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Zhou Xuejun said that whether the future packaging process can reduce costs is critical to the overall cost reduction. And the needs of LED customers have always been very complicated, these are the opportunities of PHILIPSLUMILEDS.
The following is the full text of Zhou Xuejun's speech:
High-tech LED forums can be more casual, you can speak freely, don't be cautious, so everyone should not be polite.
Today's topic I think of a very old impression, probably a dozen years ago, the Chinese men's national football team invited the first foreign coach, do you still remember what it is called? Schlapner, after he came, said to the Chinese football team, when you don't know where to play the ball on the court, you have to kick the ball. It is impossible to have no sense of direction. Someone is heading in this direction, some are heading in that direction, some are going to be packaged, some are saying that they want to be smart. This is our discussion. We are looking for ourselves.
To be honest, I am sometimes not very clear. I can only do some communication and share with you from our perspective. It is something we have seen. Especially in the case of chips and packaging, we will have an exchange with everyone.
Before this, I would like to introduce the specific situation of our company.
Everyone knows that Royal Philips is the three big blocks. This year, it announced the merger and set up a new company. After a month, it was announced that Philips colleagues would be sold, and Philips announced that the rest of the lighting The same is true, from the Royal Group, the establishment of another company, and another CEO, mainly focusing on lighting solutions and services, so the future may be three big blocks. Professional lighting solutions, home lighting solutions, traditional LED bulbs and more. It will also become a professional company.
This is a very good job for both companies.
However, this combination will become a brand new LED globalization company with an estimated value of more than 2 billion US dollars. This year, by the end of November, it has already realized 1 billion US dollars. In the future, the world, plus cars, and automotive lighting factories, I think there should be 2000000000.
In the future, there are still some other products in the automotive lighting industry that have entered the company.
Next we will talk about the packaging problem.
The most important thing about packaging is the driving force of diversified change. The customer just wants to ask if it can be cheaper. Can it be cheaper? In fact, the package, including the chip, is considering how to improve performance while reducing costs. Because the competition in the market is also very fierce.
If we look at the proportion of the cost of lighting, the package will account for 50%, which is 2012, 65% in 2013 and 60% in 2020. Therefore, the encapsulation of this link can not reduce the cost, and the cost reduction of the entire enterprise plays a decisive role and plays a key role. But it's not just the driver side.
In fact, the lean requirements of LED lighting design, some new lighting design has put forward new requirements, we know that oil lamps are the earliest, so the earliest lighting looks like the same as now, so the new technology will often be grafted when it is produced. Old technology. The earliest cars and horse-drawn carriages were similar, but the current cars are completely different.
LED bulbs are also such a process. From the earliest use of aluminum sheet heat dissipation, to the current use of heat-dissipating plastic sheets to dissipate heat, in fact, it is still following the original bulb shape, and there is no subversive change. Of course, Philips’s outbreak was subversive. His lamp head has limited the form outside.
So in fact, the changes in lighting companies are also driving changes in packaging, which I want to emphasize.
The technology pursued by LED is four blocks, one is price, package and so on. LED packaging, lighting groups to improve work efficiency are these four aspects. In the past two years, the factor of great performance improvement has been improved by the change of packaging, rather than the improvement of internal combustion efficiency. Many people may have the chip become larger. Of course, I believe that the internal combustion resistance is improved. It's also a big part, but it's hard to improve as it gets to the back.
If we look at the evolution of PCs and the evolution of lighting, the drunkenness of IBM's desktop is so big, the mobile phone or ipadmini is a computer, from the earliest street lights to the current ones, to thinner and thinner. When it comes to doing WIFI, it is actually moving in the direction of thin core and miniaturization.
For example, the packaging history of semiconductors is also going in the direction of miniaturization, and it is getting smaller and smaller. Therefore, we have seen the evolution of the entire packaging technology, and the future CSP is going to be miniaturized so that the cost can be reduced.
This miniaturization, in fact, he will involve the entire chip architecture. This is why everyone is talking about csp very hot now. In fact, the introduction of CSP technology can effectively reduce the cost of logistics. It is estimated that 40% and 50% of logistics cost reduction can be achieved, but now CSP I have to work harder again, I believe that it can be seen in the future. This is a very important direction for our company in the next stage.
The evolution of medium and low power packages, at the earliest time, has opened up the market for lighting beyond power, from the earliest PLCC to the PCT, to the later ceramic products, and now to SU, etc. The package form is very much, because they use the same way, the lighting requirements are different, so we have a lot of product lines now, the entire manager of the chip factory is not lower than the manufacturer of lighting.
Future package directions will be output toward higher throughput. Single point color conversion, more light field color coverage, hardcover color point control and miniaturization. This is the five main directions of change we have seen.
The package will likely migrate to the CSP because there are many advantages, cost advantages, heat dissipation, etc., both in terms of systems and chips. And in the future it is likely that the difference between high power and medium power will begin to blur. Because we now divide the high power and the medium power according to the package form, but in the future, if I use CSP, I can cut his chip to 0.5 and 0.3. Of course, I don't think that after the CSP comes out, the traditional ones will disappear. For a long time, it will still exist in the application market. In the future, there will be different customer product positioning and different devices. This will give our customers more flexibility to match their product positioning, and future packaging needs to go in this direction. Instead of saying that I did it, go take it.
Then the package may evolve, but the requirements for the light source will not change.
By the way, I will introduce a COB launched this year. This COB is about 20 nanometers. It can restore white color, red color, and other colors. Because white color has fluorescent additives, this wave can be very good. Good reflective fluorescer, but this white is fuller and the other includes the package area, the impact on the light quality.
The new normal is very popular nowadays. Package diversification may also be a new normal. In the future, CSP will come out. It will develop very fast, but the traditional medium power will also be there. I believe that in the next two or three years, it may be It will remain, it will continue to exist, and it should be further away. There may be many packages in a decade.
I just give an example and finally want to talk about trends.
What is the trend? Everyone wants to know, in fact, everyone does not know, it is difficult to say, just like I did not know it three years ago.
This is the report I am giving to you today. Thank you. 
Philips Lumileds Zhou Xuejun: Package Diversification is Normal
This article is the speech of Zhou Xuejun, Marketing Director of PHILIPSLUMILEDS Asia, at the 2014 High-Tech LED Annual Conference “On the Great Strategy of the Industryâ€.