LED substrate is one of the key topics impacting the LED Front-End industry in the following ways:

•Increaseddemandforlargersizesapphirewafers with big players (such as LG, Sharp or Osram) moving to 6” wafers and Taiwanese players moving to 4” wafers.

•Increased demand for PSS that has nowbecome mainstream in the industry (87% share as of Q1-2014), even if some questions remain concerning key patent holders’ strategies.

•Development of GaN-on-Si and GaN-on-GaNLEDswithboth technologieshavingbegunmass production in some companies (such as SoraaforGaN,orToshibaforSi).However,marketpenetration of these alternative substrates will be secondary to future improvements in terms ofperformanceandcost.Otherwise,GaN-on-Si

and GaN-on-GaN LEDswill not be able to fully

compete with sapphire-based LEDs.

The impact of the sapphire industry on the LED

industry is likely to become bigger in the future

because of the recent partnership between GTAT

and Apple (Q4-2013) to set up a large sapphire

manufacturing plant ($1 billion). The plant,

having a rough capacity of 2 times the current

qualifiedsapphirecapacity,could totallymodify

the structure and evolution of the sapphire and

LED industries in the next few years.

The report presents all recent technological

trends of LED Front-End manufacturing, detailing

evolutions at substrate, epitaxy, lithography,

plasmaetchinganddeposition,PVDandtesting

levels.

LED epitaxy has also been of central interest to the LED Front-End industry that has seen the entry of several new players in the MOCVD reactor market since 2011 / 2012.Even if increased competition has not really affected the market’s top leaders (Aixtron, VeecoandTaiyoNipponSanso),ithasforcedthem to accelerate development of the next generation of MOCVD tools to lever marketentry barriers. This generation of MOCVDreactors should focus on Cost of Ownership, see the emergence of enhanced designs, with

new heating systems, new gas-flow designs,and increased automation (…).

Regarding lithography, plasma etching and deposition,PVDandtesting,mostlyincremen-tal evolutions have occurred (such as impro-vement of throughput, and ASP decrease…)reflectinga saturation in technological deve-lopment.

The report presents a detailed analysis of LED epitaxy, highlighting main trends at process, technology and equipment levels.

LED MANUFACTURING LED Front-End Manufacturing Trends report

SUBSTRATES ARE SHAPING THE LED FRONT-END INDUSTRY

INCREASED COMPETITION WILL ACCELERATE NEW LED MOCVD REACTOR DEVELOPMENT

Market & Technology Report

REPORTOUTLINE•Title:LEDFront-End Manufacturing Trends report•April2014•Market&TechnologyReport•PDFfile•€5,990-Multiuserlicense (300+ slides)•€3,990-Oneuserlicense (300+ slides)

KEYFEATURESOFTHEREPORT•Detailedanalysisofkey constituents of LED die•Detailedtechnicalanalysis of the main LED Front-End manufacturing process steps and recent evolutions•Technologyroadmapfor adoption of new technologies•LEDmarketmetrics(unitsand value):Forecast2014-2019

RELATEDREPORTS•LEDFront-EndEquipment Market•SapphireApplicationsand Market: From LED to Consumer Electronics •LEDPackaging2013•StatusoftheLEDIndustry•LEDPhosphors

Find all our reports on www.i-micronews.com

Commercial status of LEDs based on different substrates (as of Q1-2014)

(Yole Développement, April 2014)

A comprehensive survey of LED Front-End manufacturing, covering main process steps and technological trends

Si Substrate

Sapphire Substrate

SiC Substrate

GaN Substrate

Soraa

Seoul Semiconductor

Panasonic

Cree

Toshiba

Plessey Semiconductors

Lattice Power

EVERYONE ELSE

Commercial products only

LED Front-End Manufacturing Trends report

As flip chip graduallymatures, LEDmanufacturersare actively developing this technology as it provides several advantages: larger light-emitting area and highest luminosity, better heat dissipation, adjustable dimensions and no wire-bonding.

While this design was mostly in the hands of a few big LED manufacturers (such as Cree or Lumileds), in 2013, Taiwanese manufacturers also started to develop it (Epistar, FOREPI and Genesis Photonicsmostly).

In 2014, flip-chip technology should also make itsway into the middle power LED market. Lumileds announced in Q3-2013 that it plans to introduce flip-chip technology into the middle power LEDmarket; as the devices in this market have drawn the most attention from the 2013 general lighting applications market. Indeed, middle power LEDs(following the 2011 / 2012 overcapacity) have become mainstream in interior lighting applications.

The report presents a detailed analysis of each LED Front-End manufacturing process step with additional highlights on LED chip design, key constituents of LED chip and main light-extraction techniques.

LED manufacturing still uses methods and practices that would be considered outdated in most semiconductor industries (e.g., manual wafer handling, with operators moving wafers with tweezers in (not so) clean rooms…).However,emergence of LED “giants” (such as Cree, Osram, Lumileds, Samsung or LG) have facilitated and speed upadoptionofmanufacturingparadigmsfromtheICindustry to reduce overall manufacturing cost and increase product quality:

•Batchprocessing→ Single wafer.

•Automation,clustertools,fullcassette to cassette (…).

•Statisticalprocesscontrol,defect

management (…).

•ReductionofSKU.

•EnterpriseManagementSystems(EMS).

As a matter of fact, the gap will widen between Tier-

1s and other players, pushing forward for industry

consolidation.

The report presents recent trends of the LED market,

detailing evolution of the industry at market and

manufacturing levels.

The objectives of the report are to:

•BetterunderstandprocessflowandtechnologicaltrendsinLEDFront-Endmanufacturing.

•BetterunderstandtheimportanceofcostreductioninLEDFront-Endmanufacturing.

•Evaluateemergingsubstrates/technologies(GaN-on-GaNLEDsandGaN-on-SiLEDs).

COMPANIES CITED IN THE REPORT (non-exhaustive list)ACC Silicon, Accretech, Advanced Dicing Technology, Advanced System Technology (AST), Advatool Semiconductor,Aixtron,ALSI,Altatech(Soitec),AMTechnology,AMEC,ANDCorporation,AppliedMaterials,APT,Arima,ASMPacificTechnology,ASML,Astri,Aurotek,Autec,Azzurro,Bayer,BeijingYuji,Bergquist,Bridgelux,Bruker,Canon,CascadeMicrotech,ChinaElectronicsTechnologyGroupCorporation(CETC),Chroma,Corial,Cree,CrystalAppliedTechnology(SAS),CrystalOptech,Crystalwise,DaiNipponKaken(DNK),DaiNipponScreenMfg,Daitron,DelphiLaser,Denka,Disco,DowCorning,DowElectronicMaterials,Dynatex,EdisonOpto,Epiluxy,Epistar,Eplustek,ESI,Eulitha,EVGroup(EVG),Evatec,EverlightElectronics,Fittech, Formosa Epitaxy (Forepi), Four N4, Fraunhofer IZM, FSE Corporation (Fulintec), Galaxia, GE,GloAB,HansLaser,HansolTechnics,Hauman,Heliodel,HitachiCable,Huga,Hybond,IljinDisplay,IMEC,Intematix, InVacuo, Ismeca, JCT, JPSA, JTCorp, JusungEngineering,K&S,KLATencor, LatticePower,Laurier,Laytech,LGInnotek,Lightscape,LightwavePhotonic,Litec,Loomis,LuminusDevices,LWB,MaxisCo,Merk/Litec,Mitsubishi,MitsubishiDiamondIndustrial,MolecularImprint,Momentive,Monocrystal,MPI,Nanoco,Nanometrics,Nanosys,Nichia,NihonGartner,Nikon,NNCrystal,NorthMicroelectronics...

FLIP-CHIP TECHNOLOGY AS THE NEW BATTLEGROUND

FROM TECHNOLOGY-ORIENTED TO COST-ORIENTED MANUFACTURING

OBJECTIVES OF THE REPORT

Structure of Flip-Chip LED

(Yole Développement, April 2014)

n-GaN layer

Active layers

p-GaN

n- electrode

p- electrode

Solder bump

Metal Metal

Chip

Package substrate

Metal Mirror

Sapphire substrate

Market & Technology Report

•Objectivesofthereport 8•Companyindex&glossary 9•Executivesummary 11•LEDmarkettrends 30>HistoryofLEDindustry> PackagedLEDrevenueforecastbyapplication> LED adoption rate - 2013 vs. 2020> Recent trends>PackagedLEDpricetrends> LED die surface forecast by application>GaNreactorcapacity-Geographictrends> LED reactors -Geographictrends&impactonglobal demand -GaNreactorcapacityvs.demand

•KeyconstituentsofLEDdie 42> Synthesis> Overview> Mirrors - Overview - Resonant cavity LEDs>Pads,electrodesandcontacts - Overview -Transparentcontactlayers-ITOand alternatives - Deposition process - Trends> Dielectric layers -Introduction -Passivation - Trends

•LEDdiemanufacturing 61> Synthesis> LED manufacturing yield - Overview - Focus on binning yields - Cost aspects> Cost structure of lighting products> The path to cost reduction> 1W packaged LED cost analysis - Overview - Consumables and labor - Equipment cost>GaNLEDchipdesign - Simple MESA - Flip Chip (FC) -VerticalThinFilm(VTF) - Thin Film Flip Chip (TFFC) -VerticalThinFilmwithVias(VTFV) -Trend-IncreaseofFlipChipTechnology> LED manufacturing process overview>Front-Endmanufacturingprocessflow - Example - MESA structure -Example-VTFstructure - Other steps

•Lightextractiontechniques 84> LED chip patterning> Substrate patterning or die shaping>Novelchipgeometries

•LEDsubstrates 89>Introduction>Sapphire-basedLED-Breakdownby epitaxial material (2008-2020)>FocusonGaNandSisubstrates>Penetrationratebysubstratetype> Sapphire substrate -WaferASP - Diameter trends

-PatternedSapphireSubstrate(PSS) - Market forecast and trends> Si substrate -Introduction -Benefits - Challenges - Chip design -HowtogrowLEDstructuresonSi? -PotentialimpactofusingSiforLED manufacturing - Conditions for success -Performanceandcommercialstatus -Binningyields - CMOS compatibility - Si vs. sapphire - LED die cost simulations - Overview of potential cost reduction claims - Market players - Recent comments -Realityorfiction? - Scenarios of evolution>GaNsubstrate -Introduction-Droopeffect -Benefits - Challenges - Applications overview - GaNvs.sapphire-LEDdiecostsimulations - Status

•LEDepitaxy 154> Synthesis>GaNLEDepitaxy -IntroductiontoMOCVD -MOCVDreactorsystemoverview -GaNLEDstructures -GaNLEDepitaxychallenges -PackagedLEDcoststructure - Cost of ownership - Focus on binning yields - Focus on in situ metrology - Focus on LED epitaxy cycle time -Focusonbatchsize - Focus on growth rate -Focusonprecursorefficiency - Towardlargerdiameterwafers–Incentive -NextgenerationMOCVDreactor> MetalOrganic (MO) precursors -Introduction - TMG -TMI -PurityAspects>NanowireLEDs -Introduction - Main players - Conclusion

•Lithography 212> Synthesis> LED chip manufacturing - Main LED lithography steps - Other LED lithography steps - Example of a vertical LED - Requirements and challenges - Lithography techniques for LED - Focus on wafer bowing - Focus on mask and photoresist - Legacy lithography tools for LED manufacturing - Dedicated lithography tools for LED manufacturing>PSSmanufacturing -OverviewoflithographyforPSS

-Nano-ImprintLithography(NIL) -Hardstampsvs.softstamps - Displacement Talbot Lithography (DTL) - Advanced Mask Aligner Lithography (AMALITH) - Current status

•Plasmaetchinganddeposition 242> Synthesis> Overview of etching techniques>Plasmaetching - Overview -Illustrations>ReactiveIonEtching(RIE) - Overview -InductivelyCoupledPlasma-RIE(ICP-RIE)> LED etching requirements>LEDetchingspecificities> Dielectric layer deposition - Overview - Requirements - LED manufacturing - Alternative technologies for passivation>Processcontrolandmetrology - Tool-based -Plasmametrology - Optical measurement - Conclusion> Reactor cleaning - Etching tools -Depositiontools(PECVD)>ExamplesofetchingandPECVDequipment for LED manufacturing> Other plasma processes in LED manufacturing - Surface cleaning

•PhysicalvapordepositionforTCL and metals 268

> Synthesis> Transparent contact layer - Overview - Critical parameters - Deposition technologies> Metal deposition - Overview - MESA and Flip Chip structure -VerticalthinFilmstructures> TCL and metal deposition equipment - Automation - Main suppliers - LED-dedicated system suppliers - Examples

•Testingandbinning 284> Synthesis>Introduction>OverviewofLEDtestingandsorting/ binning>ExampleoftestingworkflowinLED manufacturing> Measurement challenges> Wafer level and die testing> Optical inspection and probing>Sorting&binning> Equipment, capex and throughput> Examples - Optical and visual inspection - Wafer, die testers and sorters> Software

•Conclusion 299•AboutYoleDéveloppementand LED activity 303

TABLE OF CONTENTS

AUTHOR

Pars Mukish holdsamasterdegreeinMaterialsScience&PolymersandamasterdegreeinInnovation&TechnologyManagement(EMLyon–France).HeworksatYoleDéveloppementasSeniorMarketandTechnologyAnalystinthefieldsofLED, Lighting Technologies, Compound Semiconductors and OLEDs to carry out technical, economic and marketing analysis. Previously,hehasworkedasMarketing&Techno-EconomicAnalystattheCEA(FrenchResearchCenter).

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TERMS AND CONDITIONS OF SALES