Packaging cost reduction is driving new technology and design adoption, and fuelling a booming equipment and material market EMERGENCE OF NEW DESIGN AND TECHNOLOGIES Depending on the device type, packaging can represent 40% to 60% of LED total cost. As such, packaging represents the single-largest opportunity for cost reduction, which is required in order for the industry to access the “Holy Grail” that is General Lighting. However, if you’re expecting this cost reduction to come from standardization, you can abandon all hope. The creativity of LED engineers and specificities of each application have led to an infinite number of package type and formats: Single or multiple chips, low and middle-power Plastic Leaded Chip Carrier (PLCC), ceramic-based high-power LED, small and large arrays, Chip On Board (COB), etc. This profusion of styles is inhibiting LED manufacturing cost reduction by multiplying the Stock Keeping Unit (SKU), thus preventing standardization of the manufacturing process and the associated economies of scale. In this context, LED manufacturers are reacting by developing new manufacturing philosophies/ concepts, such as: - “Design for manufacturing”, which consists of trying to simplify and standardize elements whenever possible, and push differentiation as far downstream as possible in the manufacturing process. - “Design for cost”, which consists of favoring cost of ownership or cost per lumen over end performance. This report represents a comprehensive overview of all technological 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! OBJECTIVES OF THE REPORT - To better understand process flow and technological trends in LED packaging - To better understand the importance of cost reduction in LED packaging - To better understand who is doing what - To provide market metrics both at LED and material/equipment levels 3M, A-Bright, ACC Silicon, Accretech, ADT Dicing, Advanced Photoelectronic, ALSI, AM Technology, Amceram, American bright, American Opto Plus, AOT, Apeax, APT, Asahi Glass, ASM Pacific, Assymtec, Autec, Avago, Axxon, Bayer, Bergquist, Brightled, Brightview, BYD, Cascade Microtech, Century Epitech, Ceramtec, CETC, Chroma, Citizen, CMO, Cofan PCB, Cree, CS Bright, Curamik, Daitron, Datacon, Delphi Laser, Denka, Dian, Disco, Dominant Semiconductor, Doosan, Dow Chemical, Dow Corning, Dowa, Dupont, Dynatex, Edison Opto, Photon Star, Epistar, Epitex, Epoxy Technology, epworks, ESEC, ESI, Essemtec, Everlight, EV-Group, Evident Technologies, Excellence, Fangda, Fittech, Formosa Epitaxy, Friatec, GE, Gia Tzoong, Golden Valley, Han’s Laser, Harvatek, Hauman, Heesung, Heptagon, Hilight, Holy Stone, Huixin, huiyuan, Hybond, Hysol (Henkel)... More information on http://www.i-micronews.com/reports/LED-Packaging/14/342/

1. LED Packaging
A Comprehensive Survey Of LED Packaging Covering Main
Technologies and Market Metrics
75 cours Emile Zola, F-69001 Lyon-Villeurbanne, France
Tel : +33 472 83 01 80 - Fax : +33 472 83 01 83
Web: http://www.yole.fr
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2. Executive Summary
Equipment Market (2/2)
• The graph shows our estimate of actual equipment sales
after accounting for:
– Investment cycles and evolution of the average industry
capacity utilization rate.
– Natural replacement market (tools reaching their end of
life) + technology driven replacement market (new
generation of tools offering significant cost of ownership
benefits)
• An unprecedented investment cycle started toward the
end of 2009 and have extended through early 2012. This
cycle initiated in Korea was then essentially fueled by
MOCVD subsidies and other incentives in China, as the
country is aggressively trying to position itself as a
future leader in Solid State Lighting. This has led to a
world averaged overcapacity that have briefly exceed
50% for some tools (e.g.: capacity utilization rate < 50%)
by middle 2012.
• This in turn have caused a 12-18 month down cycle corresponding to the absorption of this overcapacity as well as some
consolidations that will bring the industry back to more usual utilization rates of 80%.
• This down cycle will extend through middle 2013. Then we expect a new investment cycle to kick in to respond to further
increasing demand for general lighting. This might lead to another shorter excess investment to be absorbed in 2016 -
2017.
• End of line related equipment (die attach and beyond) though tend to be less prompt to investment overshoot and follow
demand more closely.
© 2012 2
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3. Executive Summary
Wafer Bonding
• Wafer bonding is an enabling technology for active layer transfer of AlInGaP and InGaN vertical LEDs.
• For both GaAs-based and Sapphire-based LEDs, wafer bonding enables improved thermal, electrical and / or optical
properties to ensure high power operation, which is needed for future applications such as general lighting
• While thermo-compression bonding is often applied for LEDs grown on GaAs… Eutectic and solder bonding dominates for
InGaN LEDs grown on sapphire substrates. The selection of the substrate, bonding process and material system as well as
appropriate adhesion layers and diffusion barriers is essential for a high yield bonding process.
• Alternative techniques to wafer bonding also exists (metal electroplating…) however their use is still “marginal” and
restricted to companies that have developed specific IP.
• Wafer bonding process and the associated substrate removal process will grow in concert with the increasing popularity
of vertical LEDs.
• We estimate that a minimum of XX bonding equipment will be needed between 2012 and 2017. Factoring in capacity
utilization rates and replacement market, we forecast actual sales of equipment to reach XX units in the period.
© 2012 3
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4. Executive Summary
Die Singulation
• Laser based scribing or dicing has grown significantly since 2005. However, mechanical solutions are still improving on a
regular basis thanks to new design, blades and processes and remain strong for GaAs based LEDs as well as for some
vertical LED structures.
• New laser technologies are being developed in order gain further market share against mechanical techniques and
further increase throughput and yields.
• With the advent of more complex vertical LED structures, new singulation techniques are emerging including dry or wet
etching, or combinations of mechanical and laser techniques.
• Cost and performance are the main elements to decide on a singulation technique. The choice is strongly application
dependent and can vary based on the die size, substrate, type of structure and nature of the layers and substrates.
• We estimate that a minimum of X,X76 new tools will be needed in the 2012-2017 period. However, due to the
replacement market and capacity utilization rates, we’re forecasting a total volume of X,X80 tools.
© 2012 4
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5. Executive Summary
Thermal Management - Packaging Substrates (Including COB)
• Thermal management is one of the most critical aspect of the design and manufacturing of high power LEDs. It requires a full system
approach to ensure compatibility between all components and maximum LED package performance. A multitude of designs and substrate
materials are being used by LED manufacturers. Due to the potential competitive advantages brought in by each solution, standardization
seems unlikely, putting extra burden on manufacturing lines and equipment that often need to be modified or reconfigured when switching
from a product to another.
• We expect innovation in materials and package design to continue at a rapid pace in order to enable the development of higher brightness
and efficiency packages while lowering LED solutions cost of ownership.
• Standard leadframe with plastic casing will remains the solution of choice for most low and middle power application.
• For high power application, the field remains wide open due to the variety of package types and applications. Dual Plated Copper AlN based
ceramic substrates are emerging as a promising solution for handling very high power densities and cost is expecting to decrease
significantly. Chip On Board designs are also emerging for various type of applications. They can use ceramic substrates or allow MCPCBs to
be used directly as substrates, potentially reducing manufacturing complexity and material cost. Longer term, Silicon is another very
promising candidate for high power applications.
© 2012 5
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6. Executive Summary
Die Attach
• Most LEDs are low power and can be attached using standard adhesives (Epoxy, Acrylic, Silicone).
• Backside metallization increases as the penetration rate of vertical LEDs increases in middle power and high power LED
packages.
• The die attach material of choice for high power LED packages is silver filled epoxy, with varying content rates of silver
particles.
• In some very high power packages, Au / Sn solder paste is more and more used… However, it is still considered as
expensive (cost factor of nearly x2 with silver filled epoxy).
• As the market of high power LEDs is growing and as die sizes of large size LEDs keep on increasing, the market for die
attach materials of LEDs will keep growing fast over the next 5 years.
• There is still a large diversity of technology options and materials for die attach and new ones may add up to the list in
the future, particularly technologies developed by the power electronics industry, like low temperature sintering of silver
nanoparticles. Eutectic bonding might also develop significantly and be used for Flip chip mounting instead of stud
bumping.
Standard MESA Flip Chip Mesa
Vertical structure
Structure Structure
Sapphire (or removed
LED substrate Sapphire Metal (Cu) Semiconductor (Si, Ge, SiC)
sapphire)
Low power LED package Standard adhesives
Mid power LED package Standard adhesives, silver-filled
epoxy, back-side metal and back-side metal (AuSn, Au,
back-side metal (Au, Ni)
silver-filled epoxy or back-side Pt) with silver-filled epoxy or
with silver-filled epoxy Gold bumps and
metal on silver paste (substrate AuSn solder past, Eutectic
High power LED Package side) underfill
© 2012 6
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7. LED Penetration Rates - Comparison 2012 vs. 2020
Lighting LCD Display
Applications Applications
*: Penetration rate of LED based LCD TV vs. all other technologies (CCLF based LCD, OLED, Plasma, CRT…)
© 2012 7
Copyrights © Yole Développement SA. All rights reserved. LED Market Overview

8. HB LED Packaging Companies
Headquarters
Optogan
Heesung, Itswell, LG
Innotek, Lumens,
PhotonStar
LumiMicro, Seoul
Semiconductor,
Wooree LED…
Lumileds, Cree,
Luminus, Avago…
Osram
Citizen, Epitex,
Kodenshi, Toyoda
Gosei, Nichia…
• There are more than 120
companies involved in HB LED
Kwality Group
packaging.
• Some companies are vertically
integrated and produce a A-Bright, American
Bright, Lumitek,
fraction or all their epiwafers Advanced Lustrous, Neo-Neon,
Photoelectronic, APT, Oasis, Optotech, Unity
(eg: Lumileds, Nichia, Lextar, BYD, Fangda, Golden Opto, Visera…
Dominant
Osram, Toyoda Gosei, Cree, Valley, HuiYuan,
Huixin, Nationstar… Semiconductors
Samsung LED, LG Innotek…).
• The number of companies in
China has strongly increased in
2012.
© 2012 8
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9. Leading LED Packaging Companies
2011 Revenue Ranking
In 2011, Nichia holds #1 position with a market share of ~21%... And the Top-10 Packaged LED
manufacturers represented more than 80% of the overall Packaged LED business.
© 2012 9
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10. LLO Equipment Volumes and Revenues
• Laser Lift Off equipment sales have been taking off in the last couple years thanks to the increasing
popularity of vertical LED structures.
• We estimate that a minimum of XX new sets of equipment will be needed between 2012 and 2017.
Factoring in capacity utilization rates and replacement market, we forecast actual sales of equipment to
reach XX units in the period.
• A pause is likely after the strong investment cycle of 2010-2011 but adoption of LLO technology will keep
increasing until 2016… However, IP constraints, cost, performance limitations or damaged caused to the
epilayer are providing incentive for the development of alternative techniques.
© 2012 10
Copyrights © Yole Développement SA. All rights reserved. Substrate Removal

11. Comparison of Die Singulation Techniques
Typical Cutting Typical Main
Capex Consumable Street Width Comments
Speed1 Yield Application
• GaAs and SiC
• < $XXXk for • X0 to X0µm • Well suited for large
• GaAs: X to XXmm/s based LEDs
Blade dual spindle Blades Recent progress dice and vertical
90 to 95%
Dicing • < $XXXk for (Diamond…) allow street LED structures with
• SiC: X to XXmm/s • Vertical LED
single spindle width < X0µm metal substrates
structures
• Si: XXmm/s for
• Requires thin
150µm thick
wafers (< 150µm)
• Cu based: X0
• Cu / Mo based: XX
to X0µm • Multibeam can
Laser to XXmm/s for • Vertical LED
• > $XM / > 95% increase cutting
Dicing 100µm thick structures
• GaAs: X5µm speed by up to x3
(Multibeam) and cut thicker
• GaAs: XX to
wafers (250µm
XXmm/s for 100µm
wafer on GaAs)
thick
• GaAs: XX to
Diamond XXmm/s
• GaAs based • Requires thin
Scribe & • $XXXk Diamond tips • X5 to X0µm
~90% LEDs wafers (< 150µm)
Break • Sapphire: X to
XXmm/s
• 1X-X5 um • Requires thin
• Sapphire: X to
Laser Potentially as wafers
XXXmm/s
• $XXXk to low as 10µm • Sapphire
Scribe & $X.XM
/
with stealth 98 to 99% based LEDs • Scribing speed
Break • GaAs: Up to
dicing (no Kerf depends on depth
XXXmm/s
loss) required
1. In real manufacturing conditions, cutting speed can be lower than announced feed speed - In some case, 2 or more passes are needed for a full cut
© 2012 11
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12. Thermal Management of High Power LEDs
Main Design Options
Chip
Chip On Board (COB)
LED Die Level
Si Submount
Substrate Only
Substrate
Chip On Heatsink (COH)
Leadframe / Heat Ceramic Silicon Leadframe / Heat Ceramic
(Wafer Level Packaging)
Packaged
slug slug
LED
Level1
Optek Lednium Lumileds Luxeon Rebel Viscera Technology Lumileds Luxeon Cree-X-lamp
PCB PCB (MCPCB, FR-4, CEM-3, Ceramic…)
LED
Module
Level 2
Heatsink Heatsink (Metal, Plastic…)
LED Light
Engine
Level 3
© 2012 12
Copyrights © Yole Développement SA. All rights reserved. Thermal Management - Packaging Substrates

13. Choosing the Substrate Type (3/3)
Thermo-
Thermal Light Status &
Mechanical Moldability Cost Size
Conductivity Reflectivity Trend
Match
Dominant but
Al2O3 Ceramic Fair Fair Fair Excellent Excellent Fair
decreasing
Large
Excellent volumes -
AlN Ceramic Excellent Excellent Fair Fair Fair
Increasing
fast
Leadframes Fair Poor Excellent Excellent Poor Fair Decreasing
Few devices -
Silicon Excellent Excellent Excellent Fair Excellent Fair
Promising
Glass Ceramic Excellent Fair Excellent ? Excellent Excellent Emerging
© 2012 13
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14. High Power LED Substrate
Market Penetration by Substrate Type (2/2)
© 2012 14
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15. Die Attach of LEDs
Summary Table
Standard Flip Chip
MESA Vertical structure Mesa
Structure Structure
Sapphire (or
LED Semiconductor (Si,
Sapphire Metal (Cu) removed
substrate Ge, SiC)
sapphire)
Low power LED Standard adhesives
package
Mid power LED
Standard adhesives,
package silver-filled epoxy, back-
back-side metal (Au,
back-side metal (AuSn,
side metal and silver- Au, Pt) with silver-
Ni) with silver-filled
filled epoxy or back-side filled epoxy or AuSn
High power LED metal on silver paste
epoxy
solder past, Eutectic Gold bumps and
underfill
Package (substrate side)
© 2012 15
Copyrights © Yole Développement SA. All rights reserved. Die Attach / Die Bonding

16. Flip Chip
Example - Lumileds Luxeon Rebel (1/2)
Contact to upper (p-GaN)
level
Contact to lower (n-GaN) (c)
level
(a)
(b)
Bump
(a) x-ray picture of substrate metal layers through LED die and bumps (d)
(b) Drawing of LED front (bottom) side layout
(c) Drawing of LED cross-section with contacts
(d) Picture of LED die front side
Source: System Plus Consulting
© 2012 16
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17. Focus on Silicone
The Different Type of Silicone for Encapsulation (1/3)
D70
D30
Hardness
A70 Low
Reflective Methyl
Silicone Methyl-
Index
A50 Phenyl
Silicone
Silicone
A20
Gel
1.39 1.41 1.44 1.50 1.53 1.57
Refractive Index
© 2012 17
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18. Long Term Vision of WLP
3D Packaging Roadmap
First product on
Qualification the market !
LED LED
Multi-chip
modules Driver
1 year
LED Driver
Fully integrated
LED LED LED module
Single
(possible future
chip architecture)
modules
ESD / EMI IPD
Interposer Driver integration LED
LED
in the module
Driver
LED 3D Silicon
submount
Wire bonded LED LED
LED connected by Flip Chip LED
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
© 2012 18
Copyrights © Yole Développement SA. All rights reserved. Wafer Level Packaging

19. Testing Equipment
Main Players
Wafer / Die Probing & Sorting
Wafer Defect Inspection
Yield Management / SPC
Package Testing, Sorting and Taping
© 2012 19
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20. Yole Activities
Technology & Market Custom Studies
Market Research
Reports Technology & Strategy
Report/Database/Reverse Costing/Tools
Media business
Website / Magazines / Webcasts
www.yole.fr
Yole Finance
M&A / Due Diligence /
Fund raising services
www.yolefinance.com
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21. LED reports from YOLE
New! New! New!
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