Market analysis firm, Research and Markets, asserts that packaging typically accounts for 20% to 60% of the packaged LED total cost and therefore represents the single largest opportunity for cost reduction. The company notes that more than $2B will be invested over the 2011-2016 period in new equipment for LED packaging (LLO, permanent bonding, singulation and testing).
The company claims that LED packagers are still using mostly retrofitted equipment from the IC industry and relying on existing technology solutions and materials to improve LED cost of ownership and performance. Research and Markets notes that while this has allowed LED manufacturers to benefit from decades of research, development, and investments in the IC industry, it also constrains the industry into the space defined by existing technology platforms that are not optimized for the specific needs of LEDs.
Research and Markets says that the industry has now reached a critical mass to entice equipment and material providers into developing dedicated solutions for LED manufacturing. Furthermore, the company says that many dedicated solutions are emerging from existing and new players that will allow significant reduction in LED manufacturing cost through improved yields, throughputs and material efficiency.
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