Driven by energy conservation and carbon reduction in the future, flip-chip chips are a good solution. Flip-chip LEDs have advantages over ordinary LEDs such as small size, good heat dissipation, high brightness, and no need for metal wires. Therefore, flip-chip LED designs have been introduced into end products such as lighting, LED TVs, flashlights, car lights, etc.
In the past, flip-chip LEDs were developed earlier in the new century by European and American manufacturers and Taiwanese manufacturers, and were mainly used in lighting applications. Since the second half of 2013, Samsung Electronics has introduced flip-chip LEDs into LED TV backlight design, driving relevant industry chain players to develop flip-chip LEDs. South Korean manufacturers include Samsung LED, Lumens, Semicon Lihgt, etc. Taiwanese manufacturers have previously supplied products to Samsung Electronics of South Korea.
As the penetration rate of LED in backlight applications increases, South Korea's Samsung began to fully adopt Flip Chip (flip chip technology) as TV backlight chips this year. In addition to purchasing chips from Taiwanese LED chip factories, Samsung has also recently purchased upstream epiwafers from Taiwanese factories to supply its own chip factories.
Compared with the current gross profit level of LED chip factories, as long as the yield rate of Flip Chip (flip chip technology) is high enough, the gross profit margin can even reach 40%, which is much higher than the average gross profit of chip factories. Even if the gross profit margin may fall to around 20% in the future, it is still a high-margin product. Therefore, the revenue proportion of manufacturer Flip Chip will directly affect profits.
This year, the average revenue ratio of Flip Chip of Taiwanese LED chip factories is expected to reach more than 10%. The initial estimate is about 10% for Epistar, and it will reach 10~15% in the new century. Canyuan Chairman Jian Fengren has a more aggressive goal, predicting that Flip Chip's ratio will reach 15~20%; in addition, Lextar also estimates that it will be 10%.
LEDinside said that this year’s Flip Chip will be an important development axis for LED chip factories this year because its technology has matured and it has product advantages such as no wiring required and high-current drive capability.
ANNA