LED brake personnel shortage and overcapacity

Emerging energy saving and environmental protection concept of the LED industry is like a raging fire, many related or not related to the listed company, or purchase or purchase new overweight. In front of the leader's move, will be the focus of attention. Since last year, Sanan optoelectronics has purchased 107 sets of production equipment, new equipment 130 Taiwan this year as elec-tech.

MOCVD installed capacity surge

MOCVD machine for the production of LED lamps essential equipment, its products are epitaxial substrate material for the production of LED chips. The LED chip is mainly used in computer display, LED TV display and mobile phone display and other electronic products.

An optoelectronic report shows that in 2010, the company has 77 MOCVD machines, 2011 to June, the company will reach 144 units throughout the year is expected to increase to 107 units. According to the research of Engineering LED industry statistics, 2010 China LED enterprise sales ranking, Sanan optoelectronics continues to rank first, sales amounted to 590 million yuan. De Ho Runda in 2011 plans to add 100 new machines MOCVD base in Wuhu, Yangzhou base MOCVD new machine, a total of more than 130 units.

In May 3rd this year, Changjiang Securities Research Report data show that as of the end of the year, is expected to Sanan optoelectronics and will become the domestic MOCVD machine has Elec-Tech most listed companies in the top two, up to 177 units and 140 units respectively.

The first venture securities research institute also said that in the global scope, China LED enterprises occupy three new MOCVD equipment MOCVD equipment manufacturer in the world (German Aixtron, American Veeco, Japan Taiyonippon) the main part of the order. China in 2010 the demand for more than 200 units a year, more than in the past nearly 20 years, the total installed capacity of more than 50 units.

Not only that, this year the industry has ushered in a number of new entrants. Australia Shunchang February 22nd announcement, intends to invest 10 billion to build LED project, will invest 30 MOCVD machines, high-power blue-green LED epitaxial wafer and chip manufacturing. Xinhaiyi July 5th announcement, intends to inject foreign investment 270 million nanocrystalline photovoltaic building LED project, to purchase 20 sets of MOCVD machine.

Two major reasons to slow down the new machine

Recently, LED equipment manufacturing industry sources, domestic LED upstream epitaxial wafer production machine MOCVD, debug temporarily stopped, which involves Elec-Tech, Sanan optoelectronics and other listed companies.

To this end, the reporter to verify Elec-Tech as an investor, company secretaries office staff said that the company did not stop the machine, just slow down, development and industry speed and lighting market has not yet appeared obvious signs of the outbreak. The staff revealed that the lack of equipment related technical personnel is also a factor affecting the installation.

This reporter to verify Sanan optoelectronics, secretaries office staff said that the company will soon end equipment debugging, last year purchased 107 Taiwan has quickly finished debugging, some has been in production.

According to the Central Plains Securities Research Report May 31st shows that the world's largest supplier of MOCVD only Aixtron and Veeco two companies. Aixtron first quarter operating income of 205 million euros, a decline of about $8%, new orders also showed a slowdown. Veeco first quarter operating income of $215 million LED devices, a decline of 15%. A quarter of the company received orders related to LED $198 million, a decline of 21.7%. There have been signs of slowing demand for equipment.

At the same time, the report pointed out that the domestic local government subsidies for MOCVD procurement will come to an end, the domestic investment in the upstream will therefore slow down. For example, the city of Yangzhou for the LED industry fiscal subsidy policy will end on July 2011, and the amount of subsidies for MOCVD in Jiangmen city is close to running out, other local government introduced a similar subsidy policy are also in the observation of whether the need to end subsidies.

Fujian Optoelectronics Industry Association, the relevant industry insiders also told reporters that the epitaxial substrate material in the first half of this year are down. MOCVD production capacity should not be released this year. Now it is mainly related to the lack of technical personnel operating MOCVD, the world are missing. I think the second half of the downstream chip prices should also drop.

In July 12th, LED industry research institutions LEDinside through its website said that Chinese chip factory in the local government subsidy policy last year, about LED lighting market demand, large open plant expansion program, high production equipment MOCVD machine number. But by the end of 2011 LED industry demand has not been clear, product inventory continues to improve, so manufacturers have begun to slow down the purchase of MOCVD equipment plan.

Is there any indication that the LED upstream growth slowed down?

A brokerage Institute of electronics industry researcher told reporters, according to the sign said upstream of LED began to appear surplus is still relatively full, and then see if the equipment supplier can determine more interim statements.