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Is the CSP ceramic package really so god?
When the size of the ceramic substrate closely matches that of the chip, it begins to lose its ability to effectively dissipate heat from the LED. On the other hand, removing the ceramic substrate eliminates a thermal interface, allowing for more efficient heat transfer to the board. As flip-chip technology advances, the need for the ceramic substrate to redistribute PN electrode lines as a dielectric material is gradually disappearing. Beyond mechanical protection and addressing thermal expansion mismatches, the ceramic substrate’s key roles in electrical insulation and heat conduction have significantly diminished. The GGI or AuSn eutectic soldering typically used to attach the substrate can now be replaced with low-cost SAC solder. With flip-chip technology, gold wire bonding and traditional wire bonding steps are eliminated, which reduces overall packaging costs.
The image above illustrates an example of this shift in design and manufacturing. As major manufacturers promote CSP (Chip Scale Package) technology, many still face challenges in fully implementing it. Traditionally, LED production is divided into three stages: chip fabrication, packaging, and lighting assembly. With CSP, the packaging step can be skipped entirely. This allows chip manufacturers to directly interface with luminaire producers, streamlining the production process and cutting costs. It seems like the role of the packaging factory may be reduced, but this isn't entirely true. The concept of "chip-level package" or "no package" actually refers to a flip-chip directly sealed onto the package pad, eliminating gold wires and brackets, simplifying the process and lowering costs. This also enables smaller packages, allowing for higher power output within the same size.
However, miniaturization brings stricter production requirements. The precision of equipment and the skill level of operators must increase, and the cost of production tools becomes a critical factor in determining accuracy, quality, and overall expenses. In the entire CSP production process, each step demands advanced technology, high-quality equipment, and skilled labor. Several challenges stand out: 1) controlling the distance between chips, 2) aligning chips with substrates, 3) managing the wavelength range of epitaxial chips, 4) ensuring uniform phosphor thickness, 5) mastering dispensing control techniques, and 6) achieving reliable sealing.
In recent years, leading high-power LED manufacturers have invested heavily in improving traditional ceramic packaging. Using advanced high-power flip-chip or vertical structure chips, they’ve gradually reduced the size of the ceramic substrate, lowering both cost and production efficiency. As cost pressures rise and the chip's ability to handle higher current densities improves, many companies have transitioned from the traditional 3535 package to smaller sizes like 2525, 1616, or even smaller. This makes the LED size closer to the chip itself, resembling CSP. Hence, it's called Near Chip Scale Package, or NCSP.
After CSP entered the market, it was adapted to fit China’s conditions and evolved into NCSP. This represents a transitional phase, driven by the immaturity of CSP technology and shifting market demands. Currently, due to price competition, companies are reducing material sizes to cut costs and produce more affordable products with smaller dimensions. At the same time, CSP is seen as a new generation of cost-effective solution, though its technology is still not fully mature, giving rise to the intermediate product NCSP.
Can CSPs without ceramic substrates gain a revolutionary advantage and dominate the market? If CSP becomes mainstream, it could severely impact Chinese ceramic substrate manufacturers. Companies like Slyton, which have recently emerged in this space, might face significant challenges. However, the era of CSP is not yet here, and ceramic substrates are not limited to LEDs alone.
Historically, LED packaging has included direct plug-in (LAMP), chip-on-board (COB), and various other forms. Today, SMD, POWER, and COB are the most common. CSP aims to replace these mainstream packages, such as 2835, 3528, and 5050. While it may not revolutionize the entire industry, it represents a technological upgrade at the chip level rather than a complete transformation of the packaging world.
For many small and medium-sized enterprises in China, CSP R&D hasn’t expanded the industry’s opportunities or reduced competitive pressure. Even if a product achieves 2,500 lm per dollar, it doesn’t necessarily translate to success. Currently, CSP occupies a small share of the lighting and packaging markets, mainly used in backlight applications. Most commercial lighting still relies on low- to mid-power solutions, while CSP is primarily focused on high-power applications. Only a few companies like Toshiba have introduced mid- to small-power CSP, with high technical difficulty and unknown yield rates. It’s possible that future breakthroughs could expand CSP’s use in lower power applications, making its future potential uncertain.
CSP is indeed a promising and innovative technology, marking a breakthrough in chip-scale packaging. It should not be underestimated, but it remains fundamentally a "chip," so there’s no need to overstate its significance. For companies like Slyton, there’s no reason to worry—ceramic substrates still have diverse applications beyond LEDs.
As industry leaders begin to invest more in CSP, following the typical development trajectory of new technologies, yield and cost issues are expected to be resolved within the first half of the year, with the slowest case taking about a year. In the future, the boundary between packaging and the chip, as well as between packaging and assembly, will become increasingly blurred. The overall structure of the LED industry will become clearer, and it’s up to each player to recognize the signals and decide how to move forward.
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