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Innovative technologies introduction impacts favorably the LED packaging materials market

3rd October 2014

Jacqueline Regnier

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The LED packaging industry is moving toward further cost reduction and new technologies including Flip Chip and Chip Scale Package (CSP), says Yole Développement in its latest report on packaging for LED: LED Packaging Technology and Market Trends 2014. These market and technology trends directly impact the LED & advanced packaging industry and its supply chain, especially at the material and equipment levels: whereas the equipment market enters in an infernal cycle, the materials market for LED packaging confirms its growth…

Under this new report, Yole proposes a detailed analysis of each LED packaging process step including of Flip Chip and CSP technologies. The market research and strategy consulting company highlights the recent trends in LED packaging, and the importance of cost reduction in this industry. Market metrics, from 2010 to 2019 are also deeply analyzed by Yole, at all levels of the supply chain.

“The LED packaging materials market, including packaging substrates, phosphors, encapsulation and primary optic materials, ESD (Electrostatic Discharge) protection diodes, will grow by a factor x1.5 during the period 2014-2019”, announces Pars Mukish, Activity Leader, LED & Compound Semiconductors at Yole Développement.

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. “The ceramic substrates market will grow from nearly $400 million in 2013 to $700 million in 2019”, estimates Dr Eric Virey, Senior Analyst, Yole Développement.

“The ceramic substrates market will grow from nearly $400 million in 2013 to $700 million in 2019”, estimates Dr Eric Virey

Encapsulant and optic materials will follow the same trend. According to Yole’s analysis, this market is about $300 million in 2013 and should reach to $700 million in 2019, driven mostly by the increased use of silicone material. Indeed silicon material offers better reliability and 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 Yttrium Aluminium Garnet (YAG) material and it will also increase competition, ultimately leading to further price decrease. But even with an average selling price (ASP) decreasing, market will grow from a size of nearly $600 million in 2013 to $900 million 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!