Chinese government publishes demo project bid award list of solid state lighting apps raising expectations for LED domestic market

CHINA & TAIWAN: The Chinese central government recently held a large-scale open bidding for LED lighting products. The National Development and Reform Commission, Ministry of Housing, and Urban-Rural Development Commission and Ministry of Transport conducted the tender evaluation together and published the bid award list on November 24, 2010.

LEDinside, the LED research division under Trendforce, realizes that 28 LED lighting companies out of 94 bidding industry players have become bid winners. Bid products include LED street/tunnel lamps, LED down lights, reflector type self-ballasted LED lights (MR and PAR series).

Most bid winners are China's local LED manufacturers, but the LEDs they adopt require high specifications, so Cree is undoubtedly the biggest winner. As the LED demand increases with the progress of the demonstration projects, Taiwan LED manufacturers can have an opportunity to enter the supply chain.

The award criteria emphasize the product quality, price and comprehensive strength of the manufacturer. LEDinside thinks that the technical award criteria require high specifications and quality of the LED lighting product. Apart from the safety requirement for lighting fixtures, the initial luminous flux, luminous maintenance factor and power factor also have related criteria respectively.

Thus, the bid winners have actually obtained the endorsement and support from the government, which will immensely help expand the mainland market in the future.

According to LEDinside’s analyst, the bidding puts certain scale limitations on the demonstration projects applied by governmental units. For example, no less than 5000 indoor LED lighting products must be applied into the construction/renovation project of architectural lighting; no less than 500 LED street/tunnel lamps must be applied into the construction/renovation project of secondary road, branch road or tunnel lighting.

Besides, each unit will release orders totaled at least 3 million RMB. As more and more government units will apply for the demonstration projects based on the award criteria, the LED industry development has a bright version in the near future.Source: LEDinside.

Now, there is China RoHS2 to consider!

Gary Nevison, Premier Farnell, UK

UK: If you thought that progress was slow on the implementation of the so called “China RoHS Catalogue” first published in September 2009 but not yet in force, then now there is “China RoHS2” to consider.

A draft was published in July and now it is a question of which version of China RoHS will be taken forward and, if so, will the other be rejected (or amended) once and for all?

On 16 July 2010, the Ministry of Industry and Information Technology released the “draft measures for the pollution control of electrical and electronic product” the so called China RoHS2 for public consultation.

Among other things, the proposed measures would amend the coverage of products by modifying the definition from “electronic information product-EIP” to “electrical and electronic product-EEE”.

This new definition largely corresponds to EEE in the EU RoHS Directive and within the same scope of designed for use with a voltage rating not exceeding 1500Vdc and 1000Vac.

This is a much broader scope than before but, so far, there is no indicative list of products. However, they may not produce one if it is felt that everything electrical is in scope.

The six restricted substances remain the same as EU RoHS, but one difference is that accessories will be included as well as component parts. Another interesting observation is that there is no mention of the China Compulsory Certification (CCC) in the July 2010 draft.

This draft would also change the title of the Catalogue from “key management catalog for the control of pollution by electronic information product” to read the “standard product catalogue for the pollution control of electrical and electronic product.

So, the scope of EU RoHS will expand due to the recast as will China RoHS because of these proposals. Finally, though, no timescales are known at present.

European Parliament backs first reading approval on RoHS recast

Gary Nevison, Premier Farnell, UK

UK: Those who have been following my regular updates on the RoHS recast will be interested to know that the European Parliament has backed the first reading approval on the so called RoHS recast. Environmental ministers are likely to support the deal when they meet in Brussels during December.

RoHS will become an open scope, but not for eight years after the recast enters into force. Restrictions on six substances will be, at that point, extended to all types of electrical and electronic equipment (EEE) unless specifically excluded. Exemptions will include fixed industrial machinery, military and photovoltaic solar panels.

There was considerable compromise leading to disappointed Green groups who were looking for bans on further restricted substances such as brominated flame retardants and PVC. There was a mixed reaction from the industry.

A list of 37 substances for priority assessment was dropped as was the proposed restriction on nanosilver and carbon nanotubes.
The new directive will enter into force 20 days after it is published in the Official Journal of the European Union. Member States will have 18 months to transpose into national law.

Meanwhile, the WEEE recast is moving slowly with a second reading approval a possibility next year.

MKS Instruments expands manufacturing partnership with SMTC

TORONTO, CANADA: SMTC Corp., a leader in electronics manufacturing services, has announced the expansion of its outsourcing relationship with MKS Instruments, Inc. a global provider of technologies to power, control, deliver, monitor, measure and analyze advanced processes in high growth markets.

SMTC's regional manufacturing center in Toronto will provide PCBA and subassembly manufacturing services for MKS's elite product line of air cooled RF Generators.

MKS served markets include manufacturers of capital equipment for thin film applications including semiconductor devices, flat panel displays, light emitting diodes (LEDs), solar cells, data storage media and coatings, as well as medical equipment, energy generation and environmental monitoring processes and other industrial manufacturing.

"SMTC is a focused and capable outsourcing partner with the ability to scale to our needs. They are a key contributor in our effort to simplify and expand our outsourcing strategy, reduce costs, and eliminate supply chain challenges as we aggressively pursue our target markets," said Brian Quirk, VP, MKS Instruments. "SMTC's global operating presence provides an ideal footprint in support of MKS' global manufacturing objectives."

"SMTC is very proud of our expanding relationship with MKS Instruments," said John Caldwell, president and CEO, SMTC.

"Through our product lifecycle support services including engineering support and optimization, new product introduction, product assembly and test, and after sales support, we will help MKS meet both cost and time-to-market objectives, reinforcing their competitive position in the renewable energy marketplace."

Lighthouse completes acquisition of Huizhou Factory

HONG KONG: World-leading LED display solutions provider, Lighthouse Technologies Ltd (Lighthouse), has completed the share acquisition of its Huizhou factory, giving it full ownership of Lighthouse Technologies (Huizhou) Limited, one of the largest LED display factories in the world.

The move marks Lighthouse's continued leadership and commitment to developing the fast growing global LED display market.

The investment brings a number of advantages not just to Lighthouse, but to China and the Huizhou area as well. With RoHS compliance, the manufacturing facility is an eco-friendly investment, well aligned with the Chinese government's low carbon development policy put forth in 2009. It's also an investment that brings some of the most advanced technology and management experience to China.

For residents of Huizhou, the facility has also been an important source of economic growth, bringing more jobs to Chinese citizens and contributing to Huizhou's GDP and government revenue. And, following the acquisition, factory employees can now receive advanced training, giving them important skills that will aid them in their career development.

Lighthouse customers will also see benefits from the investment. Full ownership allows Lighthouse to increase production capacity, improving supply efficiency while maintaining excellent quality. It also ensures a solid link between each stage of the production process, from idea conception to design to manufacturing, effectively accelerating the time-to-market.

"Lighthouse has established itself as an industry leader in the international LED display market, and we require the most advanced technologies to continue meeting market needs and to continue building our reputation," said Peter Chan, general manager at Lighthouse. "We will continue investing in our Huizhou facility as the LED screen market hold tremendous potential, with demand booming in China and around the world."

One of the market's fastest rising industry leaders, Lighthouse has continued to strengthen its presence in Asia and in the world in 2010 with a number of big wins, including the Shanghai World Expo and several world- renowned brand stores such as Vivienne Tam, Chanel and Ermenegildo Zegna as well as the sports stadiums, Bradley Center in the US.

Lighthouse Technologies Limited is a global leader in LED display technology that develops, manufactures, and markets LED video display solutions for multiple indoor and outdoor applications, media and entertainment events, and sports arenas across the globe.

With numerous technological breakthroughs to its name, Lighthouse has established itself as a multi award- winning leader in the LED display industry that holds itself to the highest standards of quality.

China LED production ready for lift-off

AUSTIN, USA:IMS Research’s latest Quarterly LED Supply and Demand Report reveals that while China was the #4 region for LED production in Q3’10 with a 13 percent share of 2” equivalent wafer capacity, by Q4’11, it will become the #1 region with its capacity share reaching 32 percent in Q1’12.

China’s impressive share gains are a result of a multi-pronged stimulus program which incentivizes companies to manufacture LEDs in China by heavily subsidizing the costs of the MOCVD tools, the most critical tool in the manufacturing process, while also offering numerous other benefits.

The share gains have already started with China the #1 region for MOCVD installations for the first time in Q3’10 with a 32 percent share, up from 18 percent in Q2’10. China is forecasted to lead in MOCVD installations for at least the next five quarters, accounting for 64 percent of 2011 MOCVD installations.

Other highlights of the report include:

* The Q3’10 merchant MOCVD GaN LED market reached a record high of 230 tools. Revenue growth outpaced unit growth, up 22 percent Q/Q and 250 percent Y/Y to $489 million.

* Aixtron remained the market leader with a 54 percent share, down from 55 percent, with Veeco’s share rising from 42 percent to 44 percent. On a revenue basis, Veeco’s share rose from 44 percent to 48 percent supported by the transition to its K465i tool which was the industry’s top selling model in Q3’10.

* LG Innotek installed the most tools in Q3’10 followed by Forepi and Huga. LG is expected to overtake Samsung LED in wafer capacity in Q4’10 with Samsung reclaiming the top spot in Q2’11. In Q3’10, LG led in 2” and 6” capacity with Samsung leading at 4”.

* LED backlighting revenues are expected to peak in 2013 with notebook and mobile phones peaking in 2010.

* Sanan is expected to install the most tools over the next five quarters. Seven different companies are expected to install at least 50 tools over this period with more than 1,000 merchant tools installed between Q4’10 and Q4’11.

Semtech delivers industry’s first smart current sink LED backlighting platform

CAMARILLO, USA: Semtech Corp. has announced the industry’s first smart current sink LED backlighting platform with on-chip digital lighting effects for high-end handheld displays.

This new platform incorporates Semtech’s patent-pending, smart Automatic Dropout Prevention (ADP) technology to enable a new-generation of high-quality current sink drivers that can replace boost converters and charge pumps in high-end handhelds, while providing high-quality display backlighting.

The new SC667 and SC668 current sinks with ADP technology reduce the total parts count and extend battery life compared to boost converters or charge pumps, and offer far superior illumination quality compared to conventional current sink drivers. Additionally, on-chip digital lighting effects provide the flexibility to incorporate fade, breathe and blink effects without changing the firmware.

White LEDs used in backlighting applications typically have a forward voltage up to 3.6V. When the battery voltage declines in portable devices, the supply voltage must be boosted to ensure the white LEDs have sufficient voltage to illuminate the display.

Charge pump or inductive boost converter devices have typically been used to provide this voltage boost function. In an effort to maintain constant output power, these circuits increase current draw as the battery voltage declines, shortening battery life.

Improvements in white LEDs have resulted in forward voltages as low as 3.0V, reducing the threshold at which conventional LED drivers need to boost the battery voltage. Because of this, LED backlight drivers increasingly are operating in a non-boost mode, making current sink drivers an attractive alternative.

Current sink drivers eliminate the capacitors and inductor associated with the boost circuitry, reducing component count, board size and system cost, with the added benefits of eliminating any switching noise and extending operating time.

“With current sink topologies, the supply voltage available to the white LEDs is reduced toward the end of the battery discharge cycle,” said Athar Zaidi, director of Marketing in Semtech’s Power Management Group.

“Semtech’s ADP technology ensures that the LEDs dim in uniform and imperceptible steps as the battery voltage declines. The current sink approach also extends battery life, because there are no boost converters to draw higher current as in conventional implementations.”

Prior to the ADP approach, current sinks were not optimal for high-end handheld devices. This was because line transients caused by the heavy system loads (for example: RF transmission, camera, camera flash, Internet access) produced display flicker when these loads were enabled and disabled.

Semtech’s smart ADP topology eliminates this problem via automatic and simultaneous monitoring of each current sink to avoid dropout as the system loads turn on and off. Each time a current sink with ADP approaches dropout, the digital logic reduces the current setting for all of the backlight LEDs in small increments that are imperceptible to the human eye.

This process continues until all current sinks have sufficient headroom to regulate their current at the reduced setting. When this point is reached, the ADP circuitry locks the current setting, thereby eliminating any display flicker.

The SC667 and SC668 are the first current sinks to incorporate ADP technology. These devices also integrate a number of functions to enable high-end features on portables, including an ambient light sensing/control circuit that sets backlight brightness based on surrounding lighting conditions.

A PWM dimming interface that incorporates a digital low-pass filter is also included, providing the capability to perform content-adaptive brightness control (versus “always-on” illumination).

The SC668 provides eight current sinks, while the SC667 features seven current sinks plus an interrupt request indicator signal to tell the host processor when an ambient light threshold has been crossed. Both devices include an on-chip digital lighting-effects engine to control LED fade-in/fade-out, breathe, blink, auto-dim full, and auto-dim partial; an I2C interface to program and control the LEDs; and four programmable, 200mA low-noise LDO regulators to manage the power for multiple embedded peripherals.