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LED Front-End Equipment Market
Apr.2014

yole ledmanufacturing led mocvd reactor april 2014
5 990 €

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Description

Yole LEDManufacturing 1recouv April 2014A comprehensive survey of LED Front-End equipment business, covering main trends and industry per process step, and market metrics.

THE NEXT INVESTMENT CYCLE HAS ALREADY STARTED


Driven by the fanfare over (and overestimation of) the LCD display market, the LED Front-End equipment market experienced an unprecedented investment cycle in 2010-2011. The market surge was driven mostly by MOCVD reactor shipments to new Chinese entrants, who benefited from the generous subsidies of the Chinese central and local governments in a bid to stimulate domestic chip production.

Following a 18-24 month digestion period, the market is now slowly recovering and will experience another investment cycle in 2014-2016 driven by demand for general lighting applications.
However, this 2nd cycle will be limited in value due to:
• Improvement in equipment throughput and yields
• Increased competition
• Potential consolidation of the industry
Indeed, LED manufacturers initially relied on old semiconductor systems designed for other applications. Now that the industry has reached a critical size, several LED-dedicated equipment (that take into account the specificities of LED manufacturing) has been commercialized.

As a result, the equipment market will peak at nearly $580M in 2015 with MOCVD reactors representing more than 80% of the business: the bulk of these reactors are still being shipped to Chinese manufacturers or Taiwanese players transitioning to 4” diameters. Lithography, plasma etching, PECVD and PVD equipment will follow a similar trend.

This report presents major equipment used in LED Front-End Manufacturing. It describes market size and volume (2009-2020), trends per process steps (performance, ASP, emerging technologies…), key suppliers, and much more!

Yole LEDManufacturing LED Front-End equipment April 2014
DIFFERENT MARKETS WITH DIFFERENT COMPETITIVE LANDSCAPES


The LED epitaxy equipment market (MOCVD reactor) is very concentrated under the control of the Big 3 (Aixtron, Veeco and Tayo Nippon Sanso) who represented nearly 97% of market share in 2013.

Comparatively, the lithography, plasma etching, PECVD, and PVD equipment markets are much more fragmented with several players battling to enlarge their market share. As an example, the top three suppliers of LED lithography equipment represented nearly 70% of market share in 2013 with the remaining 30 % in the hands of more than 10 competitors.

This situation is due to specificities of the different LED Front-End manufacturing process steps:
• LED epitaxy is quite specific and requires dedicated tools supplied by companies that have developed strong know-how.
• Other LED Front-End manufacturing processes can use older or refurbished semiconductor systems designed for other applications. And with the growth of the LED industry, suppliers of LED-dedicated systems have also appeared. This has further fragmented these markets, now both traditional semiconductor equipment suppliers and new LED-dedicated equipment suppliers compete.

This report represents a comprehensive overview of all technological and industrial aspects of LED Front-End manufacturing. It also provides details about key technological highlights that impact LED Front-End manufacturing, discusses future trends, and much more!


INCREASED COMPETITION IN THE MOCVD INDUSTRY? YES, BUT NO REAL IMPACT ON MARKET STRUCTURE UNTIL NOW

LED epitaxy equipment market has always been of central interest to equipment manufacturers due to its high ASP, strong profitability, and large market volume (compared to other equipment markets).

Since 2010, following the explosion of the LED TV market, more than 20 players (mostly from Asia) have tried to enter the MOCVD reactor market but without real success: in 2013, these new suppliers represented only 3% of market share (only +2% compared to 2010).

Yole LEDManufacturing LED MOCVD reactor April 2014

This situation arises for 2 main reasons:

• New entrants have missed the first 2 LED growth cycles (small display and large display applications) that have allowed leaders to build their expertise and know-how as well as their networks (sales office, training center…). Even big names, such as Applied Materials, did not achieve access to these markets.

• Revenue collected during the 2010-2011 investment cycle (a total of more than $2 billion for MOCVD reactors, with > 90% going to Aixtron and Veeco) have allowed Veeco and Aixtron to slash ASP and initiate a price war to lever further market entry barriers.

The current LED Front-End industry is largely driven by cost reduction (as technological evolutions are reaching their saturation point). The main strategy developed by a new MOCVD reactor supplier is to focus on decreasing Cost of Ownership through a new heating system, new gas flow design, and increased automation (…). However, even if this is the best and only strategy to adopt, we do not expect new entrants to have a big increase in future market share as the finances and expertise of the Big 2 far surpass any of their competitors.

At short term, only 2 types of suppliers (outside of the Big 3) will survive:
• Suppliers that develop collaboration with some big LED manufacturers.
• Chinese suppliers that are able to scrape together bits and pieces of the huge local market.

This report presents a detailed analysis of the LED MOCVD reactor industry, detailing key players but also new entrants. It also highlights new strategies developed by these new entrants, future evolution of the industry, and much more!13, these new suppliers represented only 3% of market share (only +2% compared to 2010).

Table of contents

Objectives of the report 6
Company index 7
Glossary 8
Executive summary 9
LED market trends 36
> History of LED industry
> Packaged LED revenue forecast by
application
> LED adoption rate - 2013 vs. 2020
> Recent trends
> Packaged LED price trends
> LED die surface forecast by application
> GaN reactor capacity - geographic trends
> LED reactors
- Geographic trends & impact on global demand
- GaN reactor capacity vs. demand

LED die manufacturing 48

> Constituents of LED die
> GaN LED chip design
- Simple MESA
- Flip Chip (FC)
- Vertical Thin Film (VTF)
- Thin Film Flip Chip (TFFC)
- Vertical Thin Film with Vias (VTFV)
- Trend - Increase of Flip Chip technology
> LED manufacturing process overview
> Front-End manufacturing process flow
- Example - MESA structure
- Example - VTF structure
> Other steps

Key trends in LED Front-End manufacturing 62

> Introduction
> Technology highlights
- LED substrates
- Sapphire
- GaN and Si
- LED epitaxy
- LED chip design
- General manufacturing
> Details on LED substrates
- Introduction
- Sapphire substrate
- Wafer ASP trends
- Diameter trends
- Patterned Sapphire Substrate (PSS)
- Adoption trends
- Price trends
- Future trends
- GaN-on-Si LEDs
- Conditions for success
- Performance and commercial status
- Si vs. Sapphire - LED die cost simulations
- Reality or fiction?
- GaN-on-GaN LEDs
- Conditions for success
- Status
- GaN vs. sapphire - LED die cost
simulations
- Penetration rate by substrate type
> Details on LED epitaxy
- Cost of ownership
- Drivers
- Cost reduction opportunities
- Toward larger diameter wafers
- Focus on MOCVD throughput
- Focus on manufacturing cost
LED Front-End equipment industry and market 99
> Epitaxy / MOCVD reactor
- LED MOCVD reactor industry
- Overview
- Market share
- Top 3 players - comparison of systems
- Other players
- Strategy of new entrants
- LED MOCVD reactor market
- Key hypothesis
- Volume forecast - GaN vs. InGaAlP
- Revenue forecast - GaN vs. InGaAlP
> Epitaxy / MO precursor
- Introduction
- TMG ASP - Overview
- TMI ASP - Overview
- Main suppliers
- MO precursor market
- Introduction
- Market volume
- Market size
> Lithography
- Lithography for LED chip manufacturing
- Synthesis
- Focus on main techniques
- Equipment suppliers
- Lithography for PSS manufacturing
- Synthesis
- Focus on NIL and DTL
- Equipment suppliers
- Lithography equipment market
- Market share
- Forecast (units and $M)
- Comments
> Plasma etching and deposition
- Synthesis
- Equipment suppliers
- Focus on Tier-1
- Focus on Tier-2 and emerging players
- Plasma etching and deposition equipment
market
- Market share
- ASP
- Plasma etching equipment market
forecast (units and $M)
- Plasma deposition equipment market
forecast (units and $M)
> Physical vapor deposition for TCLs and metals
- Synthesis
- Equipment suppliers
- Market share
- Physical Vapor Deposition equipment market forecast (units)
- Physical Vapor Deposition equipment market forecast ($M)
> Testing
- Synthesis
- Equipment suppliers

Conclusion 164

About Yole Développement and LED activity 171

 

Companies cited

Advanced System Technology
Advantools Semiconductor
Aixtron
Akzo Nobel HPMO
Albemarle
Altatech
AMEC
AMOGMBH
Annealsys
ASM Pacific Technology
ASML
AST
Aurora Sapphire
Aurotek
Beta Squared
Bridgelux
Cambridge Chemicals
Canon
Cascade Microtech
CETC
Chemtura and UPChemicals
Chroma
Corial
Crystal Applied TechnologyInc.
Crystaland
Crystalwise
C-Sun
DK Aztec
Dow Chemical
Elmos
Eplustek
Eulitha
Evatec
EVG
First Nano
Fulintec

GR-Litho
GTAT
Guangdon Real Faith Semiconductor Equipment
Hansol Technics
Ilj indisplay
InVacuo
Japan Science Enginneering (DaiNipponKaken)
JT Corporation
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
Plessey Semiconducors
Plustek
Procrystal
Qingdao Jason Electronic
QMC
Rubicon
Rudolph Technologies
SAFC Hitech
Samco
Samsung
Sapphire Technology
Screen
Seoul Semiconductor
Sharp
Sheng Optical Equipment
Silian Sapphire Corporation
Sky Technology Development
SmaTeK
SNTEK
Soraa
SPTS
StarArc
Structured Materials Industries
SUSS Microtec
SVTA
Tainics
Tamarack Scientific
Tayo Nippon Sanso
Technology & Science Enabler
TEL NEXX
Temescal
TeraXtal Technology
Ultratech
ULVAC
Ushio
USI Optronics Corporation
Valence Process Equipment
Veeco
Yongsheng
Semiconductor Equipment

 

KEY FEATURES OF THE REPORT

  • Detailed analysis of LED Front-End technology trends
  • Technology roadmap for adoption of new technologies
  • Supply chain and industry analysis for each LED Front-End manufacturing process step
  • LED market metrics (units and value): forecast 2014-2019
  • LED Front-End equipment and material market metrics (units and value): forecast 2014-2019