Yole Développement today announced its new report “LED Packaging.” Compared to the last edition in 2011, this updated version provides you with revised market metrics (packaged LEDs, equipment, materials); a highlight of 2012 light-emitting diode (LED) packaging trends (design, new technologies and materials per process step); and additional analysis (wafer bonding, thermal management at the LED module level).
Depending on the device type, packaging can represent 40% to 60% of an LED’s total cost. As such, packaging represents the single largest opportunity for cost reduction. However, this cost reduction doesn’t come from standardisation. The creativity of LED engineers and the specifics of each application have led to an infinite number of packaging types and formats, such as single or multiple chips, low and middle-power Plastic Leaded Chip Carrier (PLCC), ceramic-based high-power LEDs, small and large arrays and Chip On Board (COB). This profusion of styles is inhibiting LED manufacturing cost reduction by multiplying the Stock Keeping Units (SKUs), thus preventing standardisation of the manufacturing process and associated economies of scale.
In this context, LED manufacturers are reacting by developing new manufacturing philosophies and concepts, such as:
• Design for manufacturing, which consists of simplifying and standardising elements whenever possible, and push differentiation as far downstream as possible in the manufacturing process.
• Design for cost, which consists of favouring cost of ownership or cost per lumen over end-performance.
In the end, LEDs will become mainstream but they are still not a mature commodity. This is actually good news for the entire industry, since design and materials innovation still provides opportunity for differentiation. All of this benefits the consumer, who receives budget friendly, environment friendly and increasingly credible LED-based alternatives for replacing traditional light sources.
Yole Développement’s report represents an overview of all technological aspects of LED packaging. It describes each step of the packaging process flow, discusses the associated technological breakthroughs, provides a summary of key players and more.
The package substrate market will attain a compound annual growth rate (CAGR) of 20% over the aforementioned period, growing to nearly $900 million USD by 2017. Despite strong price pressure, the LED phosphors’ associated market will also enjoy double-digit growth, with a CAGR of 20% during the period 2012-2017.
Yole Développement © January 2013
In the face of intensifying competition, players are trying to differentiate themselves by proposing an increasing variety of technology options for LED packaging. Substrate material options as well as assembly and interconnection techniques abound as many companies work around the limiting patents of the established players. New players from the general semiconductor markets are proposing new solutions based on their respective capabilities. Similar to integrated circuit (IC) packaging, new technologies for LED packaging mimic the existing ones, without completely phasing them out, and there is still a lot of room for innovation, which could lead to more added value. For such products, however, it remains paramount that the solution offer LED manufacturers an overall reduction in the cost of ownership ($ per lumen).
LED packagers are still using mostly retrofitted equipment from the IC industry and relying on existing technology solutions and materials to improve LED cost of ownership and performance. While this has allowed LED manufacturers to benefit from decades of research and development (R&D) and investments in the IC industry, it also limits the industry to a space defined by existing technology platforms that are not optimised to the specific needs of LEDs. However, the industry gained enough momentum in 2011/2012 to entice equipment and material providers into developing dedicated solutions for LED manufacturing.
Many dedicated solutions emerging from both existing and new players will allow significant reduction in LED manufacturing cost through improved yields, throughputs and material efficiency.
The report LED Packaging presents all materials and equipment used in LED packaging. It describes market size and volume, trends per process step (e.g., performance, price, emerging technologies), key suppliers and more.