Category Archives: LEDs

January 17, 2012 — The gallium nitride (GaN) light-emitting diode (LED) market declined in 2011, but 2012 marks the beginning of a growth curve, with double-digit growth in 2013 and 2014, says IMS Research. Lighting revenues will overtake TV revenues for GaN LEDs a year earlier than expected.

After 60% growth in 2010, the GaN LED market fell 6% in 2011 to $8.0 billion, shows IMS Research’s Quarterly GaN LED Supply/Demand Report.

Figure. 2009-2016 packaged GaN LEDs by application (Revenues by segment; billions of dollars). SOURCE: IMS Research.

A widening surplus is resulting in significant pricing pressure: supply grew nearly 3X faster than demand from 2010 to 2011. LED factory utilization levels are depressed. IMS Research’s report shows that the LED surplus rose from 7% (healthy) in 2010 to 45% in 2011, and will continue in 2012.

With both panel shipments and LED penetration below expectations and average LED prices for backlighting declining 34% on a volume weighted average basis on depressed utilization, backlighting revenues fell 13% to $4.8B in 2011. ASPs for certain backlighting markets were down as much as 45% last year. As a result, backlighting fell from 64% of 2010 GaN LED revenues to 59% of 2011 GaN LED revenues and are likely to continue falling on a percentage basis in the future, as backlight markets become saturated and the lighting market accelerates.

LED revenues for TVs are expected to fall 5% in 2011 to $1.9B as penetration is only expected to reach 39%, down from the previous estimate of 43%.

However, the GaN LED market is expected to recover, enjoying annual growth each year from 2012 to 2015 including double-digit growth in 2013 and 2014 as the lighting market accelerates. The 2012 market is expected to grow 5%, but still remain below 2010 levels. Backlighting is expected to be flat on slower unit growth and price reductions, while lighting is expected to be up 30% as LED lamp penetration jumps as prices continue to fall.

Also read: MOCVD shipments stall, but restart in 2012

Lighting revenues are expected to overtake TV revenues for GaN LEDs in 2012, a year earlier than previously predicted. This is a result of increasing LED lighting demand on lower pricing while reducing the LED outlook in TVs on lower penetration than previously predicted along with the use of low cost direct LED backlights in developing markets.

The low-cost direct LED backlights use around half the LED die area as conventional edge backlights, thanks to reduced brightness and thicker form factors for wide viewing angle. Wide-viewing angle packages further reduced the required LED count. While the adoption of these new low-cost direct-type backlights will narrow the cost differential with CCFL LCD TVs, the thicker form factor and reduced brightness capability will narrow their appeal.

The lighting share of the GaN LED market is expected to surge from 21% in 2011 to 49% in 2016 with lighting LED revenues expected to grow >300% and units expected to grow >1500% over this period.

IMS Research’s Quarterly GaN LED Supply and Demand Report tracks and forecasts MOCVD shipments, LED capacity by manufacturer, LED and MOCVD supply/demand, sapphire supply and demand, sapphire pricing and quarterly notebook, monitor and TV panel shipments by backlight type, size, resolution and refresh rate. New features include separated notebook and tablet LED demand, projector forecasts and LED demand, and much more. For more information, please visit www.ledmarketresearch.com.

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January 16, 2012 — The Organic Electronics Association, a working group within VDMA, released its "OE-A Roadmap for Organic and Printed Electronics," 4th edition, December 2011 for download. The roadmap covers organic/printed electronics application clusters such as flexible displays and smart systems, as well as the outlook on materials, substrates, and patterning processes.

The roadmap details product generations with their key applications and technology parameters. It also identifies principle challenges.

The OE-A roadmap application clusters:

Supply chain technologies:

  • Functional materials
  • Patterning processes 
  • Substrates

The last edition of the OE-A roadmap was published in 2009. Today, organic and printed electronics are entering the mass market. "Exciting technical progress" has been made since the 2009 edition. Taking these factors into account, the 2011 edition was streamlined by grouping related application areas with commercial appeal. The Organic Electronics Association believes that the industry must develop "a common opinion about what kind of products, processes and materials will be available and when." Challenges must be approached from every aspect of the organic/printed electronics value chain.

The roadmap can help industry, government agencies and scientists plan and align R&D activities and product plans.


The 4th edition of the OE-A roadmap is available for download from the OE-A homepage.

Want to become a member of the OE-A Roadmap project groups? Contact [email protected].

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January 13, 2012 — Taiwan’s light emitting diode (LED) chip and package manufacturers failed to reproduce the booming revenue growth of H1 2011 in the second half, according to LEDinside, a research division of TrendForce. Given inventory pressure, many LED makers are actively seeking joint ventures and improving product quality to create greater product differentiation.

LEDinside expects the difficult economic climate to weed out weaker LED makers. New manufacturers are still considering entering the LED market on the potential of LED lighting. Also read: China lights up LED roadmap; Taiwan leaders seek similar support

In terms of revenues in December, the upstream players’ revenues plunged by 30% YoY while the downstream package makers’ dipped by 10% YoY. The difference is attributed to LED chip makers’ higher base year value of December 2011. In December 2010, products such as tablet PCs and LCD TVs underpinned the backlight demand, while currently the LED chip market is slightly oversupplied, with prices plummeting quickly. Since LED package manufacturers supply the end market, the upstream oversupply has less impact on them, and they are benefitting from a recent surge in backlighting demand.

Revenues of Taiwan’s LED chip makers dipped to NT$45.4 billion, representing a 7% decrease compared to 2010. Revenues hit NT$2.64 billion in December supported by the end-market demand surge and the increasing rush orders, but this was a 30% decline from December 2010.

In 2011, revenues of Taiwan’s LED package makers totaled NT$54.92 billion, a 3% decrease compared to 2010. The revenues of Taiwanese LED package makers in December hit NT$3.9 billion, a 10% decline from the prior year.

Around the LED industry:
Epistar has foreseen the slowdown in backlight growth after 2013, and the demand from the lighting market will have to fill the vacancy. For this reason, Epistar has been actively seeking joint efforts with downstream lighting companies, increasing overseas market share through reinvestment. In addition, the company also cooperates with global lighting big names in terms of technology to secure its position in the light market. Epicrystal Cooperation (Changzhou), a subsidiary company of Epistar, began its production in September 2011.

The luminous efficacies of Forepi’s chips reached 120lm/W in 3Q11. Its production will increase considerably in 2012. Moreover, the Japanese big brand Mitsui & Co. brings Forepi a list of clients. LEDinside believes that in 2012, Forepi will be able to use the cooperation with Mitsui to its advantage in regard to backlight and lighting products.

Genesis Photonics joined forces with JFE Enginnering, targeting at the Japanese market. Although the lighting products merely account 10-15% of the total production at present, the portion is expected to increase in 2012.

Helped by its vertical integration model, Lextar successfully made way into the supply chain of global major makers, which canceled out the slump in the backlight market.

According to Lite-On Technology, the company has signed strategic alliance agreements with six lighting companies and will manufacture LED light source and LED light modules in the future.

According to LEDinside, the value of China’s lighting market will reach US$7.6 billion in 2015. With China’s comprehensive production bases and supply chains, and high domestic demand and market prospects, many manufacturers have been targeting the Chinese market. Epistar cooperates with Sunny Technology Lighting and NVC Lighting, Everlight with Yaming Lighting, and Forepi with NVC Lighting. Philips recently announced that it will set up a LED lighting product plant in Chengdu, which marks Philips’ second large-scale investment in China. Furthermore, LED makers including Liteon and Lextar are taking more aggressive actions to gain a place in the supply chain of global big names. The common goal for the companies is to continue increasing the portion of lighting product in their revenues and preempt an advantageous position in the lighting market.

Taiwan also re-elected its leader Ma Ying-jeou of the Kuomintang (KMT) for a second term this week. Ma is not expected to make any major economic and regulatory reforms, according to the US-Taiwan Business Council. Also read: New installed wafer capacity leader: Taiwan took over in 2011

TRENDFORCE is a global leading research institution providing market intelligence, in-depth analysis reports and consultant services on technology sector. Our company consists of 4 major research divisions: DRAMeXchange, WitsView, LEDinside and EnergyTrend, which cover the DRAM, NAND Flash, PC, display, LED and Green energy research sectors respectively. LEDinside is online at www.LEDinside.com.

 

Figure. Revenue at the Top 9 Taiwanese LED Manufacturers Fell (9%) Q/Q in 4Q11. SOURCE: Maxim Group Equity Research, January 2012.

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January 13, 2012 — For the first time, Apple Inc. has publicly published a list of over 150 companies that the electronics giant says represent 97% of its procurement expenditures for materials, manufacturing, and assembly of products worldwide.

See the suppliers here: http://images.apple.com/supplierresponsibility/pdf/Apple_Supplier_List_2011.pdf

The disclosure is part of a broad supplier responsibility reporting initiative at Apple. The US-based company has had its ties to China’s Hon Hai Precision Industry Co, the world’s largest contract electronics manufacturer by revenue and the parent firm of Hong Kong-listed Foxconn International, scrutinized recently.

In 2011, Apple conducted 229 audits throughout its supply chain, an 80% increase over 2010. In 2011, the company launched a specialized auditing program to address environmental concerns about certain suppliers in China. Third-party environmental engineering experts worked with Apple to audit 14 facilities. Apple also broadened its age verification program in 2011. The full progress report is available from Apple at http://images.apple.com/supplierresponsibility/pdf/Apple_SR_2012_Progress_Report.pdf

January 12, 2012 — OSRAM Opto Semiconductors manufactured high-performance 1mm2 blue and white light emitting diode (LED) prototypes, growing the light-emitting gallium-nitride (GaN) layers on 150mm silicon (Si) wafers rather than sapphire substrates.

OSRAM’s researchers report no loss of LED quality in the pilot run. The blue UX:3 chips in OSRAM’s standard Golden Dragon Plus package achieve 634mW brightness at 3.15V, equivalent to 58% efficiency; white LEDs, using a conventional phosphor converter in a standard housing, showed 140lm at 350mA with an efficiency of 127lm/W at 4500K. The new LED chips are being tested under practical conditions, and OSRAM LEDs-on-Si could hit the market in as little as two years.

Figure 1. The production of a UX:3 chip on a silicon wafer. SOURCE: OSRAM.

Silicon offers a lower-cost alternative to sapphire substrates, and silicon wafer processing in larger diameters is already widespread in the semiconductor market, potentially enabling large-volume LED fabrication. New chip technology, production processes, and housing technologies will enable a switch to silicon-based LED manufacturing, said Dr. Peter Stauss, project manager at OSRAM Opto Semiconductors. Today, LED makers can fabricate over 17,000 1mm2 LED chips on a 150mm wafer. Larger silicon wafers could increase productivity even more; researchers have demonstrated the first structures on 200mm substrates.

Also read: Bridgelux fundraises for GaN-on-Si LED ramp and Integrating photonics: Hitachi, Oki put LEDs on silicon

Figure 2. OSRAM high-performance LED chips based on InGaN technology today are fabricated on 6" wafers. SOURCE: OSRAM.

Lowering component costs while maintaining quality and performance [of sapphire-based LEDs] opens up the lighting application sector, said Stauss.

OSRAM Opto Semiconductors has acquired comprehensive expertise over the last 30 years in the process of artificial crystal growth (epitaxy), the foundation for this milestone in the development of new manufacturing technologies. The German Federal Ministry of Education and Research funds these activities as part of its “GaNonSi” project network.

OSRAM AG (Munich, Germany) is a wholly-owned subsidiary of Siemens AG and a leading light manufacturer. Its subsidiary, OSRAM Opto Semiconductors GmbH, offers semiconductor-technology-based products for lighting, sensor and visualization applications. For more information, go to www.osram-os.com.

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January 11, 2012 — Worldwide light emitting diode (LED) manufacturing capacity will reach 2 million wafers in 2012 (4" equivalent per month), a 27% increase over 2011. More wafers do not neccessarily mean more LED fab equipment, however. Global LED manufacturing equipment spending will fall 18% from "massive" numbers in 2011, shows SEMI’s Opto/LED FabWatch and Forecast.

2012 will be the first time in over 5 years when overall LED equipment spending decreases — blame a 40% decline in metal organic chemical vapor deposition (MOCVD) tool purchases. Spending for non-MOCVD LED fab equipment — lithography, etch, test and packaging tools — will increase in 2012, as manufacturers optimize their production lines and improve product designs. "Future equipment and capital spending will drive LED cost reduction through larger wafers, automation, and dedicated equipment specifically designed to improve to LED manufacturing yield and throughput," said Tom Morrow, EVP, Emerging Markets Group, SEMI.

SEMI recorded 29 new LED fabs in 2011. For 2012, SEMI forecasts 16 new fabs coming on-line.   

Regional equipment spending shows China holding the lead with an expected $719 million planned for 2012, followed by Taiwan ($321M), Japan ($300M) and Korea ($260M). Taiwan will continue to lead in capacity at 25% of the world LED capacity, followed by China (22%).

LED makers have seen several years of rapid capacity expansion, driven by TV backlighting demand for high-brightness light-emitting diodes (HB-LEDs), as well as government incentives and economic development funding in China. HB-LEDs used in liquid crystal display (LCD) TV backlighting units (approximately 40% of the total HB-LED market) failed to reach growth expectations in 2011. Growth targets were missed for total TV unit sales, and for LED penetration into LCD TVs.

HB-LED demand continues to grow in solid state lighting. LEDs used in solid state lighting, currently totaling approximately $2.5 billion, may exceed $30 billion by 2020, according to many estimates. LED manufacturing capacity and technology investments will correspond, long-term, with demand for key applications: primarily solid state lighting, said Morrow, who added that this mirrors other microelectronics industries.

Looking at the back-end of the LED market, the recent Global Semiconductor Packaging Materials Outlook by SEMI and TechSearch Inc. shows very strong growth in LED leadframe shipments. Following the 69% unit shipment growth in 2010, LED leadframe shipments are estimated to have increased by another 10% in 2011. In 2012, shipments are forecasted to reach almost 83 billion units. Data are based on shipments reported by sixteen leadframe suppliers.

Table. Estimated LED leadframe units shipped globally (in billions of units).
2008 2009 2010 2011F 2012F
35.7 39.5 66.9 73.6 82.7

 

The SEMI Opto/LED Fab Forecast tracks over 250 Opto/LED fabs activities worldwide, with detailed information on fab construction and equipment spending, key milestone dates, capacity and ramp up schedule, and more. For more information, visit: www.semi.org/en/Store/MarketInformation/OptoLEDFabForecast.

SEMI is a global industry association serving the nano- and microelectronics manufacturing supply chains. For more information, visit www.semi.org.

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January 10, 2012 — Lumiotec Inc. will use phosphorescent and other organic light emitting diode (OLED) technologies from Universal Display Corporation (NASDAQ:PANL), under an OLED technology license agreement.  

Lumiotec is planning to mass produce high-efficiency OLED lighting panels, utilizing Universal Display technologies like UniversalPHOLED technology and materials in combination with Lumiotec’s multi-photon emission device technology. The device structure enables simultaneous achievement of high luminance and long lifetime. Universal Display’s phosphorescent OLED technology and materials have demonstrated a four-to-one power advantage over other OLED technologies, the company reports.

The manufacturing will take place at Lumiotec’s facility in Yonezawa City, Yamagata Prefecture. The production system uses in-line deposition equipment with linear evaporation source for large substrates to achieve high production speeds at a large scale. Lumiotec will start to deliver in February 2012, mainly 145mm2 warm white color, and 40lm/W OLED lighting sample panels. In April, Lumiotec plans to begin mass production.

Also read: Will OLED lighting ever see the light of day? and OLED trends: Materials, color patterning advances and the display race

Lumiotec also continues to develop natural white color, high-efficient OLED lighting panels, aiming at the release in the same year.

Under the license agreement, Universal Display grants Lumiotec license rights under various patents and associated know-how owned or controlled by Universal Display for Lumiotec to manufacture and sell certain OLED products for lighting applications. Lumiotec will pay Universal Display license fees and running royalties on its sales of these licensed products under the agreement. The term of the agreement runs through December 31, 2015. Universal Display separately agreed to sell to Lumiotec certain OLED materials for use by Lumiotec in manufacturing OLED products as authorized under the agreement.

Lumiotec Inc. was founded by Mitsubishi Heavy Industries, Ltd., Rohm Co., Ltd., Toppan Printing Co., Ltd., and Mitsui & Co. Ltd. in 2008 to develop, manufacture and sell OLED lighting panels. The company began shipments of its mass-produced OLED lighting panels in January 2011. To learn more about Lumiotec, please visit www.lumiotec.com.

Universal Display Corporation (Nasdaq:PANL) develops state-of-the-art, organic light emitting device (OLED) technologies, materials and services for the display and lighting industries. To learn more about Universal Display, please visit www.universaldisplay.com.

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January 10, 2012 — Philips Lumileds appointed Pierre Yves Lesaicherre as CEO, succeeding the company’s first CEO Michael C. Holt. Lesaicherre will report directly to Philips Lighting’s acting CEO, Frans van Houten.

The experience gained from NXP Semiconductors, where Lesaicherre was SVP and GM of the microcontrollers and logic business lines, among other titles, makes him "uniquely qualified to lead Philips Lumileds," van Houten asserts, adding that the LED lighting market is "fast changing." Lesaicherre has more than two decades of experience in the semiconductor and component industry. He lives in Silicon Valley and speaks multiple languages including French and Japanese.

Also read: LEDs are fundamentally semiconductors, running up against fab and packaging issues, says Philips Lumileds

Under Mike Holt, Philips Lumileds introduced high-power LEDs and entered new lighting segments, van Houten said. Holt, who worked with the company for a decade, is retiring to spend time with his family.

Philips Lumileds is a leading provider of LEDs for illumination. Royal Philips Electronics of the Netherlands (NYSE:PHG, AEX:PHI) is a diversified health and well-being company, operating in healthcare, lifestyle and lighting. Website: www.philips.com.

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January 10, 2012 – PRNewswire — EV Group (EVG), wafer fab equipment provider, signed a joint-development and licensing agreement with lithography company Eulitha AG, integrating Eulitha’s PHABLE mask-based ultraviolet (UV) photolithography technology with EVG’s automated mask aligner product platform.

The aim is low cost of ownership (CoO) nanopatterning of high-brightness light emitting diodes (HB-LEDs). Through this agreement, EVG and Eulitha will explore new manufacturing technologies that support lower manufacturing costs and higher light output/efficiency for LED manufacturers.

Figure. Hexagonal pattern with 300-nm hole diameter generated by PHABLE. (PRNewsFoto/EV Group).

Combining Eulitha’s full-field exposure technology with EVG’s mask alignment platform reportedly provides low-cost, automated fabrication of photonic nanostructures over large areas, and supports the production of energy efficient LEDs, as well as solar cells and liquid crystal displays (LCDs).

Proximity lithography is low-cost, easy to use, and non-contact with the substrate. EVG’s wafer alignment offers sub-micron resolution. "We believe the synergies of our respective technologies have great potential to provide the resolution and volume-production capabilities of lithography steppers at a fraction of the cost," said Harun Solak, CEO of Eulitha.

EVG plans to offer a PHABLE-enabled EVG620 system as an extension to its well-established mask alignment system platform. Demo capabilities are already in place, and the first products are expected to ship later in 2012.

Eulitha AG is a spin-off company of the Paul Scherrer Institute, Switzerland. It specializes in the development of innovative lithographic technologies for applications in optoelectronics, photonics, biotechnology, and data storage. For more information, visit www.eulitha.com.

EV Group (EVG) supplies wafer bonding, lithography/nanoimprint lithography (NIL) and metrology equipment, as well as photoresist coaters, cleaners and inspection systems for semiconductor, MEMS and nanotechnology applications. Learn more at www.EVGroup.com.

January 9, 2012 — Printed, flexible, and organic electronics (FPOE) enable next-generation displays, organic photovoltaics (OPV), transparent conductive films (TCFs), smart product packaging, and thin-film batteries. However, inherent technical hurdles and long development cycles are impeding returns on investment (ROI) in the technology. The key is partnerships that pool expertise in materials, equipment, and device development, shows Jonathan Melnick, in a recent Lux Research "Lux Populi" blog post (access the original blog post below).

The figure above shows display developers, applying the Lux Innovation Grid to compare how potential partners compare in technical value and business execution. The field encompasses more mature technologies, like small molecule organic light-emitting diode (OLED) and electrophoretic displays, in addition to emerging technologies, like electrochromic and electrofluidic displays.

Key points:
OLED materials and equipment have a headstart over emerging technologies like electrochromic and electrofluidic displays, thanks to the sucess of OLED displays in mobile displays and soon televisions. Notable players include materials developers like Universal Display Corporation (UDC) and Novaled, in addition to equipment makers like Kateeva.

E Ink stands out for its technical value –technology and IP — and business execution — strong partnerships and management. E Ink has a nearly 100% market share of the electrophoretic (as seen in the Amazon.com Kindle) market.

For more on high-potential technologies, like reflective and flexible display technologies, and the companies in these eco systems, read the blog post, "Lux Innovation Grid Highlights Viable Partners for Display Developers" at http://www.luxresearchinc.com/blog/2011/12/lux-innovation-grid-highlights-viable-partners-for-display-developers/

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