LED chip prices are expected to drop to 50 cents for a 1000 lumen LED lamps in 2015. Moreover, LED lighting manufacturers might be facing the challenge of raising LED efficacy to 3,000 lm/$ within 2 years. Tightening profits are spurring manufacturers to develop new technology to drive down costs.
In general, LEDs make up 30% costs in a LED luminaire, while the remaining 70% costs are from other LED components, such as LED drivers and optic lenses. One method of approach is to tackle luminaire costs at a system level, such as reducing PCB, and using less optics, or in the case of Cree developing LED modules to meet market demands. However, most speakers at the forum addressed Chip Scale Package (CSP) technology, which has become widely adopted in the industry to drive down manufacturing costs.
CSP can reduce costs by eliminating the need for ceramic sub mount, while enabling the AuSn or SAC to solder directly on a L2 board. Therefore, the technology enables cost effective small devices, due to die level processing.
Thoughthe technology does have certain limitations. For example, maintaining package, solder, LED junction and phosphor below reliable operating temperatures. Efficiency limits also exist when meeting system lm/W targets.