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Does the LED industry's non-sapphire substrate improve the cost direction?
The high cost of LEDs has long posed a significant challenge in bringing down prices within the market, making widespread adoption in average households difficult. This remains a major bottleneck for the LED industry, prompting ongoing discussions on how to reduce production costs. Recently, several experts have suggested innovative approaches to enhance both the cost efficiency and manufacturing processes of LEDs. One particularly groundbreaking direction involves the exploration of non-sapphire substrate solutions, which has sent shockwaves through the LED industry.
Recognizing the potential cost benefits, numerous leading manufacturers have begun adopting non-sapphire substrate technology in their LED production. Notable companies like TSMC SSL and the partnership between Bridgelux and Toshiba have embraced this shift. Additionally, Veeco, a prominent American equipment provider, has expressed strong optimism regarding the future of Gan-on-Si technology. It is anticipated that 8-inch equipment will soon become a focal point in the market. Similarly, Aixtron, a German equipment manufacturer, has introduced MOCVD equipment designed for high-temperature power supply units, which have already entered the power supply market. Meanwhile, Japanese equipment company Dayang Risin has launched its own Gan-on-Si MOCVD equipment, targeting specific niche markets.
Cree, another key player, has also ventured into non-sapphire substrate technology by developing LEDs based on SiC, emphasizing high-performance applications. Seoul Semiconductor from South Korea has introduced the latest nPora technology, a result of collaboration with Nobel laureate Nakamura Shuji. Utilizing Gan-on-Gan technology, these substrates offer advantages over traditional sapphire substrates, with sizes better suited for LED chip fabrication. Although LEDs built on these new substrates may initially face challenges in reducing costs, the direction is promising. Non-sapphire substrate solutions are increasingly viewed as a viable and potentially transformative path for the LED industry's future.