IR LEDS and VCSELs - Technology, Applications and Industry Trends - 2017 Report by Yole Developpement

1. From Technologies to Market Sample CourtesyofJoanieLemercier IR LEDs and VCSELs - Technology, Application and IndustryTrends

2. 2 A better comprehension of forces driving the IR light source market, technology and industry! At short, middle… but also long term! • UNDERSTAND GLOBAL LANDSCAPE RELATEDTO IR LEDS AND LASERS! • REVIEW ALL APPLICATIONS OF IR LEDS AND LASERS, WITH INSIGHTS ON PRINCIPLE, TECHNOLOGY,TECHNICAL REQUIREMENTS,TRENDS, KEY PLAYERS (…)! • Detailed technical and market analysis of IR LED and laser applications, with in-depth analysis of emerging applications! • ANALYZE IR LED AND LASER LIGHT SOURCES (TECHNOLOGY, INDUSTRY...), AND THEIR INTEGRATION INTO SENSORS / MODULES! • ANALYZE IR LIGHT SOURCES MARKET FORECAST (2010 - 2022), WITH INSIGHTS ON 2023 - 2027 TREND! • Detailed analysis per light source (IR LEDs and IR lasers)! • ANALYZE IR SYSTEMS ROADMAP AND IMPACTS ON IR LIGHT SOURCE MARKET AND INDUSTRY! OBJECTIVES OFTHE REPORT ©2017 | www.yole.fr | IR LEDs and VCSELs | SAMPLE

5. 5 o OBJECTIVES OF THE REPORT P5 o AUTHORS OF THE REPORT P6 o GLOSSARY P7 o EXECUTIVE SUMMARY P8 o STATUS OF THE LED INDUSTRY AND RECENT TRENDS P40 • Status of the LED industry • History of the visible LED industry • Market landscape • Industrial landscape • Key highlights • 2015 & 2016 in a nutshell • Future trends • LED market trends • Displays • General lighting • Recent trends in the LED industry • Overview • Application diversification - Automotive lighting • Product diversification (Level 2) - UV LEDs • Conclusion o PRELIMINARY DEFINITIONS AND PRINCIPLES P54 • IR laser diodes - Taxonomy used in the report • Incoherent light vs. Coherent light • Modulation of light • Structured light • Time of Flight (ToF) • Introduction • 3D time-of-flight arrays • Trends • Shutter - Global shutter vs. Rolling shutter o IR LED / LASER LANDSCAPE P65 • From IR lamps to IR LEDs / lasers • Classification of IR wavelengths • Overview of IR light sources • IR lamps - Overview of applications • IR LEDs / lasers - Definition & History • IR lamps vs. IR LEDs / lasers - From new light sources to new applications • Timeline of applications for IR LEDs / lasers • Classification of IR LED / laser applications • Classification by wavelength - Global analysis • Classification by wavelength and market segment - Focus on NIR • Classification by function • Introduction • Segmentation matrix • Global analysis • Focus on Detection • Classification by light source • Classification by package type o IR LED / LASER MARKET P86 • Synthesis by application • IR light source (LED and Laser Diode) market • Market volume (Munits) • Split by application • Relative share by application • Market revenue ($M) • Split by application • Relative share by application • Market volume (Munits) and revenue ($M) - Split by wavelength • Market volume (Munits) and revenue ($M) - Split by light source • Market shares by light source - 2017 vs. 2022 TABLE OF CONTENT (1/3) ©2017 | www.yole.fr | IR LEDs and VCSELs | SAMPLE

6. 6 o IR LED / LASER MARKET P86 • IR LED market • Market volume (Munits) - Split by application • Market revenue ($M) - Split by application • Market volume (Munits) and revenue ($M) - Split by package power • Market volume (Munits) and revenue ($M) - Split by package type • IR laser diode market • Market volume (Munits) and revenue ($M) - Split by application • Market volume (Munits) and revenue ($M) - Split by laser type • 10 years trend • 2017 - 2022 growth trends for high volume applications • 2017 - 2022 growth trends for high revenue applications • 2017 - 2022 relative growth of major applications • New applications • 2017 - 2027 IR light source (LED and laser diode) market revenue trend o IR LED / LASER APPLICATIONS P119 • Introduction • High value applications vs. Low value applications • The case of optical communication • High value applications (1/2) • Horticultural lighting • Proximity sensors • Blood Pressure sensors • Blood Glucose monitors • LIDAR • Autofocus systems • Gas sensors • Surveillance cameras • Biometric sensors / Vein recognition • Biometric sensors / Iris Recognition • Biometric sensors / Face recognition • Number plate recognition systems • High value applications (2/2) • Night vision systems • Driver monitoring systems • Eye tracking systems • Gesture recognition systems • Machine vision systems • Spectroscopy systems • 3D cameras / imaging • Low value applications • Remote control • Movie pirating • Tilt sensors • Blind spot sensors • Traffic pre-emption systems • Smoke detectors • Photo interrupters • Pulse oximeters • Heart rate sensors • Adaptive cruise control systems • Rain sensors • Lane departure warning systems • Touch screen displays • Occupancy sensors o IR SYSTEMS ROADMAP P226 • Smartphone • IR LED / IR laser systems and players in smartphones • Roadmap - Increasing functionalities in smartphones • Roadmap - Evolution of sensors in smartphones • Future of smartphones - 3D camera / Iris & Gesture recognition / Spectroscopy TABLE OF CONTENT (2/3) ©2017 | www.yole.fr | IR LEDs and VCSELs | SAMPLE

7. 7 o IR SYSTEMS ROADMAP P226 • Automotive • IR LED / IR laser systems and players in automotive • Roadmap - Increasing functionalities in automotive • Future of automotive - 3D camera / Iris recognition / Gesture recognition • Gas sensing • IR LED / IR laser systems in gas sensors (1/2) • Roadmap - Technology for portable system - MOS vs. NDIR • Roadmap - Miniaturization aspects - Case of eLichens Optical MEMS sensors • Future of gas sensing - Reduced power consumption / Increased lifetime / (…) • 3D imaging / sensing • Consumer - Overview of front 3D ToF camera opportunities • Consumer - 3D ToF for video call and morphing • Consumer - 3D ToF imaging for biometry • Consumer - Google Tango project (1/2) • Consumer - Application using structured light principle • Roadmap - Consumer - Comparison of 3D imaging technologies • Roadmap - Medical - Optical Coherence Tomography (OCT) (1/2) • Future of 3D imaging / sensing o IR LED / LASER LIGHT SOURCES P255 • IR LEDs • Introduction - Status of the LED industry • Key manufacturers • Manufacturing process • Focus on substrate and active layer • Focus on epitaxy / chip manufacturing • Focus on packaging • Key challenges • IR laser diodes • EEL and SEL / VCSEL compared to LED • Key manufacturers • Key challenges o INTEGRATION OF IR SOURCES IN PACKAGE P270 • Technology trends • From optoelectronic to photonic • Two different paths in integration - Smarter or smaller? • System development - Complexity vs. Miniaturization • Focus on smartphones • Global trend • Evolution of sensors quantity (2007 vs. 2021) • Sensor fusion • The case of proximity sensor • The case of camera • Focus on automotive • Global trend • Sensor fusion • The case of autonomous vehicle • Case studies • Fujitsu Arrows NX F-04G iris authentication system • Intel RealSense 3D camera module • STMicroelectronics IR laser projector • Lenovo Phab2Pro 3D Time of Flight (ToF) camera • STMicroelectronics ToF proximity sensor in the Apple iPhone 7 Plus • Consumer Physics SCiO spectrometer • Industry trends • Status of the (IR) photonic industry • Key recent moves in the IR photonic industry • Strategies behind • The current positioning within the industry • 2022 business opportunities - The case of 3D imaging in consumer and mobile o CONCLUSION P297 o PRESENTATION OF YOLE DEVELOPPEMENT P300 TABLE OF CONTENT (3/3) ©2017 | www.yole.fr | IR LEDs and VCSELs | SAMPLE

8. 8 Pars MUKISH (Business Unit Manager - Solid State Lighting & Display -Yole Développement) • Pars MUKISH holds a master’s degree in Materials Science & Polymers from ITECH in France and a master’s degree in Innovation & Technology Management from EM Lyon, also in France. He works at Yole Développement, the "More than Moore" market research and strategy consulting company, as Senior Market and Technology Analyst in the fields of LED, OLED, Lighting Technologies, and Displays, carrying out technical, economic, and marketing analyses. In 2015, Pars was named Business Unit Manager for Solid State Lighting and Display activities. • Previously, he worked as Marketing Analyst andTechno-Economic Analyst for several years at CEA, a French research center. Pierrick BOULAY (Market &Technology Analyst - LED/OLED and Lighting Systems -Yole Développement) • Pierrick BOULAY works as a Market and Technology Analyst in the fields of LED, OLED, and Lighting Systems, carrying out technical, economic, and marketing analysis at Yole Développement, the "More than Moore" market research and strategy consulting company. He has experience in LED lighting, including general and automotive lighting, and OLED lighting. • Prior to Yole Développement, Pierrick worked in several R&D departments for LED lighting applications. He holds a master’s degree in Electronics from ESEO in France. AUTHORS OFTHE REPORT ©2017 | www.yole.fr | IR LEDs and VCSELs | SAMPLE

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10. 10 Overview RECENT TRENDS IN THE LED INDUSTRY • General Lighting is no more a BLUE OCEAN due to strong price pressure and intense competition! • In this depressed environment, several players have therefore decided to develop new strategies in order to differentiate from mainstream players and reap higher margin levels (through new relays of growth): • As a consequence, most of the players of the industry are looking at new relay of growth and with different strategies: • Product diversification (level 1) - What is beyond traditional package? Towards new package types: chip on board (COB) LEDs, LED Filaments, flip chip (FC) LEDs and chip-scale package (CSP) LEDs. • Application diversification - What is out of general lighting and display applications? Towards niche applications: automotive lighting, horticultural lighting (…). • Other players are developing totally disruptive strategies for new growth relays: • Product diversification (level 2) - What is beyond visible LED? Towards non-visible LEDs: UV LEDs and IR LEDs. • Vertical integration - What is beyond visible LED chip and package? Towards LED modules and LED system. • Activity diversification - What is beyond LED?  Toward Power Electronics. • In this field, MicroLEDs are also a hot topic following Apple’s acquisition of Luxvue. New relays of growth are required for LED manufacturers to survive. Players already looking at what is beyond visible LED (UV LED, IR LED…) and even what is beyond LED (Power Electronics…). ©2017 | www.yole.fr | IR LEDs and VCSELs | SAMPLE

11. 11 Timeline of applications for IR LEDs / lasers LANDSCAPE - FROM IR LAMPS TO IR LEDS / LASERS • First developed applications were simple applications combining an IR LED and a photodetector to produce an "ON" or "OFF" output signal like photo interrupters or smoke detectors. • Other applications like LIDAR were developed using laser source for aero spatial and military applications. It took years to see this application developed for consumer applications. • The first big consumer applications using IR LED was the remote control one (in the 1980s), followed by surveillance camera with night vision (in the 1990s - following the development of image sensors). • Nowadays, development of new / smart functionalities in smartphone, medical, automotive (…) and development of breakthrough devices / functions (i.e.: wearable, AR /VR) is driving IR LED / lasers towards new applications. Strong market pull for IR LEDs / lasers! Recent development of new / breakthrough applications / functionalities is driving the integration of IR light sources. 2010 and more1970 1980 1990 20001960 1961: Creation of IR LED 1962: Creation of IR laser Timeline of development • Remote controls • IR touch screen displays • Surveillance camera with night vision • Adaptive cruise control (ACC) systems • Automatic number plate recognition systems • Proximity sensors • Lane departure warning systems • Blind spot detectors • Laser autofocus systems • Eye tracking • Gesture recognition systems • Occupancy detectors • Driver monitoring systems • (…) • Photo interrupters • Smoke detectors • Pulse oximeters • Traffic pre- emption systems TOWARD HIGH VOLUME APPLICATIONS Timeline represent first R&D toward these applications ©2017 | www.yole.fr | IR LEDs and VCSELs | SAMPLE

12. 12 Classification by function - Global analysis LANDSCAPE - CLASSIFICATION OF IR LED / LASER APPLICATIONS DATATRANSFER EMISSION DETECTION SENSING IMAGING • Optical Communication • Remote Control (i.e.: emitter side) • XX • Movie Pirating • Proximity Sensor • XX • XX • Traffic Pre-Emption Syst. • XX • XX • Pulse Oximeter • XX • Blood Pressure Sensor • XX • XX • XX • LDW System • XX • XX • XX • Gas Sensor • Surveillance Camera • XX • XX • Biometric Sensor / Face Recognition • XX • Occupancy Sensor • XX • Driver Monitoring Syst. • XX • XX • XX • XX • XX Applications: Sub-functions: Functions: ©2017 | www.yole.fr | IR LEDs and VCSELs | SAMPLE

13. 13 IR LED / LASER MARKET - SYNTHESIS BY APPLICATION (4/5) Application IR Light Function IR Light Source Wavelength Development Status 2017 IR Light Source Market 2022 IR Light Source Market CAGR 2017-2022 Key Players1 Comments Biometric Sensors - Vein Recognition To use vascular patterns as identification data IR LED 760nm XX $XXM $XXM +40.5% Hitachi, XX (…) XX Biometric Sensors - Iris Recognition To use patterns of the iris as identification data IR LED XXnm and XXnm, or XXnm only Commercialized $XXM $XXM +XX% Fujitsu, XX, XX, XX (…) Iris recognition and face recognition are likely to be integrated in the same device (using same IR light) for volume applications (such as smartphones), and with development of mobile payments Biometric Sensors - Face Recognition To use patterns of the face as identification data XX, Suprema, XX (…) Number Plate Recognition Systems To automatically identify number plates IR LED 850nm or 940nm Commercialized $0.7M $1.7M +20.1% XX, Pelco , XX(…) Fast growth in US and China - Moderated growth in Europe which is more mature (i.e.: technology already adopted since a long time) Occupancy Sensors To detect and classify seat occupant XX XX XXnm R&D No Market $XXM (Total) NA Hamamatsu (…) XX Night Vision Systems To enable low light or night vision IR LED IR EEL XXnm Commercialized $XXM $XXM +4.5% XX, Autoliv (…) FIR is preferred nowadays - Fusion with NIR was introduced, allowing for detection of pedestrian - But this could be replaced by LIDAR Driver Monitoring Systems To enables gaze target recognition, drowsiness classification (…) IR LED XXnm or XXnm Commercialized $XXM $XXM +4.8% Morpho, XX, Harman (…) Today, mostly used for DFW and sell as high-end option - Fast growth expected with the development of autonomous cars 1. Sensor / Module / System Level ©2017 | www.yole.fr | IR LEDs and VCSELs | SAMPLE

14. 14 IR blasters in smartphones, tablets and smartwatches REMOTE CONTROL IR Blaster Smartphones Tablets Smartwatch • Samsung Gear • Samsung Gear 2 Samsung Gear 2 with WatchON Remote application (Source: Samsung) • Samsung - Galaxy S6 • LG - G5 • HTC - One M9+ • ZTE - Nubia Z11 • Oppo - Mirror 5s • Sony - Xperia Z • Honor - 8 • Huawei - P9 plus • Xiaomi - Max • Ulefone - Power • Lenovo - Vibe X3 • Panasonic - P55 Novo • Letv - LeMax Oppo smartphone with remote application (Source: Oppo) • Motorola - Xyboard • Sony - Xperia Z2 Tablet • Samsung - Galaxy Tab 4 7.0 • LG - G Pad X 8.0 • Medion - Lifetab • Mobicel - Cherry LG G Pad with remote control application (Source: LG) EMISSION ©2017 | www.yole.fr | IR LEDs and VCSELs | SAMPLE

15. 15 Characteristics: • This application uses IR LEDs with a peak sensitivity wavelength at 940nm. • As proximity sensor are used in smartphones, proximity sensor manufacturers need to use low profile IR LEDs. • Thickness of IR LED is ~1mm. • Radiant intensity is low (~2mW/sr) because the user will be detected at a few centimeters from the smartphone. • This technology is low cost and has a low power consumption (10 - 50mA). Trends: • Smartphone integrate different types of sensors, such as: • An Ambient Light Sensor (ALS) to automatically adjust backlight of the screen. • A proximity sensor to turn off the display. • A RGB sensor that have the ability to sense each RGB component of light. • Current trend is to include more functions in a single package to decrease total OEM integration process and cost, and decrease the form factor of the sensor (Toward Sensor Fusion). • Today, most of the products have a 2-in-1 or a 3-in-1 package. • New development would include other functions in this package like gesture detection (…). • Such trend (i.e.: sensor fusion) will also push for VCSEL technology to have proximity sensing + gesture recognition functions for example (…). • Some proximity sensors already integrate an IRVCSEL in commercial products. Analysis (3/3) PROXIMITY SENSORS Discrete sensor ALS/proximity sensor 2-in-1 sensor ALS + proximity sensor OR Proximity sensor + LED 3-in-1 sensor or « module » ALS + proximity sensor + IR LED DETECTION / SENSING PHOTODIODE ©2017 | www.yole.fr | IR LEDs and VCSELs | SAMPLE

16. 16 Synthesis (description, requirements, market insights…) BLOOD GLUCOSE MONITORS DESCRIPTION: • Blood glucose monitors are used to measure the amount of glucose in blood, especially for patients with symptoms of abnormally high (hyperglycaemia) or low (hypoglycaemia) blood glucose levels. ASSOCIATED COMPONENTS: • Photodiode • Data processing MARKET INSIGHTS: • Development status: XX - XX • Competitive technologies: Invasive glucometer with a blood drop • Cost aspects: Non Available • Challenges:To provide an accurate and reliable measurement. • Trends: Emerging - Allow for non-invasive sensing - Research are focused on non invasive methods - Not adapted yet to clinical settings PLAYERS: • Cnoga Medical (…) IR LIGHT SOURCETYPE: • IR LED MARKET FORECAST: • 2017 IR Light Source Market: $XXM • 2022 IR Light Source Market: $XXM • CAGR 2017-2022: +171% TECHNICAL REQUIREMENTS: • Wavelength: XXnm (NIR) • Optic: Narrow beam angle • Other: XX DETECTION / SENSING PHOTODIODE + DATA PROCESSING ©2017 | www.yole.fr | IR LEDs and VCSELs | SAMPLE

17. 17 Total market revenue ($M) - Split by application (1/2) IR LIGHT SOURCE MARKET (LED AND LASER DIODE) IR light source market is expected to grow from ~$XXM in 2017 to ~$XXM in 2022! CAGR 2017 - 2022 = 19% ©2017 | www.yole.fr | IR LEDs and VCSELs | SAMPLE

18. 18 2017 - 2022 relative growth of major applications 10YEARS TREND Some applications will generate large revenues and strong growth rates during the next 5 years… But some others (like XX, XX or XX) are just emerging and expected to boom in the next 10 years. MARKETTHAT WILL BOOM DURINGTHE 2022 - 2027 PERIOD Market that will boom during the 2017 - 2022 period 2022 Market ($M) CAGR 2017-2022 ©2017 | www.yole.fr | IR LEDs and VCSELs | SAMPLE

19. 19 IR LED / IR laser systems and players in smartphones IR SYSTEMS ROADMAP - SMARTPHONE XX and 3D imaging represent the next value proposition in smartphones. INTERFACE SECURITY ENVIRONMENT OPTICAL XX AUTOFOCUS XX EYE / IRIS RECOGNITION XX PROXIMITY SENSOR XX ©2017 | www.yole.fr | IR LEDs and VCSELs | SAMPLE

20. 20 Roadmap - Increasing functionalities in smartphones IR SYSTEMS ROADMAP - SMARTPHONE • Since few years, many functionalities using IR light sources were developed in smartphones. • Applications are no longer basic like proximity sensor using a simple photodetector combined with an IR LED. New applications are more complex now using data processing and new light sources like laser diode and / orVCSEL. ©2017 | www.yole.fr | IR LEDs and Lasers | SAMPLE A proliferation of functions using different type of IR based sensors. Screen Turn Off (during phone call) XX & XX PROXIMITY SENSOR XX XX XX 3D CAMERA XX XX XX XX Enhanced Communication Gaming & 3D Avatar Gas Detect.LEGEND: Market introduction Market acceptance XX

21. 21 Future of 3D imaging / sensing IR SYSTEMS ROADMAP - 3D IMAGING / SENSING Towards the increasing importance of the tandem: Sensor + Illumination! And several opportunities have not yet emerged for XX. 1960 2000 2020 2030 2035 Technology X Market footprint 5 years10 years20 years40 years 2D imaging luminance 3D imaging depth beyond Visible & NIR Time of flight XX XX Acceleration -The speed of “technology change” doubles every technology shift Active sensing requiring structured light orToF sensor! There’s a huge need for IR illumination working closely with the sensor! Stereo XX Event-based Hyperspectral XX and XX imaging should create more opportunities for IR illumination! Opportunities not existing yet! ©2017 | www.yole.fr | IR LEDs and VCSELs | SAMPLE

22. 22 Two different paths in integration - Smarter or smaller? INTEGRATION OF IR SOURCES IN PACKAGE - TRENDS • As mentioned previously, there is an increasing market interest for photonic devices, sensors and modules in a wide range of applications (including consumer, automotive, medical and industrial). • For example, LIDARs are becoming essential elements for autonomous driving, non-dispersive IR sensors are enabling high sensitivity gas detection in portable applications, Time of Flight (ToF) technologies make gesture recognition possible (…). • All these technologies have in common the fact that they combine in a single package a light source (LED, laser diode…), a detector and a data processing unit. • While some companies focus on developing smaller and smaller devices (i.e.: miniaturization trend), others prefer to go into another direction  Integrating more functions in the package or module. • Winners are the ones who will be able to merge both approaches  More functions in a reduced package / module!Smarter or smaller? Two different paths in integration. Strategies in the optical sensor industry SMALLER SMARTER SWEET SPOT! Note that ams has acquired Heptagon in 2016 to get access to “light management” competences and become “smarter” in optical sensing.Also, in 2017, ams has acquired Princeton Optronics (VCSEL manufacturers) to get access to “light source” competences and is now “fully” integrated. ©2017 | www.yole.fr | IR LEDs and VCSELs | SAMPLE

23. 23 System development - Complexity vs. Miniaturization INTEGRATION OF IR SOURCES IN PACKAGE - TRENDS Smartphone and automotive applications need more and more complex and miniaturized systems! XX and XX are also driving this trend! BASIC / DUMB LOW MINIATURIZATION ANPR Movie Pirating Remote Controls Surveillance Cameras Horticulture Lighting TOWARD XX AND XX APPLICATIONS Time Applications driven by XX at the sensor / module level Basic applications requiring few development at the sensor / module level Applications driven by XX at the sensor / module level ©2017 | www.yole.fr | IR LEDs and VCSELs | SAMPLE

24. 24 Fujitsu Arrows NX F-04G iris authentication system INTEGRATION OF IR SOURCES IN PACKAGE - CASE STUDIES Fujitsu Arrows NX F-04G  The first smartphone with iris recognition function! IR LED cross section (Source: System Plus Consulting) IR camera module cross section (Source: System Plus Consulting) ©2017 | www.yole.fr | IR LEDs and VCSELs | SAMPLE

25. 25 Current companies’ positioning within the industry (non exhaustive) INTEGRATION OF IR SOURCES IN PACKAGE - TRENDS Each player will have to find its position, added- value and related product portfolio / structure! 1. But no offer yet! PositioningIllumination Sensor / Detector Packaging Data Processing Optic FULLY INTEGRATED - No offer yet ams STMicro. STMicrolectronics Sony Largan EM Marin Goertek Epistar Hamamatsu HETEROGENEOUS INTEGRATOR Jabil FULL SOLUTION PROVIDER SENSOR / MODULE PROVIDER SPECIALIST ©2017 | www.yole.fr | IR LEDs and VCSELs | SAMPLE

26. 26 2022 business opportunities - The case of 3D imaging in consumer and mobile INTEGRATION OF IR SOURCES IN PACKAGE - TRENDS Consumer ecosystem for 3D imaging and sensing XX Optical Lens Software 3D Camera Module ~$XXB opportunity in 2022 Illumination ~$XXB opportunity in 2022 ~$XXB opportunity in 2022 XX ~$XXB opportunity in 2022 ©2017 | www.yole.fr | IR LEDs and VCSELs | SAMPLE

28. The market for LED and laser infra-red (IR) light sources is not new, but has evolved rapidly with the recent development of Solid State Lighting (SSL). Initially developed for optical communication applications, these technologies, mostly IR LEDs, started to be integrated into consumer applications like remote controls in the 1980s. Next, the market was driven forward by night vision applications such as surveillance cameras. But it’s only recently, with the development of smartphones, that IR LEDs and lasers have come back to prominence. And now, the market is set for growth for the next 10 years! Today, these technologies are part of a new revolution, still driven by smartphone applications. Integration of breakthrough functionalities such as 3D imaging, autofocus, iris and face recognition is triggering a strong market pull for efficient, miniaturized and complex IR illumination. This trend will also create strong market opportunities for IR lasers, mostly VCSELs, which allow more coherent and directional light than IR LEDs. In this context, we expect the IR light source market to grow from around $450M in 2016 to around $1,550M in 2022 at a compound annual growth rate of 22.7%. In addition, there are also several other applications that are emerging and for which a market boom is likely to happen in the next 10 years. These include gas sensors, LIDARs, driver monitoring systems and remote patient monitoring sensors. We expect this second wave of new applications to propel the IR light source market to around $3,800M in 2027. This report provides an in-depth analysis of all IR light source applications, including: basic principles, technology, trends, key players, and market size. It highlights the global landscape for IR light sources, including classification of applications by wavelength, market segment and function. Detailed market forecasts are given based on these classifications and with complementary analysis by light source for LEDs, edge-emitting lasers and VCSELs. Please note that optical communication applications are not analyzed in this report. IR LEDS AND VCSELs - TECHNOLOGY, APPLICATIONS AND INDUSTRY TRENDS Market & Technology report - April 2017 INFRA-RED LIGHT SOURCES: A $1.5B OPPORTUNITY IN 2022 – AND POTENTIALLY $3.8B IN 2027 – DRIVEN BY SEVERAL NEW APPLICATIONS 3D imaging, gas sensing and autofocus will fuel the IR light source market to reach US$3.8B in 2027. KEY FEATURES OF THE REPORT Get the sample of the report on www.i-Micronews.com • Detailed technical and market analysis of IR LED and laser applications, with in-depth analysis of emerging applications • Analysis of IR system roadmap • Analysis of IR LED and laser light sources including the technology and industry, and their integration into sensors and modules • IR LED and laser market forecast from 2010-2022, with insights on trends for 2023-2027 OBJECTIVES OF THE REPORT The objectives of the report are to: • Understand the overall landscape related to IR LEDs and lasers • Review all applications of IR LEDs and lasers, with insights into basic principles, technology, technical requirements, trends and key players • Analyze the IR system roadmap and its impacts on IR light source market volume and revenue • Analyze technology and industrial trends related to integration of IR illumination into sensors and modules (Yole Développement,April 2017) 2017 to 2027 IR light source market forecast ($M) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Other applications 2023-2027 trends Surveillance cameras Machine vision systems Proximity sensors Emerging applications (3D cameras, autofocus systems, gas sensors…) 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 • 3D Imaging and Sensing 2017 • Gas Sensor Technology and Market 2016 • Sensors for Cellphones and Tablets 2016 • Sensors and Data Management for Autonomous Vehicles 2015 RELATED REPORTS Benefit from our Bundle Annual Subscription offers and access our analyses at the best available price and with great advantages Find all our reports on www.i-micronews.com VCSEL TECHNOLOGY WILL BE AT THE HEART OF THE INDUSTRY IN COMING YEARS In a depressed visible LED industry, manufacturers are looking at new opportunities to increase their revenues and margins. In this context, the IR LED market is perceived as a potential new ‘blue ocean’ with attractive opportunities for those players. In the past, only a handful of companies were involved in IR LEDs but, as of Q1 2017, there

29. IR LEDS AND VCSELs - TECHNOLOGY,APPLICATIONS AND INDUSTRY TRENDS EVERYTHING IS HAPPENING IN PHOTONIC PACKAGING! WE ARE AT THE EVE OF AN INDUSTRIAL RESTRUCTURING... For a few years there has been an increasing interest in photonic devices, sensors and modules including systems with IR illumination in a wide range of applications such as consumer, automotive and medical. However, photonic is radically different from electronic when it comes to packaging and integration, and has its own challenges. Today, there is no “structured” photonic supply chain or industry, and different strategies are starting to emerge to catch the maximum value of this high potential market. Should there be smarter devices? Smaller devices? This will soon be a multi- billion dollar industry. And, depending on current positioning and attraction toward this emerging market, each player may have different strategies to capitalise on it. For example, ams, through the acquisition of Heptagon and Princeton Optronics, is now fully vertically integrated. Recent rumors that STMicroelectronics’s single photon avalanche diode (SPAD) imager is likely to be linked to the iPhone 8 highlights that the company is enforcing its position of heterogeneous integrator as no clear standard approach or technology has emerged yet. Some players like the optics supplier Largan are betting on specialization. Who will develop the right strategy? It’s too early to know. However, what is sure is that the industry is evolving. And those who don’t adapt accordingly might not be around to enjoy its lucrative-looking future. This report analyzes integration of IR light sources into sensors and modules, detailing technology and industry trends based on case studies. are more than 40 manufacturers. Osram and Vishay still lead the field but some players, like Everlight or Epistar, have made large investments to benefit from this opportunity. While LEDs are important, VCSEL technology is the really hot topic. IR LEDs represented around 65% of the IR light source market in 2016, but this figure is likely to decrease to 45% in 2022. Development of 3D cameras and autofocus applications, associated with the sensor fusion trend in smartphones and automotive, will strongly drive growth of the IR VCSEL market in the future. The main advantage of this emerging technology is that it represents a good compromise between traditional laser diodes, providing coherent and directional light, and IR LEDs, offering lower manufacturing cost and ease of integration. Additionally, IR VCSELs allow new sensing approaches, such as Time of Flight (ToF). In this context, the IR VCSEL industry will be at the center of the attention and should experience strong growth in coming years. It is also likely that some players will work on both IR LEDs and lasers to maximize their revenues. Opportunities for both technologies will also be dependent on developments to overcome current limitations, towards longer wavelengths, higher performance, multi-spectral functionality and lower cost. Typically, most current IR LEDs are in the 850nm or 940nm range. To enable emerging applications such as gas sensors or portable/integrated spectroscopy systems, longer wavelengths will be mandatory. Last but not least, integration of these light sources into sensors and modules will also be part of the challenge to be handled by the photonic industry. This report presents an analysis of IR LEDs and VCSELs, including a map of manufacturers, insights on manufacturing processes and technology, current limitations and challenges. It also describes IR system roadmaps in key markets segment such as smartphones and automotive. IR light sources market shares - 2016 vs 2022 Current positioning of some players in the photonic industry (Yole Développement,April 2017) (Yole Développement,April 2017) IR LED 45% EEL 7% VCSEL 48% 2022 IR light sources market shares IR LED 65% EEL 14% VCSEL 21% 2016 IR light sources market shares Over a total market size of $450M Over a total market size of $1,550M PositioningIllumination Sensor / Detector Packaging Data Processing Optic FULLY INTEGRATED - No offer yet ams STMicro . STMicrolectronics Sony Largan EM Marin Goertek Osram Hamamatsu HETEROGENEOUS INTEGRATOR Jabil FULL SOLUTION PROVIDER SENSOR / MODULE PROVIDER SPECIALISTEach player will have to find its position and product portfolio / structure! COMPANIES CITED IN THE REPORT (non exhaustive list) Alpha Sense, ams, Apple, Autoliv, Avago, Bosch, Bridgelux, Cambridge CMOS Sensor, Chronocam, Coherent, Continental, Delta ID, Epistar, Everlight, Excelitas, Finisar, Fujitsu, GSS, Hamamatsu, Harman, Hella, Heptagon, Hitachi, Infineon, Intel, IPG Photonic, Iritech, LG, Luminus Devices, Morpho, Nonin, Omnivision, Osram, Panasonic, Philips Photonic, pmd, Primesense, Princeton Optronics, Quanergy, Rohm, Samsung, Sharp, SMI Vision, SoftKinetic, Sony, STMicroelectronics, Stanley, Sumitomo Electric, Tobii, Valeo, Velodyne, Vishay...

30. Find more details about this report here: MARKET TECHNOLOGY REPORT Status of the LED industry and recent trends 40 Status of the LED industry - History of the visible LED industry - 2015 and 2016 in a nutshell - Future trends - LED market trends Recent trends in the LED industry - Application diversification - Automotive lighting - Product diversification - UV LEDs Preliminary definitions and principles 54 IR laser diodes - Taxonomy used in the report Incoherent light vs. Coherent light Modulation of light Structured light Time of Flight (ToF) - 3D time-of-flight arrays - Trends Shutter - Global shutter vs. Rolling shutter IR LED/Laser landscape 65 From IR lamps to IR LEDs/lasers - Classification of IR wavelengths - Overview of IR light sources - IR lamps - Overview of applications - IR LEDs/lasers - Definition and history - IR lamps vs. IR LEDs/lasers - From new light sources to new applications - Timeline of applications for IR LEDs/lasers Classification of IR LED/laser applications - Classification by wavelength - Overall analysis - Classification by wavelength and market segment - Focus on NIR - Classification by function - Classification by light source - Classification by package type IR LED/Laser Market 86 Synthesis by application IR LED and laser diode market - Market volume (Munits) - Market revenue ($M) - Market volume (Munits) and revenue ($M) - Split by wavelength and by light source - Market shares by light source - 2017 vs. 2022 IR LED market - Market volume (Munits and $M) - By application - Market volume (Munits) and revenue ($M) - Split by package power and package type IR laser diode market - Market volume (Munits) and revenue ($M) - Split by application and by laser type 10-year trend - 2017-2022 growth trends for high volume applications - 2017-2022 relative growth of major applications - New applications - 2017-2027 IR LED and laser diode market revenue trend IR LED/laser applications 119 Introduction - High value applications vs. Low value applications - The case of optical communication High value applications - Horticultural lighting - Proximity sensors - Blood pressure sensors - Blood glucose monitors - LIDAR - Autofocus systems - Gas sensors - Surveillance cameras - Biometric sensors: Vein recognition - Biometric sensors: Iris recognition - Biometric sensors: Face recognition - Number plate recognition systems - Night vision systems - Driver monitoring systems - Eye tracking systems - Gesture recognition systems - Machine vision systems - Spectroscopy systems - 3D cameras and imaging Low value applications - Remote control - Movie pirating prevention - Tilt sensors - Blind spot sensors - Traffic pre-emption systems - Smoke detectors - Photo interrupters - Pulse oximeters - Heart rate sensors - Adaptive cruise control systems - Rain sensors - Lane departure warning systems - Touch screen displays - Occupancy sensors IR systems roadmap 226 Smartphones - IR LED/IR laser systems and players - Roadmap - Increasing functionality in smartphones - Roadmap - Evolution of sensors in smartphones - Future of smartphones - 3D camera/Iris and Gesture recognition/Spectroscopy Automotive - IR LED/IR laser systems and players - Roadmap - Increasing functionality in automotive - Future of automotive - 3D camera/Iris recognition/Gesture recognition Gas sensing - IR LED/IR laser systems in gas sensors - Roadmap - Technology for portable system - MOS vs. NDIR - Roadmap - Miniaturization aspects - Case of eLichens Optical MEMS sensors - Future of gas sensing - Reduced power consumption/Increased lifetime 3D imaging and sensing - Consumer - Overview of front 3D ToF camera opportunities - Consumer - 3D ToF for video call and morphing - Consumer - 3D ToF imaging for biometry - Consumer - Google Tango project - Consumer - Application using structured light principle - Roadmap - Consumer - Comparison of 3D imaging technologies - Roadmap - Medical - Optical Coherence Tomography (OCT) - Future of 3D imaging and sensing IR LED and laser light sources 255 IR LEDs - Key manufacturers - Manufacturing process - Key challenges IR laser diodes - EEL and SEL/VCSEL compared to LEDs - Key manufacturers - Key challenges Integration of IR sources in packages 270 Technology trends - From optoelectronic to photonic - Two different paths in integration - Smarter or smaller? - System development - Complexity vs. Miniaturization - Focus on smartphones - Focus on automotive Case studies (i.e.: reverse engineering analysis from System Plus Consulting) Industry trends - Photonic in package Conclusion297 TABLE OF CONTENTS (complete content on i-Micronews.com) AUTHORS Pierrick Boulay works as Market and Technology Analyst in the fields of LED, OLED and lighting systems, doing technical, economic and marketing analysis at Yole Développement, the “More than Moore” market research and strategy consulting company. He has experience in both LED lighting, including general lighting and automotive lighting, and OLED lighting. In the past, he mostly worked in RD departments for LED lighting applications. Pierrick holds a master degree in Electronics from ESEO in France. Pars Mukish holds a master’s degree in materials science and polymers from ITECH in France and a master’s degree in innovation and technology management from EM Lyon in France. Since 2015, Mukish has taken on responsibility for developing LED, OLED and sapphire activities as Business Unit Manager at Yole Développement. Previously, he worked as Marketing Analyst and Techno-Economic Analyst for several years at the French Research Center, CEA.

31. SHIPPING CONTACT First Name: Email: Last Name: Phone: PAYMENT BY CREDIT CARD Visa Mastercard Amex Name of the Card Holder: Credit Card Number: Card Verification Value (3 digits except AMEX: 4 digits): Expiration date: BY BANK TRANSFER BANK INFO: HSBC, 1 place de la Bourse, F-69002 Lyon, France, Bank code: 30056, Branch code: 00170 Account No: 0170 200 1565 87, SWIFT or BIC code: CCFRFRPP, IBAN: FR76 3005 6001 7001 7020 0156 587 RETURN ORDER BY • FAX: +33 (0)472 83 01 83 • MAIL: YOLE DÉVELOPPEMENT, Le Quartz, 75 Cours Emile Zola, 69100 Villeurbanne/Lyon - France SALES CONTACTS • North America - Steve Laferriere: +13106 008 267 laferriere@yole.fr • Europe RoW - Lizzie Levenez: + 49 15 123 544 182 levenez@yole.fr • Japan Rest of Asia - Takashi Onozawa: +81 3 6869 6970 onozawa@yole.fr • Greater China - Mavis Wang: +886 979 336 809 wang@yole.fr • Specific inquiries: +33 472 830 180 – info@yole.fr (1) Our Terms and Conditions of Sale are available at www.yole.fr/Terms_and_Conditions_of_Sale.aspx The present document is valid 24 months after its publishing date: April 19, 2017 / ABOUT YOLE DEVELOPPEMENT BILL TO Name (Mr/Ms/Dr/Pr): Job Title: Company: Address: City: State: Postcode/Zip: Country*: *VAT ID Number for EU members: Tel: Email: Date: PRODUCT ORDER -YDLS17015 Please enter my order for above named report: One user license*: Euro 5,490 Multi user license: Euro 6,490 - The report will be ready for delivery from April 19, 2017 - For price in dollars, please use the day’s exchange rate. All reports are delivered electronically at payment reception. For French customers, add 20% for VAT I hereby accept Yole Développement’s Terms and Conditions of Sale(1) Signature: *One user license means only one person at the company can use the report. Founded in 1998, Yole Développement has grown to become a group of companies providing marketing, technology and strategy consulting, media and corporate finance services. With a strong focus on emerging applications using silicon and/or micro manufacturing, the Yole Développement group has expanded to include more than 50 collaborators worldwide covering MEMS, Compound Semiconductors, LED, Displays, Image Sensors, Optoelectronics, Microfluidics Medical, Advanced Packaging, Manufacturing, Nanomaterials, Power Electronics and Batteries Energy Management. The “More than Moore” company Yole and its partners System Plus Consulting, Blumorpho, KnowMade and PISEO support industrial companies, investors and RD organizations worldwide to help them understand markets and follow technology trends to develop their business. MEDIA EVENTS • i-Micronews.com, online disruptive technologies website • @Micronews, weekly e-newsletter • Communication webcasts services • Events: Yole Seminars, Market Briefings… More information on www.i-micronews.com CONTACTS For more information about : • Consulting Services: Jean-Christophe Eloy (eloy@yole.fr) • Financial Services: Jean-Christophe Eloy (eloy@yole.fr) • Report Business: Fayçal Khamassi (khamassi@yole.fr) • Press relations: Sandrine Leroy (leroy@yole.fr) CONSULTING • Market data research, marketing analysis • Technology analysis • Reverse engineering costing services • Strategy consulting • Patent analysis More information on www.yole.fr REPORTS • Collection of technology market reports • Manufacturing cost simulation tools • Component reverse engineering costing analysis • Patent investigation More information on www.i-micronews.com/reports FINANCIAL SERVICES • Mergers Acquisitions • Due diligence • Fundraising More information on Jean-Christophe Eloy (eloy@yole.fr) ORDER FORM IR LEDS andVCSELs - Technology, Applications and Industry Trends

34. 30 Our 30 analysts operate in the following areas. FIELDS OF EXPERTISE Compound Semi. Imaging Photonics Batteries/Energy Management Power Electronics Displays Solid State Lighting (LED, OLED…) Advanced Packaging MEMS Sensors RF (Devices Technologies) Advanced Substrates MedTech Manufacturing ©2017 | www.yole.fr | IR LEDs and VCSELs | SAMPLE

35. 31 4 BUSINESS MODELS o Consulting and Analysis • Market data research, marketing analysis • Technology analysis • Strategy consulting • Reverse engineering costing • Patent analysis www.yole.fr o Reports • Market technology reports • Patent Investigation and patent infringement risk analysis • Teardowns reverse costing analysis • Cost simulation tool www.i-Micronews.com/reports o Financial services • MA (buying and selling) • Due diligence • Fundraising • Maturation of companies • IP portfolio management optimization www.yolefinance.com www.bmorpho.com o Media • i-Micronews.com website • @Micronews e-newsletter • Communication webcast services • Events www.i-Micronews.com ©2017 | www.yole.fr | IR LEDs and VCSELs | SAMPLE

36. 32 A GROUP OF COMPANIES Market, technology and strategy consulting www.yole.fr Manufacturing costs analysis Teardown and reverse engineering Cost simulation tools www.systemplus.fr IP analysis Patent assessment www.knowmade.fr Innovation Business maker www.bmorpho.com MA operations Due diligences www.yolefinance.com Test Measurement Expertise Research Innovation www.piseo.fr ©2017 | www.yole.fr | IR LEDs and VCSELs | SAMPLE

37. 33 OUR GLOBAL ACTIVITY 30%of our business 40%of our business 30%of our business Yole Inc. Greater China office Yole Japan HQ in Lyon Nantes Paris Nice Vénissieux Europe office Frankfurt Hsinchu Tokyo Phoenix Yole Korea Seoul ©2017 | www.yole.fr | IR LEDs and VCSELs | SAMPLE

38. 34 RESEARCH PRODUCTS - CONTENT COMPARISON Custom analysis scope is defined with you to meet your information and budget needs Breadth of the analysis Depthoftheanalysis Custom Analysis Workshops Standard Reports ©2017 | www.yole.fr | IR LEDs and VCSELs | SAMPLE

39. 35 Integrators and end-users Device makers Suppliers: material, equipment, OSAT, foundries… Financial investors, RD centers Our analysts provide market analysis, technology evaluation, and business plan along the entire supply chain. SERVING THE ENTIRE SUPPLY CHAIN ©2017 | www.yole.fr | IR LEDs and VCSELs | SAMPLE

40. 36 We are working accross multiples industries to understand the impact of More- than-Moore technologies from device to system. SERVING MULTIPLE INDUSTRIAL FIELDS From A to Z… Transportation makers Mobile phone and consumer electronics Automotive Medical systems Industrial and defense Energy ©2017 | www.yole.fr | IR LEDs and VCSELs | SAMPLE

41. 37 REPORTS COLLECTION o Yole Développement publishes a comprehensive collection of market technology reports and patent analysis in: • MEMS Sensors • RF devices technologies • Imaging • Medical technologies (MedTech) • Photonics • Advanced packaging • Manufacturing • Power electronics • Batteries and Energy management • Compound semiconductors • LED • Displays o You are looking for: • An analysis of your product market • A review of your competitors evolution • An understanding of your manufacturing and production costs • An understanding of your industry technology roadmap and related IPs • A clear view on the evolution of the supply chain The combined team of 50+ experts (PhDs, MBAs, industry veterans…) from Yole Développement, System Plus Consulting and KnowMade, collect information, identify the trends, the challenges, the emerging markets, the competitive environments and turn it into results to give you a complete picture of your industry landscape. In the past 18 years, we worked on more than 1 500 projects, interacting with technology professional and high level opinion makers from the main players of the industry. o Every year, Yole Développement, System Plus Consulting and Knowmade publish +120 reports. Gain full benefit from our Bundle and Annual Subscription offers. www.i-Micronews.com ©2017 | www.yole.fr | IR LEDs and VCSELs | SAMPLE

42. 38 OUR 2017 REPORTS PLANNING (1/2) MARKET ANDTECHNOLOGY REPORTS byYole Développement o MEMS SENSORS − Fingerprint Sensor Applications and Technologies - Consumer Market Focus 2017 − MEMS Microphones, Speakers and Audio Solutions 2017 − Status of the MEMS Industry 2017 − MEMS Sensors for Automotive 2017 − High End Inertial Sensors for Defense and Industrial Applications 2017 − Sensor Modules for Smart Building 2017 − Sensing and Display for AR/VR/MR 2017 (Vol 1) − MEMS Packaging 2017 − Magnetic Sensors Market and Technologies 2017** − Microspectrometers Markets and Applications 2017** o RF DEVICES AND TECHNOLOGIES − RF Components and Modules for Cellphones 2017 − Advanced RF SiP for Cellphones 2017 − 5G and Beyond (Vol 1): Impact on RF Industry, from Infrastructure to Terminals 2017 − 5G and Beyond (Vol 2): RF Materials Platform, from Infrastructure to Terminals 2017 − RF Technologies for Automotive Applications 2017 − GaN and Si LDMOS Market and Technology Trends for RF Power 2017 o IMAGING OPTOELECTRONICS − 3D Imaging Sensing 2017 − Status of the CMOS Image Sensor Industry 2017 − Camera Module for Consumer and Automotive Applications 2017 − Uncooled Infrared Imaging Technology Market Trends 2017 − Active Imaging and Lidars 2017 (vol 1) o MEDTECH − Status of the Microfluidics Industry 2017 − Solid State Medical Imaging 2017 − Sensors for HomeCare 2017 − Sensors for Medical Robotics 2017 − Organs-on-a Chip 2017 o ADVANCED PACKAGING − Advanced Substrates Overview 2017 − Status of the Advanced Packaging Industry 2017 − Fan Out Packaging: Market Technology Trends 2017 − 3D Business Update: Market Technology Trends 2017 − Advanced QFN: Market Technology Trends 2017** − Inspection and Metrology for Advanced Packaging Platform 2017** − Advanced Packaging for Memories 2017 − Embedded Die Packaging: Technologies and Markets Trends 2017 o MANUFACTURING − Glass Substrate Manufacturing 2017 − Equipment Materials for Fan Out Technology 2017 − Equipment Materials for 3D T(X)V Technology 2017 − Emerging Non Volatile Memories 2017 ** To be confirmed ©2017 | www.yole.fr | IR LEDs and VCSELs | SAMPLE

43. 39 OUR 2017 REPORTS PLANNING (2/2) o POWER ELECTRONICS − Status of Power Electronics Industry 2017 − Power Mosfets Market and Technology Trends 2017 − IGBT Market and Technology Trends 2017 − Power Packaging Market and Technology Trends 2017 − Power SiC 2017: Materials, Devices, and Applications − Power GaN 2017: Materials, Devices, and Applications − Materials Market Opportunities for Cellphone Thermal Management (Battery Cooling, Fast Charging, Data Processing, Battery Cooling, etc.) 2017 − Gate Driver Market and Technology Trends in Power Electronics 2017 − Power Management ICs Market Quarterly Update 2017 − Power Electronics for Electrical Aircraft, Rail and Buses 2017 − Thermal Management for LED and Power 2017 o BATTERY AND ENERGY MANAGEMENT − Status of Battery Industry for Stationary, Automotive and Consumer Applications 2017 o COMPOUND SEMICONDUCTORS − Power SiC 2017: Materials, Devices, and Applications − Power GaN 2017: Materials, Devices, and Applications − GaN and Si LDMOS Market and Technology Trends for RF Power 2017 − Bulk GaN Technology Status and Market Expectations (Power, LED, Lasers) 2017 o DISPLAYS − Microdisplays and MicroLEDs 2017 − Display for Augmented Reality, Virtual Reality and Mixed Reality 2017 − QD for Display Applications 2017 − Phosphors Quantum Dots 2017 - LED Downconverters for Lighting Displays − Emerging Display Technologies 2017** o SOLID STATE LIGHTING (LED, OLED…) − UV LEDs 2017 - Technology, Manufacturing and Application Trends − Agricultural Lighting 2017 - Technology, Industry and Market Trends − Automotive Lighting 2017 - Technology, Industry and Market Trends − Active Imaging and Lidar 2017 (Vol 2) - IR Lighting** − LED Lighting Module 2017 - Technology, Industry and Market Trends − IR LEDs 2017 - Technology, Manufacturing and Application Trends − Phosphors Quantum Dots 2017 - LED Downconverters for Lighting Displays − CSP LED Module 2017 − LED Packaging 2017 PATENT ANALYSIS by Knowmade − 3D Monolithic Memory: Patent Landscape Analysis − Microfluidic Diagnostic: Patent Landscape Analysis − GaN Technology: Top-100 IP profiles** − Uncooled Infrared Imaging: Patent Landscape Analysis** − MEMS Microphone: Patent Landscape Analysis** − MEMS Microphone: Knowles' Patent Portfolio Analysis** − MicroLEDs: Patent Landscape Analysis** − Microbolometer: Patents used in products** − Micropumps: Patent Landscape Analysis** − Flexible batteries: Patent Landscape Analysis** TEARDOWN REVERSE COSTING by System Plus Consulting More than 60 teardowns and reverse costing analysis and cost simulation tools to be published in 2017. ** To be confirmed ©2017 | www.yole.fr | IR LEDs and VCSELs | SAMPLE

44. 40 OUR 2016 PUBLISHED REPORTS LIST (1/2) MARKET AND TECHNOLOGY REPORTS by Yole Développement o MEMS SENSORS − Gas Sensors Technology and Market 2016 − Status of the MEMs Industry 2016 − Sensors for Cellphones and Tablets 2016 − Market and Technology Trends of Inkjet Printheads 2016 − Sensors for Biometry and Recognition 2016 − Silicon Photonics 2016 o IMAGING OPTOELECTRONICS − Status of the CMOS Image Sensor Industry 2016 − Uncooled Infrared Imaging Technology Market Trends 2016 − Imaging Technologies for Automotive 2016 − Sensors for Drones Robots: Market Opportunities and Technology Evolution 2016 o MEDTECH − BioMEMS 2016 − Point of Care Testing 2016: Application of Microfluidic Technologies o ADVANCED PACKAGING − Embedded Die Packaging: Technology and Market Trends 2017 − 2.5D 3D IC TSV Interconnect for Advanced Packaging: Business Update 2016 − Fan-Out: Technologies and Market Trends 2016 − Fan-In Packaging: Business update 2016 − Status and Prospects for the Advanced Packaging Industry in China 2016 o MANUFACTURING − Thin Wafer Processing and Dicing Equipment Market 2016 − Emerging Non Volatile Memories 2016 o COMPOUND SEMICONDUCTORS − Power GaN 2016: Epitaxy and Devices, Applications and Technology Trends − GaN RF Devices Market: Applications, Players, Technology and substrates 2016 − Sapphire Applications Market 2016: from LED to Consumer Electronics − Power SiC 2016: Materials, Devices, Modules, and Applications o LED − UV LED Technology, Manufacturing and Applications Trends 2016 − OLED for Lighting 2016 – Technology, Industry and Market Trends − Automotive Lighting: Technology, Industry and Market Trends 2016 − Thermal Management Technology and Market Perspectives in Power Electronics and LEDs 2017 − Organic Thin Film Transistor 2016: Flexible Displays and Other Applications − Sapphire Applications Market 2016: from LED to Consumer Electronics − LED Packaging 2017: Market, Technology and Industry Landscape o POWER ELECTRONICS − Power Electronics for EV/HEV 2016: Market, Innovations and Trends − Status of Power Electronics Industry 2016 − Passive Components Technologies and Market Trends for Power Electronics 2016 − Power SiC 2016: Materials, Devices, Modules, and Applications − Power GaN 2016: Epitaxy and Devices, Applications, and Technology Trends − Inverter Technologies Trends Market Expectations 2016 − Opportunities for Power Electronics in Renewable Electricity Generation 2016 − Thermal Management Technology and Market Perspectives in Power Electronics and LEDs 2017 − GaN RF Devices Market: Applications, Players, Technology and substrates 2016 o BATTERY AND ENERGY MANAGEMENT − Beyond Li-ion Batteries: Present and Future Li-ion Technology Challengers 2016 − Stationary Storage and Automotive Li-ion Battery Packs 2016 − Opportunities for Power Electronics in Renewable Electricity Generation 2016 ©2017 | www.yole.fr | IR LEDs and VCSELs | SAMPLE

45. 41 OUR 2016 PUBLISHED REPORTS LIST (2/2) PATENT ANALYSIS by Knowmade − Microbattery Patent Landscape Analysis − Miniaturized Gas Sensors Patent Landscape Analysis − 3D Cell Culture Technologies Patent Landscape − Phosphors and QDs for LED Applications Patent Landscape 2016 report − TSV Stacked Memory Patent Landscape − Fan-Out Wafer Level Packaging Patent Landscape Analysis TEARDOWN REVERSE COSTING by System Plus Consulting More than 60 teardowns and reverse costing analysis and cost simulation tools to be published in 2017. MORE INFORMATION o All the published reports from theYole Group of Companies are available on our website www.i-Micronews.com. o Ask for our Bundle and Annual Subscription offers: With our bundle offer, you choose the number of reports you are interested in and select the related offer.You then have up to 12 months to select the required reports from theYole Développement, System Plus Consulting and KnowMade offering. Pay once and receive the reports automatically (multi-user format). Contact your sales team according to your location (see the last slide). ©2017 | www.yole.fr | IR LEDs and VCSELs | SAMPLE

46. 42 MICRONEWS MEDIA o About Micronews Media To meet the growing demand for market, technological and business information, Micronews Media integrates several tools able to reach each individual contact within its network.We will ensure you benefit from this. ONLINE ONSITE INPERSON @Micronews e-newsletter i-Micronews.com i-Micronewsjp.com FreeFullPDF.com Events Webcasts Unique, cost-effective ways to reach global audiences. Online display advertising campaigns are great strategies for improving your product/brand visibility.They are also an efficient way to adapt with the demands of the times and to evolve an effective marketing plan and strategy. Brand visibility, networking opportunities Today's technology makes it easy for us to communicate regularly, quickly, and inexpensively – but when understanding each other is critical, there is no substitute for meeting in-person. Events are the best way to exchange ideas with your customers, partners, prospects while increasing your brand/product visibility. Targeted audience involvement equals clear, concise perception of your company’s message. Webcasts are a smart, innovative way of communicating to a wider targeted audience.Webcasts create very useful, dynamic reference material for attendees and also for absentees, thanks to the recording technology. Benefit from the i-Micronews.com traffic generated by the 8,500+ monthly visitors, the 11,500+ weekly readers of @Micronews e-newsletter Seven main events planned for 2017 on different topics to attract 140 attendees on average Gain new leads for your business from an average of 300 registrants per webcast Contacts: CamilleVeyrier (veyrier@yole.fr) and Clotilde Fabre (fabre@yole.fr), Marketing Communication Project Managers. ©2017 | www.yole.fr | IR LEDs and VCSELs | SAMPLE

47. 43 CONTACT INFORMATION Follow us on o CONSULTING AND SPECIFIC ANALYSIS • North America: Steve LaFerriere, Director of Northern America Business Development Email: laferriere@yole.fr – +1 31 06 008 267 • Japan Rest of Asia: Takashi Onozawa, General Manager, Asia Business Development Email: onozawa@yole.fr - +81 3 4405 9204 • Greater China: Mavis Wang, Director of Greater China Business Development Email: wang@yole.fr - +886 979 336 809 • RoW: Jean-Christophe Eloy, CEO President, Yole Développement Email eloy@yole.fr - +33 4 72 83 01 80 o REPORT BUSINESS • North America: Steve LaFerriere, Director of Northern America Business Development Email: laferriere@yole.fr – +1 31 06 008 267 • Europe: Lizzie Levenez, EMEA Business Development Manager Email: levenez@yole.fr - +49 15 123 544 182 • Rest of Asia: Takashi Onozawa, General Manager, Asia Business Development Email: onozawa@yole.fr - +81 3 4405 9204 • Japan Asia: Miho Othake, Account Manager Email: ohtake@yole.fr - +81 3 4405 9204 • Greater China: Mavis Wang, Director of Greater China Business Development Email: wang@yole.fr - +886 979 336 809 o FINANCIAL SERVICES • Jean-Christophe Eloy, CEO President Email: eloy@yole.fr - +33 4 72 83 01 80 o GENERAL • Public Relations: leroy@yole.fr - +33 4 72 83 01 89 • Email: info@yole.fr - +33 4 72 83 01 80 ©2017 | www.yole.fr | IR LEDs and Lasers | SAMPLE

49. 45 Yole is active throughout the value chain (Example of LED and Sapphire activities) FOCUS ON SOLID STATE LIGHTING (LED, OLED…) AND DISPLAY ACTIVITIES We are active throughout the value chain: from substrates to systems! And we interact with industrial/RD players from each level! Substrate SiC/Sapphire/Silicon/Bulk GaN/Engineered substrates LED epiwafer Mesa LED, Flip Chip LED, Vertical LED structures LED dies- on-wafer LED dies Front-end Level 0 - Epitaxy • Nucleation layer • n-type layer • Active layers (MQW) • p-type layer Back-End Level 0 - Packaging • Substrate separation Bonding • Die singulation • Testing Binning LED systems and applications Front-end Level 1 - Device Production • Inspection • Masking/Lithography • Etching • Metallization/Contacts/Mirrors Back-End level 1 - Packaging • Die Attach Interconnections • Phosphors • Encapsulation Optics • Testing Binning Packaged LEDs Module Packaging • Substrates (PCB) • Encapsulation Optics • Heatsink • Testing Binning LED modules ©2017 | www.yole.fr | IR LEDs and VCSELs | SAMPLE

50. 46 Insights on Forecast Methodology (Example of LED and Sapphire activities) FOCUS ON SOLID STATE LIGHTING (LED, OLED…) AND DISPLAY ACTIVITIES “What’s Behind the Crystal Ball?” Only analysts that follow the industry on a daily basis (trough interviews) and developed market modeling tools based on discussions with key players of the industry. APPLICATION Forecast of standard product market volume (unit) Ex.: Smartphone, TVs, lamps (…) Definition of functions using LEDs Ex.: “Flash vs. Keypad” for smartphone (…) Definition of technical requirements Ex.: Efficacy, size (…) Definition of LED penetration rate and competitiveness with alternative technologies Ex.: “OLED vs. LED” in smartphone (…) Forecast of LED market volume (unit) Split by application, power type (low vs. medium vs. high power), package type (single vs. multi-die…) (… ) Definition of LED ASP Per power type, packaged type (…) Forecast of LED market size ($) Split by application, power type, package type (… ) Definition of manufacturing flows for front-end and packaging (process, technologies, materials, yields…) Split by application, power type, package type (…) Forecast of LED manufacturing equipment and material markets (unit and $) Ex.: Phosphors, encapsulant, dicing equipment Definition of LED die surface (mm²) Definition of substrate die surface (mm²) and epiwafer volume (unit) Split by type of substrate (…) Forecast of LED substrate markets (unit and $) Split by type of substrate (…) Definition of sale levels of key manufacturers ($) Ex: LED, packaging materials, epitaxy materials, manufacturing equipment, MOCVD reactor, substrate (…) System Plus Consulting expertise in reverse costing/reverse engineering ©2017 | www.yole.fr | IR LEDs and VCSELs | SAMPLE

51. 47 AboutYole’s AnalystTeam FOCUS ON SOLID STATE LIGHTING (LED, OLED…) AND DISPLAY ACTIVITIES A team based on persons having complementary skills and expertise. Pars MUKISH - Business Unit Manager - SSL Display 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 MUKISH has taken on responsibility for developing LED, OLED and Sapphire activities as Business Unit Manager at Yole Développement. Previously, he has worked as Marketing Analyst and Techno-Economic Analyst for several years at the CEA (French Research Center). Dr. EricVIREY - Senior Market Technology Analyst - Sapphire Display Eric VIREY holds a Ph-D in Optoelectronics from the National Polytechnic Institute of Grenoble (INPG - France). He works as Market and Technology Analyst in the fields of Sapphire, LED/OLED and Display. In the last 12 years, he has held various RD, engineering, manufacturing and marketing positions with Saint-Gobain. Most recently, he was Market Manager at Saint-Gobain Crystals, in charge of Sapphire and Optoelectronic products. Pierrick BOULAY - Market Technology Analyst - SSL Pierrick BOULAY holds a master degree in Electronics from ESEO (France). He 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. ©2017 | www.yole.fr | IR LEDs and VCSELs | SAMPLE

52. 48 Report collection FOCUS ON SOLID STATE LIGHTING (LED, OLED…) AND DISPLAY ACTIVITIES Previous Publications: • Status of the LED Industry • LED in Road and Street Lighting • LED Front End • GaN-on-Si Technology and Market • Phosphors QDs - IP Landscape 2016 Publications: • OLED For Lighting - February 2016 • Automotive Lighting - April 2016 • UV LED - August 2016 • Sapphire - September 2016 • OrganicTFT - October 2016 2017 Publications: • Thermal Management for LED and PE - New • LED Packaging - Update • MicroLEDs and MicroDisplays - New • CSP LED Lighting Module - New • IR LEDs and Lasers - New • Agricultural Lighting - New • LED Lighting Module - Update • QD for Display Applications - New • LED Downconverters (Phosphors QDs) - Update • Automotive Lighting - Update • UV LED - Update • Display for Augmented Reality - New A collection of more than 15 reports on Solid State Lighting and Display. Our reports are unmatched in quality and technology depth and typically include: • Technology trends and evolution: costs, barriers, roadmaps (…). • Supply value chain analysis: business models, relationships (…). • In-depth analysis of applications and market drivers: challenges, inflection points (…). • Market data ($, units, wafer starts…). Already published ©2017 | www.yole.fr | IR LEDs and VCSELs | SAMPLE