LED chip may take up 40% of a package LED of 1 Watt ceramic base HB LED.
And the Ceramic Substrate may take up 14% of the total cost of the LED.
So in short, if we want to reduce the cost of the LED, we can simply reduce the chip side say 30% such that the total cost of the LED material will be reduced by 1/3, at same time do improve and try to maintain the same light output of the larger chip 1 mm x1 mm.
And that is about 17% of the LED material cost and at same time it gains its number of LED Chip on wafer.. At Same time, if we reduce the LED from 3mmx 3mm to 2.5mm x 2.5mm. We furtehr reduce the substrate by 25% and epoxy by another 5% due to smaller chip footprint.
The total cost of reduction can be 25%. That may be a way to significantly mark a 2nd level power LED at different power rate and price tag.
The price here is of an estimation only.
A lot pof people is talking about 6 inch LED wafer before sawing, so that will be a real challenge and way for reducing the cost of an LED. At a recent conference in Hong Kong, Parvez, CEO of Rubicon explained the rationale behind the LED industry’s move to larger diameter wafers. “The availability of cost effective large diameter sapphire wafers and also LED processing equipment capable of manufacturing large diameter wafers is enabling LED producers to improve their process yields and chip throughput which reduces their overall chip costs,” he said.
So let's watch out when we can have 6" LED wafer. now most of them are 4" diameter, By time 6" is commonly in the market, the cost of the LED willd be much lower than now.