Market economics being market economics, the number of new entrants to the LED market, bolstered by the proliferation of LED use in applications such as TV backlight and general lighting (for example, commercial, architectural and domestic lighting) has seen a rapid expansion of the LED market. As the demand for LEDs increases and manufacturing ramps to meet this demand, we have seen the entry of ‘budget’ manufacturers, which in turn is seeing the market become somewhat commoditized.  This increased competition has led to lower unit price and squeezed margins, ergo manufacturers are now looking to pull back some of that margin by reducing costs and optimizing their processes.

Image from Yole Developpement (Click to expand)

The report goes on to report that “general lighting—mostly replacement bulbs— to account for 10 to 30 percent of company revenues by the end of the year.”

As with any commodity market, total cost of ownership, from a manufacturers standpoint as well as a consumer purchase point, are key drivers. For manufacturers, yield is a critical factor that can reduce or increase cost.  According to Paula Doe, the best industry net yields are “still at 75-80 percent, and the majority around 50 percent, (so) there’s plenty of room for improvement, particularly in automating the post epi processing, by using semiconductor industry style automation, steppers, and improving the liftoff, thinning, dicing and sorting processes.”

Substrates are one area that can dramatically affect cost of production and yield.  Manufacturers have made significant progress in improving the performance of silicon substrates, to the extent that they could offer a low-cost alternative to the sapphire substrates currently the material of choice.

“The crucial issue is really the cost savings from being able to use highly efficient 8-inch silicon processing equipment,” reports Doe. “Yole cost simulations show a 50 percent reduction in die cost is possible, and some companies project as much as 75 percent  savings, at least compared to smaller diameter sapphire, depending of course on yield, on how much the producer has to invest in new facilities, and on how much retrofit is needed to convert a CMOS fab to LED production.”

The editorial goes on to look at the potential for Fabless models for LED manufacturers and how that could affect the industry dynamic and also examines GaN-on-GaN options as well as a potential alternative to Sapphire substrates.

You can read the full article here. 

The opening of the new Kaohsiung facility reinforces Taiwan as a vital strategic regional hub from which to leverage SAFC Hitech’s existing proprietary knowledge and capabilities as a leading provider of ultra-high purity metalorganic and silicon precursors for thin film deposition production processes. The opening of the new facility follows the March 2010 production expansion for TMG at SAFC Hitech’s Bromborough, UK manufacturing site.

In addition to the enhanced manufacturing capacity, the expanded Kaohsiung site capabilities can handle and characterize highly specialized laboratory-scale chemicals and features a dedicated customer support center. The site also provides integrated inert atmosphere transfilling stations, state-of-the-art analytical instrumentation for the detection of ultra-low metallic and oxygen containing contaminants and dedicated cylinder preparation and packaging areas. The site is ISO 9001 certified for quality with work to acquire ISO 14001 certification for safety and environmental protocols in process.

Underscoring Commitment to the Asia Market

Mr. Rakesh Sachdev, President and CEO of Sigma-Aldrich Corporation, opened the celebration with a welcome speech to the assembled dignitaries, media and guests and expressed his delight at the completion of the addition, which underlines Sigma-Aldrich and SAFC Hitech’s commitment to the Asia-Pacific electronics markets:

“This latest addition to our global manufacturing footprint continues our program of strategic investments in growth markets that will help us to maintain our position as a leading global Life Science and high technology materials company focused on enabling science to improve the quality of life,” commented Mr. Sachdev, who added that “as a trusted leader in life science, high technology and service, the story of Sigma-Aldrich is one of a rich history of service, science and innovation. The opening of our new Kaohsiung facility continues to help us write this history and will provide critical support for our customers through best practice and leveraging manufacturing efficiencies throughout the supply chain, not just here in Taiwan, but also across the wider Asia-Pacific region.”

Mr. Sachdev also spoke of the importance of materials in continuing to define and drive advances in technology and SAFC Hitech’s focus on improving efficiency, reducing energy costs and enabling future technologies through materials innovation and design advances. Critical to achieving these advances is a continuing “focus on customer intimacy and working closely in collaborations that deliver process improvements that meet and exceed customer needs, now and in the future.”

Positioning for Future Growth

A traditional dragon dance to bring good luck!

Dr. Philip Rose, SAFC Hitech President followed Mr. Sachdev and highlighted the importance of Taiwan to SAFC Hitech as a company committed to innovation and ongoing economic development.  “Taiwan has long been a vital market for the electronics industry and its ability to evolve to meet new technological challenges is testament to its position as home to some of the most important companies in the global electronics supply chain,” commented Dr. Rose. “Taiwan is also a market with which SAFC Hitech has enjoyed a long and fruitful relationship.”

“Growing our business here in Taiwan and throughout the wider Asia-Pacific region through collaborative and intimate relationships with customers is central to our ongoing development as a leading provider of ultra-high purity Metalorganic precursors used in the manufacture of devices in the Compound and Silicon Semiconductor markets. One of SAFC Hitech’s key objectives as a leading materials supplier is to continue to provide innovative materials technology solutions that drive functional performance in end use devices in the high growth markets we serve, where and whenever they are needed.”

In conclusion, Dr. Rose added that he believes that SAFC Hitech is “ideally positioned to support new and vibrant markets as they continue to emerge and present new opportunities. Through increasing our investment in local technical service capabilities and by leveraging our proprietary technologies and capabilities, we are able to increase our transfilling, production and technical services on the ground in Taiwan.”

Rounding out the executive comments at the opening event, SAFC Hitech’s Taiwan General Manager, Gordon Shyu, spoke of the commitment of his team in bringing in the project on time, and his pride in being “part of this important strategic investment in further developing our local technical expertise and proprietary technologies and capabilities.”

Mr. Shyu also thanked the Sigma-Aldrich Corporation, SAFC President Gilles Cottier and Philip Rose for investing in Taiwan, and expressed his appreciation to the Taiwan team and the science park bureau for their dedication and hard work in helping to make the project a reality.

For additional information on SAFC Hitech’s world-class portfolio of products and services, visit www.safchitech.com.  Sales inquires should be directed to Andrew Wallmueller, Vice-President of Global Sales, SAFC Hitech, at Andrew.Wallmueller@sial.com

SAFC Hitech于三月十五日在高雄舉辦其全球最新的生產基地落成典禮，這座位於高雄，占地270,000方英尺的新廠，大幅增加了該廠量產的高亮度 LED (HBLED) 所使用的高品質三甲基鎵 (TMG)、三乙基鎵 (TEG) 和三甲基銦 (TMI) 的產能。該廠也將繼續為矽半導體市場製造原子層沉積 (ALD) 和化學氣相沉積 (CVD) 的前驅體，並提供亞太地區分裝及技術的服務和支援。

作為薄膜沉積製程所使用的超高純度金屬有機物和矽前驅體的領導供應商，SAFC Hitech的高雄新廠，加強了台灣成為區域戰略樞紐的作用，並發揮SAFC Hitech現有專有的知識及能力。這是繼 2010 年 3 月在英國布朗巴勒進行的 TMG 生產擴張之後的新建設施。

除增強製造能力之外，SAFC Hitech 高雄廠還可處理和製造高度專業化的實驗級的化學品，以及設有一個專門的客戶支援中心。該廠還提供了材料充瓶服務、最先進的超低金屬和含氧污染物的分析探測儀器，和專門的瓶裝製備和包裝區。高雄廠已通過 ISO 9001 品質認證，正在申請 ISO 14001 安全與環境協議認證。

強調致力於亞洲市場

Sigma-Aldrich^® 公司集團的總裁暨執行長Rakesh Sachdev先生在開幕致詞時，對前來參加典禮的政要，媒體及賓客，表達他對新廠設施落成的喜悅，同時也代表著Sigma-Aldrich^® 公司集團旗下的 SAFC Hitech 致力於亞洲電子市場的決心。

Sachdev先生 表示:「作為致力運用科學來提高生活品質的全球領先的生命科學和高科技材料公司，這座新廠不但是我們全球製造的最新擴展，也代表我們繼續進行對成長市場的戰略投資。這將有助於保持我們的領導地位。」

他繼續補充說「作為一個在生命科學，高科技和服務領域都值得信賴的領導公司，Sigma-Aldrich擁有豐富的服務經驗，科學研究和創新的歷史。我們高雄新設施的開幕，將延續這樣的歷史，通過最佳實踐和利用整個供應鏈的生產效率來為我們台灣及整個亞太地區的客戶提供服務。

Thumbs up for SAFC Hitech - From left to right: Mr. Liao, Chao-Hsiang, Deputy Director, Ministry of Finance, Kaohsiung Customs Office; Mr. Chen, Jun-Wei, Director General, Southern Taiwan Science Park Administration; Mr. Gary G. Oba, Branch Chief, Kaohsiung Branch Office, American Institute in Taiwan; Mr. Lan, Chien-Chang, Director General, Kaohsiung City Government, Economic Development Bureau; Mr. Rakesh Sachdev, President and CEO, Sigma-Aldrich; Mr. Gilles Cottier, President SAFC; Mr. Eric Green, Vice President and Managing Director, International Operations, Sigma-Aldrich Corporation; Dr. Philip Rose, President, SAFC Hitech; Mr. Gordon Shyu, Manager, Taiwan Operations, SAFC Hitech; Mr. Hung, Hui-Song, Deputy Chief, Industrial Development Bureau, Ministry of Economic Affairs.

Sachdev先生也提到SAFC Hitech透過推動技術進步來提高效率，降低能源成本，也證明了創新的材料和設計對於未來技術的重要性。從現在到未來與客戶保持密切的合作關係和提供製程的改進以滿足並超越客戶的需求才是持續發展的關鍵。

未來發展的定位

SAFC Hitech總裁Philip Rose博士在Sachdev先生致詞之後也強調台灣對於SAFC Hitech在創新和經濟發展的重要性。Rose博士表示台灣在電子產業的份量，和它能滿足技術上的挑戰足以顯示它在全球電子公司供應鏈中的地位。他再次強調SAFC Hitech與台灣已有長久，愉快的穩定合作關係。

從台灣開始開發到整個亞太電子市場，主要核心在於與客戶密切的協作關係讓作為超高純度金屬有機物和矽前驅體的供應商能繼續領先市場。SAFC Hitech 的主要目標之一就是在現在及將來，針對我們所服務的高速成長的市場，繼續提供領先的材料技術解決方案，提高最終使用設備的功能性能。

Rose博士最後表示SAFC Hitech以支持在這活躍的市場不斷湧出的機遇，讓我們位於一個理想的方位。通過增加我們在當地技術服務能力的投資，並利用我們的專有技術的影響力來提高台灣地區分裝及技術的服務和支援。

總結各高階主管在開幕典禮上的致詞，台灣區總經理Gordon Shyu表示 將會帶領技術團隊致力於達到交案的標準，他也很榮幸能夠參與發展當地技術專長和現有的技術專利投資。

Gordon Shyu 最後感謝Sigma-Aldrich和SAFC總裁Gilles Cottier及Philip Rose在台灣的投資，也表揚了台灣團隊和科學園區管理局的辛苦奉獻，讓這新廠能夠落成。

獲取更多 SAFC Hitech 的世界一流產品服務的資訊，請參閱 www.safchitech.com。銷售諮詢請聯繫SAFC Hitech全球銷售副總裁 Andrew Wallmueller，電子郵箱Andrew.Wallmueller@sial.com。

Included below is the official news announcement in both Traditional and Simplified Chinese format.

(1) Traditional Chinese

SAFC Hitech^® 開設台灣新廠，擴張高亮度 LED 前驅體全球產能
美國密蘇里州聖路易斯—— 2012 年 3 月 15 日—— Sigma-Aldrich^® 公司集團旗下的 SAFC Hitech^® 今天藉由投資數億台幣的台灣高雄新廠設施落成，來強調承諾開發亞太電子市場。新廠占地 270,000 平方英尺，大幅增加了該廠量產的高亮度 LED (HBLED) 所使用的高品質三甲基鎵 (TMG)、三乙基鎵 (TEG) 和三甲基銦 (TMI) 的產能。該廠也將繼續為矽半導體市場製造原子層沉積 (ALD) 和化學氣相沉積 (CVD) 的前驅體，並提供亞太地區分裝及技術的服務和支援。獲取更多新廠事宜的資訊，請參見 SAFC Hitech 的網路社群 SAFC hi。

作為微電子和光電市場薄膜沉積製程所使用的超高純度金屬有機物和矽前驅體的領導供應商，SAFC Hitech全球製造的最新擴展，加強了台灣成為區域戰略樞紐的作用，並發揮SAFC Hitech現有專有的知識及能力。SAFC Hitech 現有的台灣業務將轉移到高雄新廠，開幕儀式政要雲集，包括高雄市市長陳菊女士以及Sigma-Aldrich 總裁兼執行長 Rakesh Sachdev、SAFC 總裁 Gilles Cottier 和SAFC Hitech 總裁 Philip Rose等高階主管。

在談到新設施時，Philip Rose 表示：“SAFC Hitech 的主要目標之一就是在現在及將來，針對我們所服務的高速成長的市場，繼續提供領先的材料技術解決方案，提高最終使用設備的功能性能。繼 2010 年 3 月在英國布朗巴勒進行的 TMG 生產擴張之後，這次在台灣的戰略投資將繼續鞏固我們作為高亮度 LED 市場可靠前驅體全球領先供應商的地位。透過先進的設計和技術，這個市場將以不斷提高效率，降低能源成本為主，促使電子行業引進更注重節能的產品和系統。”

SAFC Hitech 行銷和業務開發副總裁 Geoff Irvine 博士補充說道 ：“由於LED的需求上升，特別是高亮度 LED ，我們也越來越積極地與整個亞太地區的客戶進行協同開發活動。30多 年來的前驅體供應商經驗，讓我們可以將重點放在發展當地的基礎設施和生產製造能力，以便繼續為客戶提供項目齊全的產品，以及兼具最佳性能和擁有成本的新穎的配送系統。我們專有的配送系統，如泡罩/安瓿、EpiFill^TM、EpiVapor^TM 和 EpiSensor^TM 等組合，擁有強大的應用開發和垂直整合製造優勢。”

除了增強製造能力外，SAFC Hitech 高雄廠可處理和製造高度專業化的實驗級的化學品，還設有一個專門的客戶支援中心。該廠還提供了材料充瓶服務、最先進的超低金屬和含氧污染物的分析探測儀器，和專門的瓶裝製備和包裝區。高雄廠已通過 ISO 9001 品質認證，正在申請 ISO 14001 安全與環境協議認證。

獲取更多 SAFC Hitech 的世界一流產品服務的資訊，請參閱 www.safchitech.com。銷售諮詢請聯繫SAFC Hitech全球銷售副總裁 Andrew Wallmueller，電子郵箱Andrew.Wallmueller@sial.com。

(2) Simplified Chinese

SAFC Hitech^® 开设台湾新厂，扩张高亮度LED 前驱体全球产能
美国密苏里州圣路易斯—— 2012 年 3 月 15 日—— Sigma-Aldrich^® 公司集团旗下的SAFC Hitech^®今天藉由投资数亿台币的台湾高雄新厂设施落成，来强调承诺开发亚太电子市场。新厂占地270, 000 平方英尺，大幅增加了该厂量产的高亮度LED (HBLED) 所使用的高品质三甲基镓 (TMG) 、三乙基镓 (TEG) 和三甲基铟 (TMI) 的产能。该厂也将继续为硅半导体市场制造原子层沉积 (ALD) 和化学气相沉积 (CVD) 的前驱体，并提供亚太地区分装及技术的服务和支援。获取更多新厂事宜的资讯，请参见SAFC Hitech 的网路社群SAFC hi。
作为微电子和光电市场薄膜沉积制程所使用的超高纯度金属有机物和硅前驱体的领导供应商，SAFC Hitech全球制造的最新扩展，加强了台湾成为区域战略枢纽的作用，并发挥SAFC Hitech现有专有的知识及能力。 SAFC Hitech 现有的台湾业务将转移到高雄新厂，开幕仪式政要云集，包括高雄市市长陈菊女士以及Sigma-Aldrich 总裁兼首席執行官Rakesh Sachdev、SAFC 总裁Gilles Cottier 和SAFC Hitech 总裁Philip Rose等高阶主管。

在谈到新设施时，Philip Rose 表示：“SAFC Hitech 的主要目标之一就是在现在及将来，针对我们所服务的高速成长的市场，继续提供领先的材料技术解决方案，提高最终使用设备的功能性能。继2010 年3 月在英国布朗巴勒进行的TMG 生产扩张之后，这次在台湾的战略投资将继续巩固我们作为高亮度LED 市场可靠前驱体全球领先供应商的地位。透过先进的设计和技术，这个市场将以不断提高效率，降低能源成本为主，促使电子行业引进更注重节能的产品和系统。”

SAFC Hitech 行销和业务开发副总裁Geoff Irvine 博士补充说道：“由于LED的需求上升，特别是高亮度LED ，我们也越来越积极地与整个亚太地区的客户进行协同开发活动。30多年来的前驱体供应商经验，让我们可以将重点放在发展当地的基础设施和生产制造能力，以便继续为客户提供项目齐全的产品，以及兼具最佳性能和拥有成本的新颖的配送系统。我们专有的配送系统，如泡罩/安瓿、EpiFill^TM、EpiVapor^TM 和EpiSensor^TM 等组合，拥有强大的应用开发和垂直整合制造优势。”
除了增强制造能力外，SAFC Hitech 高雄厂可处理和制造高度专业化的实验级的化学品，还设有一个专门的客户支援中心。该厂还提供了材料充瓶服务、最先进的超低金属和含氧污染物的分析探测仪器，和专门的瓶装制备和包装区。高雄厂已通过ISO 9001 品质认证，正在申请ISO 14001 安全与环境协议认证。

获取更多 SAFC Hitech 的世界一流产品服务的信息，请參访www.safchitech.com。销售咨询请联系SAFC Hitech全球销售副总裁 Andrew Wallmueller，电子邮箱 Andrew.Wallmueller@sial.com。

“In Southeast Asia, we are looking at almost 10 percent growth in fab capacity this year which surpasses the global growth at 6 percent. 300mm fabs in the region continue to drive capacity growth in 2012 and 2013” says Terry Tsao, president of SEMI Southeast Asia.  The article goes on to speak to the importance of innovation in packaging technology, particularly 3D-IC, as an growth enabler, especially in relation to increasing functionality in tablets, smartphones and other mobile devices.

Equipment spending is also expected to increase in the second half of 2012, after bottoming out in the first half of the year. “SEMI expects to see healthy spending pick up from 2^nd half of 2012 onward especially from top foundries and NAND Flash makers. The investment momentum is expected to continue into next year with current estimation of 7 percent growth in equipment spending for 2013″ says the report.

Courtesy of SEMI

Finally, as widely expected, there will be significant new opportunities in LED manufacturing and supply as SSL and LED/HBLED applications draw “strong investment growth this year from new capacity and facility buildup. Asia has recently become the market with the world’s fastest-growing LED capacity contributed by the world’s leading manufacturer of high-power LED, Philips Lumileds. According to the latest SEMI Opto/LED Watch, the total equipment spending had grown 35.8 percent to $2,415 million in 2011. MyLED, a Malaysia-based SSL manufacturer, has just signed Memorandum of Understanding with Amprex, Light-Trend and OSRAM and invested US$55 million to expand its plant for LED lighting.”

You can read the full report from SEMI here.

Thanks to Dan for sharing this.

Gartner go on to report that, in general, smartphones, tablets and solid-state drives underpinned semi spending in 2011.  Samsung’s improved showing in the smartphone sector saw its spending up by 9.2 percent to $16.7 billion, while an unsteady PC market pushed HP’s semiconductor spending down to US$16.6 billion compared to $17.6 billion during 2010.

Fifth-placed Nokia’s semi spending dropped over 20 percent to around $9 billion, behind Dell but ahead of Sony (excluding Sony-Ericsson) and Toshiba. In eighth place was Lenovo, which saw the strongest growth among the top five PC vendors during the fourth quarter, as its shipments grew 23 percent. It also increased its semiconductor spend by 23.7 percent to $7.5 billion. The top ten semiconductor buyers spent $105.6 billion, or 35 percent of semiconductor vendors’ worldwide chip revenue.  Read a fuller report over at eWeek here.

For example, Electronics Weekly’s David Manners covered the development in his blog -’Intel makes 14nm ICs’ – and there were some interesting comments from Malcolm Penn, CEO of industry analysts Future Horizons regarding Intel, Samsung, TSMC and AMD… It’s worth reading for the readers’ comments alone. You can read David’s blog here.

The suspense is palpable

You can read the full SIA release here.

EE Times’ Peter Clarke reports that “Intel is benefiting from its presence in microprocessors and NAND flash, two product areas that IHS considers “hot” in 2011 and set to generate double-digit revenue growth.”  Second placed Samsung is “also benefiting from NAND flash sales, in which it is the world’s leading supplier as well as progress in applications processors, CMOS image sensors and display driver ICs, but this is offset by its exposure to the DRAM market. IHS expects the DRAM market to decline by 27 percent in 2011.”

Above are the top 20 semi companies, as listed by IHS iSuppli (December 2011). The article, which can be viewed in full here, includes some interesting projections about the chip market, with IHS predicting “that ‘extremely weak’ economic conditions will keep 2012 chip market growth at a low single-digit percentage and any rebound in revenue growth will be delayed until 2013.”

According to Dieseldorff, “Japan’s semiconductor industry has once again proven that it can overcome disaster and recover quickly. Japan is home to a large number of semiconductor companies and has the largest share of total installed fab capacity.  In addition, fabs in Japan lead in cutting-edge technology such as 24nm and 19nm NAND Flash. Japan houses the world’s two largest fabs, Flash Alliance’s Fab 4 and Fab 5 in Yokkaichi, reportedly designed for installed capacity of up to 220,000 and 240,000 wafers per month (300mm equivalents).”  This technology and capacity growth has been attributed, for the most part, to Toshiba, and its alliance with SanDisk.

The article goes on to look at the share of worldwide capacity for countries with share greater than 15%, worldwide 300mm capacity, and the number of companies with volume fabs by country.

Definitely worth a look.  Check it out here.

The current issue features a cover and in-depth lead article from Geoff Irvine and Xiaohong Chen.  The topics discussed include developments  in the semiconductor market that reinforce the importance of strategic and highly collaborative partnerships to meet challenges around the introduction of new materials for future technology. The article also looks at the future memory developments and what we might see in coming iterations of semiconductor devices.

So, make some warm cocoa, hunker down and read the online version by clicking here.