IHS: GaN-on-silicon LEDs forecast to increase market share to 40% by 2020

The penetration of gallium nitride-on-silicon (GaN-on-Si) wafers into the LED market is forecast to increase at a CAGR of 69% from 2013 to 2020, by which time they will account for 40% of all GaN LEDs manufactured, according to IHS.

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The penetration of gallium nitride-on-silicon (GaN-on-Si) wafers into the LED market is forecast to increase at a CAGR of 69% from 2013 to 2020, by which time they will account for 40% of all GaN LEDs manufactured, according to IHS.

In 2013, 95% of GaN LEDs will be manufactured on sapphire wafers, while only 1% will be manufactured on silicon wafers. The growth in the manufacturing of GaN-on-Si LEDs between 2013 and 2020 will take market share from both sapphire and silicon carbide wafers, IHS believes.

“Manufacturing large ingots made from sapphire is difficult, whereas silicon wafers are available from 8-inch up to 12-inch and are generally cheaper and more abundant,” said Dkins Cho, senior analyst for lighting and LEDs at IHS. “There is a large pre-existing industry for silicon-based manufacturing that is leveraged to create economies of scale and reduce the cost of an LED.”

Repurposing manufacturing facilities to accommodate the shift toward GaN-on-Si LEDs is generally accepted to require minimal investment. Companies that previously manufactured CMOS semiconductors already own legacy 8-inch CMOS fabrication units that can be converted for LED production with a small modification. These companies already have in-house expertise and technology associated with silicon-based processes, IHS noted.

“Many of the CMOS semiconductor manufacturers already have excellent inspection tools, unlike traditional LED companies,” Cho continued. “This could help increase their process yield through in-situ monitoring. However, it is unlikely the repurposing will happen overnight; instead we forecast a shift during the coming years.”

Source: IHS, compiled by Digitimes, December 2013

IHS: GaN-on-silicon LEDs forecast to increase market share to 40% by 2020

MOCVD precursor demand for LEDs to more than double to 69 tons over 2012-2016

Displaybank: Global demand for precursor material used in manufacturing light-emitting diodes (LEDs) will more than double from 2012 to 2016 as the market for LED lighting booms. Precursors are core materials that ensures optimal light efficiency for each epitaxial layer in the key MOCVD process for manufacturing LED chips. Global shipments of MOCVD equipment are rising, with shipments expected to climb by 17% in 2013. The largest buyers of MOCVD equipment – South Korea, Taiwan and China- China is expected to make up 45% of global demand for precursors in 2016.

Global demand for precursor material used in manufacturing light-emitting diodes (LEDs) will more than double from 2012 to 2016 as the market for LED lighting booms, according to a new report ‘Precursor for LED MOCVD-Market and Industry Analysis’ from Displaybank (now part of market research firm IHS).

The market for precursors used in metal-organic chemical vapor deposition (MOCVD) for LED manufacturing will more than double, rising by 114% from 32 tons in 2012 to 69 tons in 2016.

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“The boom in the precursor market reflects the rising operating rate of MOCVD as the LED lighting market grows,” says HIS’ senior LED analyst Richard Son.

Precursors are core materials that ensures optimal light efficiency for each epitaxial layer in the key MOCVD process for manufacturing LED chips. Of the major precursors, which include trimethylgallium (TMGa), trimethylindium (TMIn), trimethyl aluminum (TMA), triethylgallium (TEGa) and C2Mg2, TMGa is the most widely used and commands about 94% of total demand.

Global shipments of MOCVD equipment are rising, with shipments expected to climb by 17% in 2013. The largest buyers of MOCVD equipment – South Korea, Taiwan and China – account for about 80% of global demand for precursors. China, which is generating the highest growth in MOCVD equipment installation among the three countries, is expected to make up 45% of global demand for precursors in 2016.

In the nascent stage of the LED market, Dow Chemical Co was the unrivaled leader in the precursor market. However, with the recent growth in precursor demand, new players have been investing in R&D and manufacturing facilities while aggressively breaking into the market with low prices for similar-quality product, says the report. Such developments will intensify competition further among precursor makers, it is reckoned.

MOCVD precursor demand for LEDs to more than double to 69 tons over 2012-2016