Category Archives: LEDs

April 19, 2012 — Gallium arsenide (GaAs) substrate shipments faltered in 2011, owing to weak demand for RF circuits and optoelectronics. Growth slowed from 22% in 2010 to 4% in 2011, hitting $360 million for GaAs. In 2012, GaAs shipments will recover, says Yole Développement, thanks to high-volume handset shipments and balance of capacity in the light-emitting diode (LED) industry.

Figure. GaAs wafer market (volume) by substrate type, and forecast. SOURCE: GaAs Wafer Market and Applications report, Yole, April 2012.

GaAs substrates should reach $650+ million by 2017, creating 11% compound annual growth rate (CAGR) in the forecast period, fuelled primarily by increasing GaAs content in handsets and increased penetration of LEDs in general lighting and automotive applications.

RF electronics (ie, power amplifiers, switches) were initially the main market for GaAs wafers, and will be the main market for GaAs in the near term, with the development of sophisticated smartphones, 3G/4G networks, and the increased demand for data communication. New GaAs-based devices are enlarging the material’s market with associated high-volume applications. LEDs and highly concentrated photovoltaics (HCPV) are two such markets for GaAs substrates.

Boosted by LEDs, semiconducting (SC) GaAs substrates will lead growth of the GaAs market. In 2011, semi-inductive (SI) GaAs substrates held ~56% (M$) of the overall GaAs substrate market (SC GaAs held ~44%), a trend that is likely to reverse in the short term, said Pars Mukish, technology & market analyst, LED & Compound Semiconductor at Yole Développement.

LEDs are penetrating TV, signs and displays, and other applications. The high-volume general lighting sector is a “killer application” for LEDs, boosting the SC GaAs substrate market by 2012-2013. Fundamental technology improvements are needed to improve LED efficiency and increase the total amount of light generated per package for LEDs to penetrate this market. Moreover, the automotive industry is also shifting from the use of traditional light sources to LEDs for products such as headlamps and interior lights.

SC GaAs substrate volumes are likely to equal SI GaAs substrate volumes by 2013 due to steady growth of the RF electronics market compared to booming growth of optoelectronic market.

The 2011 earthquake/tsunami in Japan damaged several Japanese manufacturing plants and strongly impacted production capacity of some key GaAs substrate suppliers who lost market shares to the profit of some competitors. Whether these companies will invest to recover operations, reduce operations or exit the business is still unclear. The GaAs wafer industry is evolving and some players have already announced plant expansion in order to gain market share and prepare future growth of the market.

Due to its lower labor cost, China has won all GaAs wafer manufacturing expansion plans, noted Brad Smith, senior analyst, Compound Semiconductor for Yole Développement.

The Yole Développement report, “GaAs Wafer Market & Applications,” presents all applications of GaAs wafer and associated market metrics. It also details GaAs wafer industry, including profile of main players & associated strategies, industrial value chain in 2011, revenues & market shares of key players.

Companies cited in the report: Anadigic, Avago, AWSC, AXT, CCT, Century Epitech, Dowa, Epiworks, Freiberger Compound Materials, GCS, Hitachi Cable, Hittite Microwave, IntelliEPI, Kopin, M/A-Com, Mimix Broadband, Mitsubishi Chemical, Mitsubishi Electric, NeoSemitech, OMMIC, QE, RFMD, Skyworks, Soitec, Sumika, Sumitomo, Electric Device Innovation, Sumitomo Electric Industries, TriQuint, UMS, VPEC, Win Semi, Xiamen Powerway.

Authors: Pars Mukish works at Yole Développement as a Market and Technology Analyst in the fields of LED and Compound Semiconductors to carry out technical, economic and marketing analysis. Brad Smith has 30 years industry experience in both optical and semiconductors in marketing, business development and market research.

Yole Développement is a group of companies providing market research, technology analysis, strategy consulting, media, and finance services. Internet: www.yole.fr.

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April 19, 2012 — EPIC, the European Photonics Industry Consortium, announced at its annual general meeting that Carlos Lee has been appointed as director general, succeeding Thomas Pearsall, who has led the association since its founding in 2003. Pearsall will work with Lee throughout 2012 to enable the transistion.

EPIC members active in displays, lasers, lighting, optical fibers, optics, semiconductors, photovoltaics sensors, telecommunications, and other photonics fields deserve solid value from the association, said Lee. He announced a new EPIC office in Brussels, Belgium, and closer collaboration with the EU.

Carlos Lee is currently Director General at SEMI Europe, where he leads the advocacy program. He has 15 years experience in industry association management, with a focus on building membership value through standardization, collaboration, networking platforms and events, and other activities of collective interest that benefit the industry at large. He will be tasked with growing EPIC and especially supporting small- and medium-size enterprises (SME) in Europe, said Drew Nelson, CEO and president of IQE, and current president of EPIC.

With 80 voting members and over 400 associate members, EPIC is a leading European photonics industry association. Learn more at www.epic-assoc.com.

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April 16, 2012 — Positives in the light-emitting diode (LED) space — improving utilization levels at the Taiwanese LED makers, moderating LED average selling prices (ASP) declines, and gradual growth in LED lighting demand in the US — should materialize for global LED manufacturers, says Barclays Capital’s Olga Levinzon.

However, this won’t translate immediately into increased capital expenditures on LED manufacturing equipment. There is no significant consolidation yet among Chinese players, and utilization levels in Taiwan, though improved, are still not sufficient to require new capacity adds. Revenue at the top nine LED chip and packaging houses fell 3% Q/Q, notes Maxim Group, but growth improved each successive quarter with a 10% decline in January turning into 14% growth in February and 16% growth in March. While the Taiwanese producers are more exposed to backlighting than general lighting, Maxim asserts that they still serve as a general barometer of industry-wide utilization. Epistar, Everlight, and sapphire producer Sino American anticipate utilization rates >90% in Q2.

Figure. Revenues at Taiwan’s LED chip makers and packaging houses by quarter. SOURCE: Maxim Group equity research.

This unsteady environment could extend through at least mid-summer 2012, with limited forecasts for the timing/magnitude of a recovery. Barclays assumes a normalized metal organic chemical vapor deposition (MOCVD) tool market of ~525 tools annually; IMS Research puts the number closer to 342 in 2012.

Barclays predicts continued order weakness for AIXTRON. Also, AIXTRON’s full EUR 137M backlog exiting Q2 2011 will likely not be converted in H1 2012 due to continued push-outs from Chinese customers. AIXTRON will likely sell ~10 MOCVD tools in Q1, with additional revenue from tools for display, power electronics, and other fab markets; and from services. There will be modest growth ahead in MOCVD and power electronics manufacturing equipment sales. Barclays predicts AIXTRON will ship ~23 tools for LED fab in H1 2012 and ~80 in H2.

The other major MOCVD supplier for LED makers, Veeco (VECO), will see H1 MOCVD sales lag, though the company should be buoyed by orders from the data storage product fab sector until LED makers start ordering more aggressively in H2. Expect Veeco to ship ~29 MOCVD chambers in Q1 2012, vs. ~71 in Q4 2011.

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April 16, 2012 — Veeco Instruments Inc. (Nasdaq:VECO) debuted the SPECTOR-HT ion beam deposition (IBD) tool for thin-film deposition in optical products, such as lasers, telecommunications chips, and more. It reportedly creates high-quality films in a cost-effective manufacturing process compared to physical vapor deposition (PVD), evaporative coatings, and ion-assisted deposition.

Veeco claims up to 400% higher throughput, 300% better target utilization and 50% higher material uniformity with SPECTOR-HT, over previous SPECTOR generations. The SPECTOR-HT is fully automated, achieving accelerated deposition rates at speeds comparable to PVD. It delivers an increased deposition rate on lot sizes up to twice as large as those in previous SPECTOR generations.

The SPECTOR-HT is debuting at the SPIE Photonics Europe Trade Show in Brussels, Belgium, booth #G323.

Veeco makes equipment to develop and manufacture optoelectronics, light-emitting diodes (LEDs), solar cells, hard disk drives (HDDs) and other devices. Visit www.veeco.com.

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April 16, 2012 – BUSINESS WIRE — Intematix, phosphor supplier for light-emitting diodes (LEDs), released ChromaLit XT remote phosphor technology.

The ChromaLit series uses a phosphor composite substrate separated from the blue LEDs instead of coating them directly. This enables use of a blue LED engine instead of binned white LEDs. The technique reportedly eliminates glare, offers diffuse light, increases efficacy up to 30%, and improves color rendering and light quality.

ChromaLit XT targets higher-intensity light applications that require high lumen output in a small form factor, such as spotlights and floods. Users can see up to 65% lower cost per lumen and enhanced off-state neutral color when compared to conventional remote phosphors that are yellow, Intematix reports. ChromaLit XT is optically treated to maintain an off-state neutral appearance when the LED light is off. ChromaLit XT meets UL standards and is offered in a range of CCT and CRI options.

ChromaLit XT will be on display for the first time at the Light+Building trade fair in Frankfurt, Germany from April 15-20 and again at LIGHTFAIR in Las Vegas, May 9-11.

Intematix Corporation is a materials development company providing customizable, patented phosphors and remote phosphor components for LEDs. Learn more at www.intematix.com.

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April 13, 2012 – BUSINESS WIRE — LED-IT Fusion Technology Research Center (LIFTRC) of Korea tapped Veeco Instruments Inc. (Nasdaq:VECO) for a TurboDisc K465i gallium nitride (GaN) metal organic chemical vapor deposition (MOCVD) system for research and development of light-emitting diodes (LEDs), including green LEDs and ultraviolet (UV) versions.

The Veeco K465i MOCVD system fit LIFTRC’s needs with full automation and low cost of ownership, said Dr. Ja-Soon Jang, chief director, LIFTRC, and Professor, Department of Electronic Engineering, at Yeungnam University. The tool achieves up to 90% yield (5nm bin). Uniform FlowFlange technology enables high within-wafer uniformity and process repeatability.

This research lab sale illustrates Korea’s leadership in advancing LED technology, noted William J. Miller, Ph.D., Veeco EVP, Process Equipment. LIFTRC was appointed by the Korea Ministry of Knowledge Economy as the southeastern region’s LED-IT Fusion Technology Research Center (technology support center). Among its aims is to develop LED-IT fusion technology into core and leading commercialized technologies with local and global LED companies. Learn more at http://english.liftrc.re.kr/.

Veeco makes equipment to develop and manufacture LEDs, solar cells, hard disk drives and other devices. We support our customers through product development, manufacturing, sales and service sites in the U.S., Korea, Taiwan, China, Singapore, Japan, Europe and other locations. Please visit us at www.veeco.com.

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April 13, 2012 – BUSINESS WIRE — Light-emitting diode (LED) maker Cree Inc. (Nasdaq:CREE) achieved 254 lumen/watt on a white-light, power LED in research. The correlated color temperature is 4408 K.

Testing occurred at standard room temperature and 350mA. Cree’s previous R&D industry record was 231 lumens/watt.

The R&D LED uses elements of Cree’s SC3 Technology Platform, which is used in Cree’s XLamp LEDs. SC³ combines Cree’s advanced silicon carbide (SiC) technology, with an advanced LED chip architecture and phosphor, and a new LED package design.

Cree makes LEDs and LED lighting products, as well as semiconductor products for power and radio frequency (RF) applications. Internet: www.cree.com.

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April 12, 2012 — Active matrix organic light-emitting diodes (AMOLEDs) are moving from small-quantity development into higher volumes, with shipments destined for smartphones driving growth in the small- and medium-sized display (SMD) market in February, said IHS. SMDs are displays smaller than 10” diagonally.

Total SMD shipments hit 186.8 million units in February, up 9% from January, serving mobile handset, tablet and digital still camera makers, according to an IHS iSuppli Small & Medium Displays PriceTrak report. The increase brought to an end 4 straight months of shipment declines that started in October 2011 (see the figure).

Figure. Worldwide small/medium displays forecast by millions of units shipped. SOURCE: IHS iSuppli Research, April 2012.

AMOLED displays are gaining market share, and increased orders are coming in from Chinese electronics vendors. Worldwide shipments of AMOLED mobile handset displays are expected to increase sequentially by 14% in Q1 2012 and by 80% compared to the same time a year ago.

AMOLED displays are lighter weight and offer more saturated colors than traditional LCD panels. Samsung Electronics, Nokia Corp., and HTC Corp. have adopted AMOLED displays for new mobile handsets. AMOLED displays will gain more share as tablet PCs switch to the technology, likely this year.

“Display manufacturers are increasing their AMOLED manufacturing,” said Vinita Jakhanwal, director for small & medium displays at IHS, adding that “AMOLED is coming of age in 2012.

Samsung Mobile Display Co. currently drives the AMOLED market, with the largest manufacturing capacity. Also read: AMOLED display gives Samsung Galaxy Tab 7.7 the edge

LG Display Co. recently redirected its AMOLED focus away from mobile handsets toward the TV market, but it is still Samsung Mobile Display’s largest competitor.

Taiwanese and Chinese display suppliers are working to improve their competitive positioning, looking to challenge these leaders in AMOLED production and win orders from top handset makers. AU Optronics Corp. (Taiwan) has likely orders from handset manufacturer HTC and Sony, and should start shipping small volumes of AMOLED displays in Q2. AUO is reportedly planning for AMOLED production at a Gen 6 fab. ChiMei Innolux Corp. (Taiwan) should start AMOLED panel production in 2012.

In mobile phones, AMOLED prices increased 0.9 percent to an average of $54 in February, due to the introduction of new, higher-specification AMOLED displays. AMOLED commands price premium of 15 to 20% over comparable low-temperature polysilicon (LTPS) LCD displays with touch capabilities. A 4.3” QHD “Super” AMOLED display for mobile phones with an integrated on-cell touch solution, boasting QHD resolution at 960 by 540 pixels, was priced at $51 in January. A comparable LTPS LCD plus projected capacitive touch solution had a total price of $42. Prices could come down if AMOLED supply increased, although its performance advantages will help prevent price erosion.

In tablets, total average panel prices retreated 0.4% to $48.87, down from the January average of $49.06. AMOLED tablet displays, meanwhile, stayed at about $100. LG and Samsung remain the pre-eminent suppliers for the tablet PC display market, with high capacity and reliable shipments to Apple for its iPad, to Amazon for its Kindle, and to Samsung Electronics for its Galaxy Tab.

Learn more in Increased AMOLED Display Demand Preserves Premium Pricing from IHS iSuppli.

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April 10, 2012 — Vacuum and abatement equipment provider Edwards Limited uncrated the STP-iXR1606 series magnetically-levitated turbo-molecular pumps (TMP) with fully integrated onboard controllers. Its new rotary design improves throughput by about 40% at high gas flow rates; nearly 90% percent in maximum gas flow, compared to existing vacuum pump products, the company reports.

The pumps’ fully integrated controller eliminates the connection cable and rack conventionally required for vacuum pumps. This reduces the vacuum system footprint in the fab, and can cut installation time and costs. A small power supply for the on-board controller reduces energy consumption at high gas flows by about 32%.

The STP-iXR1606 matches the peak pumping speed of Edwards’ highest performing pump in the 8” TMP class, with higher throughput and maximum allowable gas flow. The STP-iXR1606 series delivers high reliability in dirty environments with equivalent IP54 protection against dust and humidity. It has I/O remote, RS232C, RS485 and STP-link standard communication ports, with Profibus and DeviceNet available as options. The magnetically-levitated TMPs require no maintenance.

Edwards creates vacuum products for electronics and other manufacturing environments. Learn more at http://www.edwardsvacuum.com/.

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