From Technologies to to Market CSP LED. Lighting Modules. Technology, Manufacturing and Applications Trends. Market and Technology Report SAMPLE

Transcription

1 From Technologies to to Market CSP LED Lighting Modules 2017 Technology, Manufacturing and Applications Trends Market and Technology Report SAMPLE

2 REPORT OBJECTIVES UNDERSTAND CSP LED TECHNOLOGY: Difference with other packages. Impact on manufacturing process. Potential for cost reduction. To understand how CSP LEDs modify the device and module landscape, and identify real opportunities associated to the technology. UNDERSTAND CHANGES IN SYSTEM DESIGN AND INTEGRATION RULES: Impact on optical design. Impact on thermal management. Impact on electrical management. UNDERSTAND PERFORMANCES IN APPLICATIONS: Positioning of CSP LEDs compared to middle power, high power LED and COB LED modules. Opportunities for CSP LEDs in applications. UNDERSTAND COMPETITIVE LANDSCAPE AND SUPPLY CHAIN: Key players. Impact on the LED supply chain. 2

3 METHODOLOGY How did we get to evaluate CSP LED values? In this report we looked at the CSP values from the integrator perspective. It means we used our deep understanding of application requirements together with our insights in LED packages architectures and long lasting system (LED luminaires) design capabilities. We investigated architectures, electrical and thermal behaviors and optical characteristics of CSP LED s. We performed samples light flux and color point characterizations under different current and temperature settings, together with luminance measurement at PISEO's lab. Then we integrated all the gathered parameters in our LED based system models and performed optical simulations using ZEMAX Optic Studio 16. By using the models and optical simulations we were able to understand how the different CSP LED types would perform depending on the application. Based on this deep understanding we were then able to draw conclusions on the values of CSP LED depending on the applications. System flux (lm) Ambiant temperature ( C) Tjunction ( C) Ambiant temperature ( C) current (ma) Driving current If (ma) Embedded Projector lighting system - Optical design optimization and system performance calculation Sce PISEO Zemax Optical Studio 16 / Piseo configurator 3

4 REPORT METHODOLOGY Market forecast methodology Market segmentation methodology 4

5 REPORT METHODOLOGY Technology analysis methodology Information collection 5

6 TABLE OF CONTENT (1/3) o About the Authors of the Report P5 o Report Objectives P6 o Companies Cited in This Report P7 o Glossary P8 o Methodology P9 o Executive Summary P10 o Status of the LED Industry and Recent Trends P40 Status of the LED Industry Introduction - Segmentation of Packaged LEDs History of the LED Industry Market Landscape Industrial Landscape Key Highlights Packaged LED Revenue Forecast - Split by Application 2015 & 2016 in a Nutshell Future Trends LED Market Trends Displays General Lighting Recent Trends in the LED Industry Overview Product Diversification (Level 1) LED Filaments COB LEDs Flip Chip (FC) LEDs Chip Scale Packaged (CSP) LEDs Application Diversification - Automotive Lighting Product Diversification (Level 2) - UV LEDs Vertical Integration - LED Module Conclusion o CSP LED Applications Landscape P61 Overview Flash Backlighting General Lighting Automotive Lighting o CSP LED Device P68 Introduction to CSP LED Device Definition Benefits CSP LED Device Family Description Introduction Size Criterion Power Density Criterion CSP or Not CSP? Power Criterion CSP LED Device Technology Difference with Other Packages Chip Level Package Level CSP LEDs Structure Overview Focus on Packaging CSP LEDs in the LED Package Proliferation Flip Chip CSP LEDs vs High Power Type LEDs Wafer Level CSP LED vs High Power Type LED Vertical Thin Film CSP LED vs High Power Type LED Flip Chip packaged CSP LED vs High Power Type LED 6

7 TABLE OF CONTENT (2/3) o CSP LED Device P68 CSP LED Device Manufacturing Process Conventional LED Manufacturing Process Flip Chip CSP LED Manufacturing Process Wafer Level CSP LED Manufacturing Process CSP LEDs vs Conventional LEDs Impact on Supply / Value Chain Overview Highlights on Phosphor Sheet / Film Suppliers CSP LED Device Cost / Price Potential for Cost Reduction The Case of CSP Architecture for Low and Middle Power LEDs The Case of CSP Architecture for High Power LEDs Price Positioning of CSP LEDs (Vs. Traditional LEDs) Price Positioning of CSP LED Modules (Vs. Traditional Modules) CSP LED Device Industry Key Players Identified Highlights on US and European Players Highlights on Japanese Players Highlights on Korean Players Highlights on Taiwanese and Chinese Players Trends - Flow Chart Comparison between Standard, CSP and COB LEDs CSP LED Market CSP LED Market Volume ( ) o CSP LED Lighting Module P112 Objectives, Methodology and Synthesis From Device Characteristics to Performance in Application System Design and Performance Assessment Impact of CSP LED Device on System/Module Design CSP LED System/Module Performance in Application Definition and Types of LED Lighting Modules Definitions LED Module in the Global LED Value Chain The Different Types of LED Modules - Taxonomy The Different Types of LED Modules - Positioning Main Functions in LED Lighting Modules System Structure Parameter Interdependence Optical Design of CSP LED Lighting Modules Optical Management inside LED Devices CSP LED Optical Behavior Light Side Emission of a Package Free CSP LED Device Introduction Discontinuities Consequences Influence of CSP LED Package on Emission Profile Light Emission Profile CSP LED FWHM Observations Measurement on Cube and Rim CSPs Light Emitting Surface (LES) and Beam Angle Optical Management in the Application Luminance Control Optical Integration - Single LED and Arrays Shadowing Effect in Close Pack Arrangements Main Consequences and Opportunities of the Optic Properties of CSP LEDs 7

8 TABLE OF CONTENT (3/3) o CSP LED Lighting Module P112 Thermal Management of CSP LED Lighting Modules Why Thermal Management is Required for LED Systems? Importance of Thermal Management for LED Reliability Thermal Path inside the CSP LEDs CSP Thermal Architecture Compared to Standard LEDs Thermal Resistance of CSP LEDs Maximal Junction Temperature of CSP LEDs Influence Parameters on Thermal Resistance Size and Power Package Type Substrate/PCB Contact Pads Thermal Resistance in the Application Reliability of CSP LEDs Compare to Traditional LED Components Major Trends in Thermal Management Main Consequences and Opportunities of the Thermal Properties of CSP LEDs Electrical Management of CSP LED Lighting Modules Electrical Behavior Resistive Behavior Binning Repartition Multiple LEDs Arrangements Introduction Middle and High Power LED Modules CSP LED Modules LED Modules Operating Window LED Balancing Circuit (Electrical Behavior) Electrical Static Discharge (ESD) and Electrical Over Stress (EOS) Electrical Static Discharge (ESD) Protection in LED Package Electrical Static Discharge (ESD) Protection in LED Global System Electrical Management - Minimal Spacing Main Consequences and Opportunities of the Electrical Properties of CSP LEDs Precautions for CSP LED Integration into Modules Handling Precautions PCB Design for Optimal Performance Solder Recommendations Reflow Process for CSP LEDs CSP LED Lighting Module Performance in Applications Is a CSP a Cost Effective High Power LED or a Super Mid Power LED? CSP LEDs in Lighting Products - Positioning CSP LED vs COB LED CSP LEDs in Lighting Products - Opportunities Opportunities for Accent Lighting Cost Value for Accent Lighting Opportunities for Spot Light Integration Opportunities for Global Indoor Application (i.e.: General Lighting) Integration in General Lighting Applications - Pros & Cons Integration in General Lighting Applications - Case Study Spotlighting Downlight Outdoor Lighting Linear Tube High Bay Lamp Spectrum Control with CSP LEDs CSP LEDs Diversity The Different Types of LED Modules - Positioning CSP LED Module Positioning vs Other Technologies Market Trends - Share of CSP LED Module Revenue (2016 vs. 2021) o Conclusion P208 o Appendix - About Yole Développement P211 o Appendix - About PISEO P230 8

9 ABOUT THE AUTHORS OF THE REPORT Pars MUKISH (Business Unit Manager - LED/OLED, Sapphire and Lighting Systems - Yole Développement) Pars MUKISH holds a master s degree in Materials Science & Polymers from ITECH in France and a master s degree in Innovation & Technology Management from EM Lyon, also in France. He works at Yole Développement, the "More than Moore" market research and strategy consulting company, as Senior Market and Technology Analyst in the fields of LED, OLED, Lighting Technologies and Compound Semiconductors, carrying out technical, economic and marketing analyses. In 2015, Pars has also taken on responsibility for developing LED/OLED and sapphire activities as Business Unit Manager at Yole Développement. Previously, he worked as Marketing Analyst and Techno-Economic Analyst for several years at the French Research Center CEA. Pierrick BOULAY (Market & Technology Analyst - LED/OLED and Lighting Systems - Yole Développement) Pierrick BOULAY works as a Market and Technology Analyst in the fields of LED, OLED and Lighting Systems, carrying out technical, economic and marketing analysis at Yole Développement, the "More than Moore" market research and strategy consulting company. He has experience in both LED lighting, including general and automotive lighting, and OLED lighting. In the past, he mostly worked in R&D departments for LED lighting applications. Pierrick holds a master s degree in Electronics from ESEO in France. Dr. Olivier ANDRIEU (System Architect & Senior Research and Innovation Consultant - PISEO) Dr Olivier Andrieu is an R&D Project Director and Mechatronic and LED System Architect at PISEO. He is working in collaboration with Yole Développement s team to perform comprehensive technical analyses of innovative LED-based optical systems and markets. His expertise is based on the development of disruptive solutions taking into account mechanical, electronic, optic and thermal issues to achieve application requirements. Previously, Dr Andrieu worked for EFI Automotive as head of innovation and more recently for Philips Lighting where he developed and implemented numerous LED lighting solutions on a global level. Joël THOME (General Manager & Senior Research and Innovation Consultant - PISEO) Joel Thome is the General Manager & Senior Research & Innovation Consultant at PISEO. In collaboration with Yole Développement s team, Joel Thome performs numerous technical and market analyses focusing on LED solutions, in addition to developing innovative optical solutions with PISEO s R&D team. With a Master s Degree in mechanical engineering, Joel has been working in the lighting industry for more than 25 years. After beginning his career at Philips Lighting, he has recently held various global business, marketing and R&D senior management positions. During this period he developed strong expertise in lighting controls, LED technology and innovation processes including strategic roadmaps and project portfolio management. Today, Joel Thome is also the administrator of the GIL-Syndicat du Luminaire trade union organisation and the Cluster Lumière association. Grégory DUCHENE (Senior Optical Systems Engineer - PISEO) As a Senior Optical Systems Engineer, Grégory Duchêne is in charge of optics related projects at PISEO. He has created numerous innovative designs for optical systems, based on spectral optimization and light conversion approaches. These disruptive solutions, developed in collaboration with other PISEO experts, are dedicated to general lighting, automotive and imaging applications. Gregory also collaborates with Yole Développement analysts to perform comprehensive technical and marketing analyses focusing on LED lighting modules. Before PISEO, he worked for over ten years on the development of optical designs, including control benches, LED-based lighting systems, CMOS and CCD sensors, signal processing solutions and more. Gregory Duchene has a Master s Degree in optics from the Institut d Optique Graduate School (IOGS - France). 9

10 Report sample 10

11 CSP LED APPLICATIONS LANDSCAPE Overview Time Applications: Flash for Smartphone Back Light Unit for TV General Lighting Automotive Lighting Some Integrators: Probably : Flashlight is the main applications for CSP LEDs. Due to their small form factor and ability to deliver high lumen output, CSP LEDs have a fast growth in this market. Moreover, a trend in flashlight application is to use multiple LEDs to implement a dual color flash. TV manufacturers are using CSP LED because of their small for factor and their large beam angle. It allow to reduce the thickness of the panel and reduce the number of LEDs used in. General lighting is the latest industry using CSP LEDs in luminaire. It will be used for large area lighting, spot lighting applications or to bring new functionalities like tunable white applications. CSP LED are being developed to be used in headlamp application for automotive lighting with higher reliability compared to traditional LEDs. 11

12 CSP LED DEVICE - INTRODUCTION Definition What is Chip Scale Package (CSP)? CSP are novel to the LED industry but they are the mainstay of the semiconductor industry. Development of CSP in the Silicon ICs was driven by miniaturization, improved thermal management, higher reliability, and simply the need to connect to an ever increasing pin-count on an ever shrinking die. Chip Scale Packages also enabled a reduction in device parasitic and allowed for ease of integration into Level 2 packaging (e.g.: module packaging for LED). It is therefore a natural evolution for such packaging innovation to proliferate into other industries (such as the LED industry). Basically, a CSP represents a single chip direct mountable package that have the same size as the chip. In reality, the package must have an area no larger than 1.2 times that of the die. Regarding LED device, CSPs are made of blue Flip Chip LED die on which a phosphor layer is coated (as main application of such package is General Lighting). Flip Chip technology is an enabling technology to develop CSP as such package require no wire bonding (to have package size at the chip scale level). TSMC Chip Scale Package Source: TSMC Samsung Chip Scale Package Source: Samsung As getting rid of several process steps of traditional LED packaging, CSPs are also impacting the industry structure with some LED chip manufacturers directly supplying their products to LED module manufacturers. 12

13 CSP LED DEVICE - FAMILY DESCRIPTION CSP LEDs Definition - Power Density Criterion LEDs technologies have their own power range : CSP LED High Power LED Middle Power LED : 0 < MP < 1 W While traditional LEDs are split in different categories, CSP LEDs are part of both high or mid-power LEDs. Middle Power LED High Power Middle Power CSP LED : 1 < CSP < 7 W High Power LED : 3 < HP < 8,5 W CSP LEDs can be separated into 2 groups according to their power range : Middle Power CSP: from 1 W to 3 W High Power CSP: from 3 to 7 W CSP LED High Power LED Middle Power LED 13

14 CSP LED DEVICE - TECHNOLOGY CSP LEDs Structure - Focus on Packaging User perspective is focused on external packaging properties, more than internal structure. Two types of packaging can be observed, according to the presence or not of walls around the LED. Cube design Rim design "Cube Design" CSP Packaging without walls Silicone Encapsulated "Rim Design" CSP Packaging with walls Package Free Ceramic Substrate Entirely Package The cube design appears new on the market and offer singular optical properties. Vertical thin film Wafer Level Chip X The rim design has a conventional behavior compared to the cube design Flip Chip X 14

15 CSP LED DEVICE - TECHNOLOGY Flip Chip packaged CSP LED vs High Power Type LED The last known CSP structure is a packaged Flip Chip LED Like the Vertical Thin Film CSP, this packaged FC structure enables to introduce an ESD protection diode inside the LED package High Power type LED Lens Spectral converter (White LED) Flip Chip packaged CSP LED Silicone Over mold Encapsulate Power to light conversion Phosphor LED chip Lead frame Substrate Reflector Optical extraction functions : light extraction, internal reflection White Silicone Underfill Substrate Bond wire Die attach substrate LED chip Get the power in / out SMD pads cathode/anode Thermal pad Thermal extraction SMD pads cathode/anode 15

16 CSP LED DEVICE - MANUFACTURING PROCESS Flip Chip CSP LED Manufacturing Process In the Flip Chip CSP LED manufacturing process, interconnection, encapsulation and lens attach steps have been removed compared to conventional LED process Epi Wafer LED Chips on Epi Wafer Attach on substrate Die Singulation Chip formation Die formation by epitaxy Substrate Cutting tape Thermal pad Thermal pad Flip Chip CSP LED Transfer & Singulation Phosphor dispensing Chip transfer & binning LED Packaging 16

17 CSP LED - COST / PRICE Price Positioning of CSP LEDs (Vs. Traditional LEDs) LED CSP ASP is clearly at an intermediate level between Mid Power and High Power LED. The price level reflects the success of the cost breakdown made by suppressing a large part of the packaging. However, the ratio Power to Cost is similar to the other packages and not technology dependent. The price is also market oriented, with a clear trend of lm/$ control. Power Range (W) 4 Traditional High Power LEDs 3 2 CSP LEDs Middle Power - High Power Type of LED ASP Traditional middle power LEDs $0,01 to $0,10 CSP middle power LEDs $XX CSP high power LEDs $XX 1 Traditional Middle Power LEDs Single LED ASP 1 ($) Traditional high power LEDs $XX 0 0,25 0,50 0,75 17

18 CSP LED - INDUSTRY Key Players Identified In 2013, Lumileds was the first to commercialize LEDs in CSP format. But several other manufacturers (mostly Taiwanese) and material suppliers were also following the same development trends. US: Xxx, Lumileds, Xxx Germany: Osram 1 UK: Xxx Taiwan: Edison Opto, Xxx( ) Japan: Xxx, Xxx, Nichia, ( ) South Korea: Seoul, Xxx ( ) China: Xxx ( ) 1 Manufacturer of CSP-like LEDs 18

19 CSP LED - MARKET CSP LED Volume Forecast ( ) CSP LEDs represented a market volume of 2.3B units in 2016 and should grow to a size of Xx B units in As a reference, in 2016, HP LEDs represented a volume of 25.4B units, and MP LED a volume of 76.7 Bunits. Note: CSP LEDs are / will be used both in middle power and high power LEDs. 19

20 CSP LED LIGHTING MODULE - OBJECTIVES, METHODOLOGY AND SYNTHESIS Impact of CSP LED Device on System/Module Design Key System/Module Parameters Key characteristics of CSP LED Devices Impact on System/Module CSP LED Devices have specific characteristics which offer certain advantages but also require particular attention for integration. Thermal Management To ensure life time and luminous efficacy Optical Design To shape the light beam Less thermal interfaces Xxx Xxx Small soldering surface Small dimensions Xxx Xxx Xxx Heat sink to keep a low T j Xxx Need for a perfect optical alignment Xxx Xxx Electrical Management To ensure optimal performances Small size permitting close pack Xxx Xxx Xxx Xxx Take special precautions (design, manufacturing, logistics) Beneficial property Critical property that may impact module integration 20

21 CSP LED LIGHTING MODULES - THERMAL MANAGEMENT Thermal Path inside the CSP LEDs Direct connection to metal parts (solder bump, lead frame) allows good thermal conduction between materials. Flip Chip CSP Heat production areas Wafer Level CSP CSP LED shows a direct thermal path from active layer to solder pads Low number of interfaces participates to the improvement of the thermal conduction. Difference between the LED chip temperature and the solder pad temperature is reduced compared to standard LED chip Active layer Xxx Heat transfer Active layer Xxx Xxx Solder pads Solder pads 21

22 CSP LED LIGHTING MODULE - PERFORMANCES IN APPLICATIONS Is a CSP a Cost Effective High Power LED or a Super Mid Power LED? High Power LED & CoB modules: High luminous efficacy with moderate luminous density. Cree XQ-E module: Cree XQ-E has the same internal structure as HP and MP LED (chip connected with wire bonds), but its size is closer to CSP LED. XQ-E follows High Power LED tendency. CSP LED module: High luminous density but moderately effective. Mid Power LED module: High efficacy but very poor luminous density. Luminous performances of CSP LED modules are closer to CoB and High Power LED modules than Mid Power LED modules. Those performances can be correlated to the internal structure as shown by Cree XQ-E LED which has a chip scaled size but wire bonded. Luminous performances of different LED technology modules 22

23 CSP LED LIGHTING MODULE - PERFORMANCES IN APPLICATIONS CSP LEDs in Lighting Products - Positioning CSP LED allows more flux than a Mid Power LED, with a better cost than High Power LED CSP LED have clearly been created by the major LED manufacturer to fill the gap between Mid Power LED and High Power LED. This technology doesn t have the required qualities to directly compete Mid Power LED neither High Power LED. lm/$ is too low compared to the achievable lm/$ based on Mid Power LED. Lower performances than High Power LED: lm/w, optical properties, thermal properties. However, properties like embedded power, light flux performance, diversity of color, CCT, CRI allow much more possibilities than those achieved with mainstream Mid Power LED. This open the way for intermediate products, between core market and high level positioning, which suffer today from low competitivity or bad perceived performance. Office Retail Hospitality Lamps Product performances Highbay Outdoor Accent Lamps More flux Mid Power LED CSP LED High Power LED Less cost System cost 23

24 CSP LED LIGHTING MODULE - PERFORMANCES IN APPLICATIONS CSP LED Module Positioning vs Other Technologies Complete analysis in the report! Mainstream technology Can be used but not mainstream Custom solution mostly Opportunities to be evaluated Middle Power LED Module High Power LED Module COB LED Module CSP LED Module High Bay / Low Bay Spot Lighting Troffer MAIN LUMINAIRE TYPE Downlight Linear Lighting Street Lighting Wall Washer LAMP Automotive Headlamp 24

25 CSP LED LIGHTING MODULE - PERFORMANCES IN APPLICATIONS Market Trends CSP LEDs represented less than 1% of LED module business in It should represent more nearly 6% by

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27 CSP LED LIGHTING MODULES Market & Technology report - February 2017 CSP LED lighting modules: a potential revolution for the LED industry? KEY FEATURES OF THE REPORT Get the sample of the report on CSP LED device technology, manufacturing and industry CSP LED application landscape CSP LED module pros and cons, and impact on supply/value chain CSP LED module design: thermal management, optical design, power supply and driver OBJECTIVES OF THE REPORT Objectives are to understand: CSP LED technology: Differences from other packages Impact on manufacturing processes Potential for cost reduction Changes in system design and integration rules: Impact on optical design Impact on thermal management Impact on electrical management Performances in applications: Positioning of CSP LEDs compared to mid-power, high-power LEDs and COB LED modules Opportunities for CSP LEDs in applications Competitive landscape and supply chain: Identify key players Impact on the LED supply chain RELATED REPORTS Benefit from our Bundle & Annual Subscription offers and access our analyses at the best available price and with great advantages CSP LEDS: A PROMISING SOLUTION WITH CHALLENGES TO OVERCOME Chip-scale packages (CSPs) are new to the LED industry, but are the mainstay of the traditional semiconductor industry, where they improve reliability, thermal management and enable smaller packages. CSP LEDs can be less than a tenth of the size of high and middle power LEDs, increasing power density and simplifying integration into final products. This new architecture can also lower thermal resistance, improve reliability and widen viewing angles compared to other traditional packages. However, there are also several challenges to overcome at the device manufacturing and module integration levels. These include color uniformity, chemical stability, given there is little to no sealing off from the external environment, and control of optical properties like the radiation pattern. CSP LED module 5.6% (Yole Développement, February 2017) In this context, Yole Développement estimates that CSP LED modules represented less than 1% of the LED module business in However, with strong potential in multiple applications and the lighting industry getting experience with integrating such technology, we forecast a market share of nearly 6% by This report provides a comprehensive analysis of CSP LED devices, with analyses including: chip and package technology, manufacturing processes, related costs/prices, industry and market trends. The report details deeply analyses CSP LED lighting module design, with focuses including: optical design, thermal and electrical management and precautions for CSP LED integration. LED lighting module market revenue in 2021 Breakdown by module technology in US$ Others (Middle power LED module, high power LED module, COB LED module) 94.4% A CSP LED market size multiplied by more than 3 since 2016 AFTER SMARTPHONES AND TVS, A POTENTIAL REVOLUTION IN GENERAL AND AUTOMOTIVE LIGHTING APPLICATIONS? Thermal Management Technology and Market Perspectives in Power Electronics and LEDs 2017 LED Packaging 2017: Market, Technology and Industry Landscape Automotive Lighting: Technology, Industry, and Market Trends UV LEDs - Technology, Manufacturing and Application Trends Find all our reports on CSP LEDs add value through power density offered from a small surface. The first targeted application was smartphone flashes. As smartphones get thinner and add functions, so too must integrated components/modules. The small form factor and wide beam angle of CSP LEDs have also driven their use in TV backlighting units. Wide beam angles mean the pitch between LEDs can be larger, reducing the number of devices needed and in turn lowering backlight cost. But CSP LEDs are also a means to develop new functions in lighting products. Some general lighting applications are likely to adopt these light sources to reduce the cost of the lamp/luminaire. Their small size enables LED clusters, similar to chipon-board (COB) LED modules but with more functionality. CSP LED clusters promise tunable white, human centric light (HCL), intended to promote a person s well-being, mood and health, and others smart lighting functions. Last but not least, high luminance and uniformity will mean CSP LEDs enter automotive headlamp applications, which requires high intensity and beam shape control. New developments in

28 CSP LED LIGHTING MODULES matrix headlamps will include CSP LEDs to increase matrix resolution, enhance driver vision and improve Advanced Front Light Systems (AFLS) in combination with cameras. In this report, Yole Développement maps the CSP LED application landscape. It analyses CSP LED lighting module performance in general lighting applications, identifying opportunities, describing case studies, and comparing positioning against other module technologies. CSP LED application landscape Time APPLICATIONS: Flash smartphone Backlighting unit for TV General lighting Automotive lighting EXAMPLE OF INTEGRATORS: Probably: (Yole Développement, February 2017) SIMPLIFIED MANUFACTURING PROCESS IMPACTS THE SUPPLY/VALUE CHAIN Comparison between standard, COB and CSP LED module manufacturing chain Standard low / middle / high power LED module COB LED module CSP LED module LED die / Chip LED Chip manufacturing LED Chip manufacturing Standard LED package manufacturing LED Chip + CSP LED manufacturing COB LED manufacturing Standard LED module manufacturing CSP LED module manufacturing COB is considered as a module itself. Therefore, there is no need for a module manufacturer in the manufacturing chain. CSP LEDs can be made by chip manufacturers because most of the package steps are removed. However,additional expertise is required, for example in applying phosphores (Yole Développement, February 2017) CSP LED technology eliminates some package assembly and die attach stages. This is likely to benefit to LED chip manufacturers, who can develop packages and supply them directly to LED module manufacturers more easily, bypassing their traditional customers, and so increasing their profits. Vertically integrated LED manufacturers can also decrease their packaging costs. However, adopting the Packaged LED Light / LED module technology requires development of new expertise, modifying the traditional packaging landscape. For example, phosphor and encapsulant deposition processes will move from dispensing to phosphor sheet/film deposition or molding. This evolution affects equipment and material suppliers, who have to develop new solutions. Operationally, Lumileds was the first company to commercialize LEDs in CSP format in The company was rapidly followed by several other players, mostly Taiwanese. But some others, like Osram, still have doubts about the necessity of such technology, and instead are positioned toward traditional middle and high power LEDs, including COBs. This debate is also relevant at the LED module level, where CSPs cause some difficulties. For example, during PCB design, special care should be given to copper traces and solder masks for optimum performance. Some critical properties, like their small soldering surfaces and sideways light emission, may impact module integration. And while the benefits of CSP LEDs are not yet clear for them, they question the real opportunity of this solution. This report provides insights into the changes in manufacturing and integration processes CSP LEDs bring, and potential consequences on the supply/value chain. Additionally, it analyses real opportunities for such technologies based on simulations and case studies. COMPANIES CITED IN THE REPORT (non exhaustive list) Apple, AT&S, Audi, BMW, BREE Optronics, Bright LED, Carclo, Cree, Dow Corning, Edison Opto, Epistar, ETI, Everlight, Fraen, Genesis Photonic Inc., Haeusermann, Hakko, Harvatek, Honglitronics, Huawei, ITRI, Jufei, Kathod, Kingbright, Ledil, Lextar, LG, Lite On, Luminus Devices, Mason, Maven Optronics, Mercedes- Benz, MLS, Nationstar, Nichia, Oasis, Opel, Optotech, Osram, Philips Lumileds, Plessey Semiconductors, Refond, Samsung, Sanan, Seoul Semiconductors, Toshiba, Toyoda Gosei, Tridonic, Trilux, TSMC, Unistars Mercury, Unity Opto, Wellypower...

29 MARKET & TECHNOLOGY REPORT TABLE OF CONTENTS (complete content on i-micronews.com) About the authors of the report 5 Report objectives 6 Companies cited in this report 7 Glossary 8 Methodology 9 Executive summary 10 Status of the LED industry and recent trends 40 > Status of the LED industry including - Introduction - Segmentation of packaged LEDs - History of the LED industry - Packaged LED revenue forecast - Split by application and 2016 in a nutshell - Future trends - LED market trends > Recent trends in the LED industry - Overview - Product diversification (Level 1) - Application diversification - Automotive lighting - Product diversification (Level 2) - UV LEDs - Vertical integration - LED module - Conclusion CSP LED application landscape 61 > Overview > Flash > Backlighting > General lighting > Automotive lighting CSP LED devices 68 > Introduction to CSP LED devices - Definition - Benefits > CSP LED device family description - Introduction - Size criterion - Power density criterion - CSP or not CSP? - Power criterion > CSP LED device technology - Differences from other packages - CSP LED structures - CSP LEDs in LED package proliferation - Flip Chip CSP LEDs vs high power-type LEDs - Wafer Level CSP LEDs vs high power-type LEDs - Vertical thin film CSP LEDs vs high power-type LEDs - Flip Chip packaged CSP LEDs vs high power-type LEDs > CSP LED device manufacturing process - Conventional LED manufacturing process - Flip Chip CSP LED manufacturing process - Wafer Level CSP LED manufacturing process - CSP LEDs vs conventional LEDs - Impact on supply/value chain > CSP LED device cost/price - Potential for cost reduction - The case of CSP architecture for low and middle power LEDs - The case of CSP architecture for high power LEDs - Price positioning of CSP LEDs vs. traditional LEDs - Price positioning of CSP LED modules vs. traditional modules > CSP LED device industry - Key players identified - Highlights of US and European Players - Highlights of Japanese Players - Highlights of Korean Players - Highlights of Taiwanese and Chinese Players - Trends - Flow chart comparison between standard, CSP and COB LEDs > CSP LED market - CSP LED market volume ( ) CSP LED lighting module 112 > Chip singulation - Objectives, methodology and synthesis - From device characteristics to performance in applications - System design and performance assessment - Impact of CSP LED device on system/module design - CSP LED system/module performance in application > Definition and types of LED lighting modules - Definitions - LED module in the overall LED value chain - The different types of LED modules Taxonomy - The different types of LED modules Positioning > Main functions in LED lighting modules - System structure - Parameter interdependence > Optical design of CSP LED lighting modules - Optical management inside LED devices - CSP LED optical behavior - Sideways light emission of a package-free CSP LED device - Influence of CSP LED package on emission profile - Light emission profile - Light Emitting Surface (LES) and beam angle - Optical management in the application - Luminance control - Optical integration - Single LED and arrays - Shadowing effect in close pack arrangements - Main consequences and opportunities of the optical properties of CSP LEDs > Thermal management of CSP LED lighting modules - Why is thermal management required for LED systems? - Importance of thermal management for LED reliability - Thermal path inside the CSP LEDs - CSP thermal architecture compared to standard LEDs - Thermal resistance of CSP LEDs - Maximal junction temperature of CSP LEDs - Influence parameters on thermal resistance - Thermal resistance in the application - Reliability of CSP LEDs compare to traditional LED components - Major trends in thermal management - Main consequences and opportunities arising from the thermal properties of CSP LEDs > Electrical management of CSP LED lighting modules - Electrical behavior - Resistive behavior - Binning distribution - Multiple LED arrangements - LED module operating window - LED balancing circuit (electrical behavior) - Electrical Static Discharge (ESD) and Electrical Over Stress (EOS) - Electrical Static Discharge (ESD) protection in LED package - Electrical Static Discharge (ESD) protection in LED global system - Electrical management - Minimal spacing - Main consequences and opportunities of the electrical properties of CSP LEDs > Precautions for CSP LED integration into modules - Handling precautions - PCB design for optimal performance - Solder recommendations - Reflow process for CSP LEDs > CSP LED lighting module performance in applications - Is a CSP a cost effective high power LED or a super mid power LED? - CSP LEDs in lighting products - Positioning - CSP LED vs COB LED - CSP LEDs in lighting products - Opportunities - Opportunities for accent lighting - Cost value for accent lighting - Opportunities for spot light integration - Opportunities for global indoor application (i.e.: general lighting) - Integration in general lighting applications - Pros and cons - Integration in general lighting applications - Case studies - Spectrum control with CSP LEDs - CSP LED diversity - The different types of LED modules - Positioning - CSP LED module positioning vs other technologies - Market trends - Share of CSP LED module revenue (2016 vs. 2021) Conclusion 208 Appendix - About Yole Développement 211 Appendix - About PISEO 230 YOLE DÉVELOPPEMENT Pars MUKISH holds a master s degree in materials science and polymers from ITECH in France and a master s degree in innovation and technology management from EM Lyon in France. Since 2015, Mukish has taken on responsibility for developing LED, OLED and sapphire activities as Business Unit Manager at Yole Développement. Previously, he worked as Marketing Analyst and Techno-Economic Analyst for several years at the French Research Center, CEA. Pierrick BOULAY works as Market and Technology Analyst in the fields of LED, OLED and lighting systems, doing technical, economic and marketing analysis at Yole Développement, the More than Moore market research and strategy consulting company. He has experience in both LED lighting, including general lighting and automotive lighting, and OLED lighting. In the past, he mostly worked in R&D departments for LED lighting applications. Pierrick holds a master degree in Electronics from ESEO in France. PISEO Dr Olivier ANDRIEU is R&D Project Director and Mechatronic and LED System Architect at PISEO. He is working in collaboration with Yole Développement s team to perform comprehensive technical analyses of innovative LED-based optical systems and markets. His expertise is based on the development of disruptive solutions taking into account mechanical, electronic, optic and thermal issues to achieve application requirements. Previously, Dr Andrieu worked for EFI Automotive as head of innovation and more recently for Philips Lighting where he developed and implemented numerous LED lighting solutions on a global level. Joel THOME is the General Manager and Senior Research and Innovation Consultant at PISEO. In collaboration with Yole Développement s team, Thome performs numerous technical and market analyses focusing on LED solutions, in addition to developing innovative optical solutions with PISEO s R&D team. With a master s degree in mechanical engineering, Thome has worked in the lighting industry for more than 25 years. After beginning his career at Philips Lighting, he has recently held various global business, marketing and R&D senior management positions. During this period he developed strong expertise in lighting controls, LED technology and innovation processes including strategic roadmaps and project portfolio management. Today, Thome is also the administrator of the GIL-Syndicat du Luminaire trade union organisation and the Cluster Lumière association. Find more details about this report here:

30 ORDER FORM CSP LED Lighting Modules BILL TO Name (Mr/Ms/Dr/Pr): Job Title: Company: Address: City: State: Postcode/Zip: Country*: *VAT ID Number for EU members: Tel: Date: PRODUCT ORDER - Ref YDLS17006 Please enter my order for above named report: One user license*: Euro 5,490 Multi user license: Euro 6,490 - The report will be ready for delivery from February 23, For price in dollars, please use the day s exchange rate. All reports are delivered electronically at payment reception. For French customers, add 20% for VAT I hereby accept Yole Développement s Terms and Conditions of Sale (1) Signature: *One user license means only one person at the company can use the report. PAYMENT BY CREDIT CARD Visa Mastercard Amex Name of the Card Holder: Credit Card Number: Card Verification Value (3 digits except AMEX: 4 digits): Expiration date: BY BANK TRANSFER BANK INFO: HSBC, 1 place de la Bourse, F Lyon, France, Bank code: 30056, Branch code: Account No: , SWIFT or BIC code: CCFRFRPP, IBAN: FR RETURN ORDER BY FAX: +33 (0) MAIL: YOLE DÉVELOPPEMENT, Le Quartz, 75 Cours Emile Zola, Villeurbanne/Lyon - France SALES CONTACTS North America - Steve Laferriere: laferriere@yole.fr Europe & RoW - Lizzie Levenez: levenez@yole.fr Japan & Rest of Asia - Takashi Onozawa: onozawa@yole.fr Greater China - Mavis Wang: wang@yole.fr Specific inquiries: info@yole.fr (1) Our Terms and Conditions of Sale are available at The present document is valid 24 months after its publishing date: February 23, 2017 / SHIPPING CONTACT First Name: Last Name: Phone: ABOUT YOLE DEVELOPPEMENT Founded in 1998, Yole Développement has grown to become a group of companies providing marketing, technology and strategy consulting, media and corporate finance services. With a strong focus on emerging applications using silicon and/or micro manufacturing, the Yole Développement group has expanded to include more than 50 collaborators worldwide covering MEMS, Compound Semiconductors, LED, Displays, Image Sensors, Optoelectronics, Microfluidics & Medical, Advanced Packaging, Manufacturing, Nanomaterials, Power Electronics and Batteries & Energy Management. The More than Moore company Yole and its partners System Plus Consulting, Blumorpho, KnowMade and PISEO support industrial companies, investors and R&D organizations worldwide to help them understand markets and follow technology trends to develop their business. CONTACTS For more information about : Consulting Services: Jean-Christophe Eloy (eloy@yole.fr) Financial Services: Jean-Christophe Eloy (eloy@yole.fr) Report Business: Fayçal Khamassi (khamassi@yole.fr) Press relations: Sandrine Leroy (leroy@yole.fr) ABOUT PISEO A unique innovation platform dedicated to smart LED based optical systems. PISEO owns high skilled engineers and cutting edge characterization equipment, all situated in a single location. The team, mainly issued from an industrial global leader, delivers a whole set of services to the industry throughout the entire product life cycle. Therefore, PISEO runs projects from applied research up to product recycling, including market analysis, technology scouting, strategic planning and industrial design. CONTACTS More info on Press contact: Joël Thomé, PISEO General Manager (thome.joel@piseo.fr)

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32 From Technologies to Market Presentation of Yole Développement With Focus on Solid State Lighting (LED, OLED ) and Display Activities Corporate Presentation

33 Yole Développement From Technologies to Market CSP LED Lighting Module Sample 28

34 FIELDS OF EXPERTISE Imaging MEMS & Sensors Photonics RF (Devices & Technologies) Displays MedTech Our 30 analysts operate in the following areas. Solid State Lighting (LED, OLED ) Compound Semi. Manufacturing Advanced Packaging Power Electronics Advanced Substrates Batteries / Energy Management 29

35 4 BUSINESS MODELS Consulting and Analysis Market data & research, marketing analysis Technology analysis Strategy consulting Reverse engineering & costing Patent analysis Financial services M&A (buying and selling) Due diligence Fundraising Maturation of companies IP portfolio management & optimization / Reports Market & Technology reports Patent Investigation and patent infringement risk analysis Teardowns & Reverse Costing Analysis Cost Simulation Tool Media i-micronews.com e-newsletter Technology magazines Communication & webcast services Events 30

36 A GROUP OF COMPANIES M&A operations Due diligences Innovation & Business maker Market, technology and strategy consulting Manufacturing costs analysis Teardown and reverse engineering Cost simulation tools IP analysis Patent assessment Test & Measurement Expertise Research & Innovation 31

37 OUR GLOBAL ACTIVITY Paris Europe office Frankfurt Nantes Vénissieux Nice HQ in Lyon Yole Korea Yole Japan Greater China office Yole Inc. 40% 30% of our business Seoul Tokyo Hsinchu Phoenix 30% of our business of our business 32

38 RESEARCH PRODUCTS - CONTENT COMPARISON Depth of the analysis Breadth of the analysis Standard Reports Workshops Custom Analysis Custom analysis scope is defined with you to meet your information and budget needs 33

39 SERVING THE ENTIRE SUPPLY CHAIN Integrators and end-users Our analysts provide market analysis, technology evaluation, and business plan along the entire supply chain. Device makers Suppliers: material, equipment, OSAT, foundries Financial investors, R&D centers 34

40 SERVING MULTIPLE INDUSTRIAL FIELDS We are working accross multiples industries to understand the impact of Morethan-Moore technologies from device to system. Energy Industrial and defense Transportation makers Medical systems Automotive Mobile phone and consumer electronics From A to Z 35

41 REPORTS COLLECTION o o Yole Développement publishes a comprehensive collection of market & technology reports and patent analysis in: MEMS & Sensors. RF devices and technologies. Imaging. Medical Technologies (MedTech). Photonics. Advanced packaging. Manufacturing. Power electronics. Batteries & Energy management. Compound semiconductors. LED. Displays. You are looking for: An analysis of your product market. A review of your competitors evolution. An understanding of your manufacturing and production costs. An understanding of your industry technology roadmap and related Ips. A clear view on the evolution of the supply chain. Our team of 50+ experts (PhDs, MBAs, industry veterans ) from Yole Développement, System Plus Consulting and KnowMade, collect information, identify the trends, the challenges, the emerging markets, the competitive environments and turn it into results to give you a complete picture of your industry landscape. In the past 18 years, we worked on more than 1?500 projects, interacting with technology professional and high level opinion makers from the main players of the industry. o o Every year, Yole Développement, System Plus Consulting and Knowmade publish +120 reports. Take the full benefit from our Bundle and Annual Subscription offers. 36

42 OUR 2017 REPORTS PLANNING (1/2) MARKET AND TECHNOLOGY REPORTS by Yole Développement o MEMS & SENSORS Fingerprint Sensor Applications and Technologies - Consumer Market Focus 2017 MEMS Microphones, Speakers and Audio Solutions 2017 Status of the MEMS Industry 2017 MEMS & Sensors for Automotive 2017 High End Inertial Sensors for Defense and Industrial Applications 2017 Sensor Modules for Smart Building 2017 Sensing and Display for AR/VR/MR 2017 (Vol 1) MEMS Packaging 2017 Magnetic Sensors Market and Technologies 2017** Microspectrometers Markets and Applications 2017** o o RF DEVICES AND TECHNOLOGIES RF Components and Modules for Cellphones 2017 Advanced RF SiP for Cellphones G and Beyond (Vol 1): Impact on RF Industry, from Infrastructure to Terminals G and Beyond (Vol 2): RF Materials Platform, from Infrastructure to Terminals 2017 RF Technologies for Automotive Applications 2017 GaN and Si LDMOS Market and Technology Trends for RF Power 2017 IMAGING & OPTOELECTRONICS 3D Imaging & Sensing 2017 Status of the CMOS Image Sensor Industry 2017 Camera Module for Consumer and Automotive Applications 2017 Uncooled Infrared Imaging Technology & Market Trends 2017 Active Imaging and Lidars 2017 (vol 1) o o o MEDTECH Status of the Microfluidics Industry 2017 Solid State Medical Imaging 2017 Sensors for HomeCare 2017 Sensors for Medical Robotics 2017 Organs-on-a Chip 2017 ADVANCED PACKAGING Advanced Substrates Overview 2017 Status of the Advanced Packaging Industry 2017 Fan Out Packaging: Market & Technology Trends D Business Update: Market & Technology Trends 2017 Advanced QFN: Market & Technology Trends 2017** Inspection and Metrology for Advanced Packaging Platform 2017** Advanced Packaging for Memories 2017 Embedded Die Packaging: Technologies and Markets Trends 2017 MANUFACTURING Glass Substrate Manufacturing 2017 Equipment & Materials for Fan Out Technology 2017 Equipment & Materials for 3D T(X)V Technology 2017 Emerging Non Volatile Memories 2017 ** To be confirmed 37

43 OUR 2017 REPORTS PLANNING (2/2) MARKET AND TECHNOLOGY REPORTS by Yole Développement o o o POWER ELECTRONICS Status of Power Electronics Industry 2017 Power Mosfets Market and Technology Trends 2017 IGBT Market and Technology Trends 2017 Power Packaging Market and Technology Trends 2017 Power SiC 2017: Materials, Devices, and Applications Power GaN 2017: Materials, Devices, and Applications Materials Market Opportunities for Cellphone Thermal Management (Battery Cooling, Fast Charging, Data Processing, Battery Cooling, etc.) 2017 Gate Driver Market and Technology Trends in Power Electronics 2017 Power Management ICs Market Quarterly Update 2017 Power Electronics for Electrical Aircraft, Rail and Buses 2017 Thermal Management for LED and Power 2017 BATTERY AND ENERGY MANAGEMENT Status of Battery Industry for Stationary, Automotive and Consumer Applications 2017 COMPOUND SEMICONDUCTORS Power SiC 2017: Materials, Devices, and Applications Power GaN 2017: Materials, Devices, and Applications GaN and Si LDMOS Market and Technology Trends for RF Power 2017 Bulk GaN Technology Status and Market Expectations (Power, LED, Lasers) 2017 o SOLID STATE LIGHTING (LED, OLED ) UV LEDs Technology, Manufacturing and Application Trends Agricultural Lighting Technology, Industry and Market Trends Automotive Lighting Technology, Industry and Market Trends Active Imaging and Lidar 2017 (Vol 2) - IR Lighting** LED Lighting Module Technology, Industry and Market Trends IR LEDs Technology, Manufacturing and Application Trends Phosphors & Quantum Dots LED Downconverters for Lighting & Displays CSP LED Lighting Modules 2017 LED Packaging Market, Technology and Industry Landscape PATENT ANALYSIS by Knowmade 3D Monolithic Memory: Patent Landscape Analysis Microfluidic Diagnostic: Patent Landscape Analysis GaN Technology: Top-100 IP profiles** Uncooled Infrared Imaging: Patent Landscape Analysis** MEMS Microphone: Patent Landscape Analysis** MEMS Microphone: Knowles' Patent Portfolio Analysis** MicroLEDs: Patent Landscape Analysis** Microbolometer: Patents used in products** Micropumps: Patent Landscape Analysis** Flexible batteries: Patent Landscape Analysis** o DISPLAYS Microdisplays and MicroLEDs 2017 Display for Augmented Reality, Virtual Reality and Mixed Reality 2017 QD for Display Applications 2017 Phosphors & Quantum Dots LED Downconverters for Lighting & Displays Emerging Display Technologies 2017** TEARDOWN & REVERSE COSTING by System Plus Consulting More than 60 teardowns and reverse costing analysis and cost simulation tools to be published in ** To be confirmed 38

44 OUR 2016 PUBLISHED REPORTS LIST MARKET AND TECHNOLOGY REPORTS by Yole Développement o MEMS & SENSORS Gas Sensors Technology and Market 2016 Status of the MEMs Industry 2016 Sensors for Cellphones and Tablets 2016 Market and Technology Trends of Inkjet Printheads 2016 Sensors for Biometry and Recognition 2016 Silicon Photonics 2016 o IMAGING & OPTOELECTRONICS Status of the CMOS Image Sensor Industry 2016 Uncooled Infrared Imaging Technology & Market Trends 2016 Imaging Technologies for Automotive 2016 Sensors for Drones & Robots: Market Opportunities and Technology Evolution 2016 o MEDTECH BioMEMS 2016 Point of Care Testing 2016: Application of Microfluidic Technologies o ADVANCED PACKAGING Embedded Die Packaging: Technology and Market Trends D & 3D IC TSV Interconnect for Advanced Packaging: Business Update 2016 Fan-Out: Technologies and Market Trends 2016 Fan-In Packaging: Business update 2016 Status and Prospects for the Advanced Packaging Industry in China 2016 o MANUFACTURING Thin Wafer Processing and Dicing Equipment Market 2016 Emerging Non Volatile Memories 2016 o COMPOUND SEMICONDUCTORS Power GaN 2016: Epitaxy and Devices, Applications and Technology Trends GaN RF Devices Market: Applications, Players, Technology and substrates 2016 Sapphire Applications & Market 2016: from LED to Consumer Electronics Power SiC 2016: Materials, Devices, Modules, and Applications o LED UV LED Technology, Manufacturing and Applications Trends 2016 OLED for Lighting 2016 Technology, Industry and Market Trends Automotive Lighting: Technology, Industry and Market Trends 2016 Thermal Management Technology and Market Perspectives in Power Electronics and LEDs 2017 Organic Thin Film Transistor 2016: Flexible Displays and Other Applications Sapphire Applications & Market 2016: from LED to Consumer Electronics o POWER ELECTRONICS Power Electronics for EV/HEV 2016: Market, Innovations and Trends Status of Power Electronics Industry 2016 Passive Components Technologies and Market Trends for Power Electronics 2016 Power SiC 2016: Materials, Devices, Modules, and Applications Power GaN 2016: Epitaxy and Devices, Applications, and Technology Trends Inverter Technologies Trends & Market Expectations 2016 Opportunities for Power Electronics in Renewable Electricity Generation 2016 Thermal Management Technology and Market Perspectives in Power Electronics and LEDs 2017 GaN RF Devices Market: Applications, Players, Technology and substrates 2016 o BATTERY AND ENERGY MANAGEMENT Beyond Li-ion Batteries: Present and Future Li-ion Technology Challengers 2016 Stationary Storage and Automotive Li-ion Battery Packs 2016 Opportunities for Power Electronics in Renewable Electricity Generation

45 CONTACT INFORMATION Consulting and Specific Analysis North America: Steve LAFERRIERE, Director of Northern America Business Development,Yole Inc Greater China: Mavis WANG, Director of Greater China Business Development Japan & Rest of Asia:Takashi ONOZAWA, General Manager,Asia Business Development RoW: Jean-Christophe ELOY, President & CEO,Yole Développement eloy@yole.fr Report business North America: Steve LAFERRIERE, Director of Northern America Business Development laferriere@yole.fr Europe: Lizzie LEVENEZ, EMEA Business Development Manager levenez@yole.fr Rest of Asia:Takashi ONOZAWA, General Manager,Asia Business Development onozawa@yole.fr Japan & Asia: Miho OTHAKE, Account Manager ohtake@yole.fr Greater China: Mavis WANG, Director of Greater China Business Development wang@yole.fr Follow us on Financial services Jean-Christophe Eloy, CEO & President eloy@yole.fr General info@yole.fr

46 About Solid State Lighting (LED, OLED ) and Display Activities 41

47 FOCUS ON SOLID STATE LIGHTING (LED, OLED ) AND DISPLAY ACTIVITIES Yole is active throughout the value chain (Example of LED and Sapphire activities) Substrate Front-end Level 0 - Epitaxy Nucleation layer n-type layer Active layers (MQW) p-type layer Front-end Level 1 - Device Production Inspection Masking / Lithography Etching Metallization / Contacts / Mirrors We are active throughout the value chain: from substrates to systems! And we interact with industrial / R&D players from each level! SiC / Sapphire / Silicon / Bulk GaN / Engineered substrates Back-End level 1 - Packaging Die Attach & Interconnections Phosphors Encapsulation & Optics Testing & Binning LED dies LED epiwafer Back-End Level 0 - Packaging Substrate separation & Bonding Die singulation Testing & Binning Mesa LED, Flip Chip LED, Vertical LED structures LED dieson-wafer Module Packaging Substrates (PCB) Encapsulation & Optics Heatsink Testing & Binning Packaged LEDs LED modules LED systems and applications 42

48 FOCUS ON SOLID STATE LIGHTING (LED, OLED ) AND DISPLAY ACTIVITIES Insights on Forecast Methodology (Example of LED and Sapphire activities) APPLICATION What s Behind the Crystal Ball? Only analysts that follow the industry on a daily basis (trough interviews) and developed market modeling tools based on discussions with key players of the industry. Forecast of standard product market volume (unit) Ex.: Smartphone, TVs, lamps ( ) Forecast of LED market volume (unit) Split by application, power type (low vs. medium vs. high power), package type (single vs. multi-die ) ( ) System Plus Consulting expertise in reverse costing / reverse engineering Definition of functions using LEDs Ex.: Flash vs. Keypad for smartphone ( ) Definition of LED ASP Per power type, packaged type ( ) Definition of manufacturing flows for front-end and packaging (process, technologies, materials, yields ) Split by application, power type, package type ( ) Definition of technical requirements Ex.: Efficacy, size ( ) Forecast of LED market size ($) Split by application, power type, package type ( ) Forecast of LED manufacturing equipment and material markets (unit and $) Ex.: Phosphors, encapsulant, dicing equipment Definition of LED penetration rate and competitiveness with alternative technologies Ex.: OLED vs. LED in smartphone ( ) Definition of sale levels of key manufacturers ($) Ex: LED, packaging materials, epitaxy materials, manufacturing equipment, MOCVD reactor, substrate ( ) Definition of LED die surface (mm²) Definition of substrate die surface (mm²) and epiwafer volume (unit) Split by type of substrate ( ) Forecast of LED substrate markets (unit and $) Split by type of substrate ( ) 43

49 FOCUS ON SOLID STATE LIGHTING (LED, OLED ) AND DISPLAY ACTIVITIES About Yole s Analyst Team Pars MUKISH - Business Unit Manager - SSL & Display Pars MUKISH holds a master degree in Materials Science & Polymers (ITECH - France) and a master degree in Innovation & Technology Management (EM Lyon - France). Since 2015, Pars MUKISH has taken on responsibility for developing LED, OLED and Sapphire activities as Business Unit Manager at Yole Développement. Previously, he has worked as Marketing Analyst and Techno-Economic Analyst for several years at the CEA (French Research Center). A team based on persons having complementary skills and expertise. Dr. Eric VIREY - Senior Market & Technology Analyst - Sapphire & Display Eric VIREY holds a Ph-D in Optoelectronics from the National Polytechnic Institute of Grenoble (INPG - France). He works as Market and Technology Analyst in the fields of Sapphire, LED / OLED and Display. In the last 12 years, he has held various R&D, engineering, manufacturing and marketing positions with Saint-Gobain. Most recently, he was Market Manager at Saint-Gobain Crystals, in charge of Sapphire and Optoelectronic products. Pierrick BOULAY - Market & Technology Analyst - SSL Pierrick BOULAY holds a master degree in Electronics from ESEO (France). He works as Market and Technology Analyst in the fields of LED, OLED and Lighting Systems to carry out technical, economic and marketing analysis. He has experience in both LED lighting (general lighting, automotive lighting ) and OLED lighting. In the past, he has mostly worked in R&D department for LED lighting applications. 44