China MOCVD surge in the number of reproduction LED overcapacity concerns

By the Chinese government to actively support the LED industry, while local governments in order to promote the development of the local LED industry, the implementation of the MOCVD equipment has been a high financial subsidies. Market is expected in 2011 with a large number of MOCVD devices have been put into operation, the market for LED overcapacity concerns have been re mentioned.

However, according to industry sources, in 2010 the number of MOCVD machines in China about 350 units, but the actual number of only about 1/3 into the production, therefore, this year's oversupply is expected to ease.

According to insiders pointed out that, although China manufacturers recently a large number of applications of MOCVD equipment, but by the lack of effect of LED talent, technology and other aspects of the actual investment, the number of production is only 1/3, and the current MOCVD equipment shipments lead time of about 3-6 months, while the yield adjustment, enter the amount of production of about 3 months, a total of about to after 6-9 months of new capacity to be effective, so as not to result in this year's LED market pile up in excess of requirement status.

Mainland China launched a large number of MOCVD equipment, but the shortage of talent is still plagued China's LED industry. In order to solve the problem of talent, technical threshold, Chinese mainland companies frequently to Taiwan paid poaching talent, reduce the learning curve of time, and time is more than a whole group of people, let Taiwan LED industry from "West" switch to the wind.

Insiders said that the Chinese, with the national policy of extended LED industry, from upstream to downstream, while actively layout, Chinese at present in terms of technology and Taiwan factory is still a considerable gap, but manufacturers in the government policy behind, has sufficient funds to hire, is expected to soon have considerable technical breakthrough, relatively speaking, Taiwan factory in addition to technology should speed up the pace, in Chinese, the layout of the market, and the local manufacturers "hezonglianheng" strategy to be more actively deployed, it will not be Chinese mainland companies to catch up.

Overall, with China, the government vigorously promote the LED industry, the quantity of MOCVD equipment of global proportion will continue to rise, the future is still a lot of production output, LED price will decline, Displaysearch senior analyst Liu Jingmin, estimates that this year LED grain price fell about 5% quarterly. Legal representative, LED prices decreased by about 20%, the decline is still within a reasonable range, while the price is expected to further expand the LED market to accelerate the penetration rate.