LED Front End Equipment Market 2014 Report by Yole Developpement

Copyrights © Yole Développement SA. All rights reserved.© 2014 1

75 cours Emile Zola, F-69001 Lyon-Villeurbanne, FranceTel : +33 472 83 01 80 - Fax : +33 472 83 01 83Web: http://www.yole.fr

LED FRONT-END EQUIPMENT MARKETA Comprehensive Survey of LED Front-End Equipment Business, Covering Main Trends, Industry / Market Structures and Market

Metrics

SAMPLE VERSION

http://www.yole.fr/

© 2014 2Copyrights © Yole Développement SA. All rights reserved.

About the Author of the Report

Pars MUKISH - Senior Analyst

Pars MUKISH holds a Master of Materials Science & Polymers and a Master of

Innovation & Technology Management (EM Lyon - France).

He works at Yole Développement as a Senior Market and Technology Analyst in the

fields of LED, Lighting Technologies, Compound Semiconductors and OLED to carry

out technical, economic and marketing analysis.

Previously, he has worked as Marketing and Techno-Economic Analyst for several

years at the CEA.

Pars MUKISH is also author / co-author of the following reports:

• LED Packaging

• Status of the LED Industry

• LED in Road and Street Lighting

• OLED for Lighting

• UV LED Technology and Application Trends


Objectives of the Report

• To better understand LED Front End manufacturingtechnological trends.

• To better understand equipment industry for eachprocess step.

• To better understand who is doing what, andspecificities of each market.

• To provide market metrics both at LED and material/ equipment levels.


Company Index

Advanced System Technology, Advantools Semiconductor, Aixtron, Akzo Nobel HPMO, Albemarle, Altatech,AMEC, AMO GMBH, Annealsys, ASM Pacific Technology, ASML, AST, Aurora Sapphire, Aurotek, Beta Squared,Bridgelux, Cambridge Chemicals, Canon, Cascade Microtech, CETC, Chemtura and UP Chemicals, Chroma,Corial, Crystal Applied Technology Inc., Crystaland, Crystalwise, C-Sun, DK Aztec, Dow Chemical, Elmos,Eplustek, Eulitha, Evatec, EVG, First Nano, Fulintec, GR-Litho, GTAT, Guangdon Real Faith SemiconductorEquipment, Hansol Technics, Iljin display, InVacuo, Japan Science Enginneering (Dai Nippon Kaken), JTCorporation, KLA Tencor, Lattice Power, Leybold, LG, Lumileds, Maxis, MC-Lithography, Molecular Imprints,Monocrystal, Namiki, Nanonex, NATA, Neutronix-Quintel, Nikkon, NMC, North Microelectronics, Novellus,Nuflare, Obducat, Oerlikon, Orbotech, Osram, Oxford Instruments, Panasonic, Plasma-Therm, PlesseySemiconducors, Plustek, Procrystal, Qingdao Jason Electronic, QMC, Rubicon, Rudolph Technologies, SAFCHitech, Samco, Samsung, Sapphire Technology, Screen, Seoul Semiconductor, Sharp, Sheng OpticalEquipment, Silian Sapphire Corporation, Sky Technology Development, SmaTeK, SNTEK, Soraa, SPTS, StarArc,Structured Materials Industries, SUSS Microtec, SVTA, Tainics, Tamarack Scientific, Taiyo Nippon Sanso,Technology & Science Enabler, TEL NEXX, Temescal, Tera Xtal Technology, Ultratech, ULVAC, Ushio, USIOptronics Corporation, Valence Process Equipment, Veeco, Yongsheng Semiconductor Equipment (…).


LED Industry is Entering its 3rd Growth Cycle

1st Cycle

• Growth of the LED industry came initially from the small LCD displays and keypad backlighting for cellphones.

2nd Cycle

• And was driven forward by the LCD display application.

– LED TV was expected to be the LED industry driver for 2011, but the reality was quite different due to: lower sales ofLCD TVs, lower than expected adoption rate of LED, and lower number of LEDs per TV set.

– This situation, mixed with the entry of several new players (mostly from Asia), created a climate of overcapacity,price pressure, and strong competition. As a consequence, packaged LED volumes were about 30% lower thanexpected and revenue shrank due to strong ASP pressure.

3rd Cycle

• In 2012, most companies have started to move to the new “El Dorado” of the LED business: GeneralLighting, which represents the next killer application. In 2013, LED technology has really spread beyondgeneral lighting with the LED penetration rate > 4% in some applications - such as residential lighting,commercial lighting, and road and street lighting. However, to enable massive adoption of thetechnology, LED-products still require a cost decrease.


General LightingDrivers for Adoption - Upfront Cost

Currently, upfront cost of LED-based lighting is still too high to fully compete with incumbent technologies.

→ Real need to reduce the $/lumen!

1. Depending on geographical region and availability of subsidies/rebates- Price listed is worldwide average

Incandescent

< $1

Fluorescent

~ $3-$5

LED

~ $10 - $501

Comparison of Average Selling Price of Different Lamp Technologies

All sources are ~ 800 lumens, warm, white and tier-1 brand only


Cost Structure of Lighting ProductsAnalysis

• LED packages represents 25% to 45% off the total cost of LED-based lighting products (lamp, luminaire,tube…) depending on the application, the performance required, the type of product (…).

– In our 2011 analysis, LED packages represented 30% to 60% of the total cost of LED-based lighting products.

– This decrease is due to reduction of LED ASP, increase of LED performance (lm/W), and wider use of middle powerLEDs in General Lighting applications (mostly for residential and commercial applications).

Packaged LED still represents a large opportunity for cost reduction!


Front End Cost Aspects1W Packaged LED Cost Analysis

• Front-end manufacturing represents 48% of the cost of the 1W packaged LED analyzed in this example.

• At 33% of the total Front-End cost, epitaxial layers (grown by MOCVD) represents the single largest costreduction opportunity.

• However, substrates (in this case sapphire + a carrier wafer on which the epiwafer is subsequentlybonded to) also represent a significant fraction (25%).


Front-End Manufacturing Process FlowExample - MESA Structure (1/2)

• Multiple variations are possible for the structure, the contact and pad materials, thicknesses (…). Actualprocess flow can also vary based on manufacturer’s engineering preferences, available equipment (….).

• The next slide illustrates the process flow for the generic MESA structure presented below:

1. Not to scale

Transversal view1 3D view (passivation layer not shown)1

n-GaN

(3-5 µm)

p-GaN (0.1-0.5 µm)MQW (15-80 nm)

Passivation(SiO2 : 300 nm)

Anode Pad(Ti:30 nm / AuSn: 2µm)

Transparent contact(ITO: 245 nm)

Cathode Pad(Ti:100nm / Au:2µm)

Sapphire Substrate

(80 µm after back thinning)

n-GaN

Active layers

(MQW)

p- GaN

Contact layer


Technology HighlightsLED Substrates - GaN and Si (1/2)

• GaN-on-Si LEDs aims at improving solid-state lighting Cost of Ownership (COO) by reducing thecomponent manufacturing cost.

– The success of GaN-on-Si LEDs will depend on development of associated LEDs performance (which should at leastbe equal to GaN-on-Sapphire LEDs) and development of manufacturing techniques (allowing to capitalize ondepreciated CMOS fab).

• GaN-on-GaN LEDs purports to reduce COO by improving the quantity of light per die area, and thereforeallow cost reduction at the system level through reduction of the number of packages.

– The success of GaN-on-GaN LEDs will depend on the availability of 2” and 4” GaN substrates in large volumes and ata lower cost than currently available.

COST =

$

LUMEN

Manufacturing Efficiency

• Higher equipment throughput and

yields

• Economy of scale

LED Performance

• Higher efficiency (lumen/W)

• More light per chip (driving current)

GaN-on-Si LEDs→ Reduce component

cost

GaN-on-GaN LEDs→ Improve performance

by reducing the number

of packages per System


GaN-on-Si LEDsPerformance and Commercial Status - Overview (1/2)

In development

(no release date)

Dec. 2013

Company FXX lm/W

Jul. 2013

Plessey LEDPLW111010

36 lm/W30

60

120

150

180

0

Company CXX lm/w

Apr. 2013

• Low and Middle power

package, cold white

(5000-5500k).

• Best performance

based on company

claims.

Company A

XX lm/W

EverlightL62-217D150 lm/W

OsramLab result104lm/W

LumiledsLuxeon 3535 2D

150 lm/W

ToshibaTL1F2

XX lm/W

Sapphire

Silicon

Company B

XX lm/w

Company E

XX lm/W

90

CreeLab

> 200 lm/w

Company DXX lm/W

*Available as die. Lm/w of white package LED is extrapolated

March 2014


GaN-on-GaN LEDsStatus

Many companies are investigating GaN-on-GaN LEDs (Osram, Samsung, TSMC, Lumileds…). Only 3 have entered into real production: Panasonic, Soraa and Seoul Semiconductor.

Panasonic Soraa Seoul Semiconductor

• GaN-on-GaN LEDs since 2007.

• Main applications: cell phone

flash and automotive lighting.

• MR16 LED bulbs based on in-

house manufactured GaN on GaN

LED available

• “n-Pola” LED based actually

based on c-plane GaN substrates

for now;

• Mass production to have started

in April 2013.

• Mitsubishi / Verbatim MR16.

http://www.betterbebright.com/press-release/development-of-the-worlds-first-npola-led-5-times-brighter-than-a-conventional-led/attachment/led-lampe-mit-neuer-technologie/

http://www.betterbebright.com/press-release/development-of-the-worlds-first-npola-led-5-times-brighter-than-a-conventional-led/attachment/led-lampe-mit-neuer-technologie/


Toward Larger Diameter WafersIncentive - Focus on Manufacturing Cost (3/3)

• This indicates that the transition to 6” can be beneficial for LED makers with strong experience and “worldclass” manufacturing practices.

Source: Philips Lumileds (June 2013)

Last 2 Quarters of 3”

Manufacturing (mix) 150mm Manufacturing

Only


LED MOCVD Reactor IndustryStrategy of New Entrants (2/3)

Focus on heating system:

• Different heating system are developed by new entrants. Companies such as ADP Eng. Or Top Eng. Areworking on resistance heater whereas Jusung Eng. or Wonik focus on induction heater. Kanthal ‘FeCrAl)heater are also developed -e.g.: Kokusai Electric Korea).

• The objective is to have better temperature ramping (through low temperature mass for example) and sodecrease MQW growth cycle time.

In 2012 and 2013, MOCVD price war was initiated by leaders to increase barrier entry. As a result, new entrants are working on new reactor design to attract customers.

Parameter A XX

Parameter B XX

Automation (…)

Reactor

Design

Parameters

Heating system To decrease growth time


LED MOCVD Reactor MarketRevenue Forecast (2009-2020) - GaN vs. InGaAlP

March 2014

SAMPLE - DATA ON THE REPORT


Other LED Front End EquipmentMarket Size

March 2014

SAMPLE - DATA ON THE REPORT


TMGASP - Overview

• TMG price increased in 2010 and 2011 due to the rapidly growing LED market which has led to a shortageof TMG.

• In 2013, ASP is much more lower: $XX to $XX per gram for large orders (100+ kg).

• And ASP decrease is likely to continue with the growth of production capacity.

TMG ASP has strongly decreased since 2010 due to large overcapacities. It is currently in the range of $XXto $XX per gram.

2010 2011 / 2012 2013

$2.5

to

$4

$XX

to

$XX

AS

P (

$/g

)

3

2

1

5

4


Lithography for LED Chip ManufacturingEquipment Suppliers - LED Dedicated Equipment

Main suppliers of dedicated LED lithography systems are presented below:

CompanyContact /

ProximityStepper Full Field Comments

COMPANY A X• Also own “Index Technology” (a JV

with Ball Semiconductor for the

development of maskless systems)

COMPANY B X• Collaboration with XX on

Displacement Talbot Lithography

(DTL)

COMPANY C X• “NXQ8006 Sapphire” model for

LED manufacturing

X X • XX

COMPANY D X• First LED-dedicated system

“Sapphire 100” introduced in late

2009

X • XX


Physical Vapor Deposition for TCLs and MetalsSynthesis (2/3)

• Intra-batch homogeneity and batch-to-batch repeatability are critical, and often require to be within+/- 3%.

• Due to the low thickness of most of the layers, deposition time is fairly quick. Cycle times are thereforedriven by pumping, heating, cooling and handling (loading / unloading). This creates a strong incentive forlow temperature processes as well as for higher automation in loading and transferring wafers.

• Pumping time can vary from 15 to 30 minutes depending on chamber size and pumping equipment. Temperature ramp-up depends on process.

• Loading time can be reduced by using multiple sets of wafer carriers that are preloaded outside the machine andswapped.

• Misc. includes rough reactor cleaning, changing deposition monitor quartz, replenishing the source material crucible (…).

T0

Deposition

10 min 40 min 46 min 60 min 70 min 80 min

Example for a 250 nm metal layer deposition.

Reactor

LoadingPumping + Temperature ramp up Cooling / Venting Unloading Misc.

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75 cours Emile Zola, F-69001 Lyon-Villeurbanne, FranceTel : +33 472 83 01 80 - Fax : +33 472 83 01 83

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Yole Développement and LED Activity

http://www.yole.fr/


Yole DéveloppementField of Research Activity

• Yole Développement is a market research and strategy consulting company founded in 1998.

• We are involved in the following areas:

• Our research is performed by in-house personnel conducting open-ended discussions based oninterviews.

– 30 full time analysts with technical and marketing degrees.

– Primary research including over 3,500 interviews per year.

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Sensors

Wafer & Substrates

Power Electronics

LED, OLED and Laser Diode

Advanced

Packaging


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th o

f th

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naly

sis

Standard Reports

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Research products - Content comparison


LED Activity Yole is Active All Over the LED Value Chain

We are active all over the value chain! And we interview industrial / R&D players from each level!

Substrate Front-end Level 0 - Epitaxy• Nucleation layer

• N-type layer

• Active layers (MQW)

• P-type layer

SiC / Sapphire / Silicon /

Bulk GaN / Composite

substrate

LED epi-wafer

Mesa LED structure

Flip Chip LED structure

Vertical LED structure

LED dies-on-waferLED dies

Back-End level 1 - Packaging• Die Attach & Interconnections

• Phosphors

• Encapsulation & optics

• Testing & Binning

Packaged LEDs

Front-end Level 1 - Device Making• Inspection

• Masking / Lithography

• Etching

• Metallization / Contacts / Mirrors

Back-End Level 0 - Packaging• Substrate separation & Bonding

• Die singulation

• Testing & Binning

LED systems and applications

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LED ActivityAbout Yole’s LED Analyst Team

Dr. Philippe ROUSSEL - Business Unit Manager

Philippe ROUSSEL holds a Ph-D in Integrated Electronics Systems from the National

Institute of Applied Sciences of Lyon (INSA - France). He joined Yole Développement

in 1998 and is Business Unit Manager of the Compound Semiconductors, Photovoltaic,

LED and Power Electronics department.

Dr. Eric VIREY - Senior Analyst

Eric VIREY holds a Ph-D in Optoelectronics from the National Polytechnic Institute of

Grenoble (INPG - France). In the last 12 years, he has held various R&D, engineering,

manufacturing and marketing positions with Saint-Gobain. Most recently, he was

Market Manager at Saint-Gobain Crystals, in charge of Sapphire and Optoelectronic

products.

Pars MUKISH - Senior Analyst

Pars MUKISH holds a master degree in Materials Science & Polymers and a master

degree in Innovation & Technology Management (EM Lyon - France). He works at Yole

Développement as Market and Technology Analyst in the fields of LED and Lighting

Technologies to carry out technical, economic and marketing analysis. Previously, he

has worked as Marketing and Techno-Economic Analyst for several years at the CEA.

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LED Front End Equipment Market 2014 Report by Yole Developpement

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Transcript of LED Front End Equipment Market 2014 Report by Yole Developpement