Physical Analysis of the Device
Step by Step Reconstruction of the Process Flow
Cost of Manufacturing and Estimation of Selling Price

Yole Developpement is proud to publish the reverse costing report of the Luxeon K2 (Ref. LXK2-PW14-U00), supplied by Lumileds. Based on a complete teardown process, the report provides an estimation of the production cost as well as the selling price of the component.
• The Luxeon K2 series is round type and consumes 0.48 watt at 150mA. The typical luminous flux is 100 lm at 1000 mA and up to 130 lm at 1.5 A.
•The component is provided in a specific 4-pins package, compatible with SMT process.
•It is used in various applications such as backlighting, reading lamps, substitution of micro incandescent lamps, indoor and outdoor commercial and residential, architectural lighting. This report provides complete teardown of the LED with:
• Detailed photos
• Material analysis
• Schematic assembly description
• Manufacturing Process Flow
• In-depth economical analysis
• Manufacturing cost breakdown
• Selling price estimation

• Analyze the cost of projects at the R&D level
• Enhance the negotiation power of purchasing managers
• Benchmark competitor’s products

Glossary..................................................................................................p 3

1. Overview / Introduction...................................................................p4

• Executive Summary
• Comparison of the analyzed LEDs
• Reverse Costing Methodology

2. Physical Analysis.............................................................................p8

• Physical Analysis Methodology
• Package Characteristics
• Package X-Ray
• Package Opening
• Package Cross-Section
• Fluorescent Material
• Package Parameters Summary
• LED Dimensions
• LED Emission
• LED Cross-Section
• LED Structure

3. Manufacturing Process Flow.........................................................p21

• LED Die Process Flow
• Description of the Wafer Fabrication Unit

4. Cost Analysis......................................................................................p25

• Synthesis of the Cost Analysis
• Yields Explanation
• LED Front-End Cost
• Front-End : Epitaxy Cost
• Front-End : Other Front-End Cost
• Dies per Wafer & Probe Test
• Back-End 0 : Probe Cost
• Back-End 0 : Dicing Cost
• LED Wafer & Die Cost (FE + BE 0)
• Back-End 1 : Packaging Process Flow
• Back-End 1 : Final Test Cost
• Component Manufacturing Cost (FE+BE0+BE1)
• Cost Analysis Evolution

5. Estimated Manufacturer Price Analysis.....................................p47

• Price definitions
• Manufacturers financial ratios
• Binning Impact on Manufacturing Price
• Ideal manufacturer Price
• Manufacturing Price with Binning Yield

Conclusion...............................................................................................p54