Palomar Technologies recently met with Stephen Duffy, director of sales and marketing at Optocap (based in Livingston, Scotland), to learn more about his company’s strategic presence in the European Union (EU) as a high-mix, low-/medium-volume contract assembly laboratory.
Could you please tell us about your past background and career?
Stephen Duffy: Since graduating with my Honours degree in Laser Physics and Optoelectronics, I have been involved in the semiconductor and optoelectronics sectors in a variety of technical and commercial roles. I started my career working with NEC Semiconductors as a Quality Engineer, which provided me with a detailed insight into wafer fabrication and back-end assembly processes. I then moved into a variety of technical, product management and sales and business development roles in the laser industry with Coherent Inc and Intense Photonics.
I have been with Optocap as Director of Sales and Marketing since July 2006, and in that time have over seen Optocap’s revenues increase by a factor of five and the company move into sustained profitability over the last few years. Additionally, I am member of the executive team that undertook a management buy-out from the previous owners, Scottish Enterprise, in June 2009.
Describe Optocap in terms of how your company differentiates from competitive companies. What makes Optocap stand out among other contract assembly facilities, specifically in the European Union (EU)?
SD: Optocap provides contract package design and assembly services for a wide range of optoelectronic and microelectronic devices. Optocap’s key value proposition to our customers in the EU is to reduce development risks, reduce manufacturing costs and reduce time to market.
We achieve this value for our customers by utilizing our know-how of precision assembly and packaging techniques. This know-how includes design for manufacturing expertise, volume equipment automation expertise and knowledge of package materials, including a wide range of solders and epoxies.
Optocap has a unique capability in being able to offer a low-mid volume, high mix, precision automated assembly for custom/niche optoelectronic products within the UK and Europe. By offering a complete service from design, prototype assembly and volume assembly Optocap, supports the full product life cycle requirements of our regional customers.
From an assembly process perspective, Optocap not only offers precision wire bond and die bond services (specifically, Palomar Technologies equipment), but has the capability for wafer saw, failure analysis, environmental test services, projection weld, seam seal and SMT processes. This extensive assembly process capability significantly simplifies the supply chain for our customers by providing a “one-stop shop” for all their packaging requirements.
What advantages to regional EU organizations gain with a “near-shore” packaging facility as opposed to outsourcing to other facilities that are further away?
SD: Many start-up and early-stage companies that Optocap work with are unable to get any traction and interest from many of the large off-shore assembly houses (typically found in Asia) due to their initial low volumes. Additionally, these early stage companies are often in development mode and require a high level of technical support (and within close geographical reach) in terms of evaluating new package and device design and evaluating new assembly process. These rapidly changing product development demands are ideally met by a “near-shore” packaging facility.
By working with a EU near-shore company, such as Optocap, customers can treat Optocap as an extension of their product development and manufacturing teams. Ease of communication on the same time-zones and ease of travel combine to produce a much more cost effective development route.
Please describe Optocap’s “keystone” area of expertise and how this relates well to regional organizations.
SD: Optocap is well known for contract package design and precision assembly services for semiconductor devices, which have an optoelectronic aspect to their functionality. Within Europe, there are a number of early-stage companies developing such devices and require the services of a company in close proximity, such as Optocap.
Are you noticing any substantial applications or packaging trends in recent years? What do you suspect for the future, and how is Optocap preparing for the market changes ahead?
SD: The general trends for miniaturization, reduced cost and increased functionality continue to dominate packaging requirements, both in the EU and worldwide. These trends drive advances in new packaging techniques and materials. Optocap keeps ahead of the curve though close co-operation with its partner network of equipment manufacturers, such as Palomar Technologies, and material manufactures. Additionally, close contact with our target market allows us to anticipate and prepare for these trends.
In terms of new applications, we are seeing significant growth for precision assembly services in technology sectors such as concentrated photovoltaic, HB-LEDs, Laser diode and Bio/Lab-on-chip applications.
Can you share a generalized example of the most complex application in which you had to employ a multitude of solutions your facility offers?
SD: In an application for packaging a Telcordia-qualified, fiber-coupled DFB laser into a butterfly package, Optocap employed a wide range of assembly processes. These processes included:
- Wafer sawing
- Automated and high-accuracy AuSn die bond placement of a laser diode to sub-mount
- Vacuum reflow process for TEC and Optical bench to package base ensuring a void-free interface with no flux
- Automated Au ball wire bond
- Single mode fiber-align and laser-weld attach
- Package seam seal in a N2 atmosphere
- Fine and gross leak testing
How does Optocap choose which equipment it uses to perform precision contract assembly for its customers? What aspects of the key equipment pieces are of greatest value to your facility?
SD: In terms of our precision die bond and wire bond services, Optocap utilizes the Palomar Technologies tool-set. The Palomar 3500-III Die Bonder system, with its large flexible work-area, multiple presentation options, ability to handle multiple applications—including epoxy and solder processes—and multi-tool turret head is ideal for a company such as Optocap to focus on low/mid-volume high-mix processes.
Other key aspects in selecting equipment are machine through-puts, ease of use and service support. In all these areas we have found Palomar Technologies to be an excellent alliance.
What are Optocap’s typical customer profiles, lifecycles and product packaging requirements? How quickly can Optocap accommodate a dormant customer who recently wanted to re-initiate production?
SD: Optocap’s typical customers are usually small-medium sized companies or start-up companies within the EU who have adopted a fabless or manufacturing light business model. They will control the design and IP of their product but will not want to invest in the expenditure to develop a back-end capability. In this case they contract their development and production activities to Optocap.
On the other hand, there are customer’s who will be looking to manufacture prototypes, prove out their design and then set-up their own manufacturing facility. For these customers, Optocap offers the option to transfer the process recipes and tool/ fixtures designs to the customer, which offers a low-risk and rapid set up their own facility.
In some cases, Optocap is also working with large multi-national companies who may have their own manufacturing facilities; but, for fast-turn engineering builds, these companies find it easier to utilize the flexibility and responsiveness of Optocap, as opposed to disrupting their own stable volume manufacturing lines.
How involved or “hands on” are Optocap customers in terms of prototyping and new process development?
SD: Our customers view Optocap as an extension of their own product development and manufacturing teams. Due to the ever-changing technical demands and close interaction of device performance with the package design and process, it is important that customers are closely involved in the assembly process.
It is not uncommon for Optocap to have customers based within our facility for a period of time while we develop and optimize processes together.
With the ever-changing terrain of material associated costs, how does Optocap remain competitive and accommodating without compromising quality or value?
SD: Optocap is focused on developing automated precision assembly processes. The “automation” is the key to driving the consistency and quality of the build. In addition, by automating and removing a large part of the labor cost, Optocap is able to reduce costs and, therefore, remain competitive in the EU near-source assembly solutions market.
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Palomar Technologies would like to thank Stephen Duffy for his time and collaboration on this interview blog. With wire bonding and die attach system support from Palomar Technologies, Optocap provides high-precision contract assembly solutions for companies based in the EU seeking near-source microelectronics packaging support.
For more information about Optocap, please visit www.optocap.com.