Moving toward further cost reduction and new technology with Flip Chip and Chip Scale Packages changing the material / equipment market and the supply chain
RISE OF FLIP CHIP LED AND CHIP SCALE PACKAGE: GOOD NEWS FOR SOME, BAD NEWS FOR OTHERS
Following the LED TV crisis and with the entry of Chinese players, positioning has been reshuffled in the LED industry. The product quality of Chinese LED manufacturers has increased to a level where they are now real competitors for all players. In such a highly competitive environment, three major challenges lie ahead for the LED industry regarding the General Lighting market: efficacy improvement, cost decrease and color consistency increase.
To answer these challenges, several players have now turned to Flip Chip (FC) LED, as these components present several advantages over traditional horizontal (MESA) and vertical LEDs: they are wire-bonding free, can be driven at higher current, and have a smaller size package (…).
And although the FC LED technology has been launched for quite a long time (by Lumileds), it was restricted from “popularization” due to technical / technological barriers (low yield regarding bumping / eutectic process…). Additionally, the financial investment required (for packaging equipment) represented a strong barrier in an industry that was still recovering. But the technology has gradually attracted attention from the lighting, backlighting and flash markets, becoming one the most important developing items this year.
Whereas Flip Chip LED represented only 11% of overall high power LED packaging in 2013, we expect this component to represent 34% by 2020. Flip Chip LED will take market share from vertical LED that will represent 27% of overall high power LED packages by 2020.
In addition to offering an increased “performance / cost” ratio, Flip Chip LEDs are also a key enabling technology for the development of Chip Scale Package (CSP) that could allow for further cost reduction.
CSPs are novel to the LED industry but they are the mainstay of the semiconductor industry. Development of CSPs in the Silicon ICs was driven by miniaturization, improved thermal management, higher reliability, and simply the need to connect to an ever increasing pin-count on an ever shrinking die. Chip Scale packages also enabled a reduction in device parasitic and allowed for ease of integration into Level 2 packaging (e.g.: module packaging for LED). It is therefore a natural evolution for this packaging innovation to proliferate into other industries (such as the LED industry).
Basically, a CSP represents a single chip direct mountable package that is the same size as the chip. Regarding LED devices, CSPs are made of a blue FC LED die on which a phosphor layer is coated (the main application of such package being General Lighting). CSP presents several advantages (miniaturized size, better thermal contact to substrates…). However, eliminating several process steps of traditional LED packaging, CSPs are also having an impact on the industry structure with some LED chip manufacturers supplying their products directly to LED module manufacturers. At middle and long term, this technology could make chip manufacturers supply directly to module manufacturers.
This report represents a comprehensive survey on recent trends regarding LED Packaging (Flip Chip LED, Chip Scale Package, LED Filament Lamp…). It describes associated technological breakthroughs and manufacturing process, provides also a list of key players involved, and much more!
THE LED PACKAGING MATERIALS MARKET WILL GROW BY A FACTOR X1.5 DURING THE PERIOD 2014-2019, DRIVEN BY PACKAGE SUBSTRATE, PHOSPHOR AND ENCAPSULANT / OPTIC MATERIAL
With the General Lighting market triggered, LED packaging needs materials in agreement with the requirements of applications. Regarding packaging substrates, the high power density of devices induces the use of ceramic substrates, a market that will grow from nearly $400M in 2013 to $700M in 2019. Encapsulant / Optic materials will follow the same trend (from nearly $300M in 2013 to $700M in 2019), driven mostly by the increased use of Silicone material offering better reliability / lifetime than traditional Epoxy material. At the phosphor level, the expiration of key “yellow phosphor” patents in the area from 2017 will increase adoption of YAG and increase competition (ultimately leading to further price decrease). But even with ASP decreasing, market will grow from a size of nearly $600M in 2013 to $900M in 2019.
This report represents a comprehensive overview of all 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 much more!
AT THE LED PACKAGING EQUIPMENT LEVEL, GROWTH WILL RETURN FOR THE NEXT THREE YEARS… BUT NEVER COME BACK?
The LED packaging equipment market, which stagnated in 2012 due to industry oversupply, is growing again but will peak at nearly $600M by 2015-2016. Indeed, the period 2013-2016 represents the main investment cycle for General Lighting applications with change of investment type due to Flip Chip and Chip Scale Packages.
After 2016, the market will sharply decline for several reasons, two being widely expected consolidation of the industry and lower growth of the market (…).
After 2019, it is questionable whether new LED applications (medical lighting, smart lighting…) will impact the equipment market?
This report presents all materials and equipment used in LED packaging. It describes market size and volume, trends per process step (performance, price, emerging technologies…), key suppliers, and much more!
- Detailed analysis of Flip Chip and Chip Scale Packaging trends
- Detailed analysis of flexible LED strips and LED filament lamp trends
OBJECTIVES OF THE REPORT
The objectives of the report are to better understand:
- Process flows and technologies in LED packaging
- Recent trends in LED packaging
- The importance of cost reduction in LED packaging
- Who is doing what
And to provide market metrics both at LED and material / equipment levels