LED backlight demand than expected expansion plan to stop South Korea MOCVD

According to LED equipment factory said, South Korea's two largest electronics group LED plant expansion program stopped, the original Korean metal organic chemical vapor deposition (MOCVD) machine number, from 600, down to 150 units, it is expected to resolve the overcapacity concerns LED, will be a major benefit of LED epitaxial plant EPISTAR, canyuan, new century etc..

In addition, due to the LED backlight LCD TV demand as expected, part of the Samsung LED backlight level conversion chip, in LED lighting, LED lights to let the market quite the traditional 40 watt bulb, for $10, although this is not the level of lighting products, but is the declaration, LED lighting times everyone afford to come.

Industry sources, South Korea's two largest electronics group originally focused on LED, the penetration rate of TV will increase significantly, since the beginning of last year so call expansion plan, more than 200 units, but due to demand as expected, the cost of production plus LED panel factory, unable to compete with the Taiwan LED epitaxial plant, so LED plant expansion plan suddenly stopped, the two group will stop purchasing electronic machine.

It is understood that the original number of South Korean MOCVD expansion of the machine, can be compared with the Chinese mainland, about 600 units, currently only installed to the 150 to the 200 stop, no longer expand production. This LED to resolve the overcapacity, is undoubtedly a booster.

In addition, the market also came, sapphire substrate third quarter to cut prices by 15% to 20%, sapphire substrate is LED epitaxial upstream material, in the material price, is expected to enhance the gross profit margin LED epitaxial plant. Under the blessing of the two major benefits, so that the long-term prospects of LED epitaxial optimistic.

MOCVD is the main equipment of LED upstream growth, South Korea and Mainland China for nearly two years to the procurement of MOCVD machine, in particular, every purchase of a platform resorted to 10 million yuan subsidy policy, let the market worry that Taiwan will be in South Korea, pincer attack, the loss of the world's largest LED producer. Investors are worried that the mainland fast expansion, will be a threat to Taiwan, the LED plant shall no longer believed.

However, under the banner of the Lunda Group Chairman Su Fengzheng said that this year the MOCVD machine needs about 800 to 1000 units, mainly from the mainland, but the machine capacity when open, and open out the capacity is not necessarily a market, whether it can produce the observed grain use of LED lighting needs, so long in the future supply and demand what is uncertain, not overly pessimistic.

Analysis of Everlight chairman Ye Yinfu, although, like a swarm of bees into the LED industry, bought a lot of MOCVD, but the yield, size, like crystal electric technology to achieve the level of at least five to six years, then miss LED lighting the first.