Photonics applications are driving the GaAs wafer and epiwafer market into a new era.
More information on: https://www.i-micronews.com/led-report/product/vcsels-technology-industry-and-market-trends.html
30. Data communications (datacoms) was the first
industrial application to start integrating Vertical
Cavity Surface Emitting Lasers (VCSELs). Their
sweet spot has been in short-distance data
communication due to their low power consumption
and competitive price compared to Edge Emitting
Lasers (EELs). Driven by the development of
datacenters, the VCSEL market and production
boomed in the 2000s with the internet’s popularity,
and then grew steadily. Some new applications for
VCSEL emerged, like laser printers and optical mice,
but weren’t strong growth drivers.
Only in 2014, almost 20 years since the first use of
the technology in datacom, VCSELs started to make
their way into high volume consumer smartphones.
But this coupling with sensors for proximity sensing
and autofocus functions was only the beginning of
the VCSEL success story. In 2017 Apple released the
iPhone X, with a 3D sensing function based on this
technology. The iPhone X integrates three different
VCSEL dies for the proximity sensor and the Face
ID module, and made the VCSEL market explode in
2017, propelling overall revenue to ~$330M.
GoodiPhoneXsaleshavenowtriggeredtheinterest
of other smartphone brands in this breakthrough
3D sensing function. Less than one year after the
release of Apple’s flagship, its competitors are now
following the same trend and starting to integrate
3D sensing technologies. Xiaomi and Oppo were
the quickest on the draw, with the Xiaomi Mi8 and
the Oppo Find X models presented in the second
quarter of 2018. Other leading smartphone players
like Huawei, Vivo or Samsung are also expected
to integrate VCSELs into their flagship models
by 2019. In this context, the explosion of VCSEL
demand initiated in 2017 will persist for the next
five years, potentially multiplying the business
opportunity more than tenfold. During that time,
the technology might also find some new growth
drivers into some other high volume applications
such as automotive Light Detection and Ranging
(LiDAR) or gas sensors.
This trend will likely cause rapid evolution in
the VCSEL industry in coming years in the form
of investment, new entrants and mergers and
acquisitions.
This report presents a comprehensive review of the
main VCSEL applications including in-depth analysis of
the consumer and automotive landscapes, including 3D
sensing, LiDAR and gas sensing.
VCSELS - TECHNOLOGY, INDUSTRY AND MARKET TRENDS
Market & Technology report - July 2018
AFTER 20 YEARS, THE VCSEL BUSINESS HAS FOUND ITS KILLER
APPLICATION – AND IS LIKELY TO EXPLODE
3D sensing – and more – in smartphones will drive theVCSEL market for the next five years.
KEY FEATURES
• VCSEL market revenue and
volume: 2017-2023
• Detailed technical and market
analysis of VCSEL applications, with
in-depth analysis of the consumer
and automotive landscapes
• VCSEL industry analysis: from
epiwafer to system
• VCSEL specifications and price
analysis
• VCSEL manufacturing analysis
• VCSEL IP analysis
(Yole Développement, July 2018)
The variety of applications using VCSELs involves a
variety of specifications at the device level, mostly
in size, output power and number of laser cavities.
As a result, the surface of a VCSEL chip or array
can range from less than 0.1mm² for datacom
and proximity sensing applications to more than
70mm² for LiDAR application. As the VCSEL
surface increases with the needed output power,
VCSEL market forecast by segment
NOT ALL VCSELS ARE CREATED EQUAL! APPLICATIONS DRIVE DEVICE
SPECIFICATIONS
2017
$330M
2023
$3,500M
Consumer Datacom Industry Automotive
Courtesy of Apple
CAGR +48%
$86M
$80M
$165M
$3,100M
$105M
$205M
$46M
31. VCSELS - TECHNOLOGY, INDUSTRY AND MARKET TRENDS
A NEWWAVE OF INVESTMENT AND MA HAS STARTED
VCSEL market volume is expected to grow from
652M units in 2017 to more than 3.3B units in 2023 at
a 31% compound annual growth rate for this period
(CAGR2017-2023). This booming trend is likely
to trigger interest in VCSEL technology at many
industry levels, including OEMs, integrators, device
manufacturers, epi houses, foundries, equipment and
material suppliers. To be able to follow this booming
demand, more than 100 MOCVD reactors will be
needed, which is likely to please companies that
supply this equipment, such as Aixtron, Veeco and
Taiyo Nippon Sanso.
Yole Développement (Yole) expects therefore strong
investment and proliferation in the VCSEL industry
with the entry of several new players, mostly from
the LED industry, whose technology is similar. Since
2016, Yole analysts’ have already seen some MA, like
ams’ acquisition of Princeton Optronics and Osram’s
deal for Vixar and investment in manufacturing
expansion or supply chain reinforcement, like Apple
investing $390M in Finisar. Yole expects the bulk of
these investments to occur in the coming years.
And once VCSEL hype reaches its peak, Yole also
expects a necessary consolidation phase with more
MA occurring at all level of the supply chain and to
support different strategies:
• Vertical integration - from system to module and/or
from module to component
• Application diversification - from datacom to
sensing
• Business diversification - from LED or EEL devices
to VCSELs
This report presents an in-depth analysis of the VCSEL
industry, which highlights supply chain trends and key
players. The reports also analyze VCSEL device market
size, broken down by application and segment, and the
related MOCVD reactor market. In addition, it details an
overview of the VCSEL IP landscape.
so do the number of cavities and the complexity of
the manufacturing process, mostly in ‘front-end’ chip
fabrication.
The current shift from the datacom industrial era
to the 3D sensing consumer era is likely to have a
strong impact on manufacturing expertise related to
VCSELs. Typically, whereas datacom uses 3” or 4”
diameter wafer manufacturing processes, consumer
applications requires 6” wafer processing to hit
their cost targets and also larger VCSEL arrays. This
evolution has a direct impact on manufacturing yield,
which is still low today for 6” processes. This is mostly
related to epiwafer manufacturing, for which the
epitaxy uniformity is still a major challenge, compared
to 3” or 4” wafer epitaxy. Typically, a difference of
1% in the layer thickness will result in a wavelength
deviation of 10nm. And knowing that epitaxy yield
will drive overall VCSEL manufacturing yield, it is now
at the heart of VCSEL industry investments in key
equipment for MOCVD and metrology.
This report present a detailed analysis of VCSEL
manufacturing processes, associated challenges, recent
trends and player positioning. This report also presents
main specifications for VCSELs in leading applications.
VCSEL specifications vs. Application requirements
(Yole Développement, July 2018)
• Datacom
• Proximity
sensor
• Gesture
recognition
• Laser autofocus
• Iris scan
• Optical mice
• 3D sensing
• Depth camera
• Medical
• ADAS LiDAR
• Industrial
cutting
Increase of die
size, number
of cavities,
power output
and so
manufacturing
complexity.
Also, different
package, single chip
vs. array to be
considered.
0.02 to
0.06mm2
3 to 40mW
0.06 to
0.4mm2
10 to 350mW
0.4 to
1.3mm2
200 to
1,000mW
10 to 75mm2
5 to 40W
VCSEL players* ecosystem
(Yole Développement, July 2018)
Epiwafer Foundry IDM Fabless Internal use
VCSEL device manufacturers
*Non-exhaustive list of companies
32. MARKET TECHNOLOGY REPORT
COMPANIES CITED IN THE REPORT (non exhaustive list)
Accelink, Aixtron, Alight, ams, Anadigics, Apple, Arima Lasers Corporation, Asus, Audi, Avago, AWSC,
Beam Express, Blackmore, Bosch, Broadcom, Cable solutions, Canon, Changelight, Continental, Device
Innovation, Egismos Technology Corporation, Emcore, Epistar, Epiworks, Excelitas, Finetech, Finisar,
FLIR, Foxconn, Fuji Xerox, Fujitsu, Global Communication Semiconductor, Google, Hamamatsu,
Hella, Heptagon, Himax, HLJ, Honeywell, Honor, HTC, Huawei, Ibeo, iHealth, II-VI, Infineon, Infinera,
Inneos, Innoluce, Innoviz, Intel, IntelliEpi, IQE, JDSU, Journal of semiconductors, Kaiam, Koito,
Landmark Opto, Lasermate, Lasertel, Laytec, LeddarTech, Lenovo, LG, Lumentum, Luminar, Luxnet,
Magneti Marelli, Mantis Vision, Masimo, Namuga, Oclaro, Oculus, Omnivision, OnePlus, Oppo, Optek
Technology, Optical Society of America, Optovue, Optowell, Orbbec, Osram, Oxford Instruments,
Palomar Technologies, Philips Photonics, Picolight, pmd, POET Technologies, Primesense, Princeton
Optronics, QSI, Quanergy, Rasirc, Raycan, Realsense, Riber, Ricoh, Robosense, Samsung, Sanan, Santec
Corporation, SCAT, Seiko Epson, Seminex, SensL, Shiraz University, Sick, SinoSemic, SoftKinetic, Sony
Corporation, Stanley, STMicroelectronics, Sumitomo Chemicals, Sunny optical technology, Suoer, Taiyo
Nippon Sanso, Tetravue, Texas Advanced Optoelectronic Solutions, Thorlabs, Trilumina, Truelight
Corporation, Tyson Technology, Ulm Photonics, Ultra Communication, US Lasers Inc., Ushio, Valeo,
Varroc, Veeco, Velodyne, Vertically Integrated Systems, Vertilas, Vertilite, Viavi, Vivo, Vixar, VPEC,
Wavetek, Win Semiconductor, Xiaomi, Zephyr Photonics, ZF (…)
Preliminary Definitions and Principles 33
VCSEL Overview 39
Definitions
Applications as a function of the
electromagnetic spectrum
VCSEL in the semiconductor light source
environment
History of VCSELs
VCSEL structure
VCSELs in the electromagnetic spectrum
Timeline of main applications for VCSELs
VCSEL Landscape 51
Classification of VCSEL applications by
wavelength
Classification of VCSEL applications by market
segment
Classification of VCSEL applications by function
VCSEL Market 59
2017-2023 market volume (Munits) - By
application
2017-2023 market revenue ($M) - By application
2017-2023 growth trends by application
Market growth relays
VCSEL ASP
MOCVD reactor opportunity
VCSEL Applications 75
Datacom
Active optical cable
Plastic Optical Fibre (POF) in automotive
Laser printer
Industrial heating system
Proximity sensors
Autofocus systems
Gas sensors
Computer mice
Pulse oximeters
LIDAR
Surveillance cameras
Eye tracking systems
Face recognition
Gesture recognition
Optical Coherence Tomography (OCT)
VCSEL Manufacturing 123
VCSEL vs EEL
Basic properties of VCSELs
VCSEL specifications vs. Application requirements
Epitaxy - Technologies and trends
Key front-end process steps
Reliability aspects
The case of array manufacturing
Front-end manufacturing control
Packaging
VCSEL Industry 153
Overview
Trends
Key players
Consumer and mobile landscape
Automotive landscape
VCSEL Intellectual Property Landscape 207
Overview
Patent segmentation
Conclusion 226
TABLE OF CONTENTS (complete content on i-Micronews.com)
OBJECTIVES OF THE REPORT
• Give a comprehensive picture of the forces driving the VCSEL light source market, technology and
industry in the short, middle and long term
• Allow readers to understand the global landscape related to VCSELs
• Review main applications of VCSELs, giving insights on principles, technology, technical requirements,
trends, key players and more
• Analyse the technology and industry behind VCSEL light sources and their integration into sensors
and modules
• Provide and analyze market forecasts for VCSEL light sources from 2017 - 2023
• Present an Intellectual Property (IP) analysis in order for the reader to better understand the
patent landscape related to VCSEL device, system and applications
AUTHORS
Pierrick Boulay works as Market and
Technology Analyst in the fields of LED,
OLED and Lighting Systems to carry out
technical, economic and marketing analysis.
He has experience in both LED lighting
(general lighting, automotive lighting…) and
OLED lighting. In the past, he has mostly
worked in RD department for LED lighting
applications. Pierrick holds a master degree
in Electronics (ESEO - France).
Find more
details about
this report here:
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Pars Mukish holds a master degree in
Materials Science Polymers (ITECH -
France) and a master degree in Innovation
Technology Management (EM Lyon -
France). Since 2015, Pars has taken on
responsibility for developing SSL and Display
activities as Business Unit Manager at Yole.
Previously, he has worked as Marketing
Analyst and Techno-Economic Analyst for
several years at the CEA (French Research
Center).
Pierrick Boulay and Pars Mukish, all part of
the Photonics, Sensing Display division at
Yole Développement (Yole) co-authored the
VCSEL - Technology, Industry and market
Trends report:
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