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Commentary: Covering All The Blue Spectrum Bases
 
... Upon the advent of our annual BLUE 2007 - Solid State Lighting Supplier's Conference in Taiwan (April 17-19 in Hsinchu), and because progress in GaN-based blue spectrum laser diodes (LDs) has recently been reported, it behooves us to remind those just jumping on the BLUE bandwagon that way back...
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Hitachi Cable Says 4-Inch GaN Substrates Possible With New Growth Method

April 2, 2007...While attending the Japan Society of Applied Physics at Aoyama Gakuin University, Hitachi Cable Ltd. announced that it has created a highly reproduceable 3-inch gallium nitride substrate prototype, according to a Nikkei Electronics article. The company claims that it is the first company to release photos and data for 3-inch GaN substrates. The industry primarily utilizes 2-inch GaN substrates. During a presentation the company reportedly was asked the question, “How far can it grow in size?” A company spokesperson told Nikkei Electronics, “We believe 4-inch products can be produced with no difficulty if the production equipments are arranged accordingly."

The compound semi industry has devoted much effort to reducing manufacturing costs of components requiring GaN substrates. Increasing the substrate diameter is one method of decreasing the cost per component by allowing more components to be placed on a single substrate. Hitachi reported that it was able to produce a larger diameter substrate by using a new technique it developed which adds a thin “sacrifice layer” onto the base substrate upon which the GaN is grown using HVPE. The sacrifice layer has a microscopic void in between the thick film GaN and the base substrate. This allows for easier detachment of the thick film GaN, the article stated. The article also carries considerable technical details. Hitachi is calling their procedure, "the void-assisted separation method."

Vishay Completes Acquisition of Power Control Systems Business of International Rectifier
CompoundSemi News Staff

April 2, 2007...Vishay has completed its acquisition of the Power Control Systems business from International Rectifier for $290 millon in cash. During the December quarter of fiscal 2006, revenues for the acquired product lines totaled about $81 million (roughly $320 million per year expected). Vishay predicts that after the first 12 months of operation it could increase its net profits from breaking even to about $40 million by March 2008. Vishay expects the newly acquired business to increase net profits to $50 million per year by March 2010.

According to Vishay, the aquired product lines, a complement to its own product portfolio, consist of high-voltage and high-power range products including: planar high-voltage MOSFETs, Schottky diodes, diode rectifiers, fast-recovery diodes, high-power diodes and thyristors, power modules (a combination of power diodes, thyristors, MOSFETs, and IGBTs), and automotive modules and assemblies.

The acquisition includes a wafer fab in Torino, Italy, as well as facilities in Swansea, UK; Mumbai, India; and Xian, China. Currently, Vishay has no plans for extensive restructuring. Vishay reported that it had entered into several Transition Service Agreements with International Rectifier for IT, logistics, and other functions as well as for the supply of wafers for up to three years. Vishay said it expects a smooth transition of the newly acquired business into Vishay's existing organization. Vishay News Release

Finisar to Acquire Azna LLC and Kodeos Communications Inc.
CompoundSemi News Staff

April 2, 2007...Optical component maker and tester, Finisar of Sunnyvale, California USA, reported that it has entered into agreements to acquire Azna LLC of Wilmington, Massachusetts, and Kodeos Communications Inc. based in South Plainfield, New Jersey. Finisar says that both acquisitions broaden its product lines, especially those for telecom applications. The acquisition will also add advanced modulation and electronic signal processing to economically extend the reach and tunability of transceivers.

Finisar reports that it will purchase the “equity interests in Azna for $19.7 million in initial consideration comprised of $2.7 million in cash and two convertible promissory notes in the principal amount of $15.6 million and $1.4 million that will be payable, at Finisar's option, in cash or in shares of Finisar common stock.” Finisar indicated it will purchase equity interests in Kodeos for initial payment of $7 million, an additional payment of up to $2.5 million to certain equity interest holders, and $1 milliono to current Kodeos employees.

Jerry Rawls, Finisar's chairman of the board, president, and CEO said that the acquisition of Kodeos would address the 10Gb/s 300-pin transponder market for telecom applications. Rawls added that with the acquisition of Azna, Finisar “…will be able to create a competitive advantage in terms of the cost, reach, and performance of our products for both telecom and datacom applications." Finisar News Release

Next Gen DVD Player Prices Reach $500 Benchmark Sooner than Expected.

April 3, 2007...Samsung Electronics lowered the price for its Blu-ray Disc (BD) player BP-1000 by about 48% to US$469.99 in late March of 2007, a Digitimes article stated. Toshiba immediately responded by reducing the US retail price for its entry-level HD DVD player HD-A2 to US$399. The retail price for Blu-ray or HD DVD players was lowered to the benchmark of $499 two quarters sooner than expected, the article said. While the format war is by no means over, the lower prices will bring much more early adopters of next generation DVD technology.

IQE Wins $2.4 Million in Contracts; Announces 2006 Results
CompoundSemi News Staff

March 29, 2007...IQE, a maker of advanced wafer products was awarded two one-year development contracts worth a total of $2.4 million. These contracts add to the other research and development projects to be delivered in 2007, the company said. With the two new contracts, the awards to date for delivery in 2007 total almost USD $5 million. The company also released its yearly earnings statement posting a 55.2 percent increase in revenue in 2006 over its 2005 results. The company indicated that much of the growth is attributed to two acquisitions during the year, Singapore based MBE Technology Pte and Emcore's electronic materials division.

One of the new contracts focuses on the development of strontium titanium oxide on silicon epi-wafers (STO/Si) using IQE’s molecular beam epitaxy (MBE) systems. IQE will further develop a method for using MBE to deposit STO/Si with high quality and superior composition for future high volume production.

The other contract is to develop advanced material structures for increased processing speed for future ICs. Dr Drew Nelson, IQE Chief Executive, commented, “We plan to aggressively pursue the metal-oxide on Silicon market where we offer unique and superior solutions for these advanced state of the art materials systems. Our entry into this market is important as it further diversifies the Group’s product portfolio and underscores our position as the global leader in advanced semiconductor wafer production and R&D.” Company News Release

Bookham Unveils Record Power 980nm Pump Laser Module
CompoundSemi News Staff

March 29, 2007...Bookham unveiled its new 750mW 980nm pump laser module at OFC/NOFEC 2007 in San Jose, California USA this week. The company considers the laser to be the most powerful telecom 980nm pump laser. The company indicated that it offers a “kink-free” power output of 750 mW. The company says that the pump modules output power will reduce the number of pumps required and therefore enable cost reductions. Bookham indicated that similar pump laser technology is being applications for next-generation submarines, which require high power and very high reliability. The new pump module takes advantage of Bookham’s generation eight laser chip (G08), which is qualified for use in both terrestrial and submarine applications. Bookham boasts that the industry-leading performance and reliability of the G08 laser chip makes it ideally suited for high-performance uncooled applications. Company News Release

Anadigics Introduces PA to Slash Handset Power Consumption
CompoundSemi News Staff

March 29, 2007...Anadigics has introduced its ZeroIC CDMA power amplifier designed to cut average current consumption by up to 50 percent over what it says was its previously industry leading HELP technology. Furthermore the company asserts that the PA slashes current usage by up to 85 percent compared to conventional two-stage amplifiers. At low power levels, the PA boasts zero power consumption with its new feature. The company points out that because the majority of handsets transmit at low power levels in a fully populated network, the ZeroIC power amplifier could translate into significant power consumption savings for the vast majority of handsets. Anadigics says that the unique power saving features of ZeroIC PAs are made possible by Anadigics' unique InGaP-Plus technology and differentiated design IP. In addition the compact devices have internal voltage regulators to further reduce space. Company News Release

SMI Awarded STTR to Develop MOCVD Equipment for LiNbO3
CompoundSemi News Staff

March 27, 2007...The National Science Foundation has awarded Structured Materials Industries (SMI) a Phase II Small Business Technology Transfer Program (STTR) to develop LiNbO3 thin films by MOCVD. SMI reported that it is collaborating with the University of Wisconsin to convert the University-led research into a viable manufacturing method. The company will develop a new MOCVD tool which supports LiNbO3 deposition.

SMI points out that conventional methods for producing lithium niobate (LinNbO3) devices use “titanium indiffusion or proton exchange to form shallow waveguiding channels in bulk LiNbO3.” However, forming structures such as ridge waveguides is impractical using this method because of the inertness of LiNbO3. Ridge waveguides are important in quantum well lasers and other optical communication applications.
For this reason, the company hopes to develop a method of producing thin films of the material that can be processed into ridge waveguides. Company News Release

University of Delaware Researcher Produce Flexible CIGs Solar Cells
CompoundSemi News Staff

March 26, 2007...The University of Delaware reports that its Institute of Energy Conversion (IEC) has developed a thin-film solar cell based upon copper, indium, gallium, and selenium (CIGS). The solar cells are reportedly produced by depositing the CIGS material on long sheets of a 10-inch wide flexible polymer. Erten Eser, associate scientist at IEC, indicated in an article by the University of Delaware, that the a multilayer structure is stacked onto a “high-temperature polyimide substrate that is coated with molybdenum, CIGS, cadmium sulfide, zinc oxide and indium tin oxide.” Eser said that their flexible solar cells had an average of about 10 percent conversion efficiency.

The University of Delaware’s Institute of Energy Conversion (IEC) joined an alliance to help commercialize solar energy. Other members of the alliance include: GE, the Renewable Energy Corporation (REC ASA), Solaicx, Xantrex Technology Inc, Sandia National Laboratories, and the National Renewable Energy Laboratory.

Heliovolt of Austin, Texas USA, has demonstrated that CIGS-based solar cells are much more efficient than silicon solar cells. Unlike the University of Deleware’s IEC, HelioVolt’s cells are produced by depositing the CIGs directly onto a building material such as glass or metal. The company hopes its method will significantly reduce the cost of CIGS solar cell production while improving efficiency. In theory, buildings could be built with their own off-grid source of electricity. HelioVolt says that to compete against silicon solar cells in price and efficiency, CIGS solar cells need to have at least 10 percent conversion efficiency.

Strategy Analytics Reports CS Industry Moving Towards Profitability
CompoundSemi News Staff

March 26, 2007...Strategy Analytics’ GaAs and Compound Semiconductor research service, reported its quarterly analysis of compound semiconductor industry news. In the quarterly report, the market research firm says that the compound semiconductor industry is moving into profitability. While individual companies had ups and downs for the calendar year 2006, the report indicates that the CS industry generally demonstrated positive results.

According to Asif Anwar, Strategy Analytics' lead CS market researcher, the telecom sector continued to struggle in 2006, with JDSU as the exception. “…The market is picking up, so performance should improve in 2007,” said Anwar about the telecom sector. He added that CS equipment makers found strong demand from LED sector. Asif Anwar will be a speaker at our upcoming CompoundSemi Vision 2007 conference June 19-20 in Austin.

Stephen Entwistle, Vice President of the Strategic Technologies Practice, added that “2006 was a good year for the industry with strong demand helping to drive revenues…. At the same time, companies adopted focused strategies that included divesting operations that did not tie in with their core business, helping them to move towards profitability.” Strategy Analytics News Release

IBM Researchers Demonstrate 160 Gigabits/Sec Optical Chipset
CompoundSemi News Staff

March 26, 2007...At the 2007 Optical Fiber Conference in Anaheim, California USA, IBM scientists will unveil a prototype of an optical transceiver chip which the company says can transmit data at more than eight times faster than the best optical components today. For example, IBM says that a high-definition feature length film with roughly 160 billion bits of data would only take one second to download as opposed to 30 minutes or more over the best network connectivity available..Instead of sending electrons over wires, optical networking relies on pulses of light to transfer data. The prototype optical chipset, which IBM Research created, measures merely 1/15th the area of a dime, but according to the company, it can transmit the equivalent of 4 million simultaneous telephone conversations, or one conversation between every two New York City residents.

IBM researchers said they built the optical transceiver utilizing current high-volume low-cost CMOS technology with driver and receiver integrated circuits. The researchers added necessary optical components made in indium phosphide (InP) and gallium arsenide (GaAs), into one, integrated package only 3.25 by 5.25 millimeters in size.

Dr. T.C. Chen, vice president, Science & Technology, at IBM Research, pointed to the increasing demands on networks created with the explosive growth of the amount data being transferred when downloading movies, music or photos. He said, "Greater use of optical communications is needed to address this issue. We believe our optical transceiver technology may provide the answer." Company News Release

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Commentary & Perspective...

Covering All The Blue Spectrum Bases
Jo Ann McDonald, founding editor

March 27, 2007...Upon the advent of our annual BLUE 2007 - Solid State Lighting Supplier's Conference in Taiwan (April 17-19 in Hsinchu), and because progress in GaN-based blue spectrum laser diodes (LDs) has recently been reported, it behooves us to remind those just jumping on the BLUE bandwagon that way back at our original BLUE 2003 event in Dallas, attendees first tussled publicly with the topic of how GaN-based compound semiconductor blue LEDs and LDs would take over the world. If only the mainstream media and trade press had listened to our message then! But... better to be late than never to arrive.

LEDs won out, of course. Over the subsequent four years, our CS and SSL industries have proved that the world indeed needs way more energy-saving white LEDs to replace conventional lightbulbs than they do blue spectrum LDs to replace conventional capacity optical storage systems (DVDs, hard discs, etc.) So we de-emphasized LDs at subsequent BLUE events, and moved the meet to the heart of the blue spectrum LED action: Taiwan. That original and highly memorable BLUE 2003 event triggered our Solid State Lighting (SSL) offshoot industry resource site and LIGHTimes. Latest additions have been Tom Griffiths' newest brainchildren, SSL Design and the fledgling Solid State Lighting Industry Trade Association, SSLITA (which you'll hear more about at BLUE 2007). We continue to cover GaN substrate news and blue spectrum laser diode news on our flagship site, CompoundSemi Online and in CompoundSemi News, and we'll again delve into promising laser diode trends and business opportunities at our CompoundSemi Vision 2007 executive forum in Austin, Texas June 19-20.

We named that original BLUE event "Blue" for a number of reasons, not just the obvious... meaning that the blue spectrum covers blue, violet, UV, and what's traditionally the hardest one to emit really bright light... green. And by now we should all know that there's really no such LED or LD "color" as "white". That's an optical illusion, tailor-made for the human eye. You have to dicker around with phosphors, some other color conversion technology, or combine red, green and blue (RGB) to get white. Personally, I tend to focus on what always excites those working in the inner compound semi circles, which is progress at the most basic level of these "incredible earth shaking technological breakthroughs." For me, the biggest breakthroughs are primarily GaN substrates and epiwafers because, it all boils down to the starting materials and growth equipment.

The other reason we named the event "Blue" was because 2003 was a low point for business for everyone; a true business recession. We billed the event as a "Celebration of the Blues" since everyone was feeling, well... downright blue. So instead of crying in our beer, we held a party, celebrating and calling attention, instead, to what we felt was the only real upbeat portion of the overall semiconductor industry. We invited tons of press to come learn about the only hotspot in the otherwise cold, cruel tech landscape of '03. Blue spectrum LEDs and LDs were the hottest thing since the microprocessor! (And they still are!) But business was so bad in '03 that even big trade publications like EE Times couldn't afford to pay for the gas to transport their Austin reporter to Dallas. That's hard times. Now, when I see current coverage on what the press feels is the tremendous potential of next generation blue spectrum LDs (ref: the latest, very well done overview in IEEE Spectrum by Michael Riordan titled A New Blue Laser) I love seeing it, but think, If only you guys could have joined us at BLUE 2003." As is the case with the subsequent Taiwan BLUE events, everyone who's anyone in the blue spectrum LED business comes to BLUE. All the greats in blue LEDs and LDs presented at the original BLUE in Dallas. A glance at that '03 agenda still reads like the current Who's Who of the biz. The event in Taiwan continues to uphold that tradition.

While the overall CS business still isn't exactly back to boom times (telecom keeps holding us back), the blue spectrum LED side has obviously prospered and, especially with the recent consolidation moves, is maturing on or ahead of predictions. On the blue spectrum laser diode side, Nichia is prospering and thriving, as are their LD customers because of its IP muscle and continued technological lead. Virtually all the GaN blue/violet LD-based product in the market is currently based on Nichia blue spectrum LDs. The consensus is, that the blue spectrum LD business will pretty much go to the traditional Japanese DVD giants. Cree has pretty well given up on blue laser R&D, even though they have an outstanding native GaN material team in George Brandes and Calvin Carter who remain world class growers. Then there's the news that came out early this year from the UC Santa Barbara labs of our good buddies Shuji Nakamura, Steve DenBaars and Jim Speck on their non-polar blue spectrum work based on native GaN-material. (Ref: our headline news, Jan. 30 titled Shuji Nakamura and UCSB Researchers Produce Blue-Violet Non-Polar GaN Laser. We did miss reporting on Rohm's similar progress, which Michael Riordan covers nicely in the above-cited Spectrum article. But there are a number of under-reported folks dabbling in blue spectrum LDs... just ask the GaN substrate and equipment guys. Tekcore of Taiwan being one of the latest entries by announcing the purchase a new Aixtron reactor to ramp blue LD production (ref: our Mar. 22 coverage and IOP's more in-depth coverage).

In follow-up to those reports, keep in mind two things. One, (and I'm indeed being smug here) Shuji Nakamura and Steve DenBaars hinted at what they were doing back when they presented at Blue 2003. (That was just after Rohm had pledged $2.4 million to Shuji's and Steve's new SSL lab which has major support from other Japanese companies... and Cree.) So don't be surprised if we greet hype like "greatest new breakthrough" or "first in the world" with a rolling of eyes. Been there. Reported that. The other is that, based on our experience (in my personal case, 35+ years, and the first to do online news reporting in the mid-1990s) the phrase "2-3 years out" for commercialization of any good R&D usually equates to about 5 years out. You'll learn way more about true timelines for native GaN-based products at CS Vision in June in Austin. Kyma's CEO, Keith Evans, is one of our three co-chairs (along with Matheson Tri-Gas' Bill Kroll and AXT's Phil Yin), and nobody knows more about the GaN substrate R&D scene than Keith. Also, Hank Rodeen will be speaking at this year's Vision. Hank's the lead author of Strategies Unlimited's bi-annual GaN market study, and nobody knows more about the overall GaN market scene than Hank.

UCSB's and Rohm's progress on non-polar material is exciting, promising, and indeed newsworthy, which is why it's being addressed in this column. That's also why we made the UCSB breakthrough our headline news, bylined by our news editor, Scott McMahan, when it first came out. (If you didn't catch it then, you need to read your email alerts more carefully). It's not only newsworthy to the LD sector, but also to the blue spectrum LED sector and the overall SSL industry. According to my sources, elimination of the polar fields could lead to not only more efficient lasers (and possible improvements in the green spectrum) but could also lead to the ability to drive LEDs even harder, without sacrificing efficiency, again... particularly in the green zone. In turn, this could lead to more lumens/watt, and more importantly, lumens/mm**2 (= lumens/$). But we'd all bet on 5-6 years out, not 2-3. Right now the commercial market for GaN lasers is about 97 percent DVD type apps (like Sony's Playstation3), with Japanese domination. But who knows, maybe at CS Vision this year we'll hear more about where else they might crop up. I remember Shuji telling me back in 1999, before he left Nichia, that underwater communication (like to submarines) was a potential application. Instead of thinking nuclear war however, maybe we could start talking to dolphins underwater via blue lasers.

Back to the here and now... and what's realistic and doable. To that end, I highly advise those on top of the blue spectrum LED front remain at the forefront by reserving a seat at the upcoming BLUE Solid State Lighting Supplier's Conference in Taiwan in April. (Register now! Click on this link). It's going to be bigger and better than ever, primarily because we've divided this year's event into three stand-alone sections on each of the three days involved. April 17th is the pre-conference technical seminar which, this year, will be presented by Nu-Sil Technologies on using silicones in volume manufacturing processes. Then we've divided the main conference into two separate, but obviously related days (so you'll likely want to stay for both). The Technical Forum is on April 18th, covering fabrication, devices and packaging (with the application in mind), which is the new addition to this 5th annual event. Then, on April 19th, we'll host our usual Business Forum concentrating on markets, trends and applications. Scan the agenda and prepare to be impressed! By dividing the technical from the business, the local Taiwan manufacturing community, especially, is given a unique opportunity to meet with their particular peers on the day that applies most to their individual field of interest. Heavy on the tech talk on Wednesday, April 18th, and heavy on the business and applications talk on Thursday, April 19th, with plenty of show & tell at the exhibits in between talks. And whether you attend one or both forums, everyone gets to see and hear from our headline speaker, Neal Hunter.

Neal is a great speaker and he comes from an incredible background up and down the blue spectrum, having been one of the original founders of Cree and thus, head of the first company to ever do blue LEDs... long before Nichia even. (Cree's were dim blue way back in the mid 1980s, but the first commercial blue LEDs, nonetheless). As the former president, CEO and chairman of Cree, and now the chairman and co-founder of one of the most exciting of the new blue spectrum LED systems integrators for general lighting, LED Lighting Fixtures, Neal has seen (and helped cause) this industry to bloom from a mere handful of seeds. The title of Neal Hunter's talk is Getting Real in 2007... We Don't Need the Hype to be Successful. He's slated to talk on Wednesday evening at BLUE 2007. This is a rare opportunity to hear Neal's direct insight on what it will take for this industry to truly succeed and where major mistakes could be made that could set your company... and the entire industry... back. Neal feels that, with real results that the customers can believe in, there's no need to inflate the claims or fail in full disclosure. With that, the industry has a winning hand... providing it plays the game correctly.

So as you can see, feel and believe, we're not only reporting the GaN-based blue spectrum news on all fronts, we're helping drive the blue spectrum bandwagon. Plan now to attend BLUE 2007 in Hsinchu, Taiwan and CS Vision 2007 in Austin, Texas, and jump into the driver's seat with us. There's plenty of room for good people.

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