Sapphire Industry Watch – July 24

  • LAX unveils new energy efficient lighting scheme – Airport World: Los Angeles International Airport (LAX) has debuted a host of new energy efficient lighting features, including new LED light poles and a “lightband”, which are currently featuring a light show displaying the colors of the Special Olympic World games, which will be held in Los Angeles this summer. The new lighting features mark the completion of Phase II of the LAX Central Terminal Area Curbside Appeal and Roadway Improvement Project that began in Spring 2014.
  • Blue LED lighting to kill food-borne pathogens without chemical treatment – Airfal International: Scientists from the National University of Singapore have found that blue LEDs have a strong antibacterial effect on major foodborne pathogens, particularly in cold temperatures and mildly acidic conditions. Originally published in Food Microbiology, these findings could potentially be applied to preserve fresh-cut fruits or chilled meat products, without requiring any further chemical treatments.
  • Large lighting makers continue to transition to LEDs – Semiconductor Today:  As the lighting market continues to make the shift towards LED technology, IHS Technology forecasts LED lamp revenue will grow to 67% by 2022. A growing market for LED lighting technology has consequently resulted in a shrinking market for halogen, compact fluorescent lamps and other traditional lighting technologies.
  • Government committed to making LED a way of life in India – The Hindu Business Line: Over the next three years, the Indian government aims to completely replace all incandescent bulbs in the country with LED lights, offering a huge business opportunity for the lighting industry. The government also seeks to impose quality standards on lighting products that are imported into the country.

Substrate Update: It’s All About Patterning & Large Diameter Wafers

yole_developpement_logoMarket research firm Yole Developpement recently published a new report on front-end manufacturing trends for LEDs. Their latest report gives us some very good news about the sapphire market. Semiconductor Today reported on Yole’s analysis. Here are some big take-aways:

  • There is increased demand for larger-diameter sapphire wafers, with big players (such as LG, Sharp or Osram) moving to 6” wafers and Taiwanese players moving to 4” wafers.
  • LED chip makers demand more patterned sapphire substrates (PSS). PSS are now mainstream in the market with an 87% share as of Q1 2014.
  • While some companies (such as Soraa and Toshiba) have begun mass production of gallium nitride-on-silicon (GaN-on-Si) and GaN-on-GaN LEDs, market penetration of these alternative substrates will depend on future improvements in terms of performance and cost.  Without these improvements, alternative substrates will not be able to fully compete with sapphire-based LEDs.

What does this mean for sapphire makers? LED chip manufacturers are looking to gain production efficiencies, lower costs, and increase performance for their LEDs.  As the adoption for LED lighting increases, they need to make more and better performing LEDs. Large diameter sapphire wafers enable more throughput for each run of the MOCVD reactor, making better use of the reactor “real estate” and decreasing the cost per unit of area processed. Depending on the type of MOCVD reactor used, LED chip manufacturers using six-inch wafer platforms may achieve up to 48% greater usable area per reactor run as compared to two-inch wafers.

What does PSS offer? First, PSS helps improve epitaxial growth by promoting growth of the GaN in parallel to the substrate surface. This helps reduce the number of dislocations, called the dislocation density, which can degrade performance of an LED.  Secondly, patterning can help extract as much as 30 percent more light from an LED.  This is particularly advantageous for high brightness LEDs (HB LEDs) that are used in LED lighting applications.

LED chip manufacturers have been buying smaller 2-inch and 4-inch PSS from outside suppliers for years.  The next step in the evolution in the market is the migration to large diameter PSS. Already a pioneer in the development of large diameter sapphire substrates, Rubicon Technology has developed capabilities for large diameter PSS making it possible to manufacture 6-inch and even 8-inch PSS. Rubicon is already gaining traction in the PSS market.  The company recently reported in their Q1 2014 earnings call that they received their first order for PSS and have samples out to more than a dozen LED chip manufacturers.

For more information about the report from Yole, visit http://www.i-micronews.com/reports/LED-Front-End-Manufacturing-Trends-report/14/433

For Further Reading

Semiconductor Today, Substrates shaping trends in LED front-end manufacturing, http://www.semiconductor-today.com/news_items/2014/APR/YOLE_300414.shtml

Clearlysapphire.com, Larger Wafers, Larger Yield – The Numbers Behind Large Diameter Sapphire Wafers and Yield, http://blog.clearlysapphire.com/?p=435

Clearlysapphire.com, Large Diameter Patterned Sapphire Substrates Explained, http://blog.clearlysapphire.com/?p=582

Clearlysapphire.com, Sapphire Substrates for LED: The Big Move Toward 6″ Has Already Started, http://blog.clearlysapphire.com/?p=37