in combined instruments such as speedometers and RPM indicators, in infotainment and GPS displays, as backlighting for switches and in accent, ambient and trim lighting. Vehicles are fast becoming objects of individual design.

The main feature of the new MultiLED from Osram is a very broad blue color range with a wavelength of 447 to 476nm and high brightness. Deep saturated blue tones can now be produced thanks to the use of three LED chips in red, green and blue (RGB). Other properties of the MultiLED, such as its integrated ESD (electrostatic discharge) protective diode (2 kilovolts), its improved corrosion resistance, and its longtime market availability, make these LEDs ideal for use in automobiles. The MultiLED was developed specifically for applications in the automotive sector and meets all the requirements of an automotive certified component.

OSRAM multi-chip LED

All shades of blue

The new MultiLED consists of a red chip, a green chip and a blue chip (RGB LED). At 370 millicandelas (mcd), the blue is much brighter than in other multi-chip LEDs on the market. This brightness is a significant advantage because the sensitivity of the human eye causes the color blue to be perceived as darker than it actually is.

Read more: LED revenues grow even as prices fall through 2016

"The new LED can offset this darker perception so that customer brightness requirements can be met for all color ranges," said David Rousseau, LED Product Marketing Manager at Osram Opto Semiconductors. "What’s more, a short-wave blue color has a pleasant saturated appearance. We have now succeeded in implementing this color range in an RGB LED version."

The three independently controllable LED chips in blue, red and green in the MultiLED are available in different brightness groups thanks to finely defined grouping (known as binning). They can be individually combined to produce a large color spectrum. All three chip colors are the product of leading-edge technology: blue and green in UX:3 technology, red in the latest thin-film technology. The light is extracted from the chip with very high efficiency, resulting in high luminous intensity. In the upper blue wavelength range, for example, a level of up to 560 millicandelas is achieved at an operating current of 20 mA. Luminous intensity in candelas (cd) corresponds to luminous flux in lumens (lm) emitted by a light source in a particular solid angle. The typical thermal resistance between the chip and the solder point is 127 K/W for blue and green, and 96 K/W for red.

 

Cree, Inc. today announced a technology breakthrough for the LED street lighting market. The XSPR LED Residential Street Light delivers better lighting while consuming over 65 percent less energy at an initial cost as low as $99 for common applications. The new Cree XSPR street light is marketed as a replacement for municipalities and cities using outdated high-pressure sodium fixtures up to 100 watts and can deliver payback in less than one year.

“With the low initial price of the XSPR street light and the dramatic energy savings, wholesale replacement of existing street lights becomes a simple choice,” said Al Ruud, Cree vice-chairman, lighting. “Utilities and city managers can now improve the lighting in their neighborhoods, save energy and see payback in less than a year. Why would anyone choose otherwise?”

Extending the technical breakthroughs of the XSP Series LED Street Light portfolio, the 25-watt and 42-watt XSPR street light is designed to replace up to 100-watt high-pressure sodium street lights, reducing energy consumption while improving lighting performance. Cree’s NanoOptic Precision Delivery Grid optic technology achieves better optical control than traditional street lighting fixtures and efficiently delivers white uniform light for safer-feeling communities.

“Street lighting is our city’s largest single energy-related cost, and the XSPR street light appears to dramatically change the economics of LED relative to traditional lighting technologies,” said Dan Howe, assistant city manager, City of Raleigh, N.C. “This breakthrough technology can change the total cost of ownership equation, encouraging municipalities to transition sooner to LED with less risk, and redirect resources to other important community needs.”

Despite a major surplus in the light-emitting diode (LED) market, top suppliers are increasing their capital spending and production because of government incentives and in order to cash in on an expected boom in the lighting business.

Global shipments of metal organic chemical vapor-deposition (MOCVD) equipment—tools that are essential for LED manufacturing—are expected to rise by 17 percent in 2013, according to Alice Tao, senior analyst, LEDs and lighting for IHS. This will be the first annual growth for the MOCVD market since 2011, and will represent a major turnaround from the 70 percent plunge of 2012.

At the same time that growth is being projected, factory utilization rates are increasing for major LED companies in Asia. In South Korea, for instance, utilization rose to about 75 percent in the second quarter, up from 60 percent in 2012. Meanwhile, utilization for some Taiwanese and Chinese companies reached 90 percent in the second quarter.

The spending and boosting of utilization rates alike are occurring despite a glut of supply that has plagued the market since 2010. The surplus started when LED suppliers made major investments in capacity in 2010 and 2011, stemming from the efforts of local governments in China to subsidize MOCVD purchasing. Governments are helping fund the procurement of MOCVD by to 80 percent of the total price of the equipment.

Many of these companies also are increasing production in the belief that they can capitalize on upcoming fast growth in the market for LEDs used in lighting.

“The global market for LED lighting is expected to double during the next three years,” noted Tao. “The prospect of this massive growth is irresistible to LED suppliers, who don’t want to be caught short of supply during this expected boom. But given the rising investments in manufacturing equipment, the acute LED oversupply already in existence is expected to continue through 2016.”

The supply of LEDs, measured in terms of manufactured die, is expected to exceed demand by 69 percent in 2013 and in 2014. The glut will decline slightly to 61 percent in 2015 and then to 40 percent in 2016.

Major LED suppliers include San’an, Elec-tech of China, Samsung and Seoul Semiconductor of South Korea, Epistar of Taiwan, and other companies including Philips Lumileds of the United States and Osram of Germany.

As LED lighting becomes an $80 billion industry, the market for the epitaxial wafers (epi-wafers) LEDs are made from will grow to $4 billion in 2020, according to Lux Research.

The vast majority of these epi-wafers are gallium nitride (GaN)-on-sapphire today. GaN-on-silicon is the leading emerging technology with a strong economic allure – silicon is just one-eighth the cost of a sapphire substrate – but technical challenges will limit it to only a 10% market share in 2020. GaN-on-silicon carbide (SiC), championed by Cree, will grow to 18 percent market share.

epi wafer market

“Silicon is already widely used for electronics, and some LED die manufacturers are hoping to take advantage of silicon substrates,” said Pallavi Madakasira, Lux Research Analyst and lead author of the report titled, “Dimming the Hype: GaN-on-Si Fails to Outshine Sapphire by 2020.”

“But GaN-on-Si is more prone to cracking than GaN-on-sapphire, and mitigating this mismatch is expensive,” she added.

Lux Research analysts studied the market for GaN-on-sapphire, GaN-on-SiC, GaN-on-bulk GaN, and GaN-on-Si epi-wafers, evaluating each technology’s economic prospects as the industry moves to larger wafer sizes. Among their findings:

  • Choice and cost of LEDs will determine adoption. Where GaN-on-sapphire is suited to all applications, GaN-on-bulk GaN will be relegated to niche commercial lighting and GaN-on-Si, with unproven performance, will be better suited to cost-sensitive residential applications.
  • Four-inch wafers will rule, though six-inch wafers start to come into vogue. Four-inch wafers will peak at 62 percent market share with $2.1 billion in 2017 sales. Later, the LED industry will move towards 6” epi wafers, which will take a 35% share, equivalent to $1.4 billion, in 2020.
  • Technology will advance sapphire substrates. Sapphire substrate manufacturing technology has advanced significantly with specialists such as Rubicon and Monocrystal demonstrating substrates up to 12 inch in diameter. New methods like hydride vapor phase epitaxy (HVPE) will further improve throughput and cut costs, keeping sapphire highly competitive for the rest of the decade.

The report, titled “Dimming the Hype: GaN-on-Si Fails to Outshine Sapphire by 2020,” is part of the Lux Research Energy Electronics Intelligence service.

DAS Environmental Expert GmbH of Dresden, Germany, has developed SALIX, a point-of-use system for removing waste gas pollutants in semiconductor wafer manufacturing wet bench applications. This solves a common problem where gases from the solvents, acids and alkaline materials used in wet processing combine to form a powder in the exhaust line. This powder can be a “toxic bomb” according to Dr. Horst Reichardt, CEO and president of DAS, or at least cause throughput and cost issues since the exhaust may have to be cleaned every one to two days.

The single-wafer cleaning process widely used for cleaning 300-millimeter wafers in wet benches distributes cleaning agents onto rapidly spinning single wafers and spins them off at the edge where baffle plates within the system collect the water, acidic and alkaline chemicals, and volatile solvents (the process for cleaning 200-millimeter wafers immerses the entire cassette). A large fab may have 20-30 such wet benches. With up to 12 stations per wet bench and exhaust from each chamber requiring several exhaust systems, the SALIX scrubber eliminates the need for elaborate change-over modules to avoid deposition in the pipes. It is more cost-effective and efficient at preventing clogging than conventional approaches used to separate and extract the acids, alkalines and solvents in the exhausts which require separate suction to prevent particle buildup and condensation within the pipes.

In contrast, SALIX removes the harmful substances from the gas stream directly at their point of origin using a two-stage scrubber process of chemical and physical absorption, and can treat up to 3600 m3/h of raw gas. Separate inlets feed the harmful gases from the wet bench process chambers into a SALIX pre-scrubber that pre-cleans the gas using spray nozzles. Next the waste gases pass into the first scrubber stage and then a second stage that uses a different scrubbing liquid. The remaining clean gas then can be released safely into the air without any danger to the technology or the environment. Because the SALIX system does not require any air dilution, the clean air remains in the clean room, further reducing cost.

Dr. Guy Davies, director of the Waste Gas Abatement business unit at DAS Environmental Expert explained, “When a global foundry based in Taiwan came to us seeking a better solution to treat water-soluble exhaust gases from a wet bench application, we installed SALIX as a first-of-its-kind point-of-use system. It has been running there since January of this year and, after six months of operation, emissions measurements show zero harmful substances in the exhaust. One SALIX system per wet bench is all that’s needed, and just one pipe for the cleaned exhaust. Salix “offers a smaller footprint with no switching boxes needed, and is far more cost-effective and efficient than central scrubbers for treating processes that create water-soluble waste gases. We believe our proven SALIX solution, which is SEMI S2 international and German TA-Luft standards compliant, opens new markets for point-of-use scrubbers in the semiconductor, LED, PV and FPD industries. In fact, we have seen increasing interest in SALIX and already have received multiple inquiries from U.S. customers. In addition, we are using the evaluation results for further process-based optimization and have developed a custom fit bypass function that will enable production to continue with no interruption.

DAS also announced it has added Technica, U.S.A. as a new local service partner to deliver faster response time for service and maintenance for U.S. customers.

Road and street lighting is a key driver for LED technology in general lighting. In less than a decade, LED technology has created more turmoil in the lighting industry than anything occurring over the previous century. Every professional agrees that what used to be a conservative, well-controlled market is undergoing a massive change, referred to as “the LED revolution.” Therefore, it’s high time to take a close look at what’s happening and why, since each General Lighting application, be it indoor or outdoor, has its own way of adopting LEDs. Outdoor lighting is no stranger to revolution. In fact, today it’s one of the two most dynamic General Lighting market segments for LED adoption. Within the segment, architectural lighting was the early adopter, but the main driver these days is definitely road and street lighting. Historically the largest outdoor segment, it now offers the best prospects for LED development in professional exterior lighting. Road and street lighting is a very attractive market, with EBIT levels generally between five and 15 percent and steady growth despite the economic downturn.

 “We estimate that LED luminaire revenue will reach $435M in 2013 and peak at $516M by 2016, fuelled by the increased need for energy efficiency. Growth will be driven firstly by tunnel lighting, and then relayed into highway, road, residential and amenity lighting applications starting in 2014”, explains Pars Mukish, Market and technology analyst, LED at Yole Développement. “By 2017, market size should decline because of a decreasing replacement market (due to LED-based systems’ higher lifetime) and also because of LED luminaire’s ASP,” he adds.

Yole’s report presents all road and street lighting applications and associated market metrics within the period 2008-2020 for each application and region, detailing drivers & challenges, key players, associated volume/market size (luminaires installed base, LED luminaire and packaged LED sales), and LED penetration rate.

A new approach to luminaire design requiring new manufacturer competencies

Designing with LED implies major changes for conventional luminaire manufacturers – mostly at the optical, electrical and physical levels. With the move to LED technology, traditional luminaire manufacturers face dramatic organizational changes, such as integrating electronic competencies, upgrading optical competencies, taking ownership of the light source (SSL), and revamping production organization. Consequently, internal revolution is required within luminaire companies in order to take full advantage of the LED boom.

This report analyses the LED value proposition in road and street lighting, detailing: major changes between conventional luminaire and LED luminaire, how LED technology can be applied to road and street lighting (drivers, key decision-making criteria, impacts of LED adoption on the overall industry), associated lighting design requirements, etc.

The path to an outdoor lighting market involves several players which have already embraced major changes

“Compared to other lighting applications (residential, commercial, etc.), the outdoor lighting supply chain involves more associated/parallel industries, such as the pole and bracket industry, the control industry and the cable industry,” explains Christophe Richon, CEO of Lux Fit. As is the case for other lighting applications, these industries must also redesign their products in order to make their business sustainable: smaller-size pole and bracket equivalents due to LED miniaturization, new power supply and control capacities due to LEDs’ higher start current, etc.

At the business chain level, outdoor lighting is also quite unique in terms of involving different player types: end-users and specifiers such as municipalities, lighting designers, installers, etc. With LEDs offering longer lifetime, better energy savings and increased aesthetic potential, each player must adapt its activity to make best use of the technology.

This report presents an overview of the road and street lighting industry’s supply chain and business chain (conventional and LED), detailing: each player’s role, main industrial trends, impact of LED integration, etc. Also, company profiles are provided for eight key LED luminaire manufacturers.

Developing new business models to increase LED’s penetration rate

Around the world, LED adoption in road and street lighting has benefitted from financial incentives to hasten the change. While recession in many economies has led some governments to revise their subsidizing policies, others have maintained them, and other support forms are emerging. However, in many countries, public end-users are now faced with a dilemma: invest in public lighting (mainly because of increasing urbanization and the need to implement energy efficient systems) or reduce spending (less public money available, political pressure, etc.).
As a result, public end-users are turning more and more to new business models that provide energy efficient lighting at reduced initial costs, such as Public Private Partnerships (PPPs) and performance contracts (ESCOs).
This report presents an overview of LED technology drivers, detailing: technology drivers, application drivers and economic drivers.

 

Fab equipment spending will grow two percent year-over-year  (US$ 32.5 billion) for 2013 and about 23 to 27 percent in 2014 ($41 billion) according to the May edition of the SEMI World Fab Forecast. Fab construction spending, which can be a strong indicator for future equipment spending, is expected to grow 6.5 percent ($6.6 billion) in 2013, followed by a decline of 18 percent ($5.4 billion) in 2014. The new World Fab Forecast report covers fab information on over 1,140 facilities, including such details as capacities, technology nodes, product types, and spending for construction and equipment for any cleanroom wafer facility by quarter.

Fab equipment spending for the second half of 2013 is expected to be much stronger with a 32 percent growth rate or $18.5 billion compared to the first half of 2013. The equipment spending increase in the second half is attributed to growing semiconductor demand and improving average selling price for chips. 2014 is expected to have about 23 to 27 percent growth year-over-year (YoY) to reach about $41 billion, which would be an all-time record.

Looking at product types, the largest amounts of spending on fab equipment in 2013 will come from the foundry sector, which increases by about 21 percent. This is driven mainly by capex increases by TSMC. The memory sector is expected to have an increase of only one percent — after a 35 percent decline in the previous year. The MPU sector is expected to grow by about five percent. A double-digit increase in the Analog sector in 2013 will still translate into low absolute dollar amounts, compared to the other sectors.  

 

Construction spending is a good indicator for more equipment spending.  Fab construction spending in 2013 is expected to be almost 15 percent growth YoY ($6.6 billion) with 38 known construction projects. Top spenders for fab construction in 2013 are TSMC and Samsung, who plan to spend between $1.5 and $2 billion each, followed by Intel, Globalfoundries and UMC. The SEMI World Fab Forecast report reveals more detail.

2014 shows a decline of about 18 percent ($5.4 billion) in construction spending with only 21 construction projects expected to be on-going. These construction projects include large fabs; some are 450mm-ready. 

Since the last fab database publication at the end February 2013 SEMI’s worldwide dedicated analysis team has made 389 updates to 324 facilities (including Opto/LED fabs) in the database. The latest edition of the World Fab Forecast lists 1,144 facilities (including 310 Opto/LED facilities), with 61 facilities with various probabilities starting production this year and in the near future. Seventeen new facilities were added and 8 facilities were closed.

The SEMI World Fab Forecast uses a bottom-up approach methodology, providing high-level summaries and graphs; and in-depth analyses of capital expenditures, capacities, technology and products by fab. Additionally, the database provides forecasts for the next 18 months by quarter.

Aledia today announced that solid-state lighting (SSL) industry veteran Dr. Bernhard Stapp has joined its board of directors.

Stapp brings more than a dozen years of executive experience in LED lighting technologies to Aledia, most recently in senior management positions at OSRAM.

As general manager and senior vice president of OSRAM AG’s SSL unit, Stapp was responsible for the company’s professional LED and OLED business. Earlier, as SSL vice president and general manager at OSRAM Opto Semiconductors, he launched and managed the general-lighting LED business and oversaw launch of the world’s first OLED lighting products. Prior to that, Stapp was vice president and CTO of the semiconductor company, where he oversaw global LED, laser and OLED R&D. Earlier in his career, he held a variety of management positions in Siemens AG’s Corporate Technology division.

“Aledia’s mission is to bring fundamental change to the world’s lighting markets by making LED technology substantially more affordable and more versatile, with better performance and fewer limitations,” said Giorgio Anania, Aledia’s co-founder, president and CEO. “Bernhard has been a key player at the heart of the global LED industry since its inception, and also has an outstanding technical background. His unique perspective on this industry’s future will be invaluable as Aledia moves into the next stage of its evolution.”

WireLED, Aledia’s 3D microwire GaN-on-silicon technology, was developed at the CEA-Leti nanotech research institute in Grenoble. It addresses the basic technical and economic challenges facing LED lighting by allowing production of LEDs on inexpensive industry-standard 200mm silicon wafers using standard semiconductor processes and tools.