Forecast: LED packaging costs drive new designs

France released its latest report on the LED package, which pointed out that "LED will become mainstream, but still not a mature commodity". Analysts pointed out that the innovation of the new design and new materials around LED for further differentiation provides the opportunity for consumers in the selection range according to the budget more environmentally friendly and more reliable alternative light source LED.

The LED engineer creativity and each application, causes the package type and format widely different

According to different types of packaging equipment, about LED of total cost of the lighting unit 40~60%. Therefore, the package represents the single largest opportunity costs can be reduced, which can be accepted by the general lighting market conditions.

Special creative LED engineer and each application, resulting in the package type and format widely different: single or multiple chip, low and medium power plastic leaded chip carrier (PLCC), high power LED ceramic, a smaller or larger array and chip. The circuit board and so on. However, Yole warns that such a large number of styles multiplied by the LED unit (SKU) has prevented a reduction in the cost of manufacturing, thereby hindering the standardization of the manufacturing process and the economies of scale associated with it.

Considering this, LED manufacturers have been through the development of new methods, such as: Design for manufacturing, which means that as much as possible to simplify and standardize the components, and will try to lower the manufacturing process of differentiation. Cost oriented design implies a focus on the acquisition cost or cost per lumen, rather than the final performance. LED manufacturers are looking for equipment, material costs and performance with the right. Equipment and materials suppliers are increasingly combining to meet these requirements, such as the use of laser based dicers and low cost ceramic packaging substrate.

It is understood, LED package market will reach a CAGR of more than 20% growth rate in 2012~2017 years, to 2017 grew to nearly $900 million in total.

2012~2017 LED package market to maintain growth of 20%

Faced with fierce competition, different game player is trying to make yourself out of the ordinary, is proposed for LED packaging technology provides more types. The choice of substrate materials and assembly and interconnect technology abound. New players coming out of the semiconductor market have proposed new solutions based on their capabilities. Similar to the IC package, LED packaging new technology is also in imitation of the existing, there is still a lot of room for innovation, which may lead to more value-added, LED manufacturers to provide a solution to reduce the overall cost.

Experts said, LED packaging equipment market is at a standstill in 2012, due to industry oversupply, is expected to reach its peak in 2016, once again increased to nearly $650 million. LED packaging is still the main application of refurbished IC industrial equipment and rely on existing technical solutions and materials to improve the cost and performance of LED acquisition. But this also limits the industry's existing technology platform, not the most satisfied customers, the best LED. However, in 2011/2012, the industry has gained enough momentum to attract equipment and materials suppliers to develop LED dedicated solutions.