LED has gradually become our daily common household electrical components. Currently, the global LED development is heading towards white LED and high-power LED. In today's environment friendly requirements and high cost energy resource environment, good packaging industry will increase LED's luminous efficacy. In the past, Japan with its market-leading technology, has dominated the LED packaging industry. However, Taiwan's packaging industry has caught up, and its growth has far overtaken Japan. The future is promising.
LED supply chain can be categorized into upper stream of Single Crystal and Epitaxy Wafer, middle stream of wafer manufacturing and lower stream of packaging. With their respective requirements, LED can be packaged into 3 types, such as lamp LED, display LED and SMD LED. In the past, Japan with its market-leading technology, has dominated the LED packaging industry. Taiwan has caught up in this industry and its growth has far overtaken Japan. Everlight is currently Taiwan's main LED packaging supplier, followed by Bright LED and Bright. SMD is the main product of these three main packaging suppliers, and its usage has expanded from mobile phones to 7-inch and above panel backlight. Everlight and Bright LED have obtained the patent license from OSRAM for its white phosphor, while Bright and Flexconn have patent licenses from Japan's suppliers.
White LED is categorized into organic LED and non-organic LED based on its manufacturing components. Currently, the 3 types of semiconductor white LED in the market are:
●為以紅、藍、綠三色發光二極體晶粒組成白光發光模組;
●以藍光發光二極體激發黃色YAG螢光粉產生白光發光二極體;
●紫外光發光二極體激發透明光學膠中含均勻混有一定比例之藍色、綠色、紅色螢光粉。
●Combination of red, blue and green LED chip to form white LED module;
●Blue LED excitation of yellow YAG phosphor to form white LED;
●UV LED excitation of transparent optical adhesive with uniform ratio of blue, green and red phosphor.
The white LED module that is based on the use of red, blue and green tri-color LED chips has the advantages of high luminous efficacy and high color rendition. However, these chips employed different epitaxial materials to produce different color, resulting in their current-voltage characteristics variant. This leads to high cost, complicates circuit design and also makes color mixing difficult.
However, by Nichia Corporation, using blue LED to stimulate yellow YAG phosphor powder to manufacture white LED is presently the most popular method in the market. The white LED developed by Nichia Corporation is structured by encapsulating blue LED chip within YAG phosphor powder and optical adhesive mixture. The blue LED chip emits blue light at wavelength of 400 ~ 530nm, part of the light stimulates the yellow YAG phosphor and produce yellow light, the other part of blue light transmits out from the phosphor’s yellow light, and the combination of blue light and yellow light forms the white light. However, white LED that makes use of combining blue LED and yellow light phosphor has the following disadvantages:
●As the blue light is the major part of result emission, it creates a higher color temperature and poorer uniformity. Because of the above reason, we have to increase the chances of interaction between blue light and yellow phosphor, to weaken emission intensity in blue spectral region or to enhance the emission intensity in yellow spectral region.
●The emission wavelength of blue LED varies with temperature, hence resulting in difficulty in controlling the color of white light.
●The weak emission intensity in red spectral region results in low color-rendering index.
As for using UV LED to stimulate the optical adhesive that contains a certain ratio of blue, green and red phosphor powders, the stimulation generates three wavelengths of white light. This triple wavelengths white LED have the advantage of high color rendering capability, but also have the disadvantage of poor luminous efficacy.
Regardless of whether the phosphor-based white LED uses blue LED chip or UV LED chip as its light source, the disadvantages are insufficient luminous flux and difficulty in controlling uniformity.
Currently, LED industry resolve the luminous flux issue by increasing the transmittance or extracting more luminous flux from the chips. For example, using transparent conductive material to increase the luminous flux that chip generates and changing chip’s epitaxial structure or LED electrode design to gain higher light extraction efficiency. Also, when using UV LED as light source for stimulation, the shorter the UV wavelength, the more harm it causes to the human eye. Hence, the UV has to be detained within the white LED structure. To address the above issues, increasing the UV conversion rate by phosphor powder and blocking the leakage of UV are required. In improving the phosphor's luminous flux, it is also intended that uniformity can be improved at the same time.
In order to counter the above deficiency, a UV filter is employed as the packaging of phosphor layer emission exit, as patented in US Patent 5,962,971. This method not only improves the uniformity of phosphors luminosity, it also absorbs and blocks the UV emitted from LED chip which will cause harm to the human eye. Also, in Philips' US Patent 5,813,753, the light emitting surface of UV / blue LED chip is coated with a layer of short wave pass filter to increase the chip’s UV emission and increase chip’s reflectivity of visible light (phosphors). On the other hand, using a long wave pass filter as packaging of UV/blue LED front side emission exit can improve the visible light transmittance.
《圖二 Concept of White LED through UV Excitation》
Increase Light Extraction Efficiency and Reduce Heat Resistance
As the applications of high brightness LED continues expand, such as LCD TV, mobile phones and lighting etc., the input power of various colored LED chips continues to increase. In order to stabilize the power of optical output, increase the life span and improve the reliability, not only does the package structure must have high light extraction efficiency, reducing heat resistance is also an important key technology to package technology. The use of epitaxial material that employed quantum well structure and MOCVD technology for LED light emitting layer increases its internal quantum efficiency. However, due to the total internal reflection, the chip’s light extraction efficiency becomes too low and causes the chip to overheat. In traditional LED packaging, adhesive or silver epoxy is used to mount the LED chip onto the reflection cavity of lead frame or SMD substrate, and then connect the anode and cathode of LED chip to their corresponding leads with gold/aluminum bound wire by using the wire bounder, and finally packaged with epoxy. Though the procedure of traditional LED packaging is simple, the heat resistance can be up to 250℃/W ~ 300℃/W. As such, the bad cooling will cause the temperature of the chip to rise and the epoxy to deteriorate, which accelerates the LED degrading and losing its light emitting ability. The reducing of light luminous efficacy caused by continued accumulation of heat, accelerates the increase of LED temperature and the effect of increasing temperature creates stress to LED structure, causing it to burn.
Hence, the new LED design uses flip-chip packaging to increase the chip's light extraction efficiency, and improves the chip's cooling ability to reduce heat resistance. Other than that, using bigger LED chip surface and increasing working current improve the conversion efficacy, hence gaining higher luminous flux. Besides the LED chip, other key packaging techniques are the materials of the phosphors used in white LED and micro-optic design techniques.
The current popular research direction is how to make a secondary optical design on the overall LED structure, together with the materials' characteristics, to improve the LED's luminous efficacy. For example, by designing the chip internal structure with reflective capability and together with external reflector and special micro-optical lens structure, the LED’s luminous efficacy will be increased. On the other hand, improving the components of the phosphors for higher phosphor conversion efficiency is a competitive market for the optoelectronic semiconductor and lighting manufacturers in the world.
Taiwan's LED Packaging Suppliers' Customer Details
Supplier Name
Customers' details
Everlight
Have penetrated into international plants like NOKIA, MOTO and Compal Communications.
Bright LED
Clients include Agilent, Compal Communications and Korean mobile phone companies etc.
Actively penetrating into international mobile phone companies.
Bright
Main mobile phone customers include BenQ and other China companies
Everlight
Main development focus is its 7-inch backlight panel
Taiwan's LED Packaging Industry Market Status
LED packaging revenue for August increases by 8.7% which exceeds that of chip industry, which is 5.2%
Based on statistics by industry research agency LEDinside, August total revenue for Taiwan's listed LED companies was 64.11 billion NTD, an increase of 7.2% from previous month. Packaging industry rose by 8.7%, which is more than that of the chip industry's 5.2%. LED chip industry's August revenue was 27.57 million NTD, an increase of 5.2% from July's revenue. Its yearly growth is 14%. LED packaging industry's August revenue was 36.54 billion NTD, an increase of 8.7% from July's revenue.
We can see that LED packaging industry's August total revenue was 36.54 billion NTD, an increase of 8.7% from previous month, and its yearly growth is 4.4%. Packaging industry's output exceeded that of last year's same period. Everlight's August revenue set a record high of about 11.17 billion NTD.
April 2009 LED Packaging Industry's Revenue Ranking
(Domination: NTD million)
Supplier
March 2009
April 2009
MoM
YoY
Everlight
805
926
15.0%
-2.0%
Bright LED
308
336
9.0%
4.1%
Unity Opto
233
303
29.9%
3.7%
Harvatek
207
231
12.0%
-11.0%
Light House Tech
198
214
8.1%
148.7%
Advanced Optoelectronics
179
200
11.6%
11.8%
Edison Opto
107
117
9.4%
19.5%
Ledtech
75
90
20.0%
-9.8%
Taiwan Oasis
77
77
0.0%
-24.1%
Others
722
778
7.7%
-21.5%
Total
2911
3272
12.4%
-3.1%
Q4 Demand for LED chip is still high, packaging industry suffers
From LEDinside's survey, high brightness blue LED chip is in short supply, and it is estimated that the order will continue to increase till October. Some suppliers' orders have even last till year end. As for LED packaging industry, because small and medium size backlight demand decreases due to off season, and adjustment of inventory of large size backlight, Q4's performance may suffer.
LEDinside points out with respect to LED's lower stream market, LED packaging industry's order will last till September at most. The main reason is the off-season after the fourth quarter, which includes the lower demand of small and medium size mobile phone backlight due to the off-season of mobile phones. The supply shock of LED in the third quarter causes overbooking of large size backlight by the panel supplier. It is expected that in the fourth quarter when the demand of panel declines, panel supplier may start to adjust their LED inventory. These factors will affect some of the LED packaging suppliers' fourth quarter revenue growth.
Looking at the individual packaging suppliers, Everlight's August revenue set a record high of 11.17 billion NTD, an increase of 17.2% from the previous month, and its yearly growth is 9.5%. This is mainly due to increase in usage of medium and large size backlight and smart phones. Unity Opto's revenue set a record of 4.24 billion NTD in August, an increase of 5.5% from previous month, mainly due the demand in medium and large size backlight. Compared to the same period last year, its growth has increased by 40%. Bright LED, whose market is mainly in the mobile phone, with the increase in white-box cell phone, its August revenue reached 2.62 billion NTD, an increase of 7.1%. With the launch of new products in the second half of the year, there is still room of increase of revenue. Bright, with its market in medium and large size backlight supply, reached a record revenue of 4.33 billion NTD in August, an increase of 25.7% from previous month. Its yearly growth is 22%.
Bright's EPS this year is nearly 1.5 NTD and continues to expand its SMD capacity in the following year.
In 2009 third quarter, due to the increase in order of infrared products and SMD LED packaging, Bright's average capacity utilization reached nearly 90%. Not only revenue increased, gross margin and net profit will also significantly improve. It is expected that Bright's revenue will increase by 25% to 30% as compared to the last quarter, and its gross margin will return to above 20%. On the other hand, with the expansion into TV backlight business, Bright expects that next year, with the continued expansion of SMD LED packaging capacity, its capital expenditure may exceed 5 billion NTD.
Currently, visible LED products (including general LED product and other high brightness LED product, etc.) contributes to 55% to 60% of Bright's revenue while invisible (infrared LED) LED products contributes to 40% to 50% of the revenue. With the increase of customers' demand, Bright's third quarter revenue for infrared products greatly increases by 70%, and its capacity utilization is almost full. As for visible LED, due to the stable growth of NB backlight and mobile phone backlight, third quarter's SMD LED average capacity utilization also reaches a high rate of 90%.
Bright expects that September's revenue will be much better than August's, the main reason being the continued growth of large size backlight industry. Also, China's LED street light tender will be released soon. It is expected that Bright's September revenue this year will reach a steady high of 4 billion NTD.
Because Bright's third quarter average capacity utilization significantly improves, gross profit margin is expected to return to above 20%. Besides, with the decrease in expenses and non-operating loss, there is a chance that Bright's third quarter net profit will reach 1.8 to 2 billion NTD.
As Bright is actively expanding into TV backlight product industry, it has preliminarily penetrated into Korean consumer TV backlight supply chain. Next, Bright will continue to cater to Taiwan's and China's TV system suppliers' order. In the future, it will continue to expand the SMD LED capacity. Next year's capital expenditure is expected to exceed 5 billion NTD.
Taiwan Oasis awarded Hong Kong LED Technology Tender
According to the Dongguan tender result announcement in the August issue of “2009 Guangdong-Hongkong Key Domain Breakthrough Project of China” published by China Dongguan City's market leading group, Taiwan's LED packaging supplier Oasis said that its Dongguan Oasistek is the only company among the Taiwan-funded companies awarded the tender. The awarded tender items include LED lighting thermal technology as well as study of optical performance improvement and industrialization project. Not only will Dongguan city government provides grant funding, winning tenderers will be given priority when tendering for public sector's tenders in the future. Dongguan Oasistek's products such as LED lighting fixtures and LED street lights will be launched in the fourth quarter this year.
Oasistek's chairman, Lee, Ming-Shun said, Oasistek in winning the Dongguan's electronic and information technology tender, went through numerous stringent examinations. Oasis' winning points are on the products' brightness, thermal and optical design, which caters to the market's demand for long operating life street lights. Oasistek has started to contact and cooperate with various Mainland provinces, and the first result is expected to be seen in Dongguan Henan.
Recently, Oasis has been working towards the lighting fixtures market. Currently, Dongguan plant is working on its LED street lights demonstration project. Besides targeting for energy saving, it also opens its doors to the public for product examination. In terms of upper stream LED chip vertical integration, Oasis' UniLite and LuxtalTek is in the integration process, and will work towards producing high brightness LED chip products. In terms of lower stream supply, Dongguan's Oasis will work towards producing LED street lights, down lights, lamps, table lamps, automotive lighting and modules etc.
Even though 60% to 70% of Oasis' revenue is from LED display board usage, 10% from SMD surface mount LED products, 10% from bulb-type LED products and 10% from LED lighting module, Oasis emphasizes that lighting applications is the next step for LED industry. In the year to come, revenue from lighting applications will significantly increase.
LED has gradually become our daily common household electrical components. Currently, the global LED development is heading towards white LED and high-power LED. In today's environment friendly requirements and high cost energy resource environment, white LED with its energy-saving and thin short and small attributes, and its ability to be made into large LED display modules, has made its name as the star of the lighting domain. Hence, if it can replace the current lighting technology, it will bring a new wave of industry revolution and civilization development to the global energy industry. Also, the innovative packaging technology will lead to better LED luminous efficacy. At the present stage, optics, mechanical, electrical science and thermal science are areas to be explored in the study of white LED. It will have a deep influence on the future development; hence the continued effort is much worth.