Category Archives: LEDs

February 20, 2012 — Samsung Electronics is under a swirl of rumors about spinning off its liquid crystal display (LCD) manufacturing division, which could lead into a displays business restructuring involving Samsung Mobile Display (AMOLED displays maker) and Samsung LCD.

If this hypothetical reorganization came to be, Samsung Displays would be the biggest display company covering the key flat panel display (FPD) technologies from small to large panels.

The root of this reorganization talk is how Samsung Electronics can make the transition from LCD to active-matrix organic light-emitting diode (AMOLED) displays most efficiently, holding on to its leading position in each technology while minimizing losses through manufacturing and procurement, as well as business synergies, including support of Samsung’s wide array of branded products and external sales. 

Also read: Samsung plans record investments in 2012

The LCD market has been in oversupply since Q2 2010, and panel makers have suffered losses. At the same time, AMOLED has matured and gained market acceptance. Panel makers are changing their strategies in order to reverse their losses, and with the most substantial resources in AMOLED, the Samsung group is moving fast to make big changes.

NPD DisplaySearch believes that Samsung’s LCD/AMOLED transistion timeline seems to be moving up; the restructuring could take place as soon as the middle of 2012.

Read NPD DisplaySearch’s blog post on the possible reorg, Will Samsung Spin Off its LCD Panel Division? What are the Possible Impacts? for a discussion of the reorganization method (merge OLED and LCD units, or spin off LCD first?), the impact on Samsung’s LCD customers with a change in its sales and component sourcing strategies, how changes would affect the market price for LCD panels, and what Samsung suppliers can expect.

David Hsieh is Vice President, Greater China Market at NPD DisplaySearch.

Yoonsung Chung is Director, Large-Area Displays & FPD Materials, NPD DisplaySearch.

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February 17, 2012 — Shin-Etsu Chemical Co. Ltd.’s new KER-7000 Series silicone encapsulating materials offer a low (1.38) refractive index (RI) for high-brightness light-emitting diode (HB-LED) packaging with lower gas permeability.

Shin-Etsu Chemical’s silicone encapsulating materials include a methyl-group material for improved heat resistance and phenyl-group material that is characterized by low gas permeability.

The encapsulant targets low gas permeability, good photo-thermal stability in withstanding high temperatures, and optical transparency over the LED lifetime. The new materialset reduces gas permeability by 1/10, Shin-Etsu reports, to prevent oxidation that leads to light-intensity degradation. The highly transparent encapsulant suits flat-package HB-LEDs.

KER-7000 materials’ heat resistance is at the same level as that of the methyl-group. When compared with the phenyl group, the new product has the same level of gas permeability and much higher resistance to high temperatures.

The series includes 2 hardness-level products: KER-7080 A/B has a hardness level of (Durometer A) 80, and KER-7030 A/B has a hardness level of (Durometer A) 30.

The company is beginning sample shipments, mainly for applications in LED lighting.

Shin-Etsu Chemical, in addition to encapsulating materials, develops heat-radiating die-bond materials, lens materials, reflector materials and moisture-proof insulating materials for HB-LEDs. Learn more at www.shinetsu.co.jp.

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February 16, 2012 — Light emitting diode (LED) supply exceeded demand by 30% in 2011, thanks to poor LED TV sales and slow growth in LED lighting. Recovering backlight demand and a new uptake in LED lighting are closing this gap in 2012, shows a recent NPD DisplaySearch Quarterly LED Supply/Demand Market Forecast Report, putting the LED supply glut at 19% in Q1 2012, dropping 3 percentage points by the next quarter.

After a buying spree for metal organic chemical vapor deposition (MOCVD) tools in 2010, major LED makers like Samsung LED, LGIT and Lextar found underwhelming end-market demand. This caused tool utilization rates to drop throughout 2011, hitting about 50% now. Also read: LEDs and a MOCVD bubble: We’ve only just begun

Figure. LED supply and demand, backlighting and lighting applications. Source: NPD DisplaySearch Quarterly LED Supply/Demand Market Forecast Report.

Low-cost direct-LED TV backlights should trigger renewed demand for LEDs in TVs, thanks to the lower price. CCFL-backlit LCD TVs and low-cost direct LED-backlit TVs differ in cost by only about 5% (for a 32" set). High growth is expected for low-cost direct LED TVs in 2012.

LED backlights are used in all small/medium LCD displays, and LED penetration in mobile PCs is nearly 100%. While penetration in LCD monitors and TVs continues to grow, the LED package count in these displays is decreasing.

LED lighting has been gradually growing, due to efficacy enhancements and cost reductions. Lumen per dollar costs are closing in on those of traditional light sources. Government incentives and market drivers, such as the electricity shortages following Japan’s March 2011 earthquake, can spike LED lighting sales. NPD DisplaySearch expects sales to rapidly increase in Japan in 2012. Other regions — China, the US, Korea — are aggressively promoting LED lighting.

The NPD DisplaySearch Quarterly LED Supply/Demand Market Forecast Report analyzes supply and demand on a quarterly basis for the entire LED industry. From chip prices to LED maker roadmaps, this report gives a clear outlook and reliable forecast of LED supply/demand, along with an analysis of the impacts on pricing. NPD DisplaySearch specializes in research and consultancy in the display supply chain, as well as the emerging photovoltaic/solar cell industries. For more information, go to http://www.displaysearch.com/.

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February 16, 2012 — Iljin Materials Co., Ltd., a developer and producer of elecfoils for use in the electronic components, has signed a statutory merger agreement with ILJIN Semiconductor Co., Ltd., a company engaged in the manufacturing of light emitting diodes (LEDs). Both the companies are based in Korea.

The merger ratio of Iljin Materials and ILJIN Semiconductor is 1 : 0.3040296 and 1,865,318 common shares will be issued with the merger. The merger effective date is April 30, 2012. After the merger, Iljin Materials will survive and ILJIN Semiconductor will be dissolved.

Deal Type Merger Deal Status Announced: 2012-02-14
Deal Participants
Target 1 (Company) Iljin Materials Co., Ltd. Target 2 (Company) ILJIN Semiconductor
Copyright 2012 Datamonitor

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February 15, 2012 — Electronics materials supplier Engineered Material Systems released the DA-5045-2 and DA-5045-4 high-thermal-conductivity die attach adhesives for light emitting diodes (LEDs) and small power semiconductor die packaging.

The new thermally and electrically conductive adhesives enable high thermal transfer for LEDs and power electronics. Thermal conductivities are greater than 20 W/mK when measured by laser flash. Both products feature high glass transition temperatures (Tg) and modulus, enabling wire bonding. They are electrically conductive for static drain. DA-5045-2 and -4 withstand JEDEC level 1/260

February 14, 2012 — While the flat panel display (FPD) industry faces severe challenges, long-term supply demand models show a positive future, according to the NPD DisplaySearch Quarterly FPD Supply/Demand and Capital Spending Report.

Figure. Supply/demand balance in flat panel displays (000m2/quarter). Source: NPD DisplaySearch Quarterly FPD Supply/Demand and Capital Spending Report.

FPD capital expenditures (capex) are in decline, even when factoring in investment for organic light-emitting diode (OLED) capacity, Barclays warns, calling it a "substantial contraction in FPD capex spending." But the industry will begin to right itself, thanks to the "cyclical nature of market forces," said Charles Annis, VP of manufacturing research at NPD DisplaySearch, stating that 2012 and 2013’s capacity expansion delays will converge with increasing demand, pushing the industry upward in the long run.

Good news isn’t on the doorstep, however. The H2 2012 recovery in FPD may be "somewhat more muted" than originally expected, Barclays reports, with Samsung’s China fab investments delayed, and the magnitude of the OLED investment by the Taiwanese and Japanese panel makers still uncertain. FPD makers have lost money for the past 6 consecutive quarters, its longest down turn since the industry began. This caused an expansion freeze across nearly all liquid crystal display (LCD) TV fabs. The overall FPD equipment market will suffer a severe recession in 2012, falling 63% from 2011, DisplaySearch notes. Also read: Top 10 LCD manufacturing trends of 2012

On the demand size, lower prices are stimulating consumer spending, particularly for large (50”+) TVs, DisplaySearch reports. Prices for large-sized liquid crystal display (LCD) panels stabilized in December 2011, thanks to better-than expected sales and decreased production, according to an IHS iSuppli LCD PriceTrak report.

The net effect will be a tightening of the supply/demand balance, particularly in 2013, when the glut ratio is forecast to fall well below 10% for the first time since Q2 2010. This will set off another crystal cycle of improved panel pricing, higher profitability, and increased investment. Spending on new active matrix organic light-emitting diode (AMOLED) production lines in particular will drive the FPD rebound in 2013.

Another technology, indium gallium zinc oxide (IGZO) LCDs, entered mass production in late 2011. Initially, IGZO will focus on LCD tablet and ultrabook display markets, but will likely see wider use in super-high-resolution large LCD TVs and some AMOLEDs. IGZO will grow continuously in the future.

The NPD DisplaySearch Quarterly FPD Supply/Demand and Capital Spending Report features in-depth analysis and critical data and detailed interpretation of market and technical trends. NPD DisplaySearch is a global market research and consulting firm specializing in the display supply chain, as well as the emerging photovoltaic/solar cell industries. Access reports at http://www.displaysearch.com/.

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February 14, 2012 – BUSINESS WIRE — In the company’s first use of micro electro mechanical systems (MEMS), Konica Minolta IJ Technologies Inc. developed the KM128SNG-MB high-precision inkjet printhead for manufacturing printed electronics.

KM128SNG-MB delivers 1 picoliter drop sizes. The use of MEMS technology enabled a 38mm-wide printhead with 128 nozzles in a row, as well as future nozzle integration by customer need. The ink path design, coupled with high-precision, semiconductor-style assembly technology, enable reportedly stable, high-precision printing with picoliter droplets, and ink resistance and optimization for low viscosity inks. It provides highly uniform thin film print thickness at the 100nm level. Konica Minolta’s proprietary DPN (Drive Per Nozzle) drive board and evaluation equipment are available.

KM128SNG-MB will be used to pattern organic light emitting diode (OLED) displays, deposit thin films for OLED lighting, and other industrial electronics manufacturing applications. It will be sold in sample quantities this spring.

Konica Minolta IJ Technologies, Inc., a wholly owned subsidiary of Konica Minolta Holdings Inc. (TOKYO:4902), develops compact and high-performance inkjet printheads, high-value-added inks, complete inkjet print units and textile inkjet printers and peripheral equipments. For more information, please visit http://konicaminolta.com.

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February 13, 2012 — Yole Developpement released "European Microelectronic Fabs Database & Report 2012," a database and report on the European microelectronics and microsystem manufacturing fabs, pilot lines, and major R&D organizations.

The database details fab locations, products, technologies, manufacturing facilities, and financial information. Fab data includes employee counts, sales figures, capacity info, and more.

The database covers 50 countries, extending throughout Europe and the Middle East area (EMEA), and Russia. There are 300+ fabs in Europe, Yole reports. It includes major changes that have taken place since 2007, such as fab closures and new investments.


 
The European Microelectronic Fabs Database & Report 2012 includes:

The database can be used to understand the European fab environment, and assess business opportunities in the European and Middle-East market.

Companies described in the database: ABB Semiconductor, Acreo AB, Altis/GIS Semiconductor, Analog Devices, austriamicrosystems, Autopribor, Avago Technologies, Boehringer Ingelheim microParts, Robert Bosch, Colibrys, Dynex Semiconductor, e2v technologies, ELMOS, EM Microelectronic Marin, EPCOS, Estel, First Sensor Technology, FLIR Systems, Freescale Semiconductor, GE Measurement & Control Solutions, GLOBALFOUNDRIES, HL-Planartechnik, IBM Microelectronics, IMEC, Infineon Technologies, Intel, International Rectifier, IPDIA, Leister Process Technologies, LETI, Lionix, LITE F, MHS Electronics, Micran, Microfab Bremen, Micron Technology, Micronas, Nemotek Technologies, Norstel, Nortel Technology, NXP, Oclaro Inc., Olivetti I-Jet, OMMIC, On Semiconductor, OptoGaN, OSRAM, Philips, Photonix, Prema Semiconductor, Pulsar (Scientific Research Institute), Raytheon Company, Retina Implant, RF Micro Devices, Scottish Microelectronics Centre, SE MEFAB, SENSIRION, SenSonor Technologies, Sigm Plus, Silex Microsystems, Siliconix, Silway Semiconductor, SINTEF, STMicroelectronics, Telefunken Semiconductors, Texas Instruments, Texet, Three-Five Epitaxial Services, TowerJazz Semiconductors Ltd., Tronic’s Microsystems, ULIS , United Monolithic Semiconductors, Vishay Intertechnology, VTI Technologies, VTT, XFAB semiconductor.

Access the report at http://www.i-micronews.com/reports/European-Microelectronic-Fab-Database-Report-2012/226/

UPDATE February 13, 2012 — Analysts from Jefferies & Company Inc., Jefferies Hong Kong Limited, and Barclays Capital attended the Strategy in Light conference, last week in Long Beach, CA, and report on a challenging light emitting diode (LED) market with near-term positive boosts.

End market demand for LEDs remains lackluster, with total LED component revenue expected to decline from $12.5 billion in 2011 to $12.3 billion in 2016. Industry expert Ms. Shum projected continued market declines, while Ms. Ella forecasted growth in LED lighting and auto headlamp but declines in all other end markets, said Jeffries attendees. Barclays does not anticipate a substantial snap-back in LED demand in China following Chinese New Year.

Presentations at Strategies in Light forecasted flat revenues for LED makers in 2012, though Barclays remains more optimistic. While revenues stagnate, total lumens generated by LED components will grow significantly, thanks to higher efficacy and lower cost manufacturing, Jeffries reports. This trend enables new applications while cannibalizing legacy applications. LED industry players are designing lighting products to eliminate components and make systems smarter and more user friendly.

China’s announcement of an LED approval list could be a near-term positive catalyst: Ms. Wu Ling, the head of China SSL Alliance, anticipated 125 plan details this year. Similar to the path of China’s solar PV "Golden Sun" program, the government will qualify vendors for the LED subsidies. Jeffries analysts expect the approval list to be announced in 2 months, with an LED subsidy announced shortly after. LED makers with meaningful China exposure, such as Cree and SemiLEDS, stand to benefit. The magnitude of the China LED subsidy is still uncertain and may come in below some more elevated expectations, Barclays warns. "The China market opportunity for LED lighting continues to be substantial, with the pace of adoption potentially overtaking other regions assuming both attractive price points and other supportive government efforts," noted Barclays Capital after Strategies in Light.

The LED industry is dealing with overcapacity, driven by overly optimistic flat panel display (FPD) penetration expectations and short-lived local government support of street light programs and LED manufacturing in China. LED TV demand led to significant investment by Samsung and LG in the supply chain. Both Korean and Taiwanese companies built up capacities in anticipation of strong LED TV demand. Reduction of LED chip counts in backlighting and lighting contributed to weak volume growth. This is a consequence of tremendous lumen improvement, allowing more efficient designs using fewer chips.

"Utilization levels for most LED makers remain below 50%, suggesting that the current pace of LED demand growth is unlikely to absorb the overcapacity," Barclays reports With no company failures or consolidation yet in China, this inevitability is still in our future.

While Barclays continue to estimate the 2012 MOCVD market at ~400 tools, with Veeco’s 2012 guidance implying a market size closer to the 300 tool level, we could see Aixtron following suit and setting this low bar as well.
 
Jeffries authors:
Jesse Pichel, Equity Analyst, (212) 323-3987, [email protected]
Min Xu, Equity Associate, (212) 336-7370, [email protected]
Elaine Kwei, CFA, Equity Analyst, (212) 284-2187, [email protected]
Joseph Fong, CFA, Equity Analyst, +852 3743 8074, [email protected]

Barclays authors:

Olga Levinzon, (212) 526-9134, [email protected]
Amir Rozwadowski, (212) 526-4043, [email protected]

 

Check out more reports from Strategies in Light 2012:

 

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February 10, 2012 – BUSINESS WIRE — GT Advanced Technologies Inc. (NASDAQ: GTAT) subsidiary, GT Crystal Systems, will supply 500,000 2" equivalent (TIE) 6" C-plane sapphire cores to Chongqing Silian Optoelectronics Science & Technology Co. Ltd. (Silian). Silian produces high-quality sapphire substrates for high-brightness light-emitting diode (HB-LED) manufacturing.

Large-diameter sapphire wafers enable higher yields in the LED industry, noted David Reid, COO and GM, Silian.

The sapphire ingots will be produced from boules grown in GT’s ASF sapphire growth furnaces installed in the company’s newly expanded sapphire manufacturing facility in Salem, MA. Silian is a standing customer of GT Crystal Systems, and Reid noted the "consistency and quality of ASF-grown sapphire."

GT Advanced Technologies Inc. provides polysilicon production technology, and sapphire and silicon crystalline growth systems and materials for the solar, LED and other specialty markets. For additional information please visit www.gtat.com.

Also read: Rubicon re-ups sapphire wafer contract with largest customer

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