MOCVD equipment does not increase the long-term supply of LED

LED epitaxial device MOCVD (metal organic chemical vapor deposition) on LED formation of overcapacity in the industry supply and demand pressures, the world's largest MOCVD equipment leader AIXTRON (Ace strong) believes that the phenomenon in many industries have experienced overcapacity, but rising demand will eventually catch up with the deployment of capacity.

AIXTRON believes that the current proportion of LED lighting applications has been higher than expected, the size of this market is larger than the TV LED backlight market several times, so optimistic about the market outlook.

Vice president of AIXTRON Greater China Christian Geng pointed out that although the recent emergence of some interference development momentum of the LED market, including government subsidies policy, Chinese caused overcapacity concerns, as well as the LED TV penetration rate is lower than expected phenomenon. However, the future development of the LED market is still a positive view, because the demand is still there, but the LED TV backlight this year should reach 50% penetration, as the development of small size panel, the market will reach nearly 100%.

Geng pointed out that the strong point of view from Ace LED lighting market, the key point of solid state lighting price inflection point is that if the equivalent of 60W LED bulb prices can reach $20 to $15, will begin to produce large-scale commercial demand. Therefore, if the LED from a positive point of view, short-term overcapacity will have an impact on the price of LED chips, the anti will help accelerate the popularity of lighting applications, to create more long-term demand.

The industry believes that the rapid increase in the number of LED, MOCVD machine, which is mainly caused by the factors of LED, Geng that the rapid increase in pile up in excess of requirement, the machine is affected by the subsidy policy incentives, there may be in the short term caused by excess capacity, but also do not need to panic. He stressed that MOCVD is a very complex process, must rely on experienced engineers, in order to ensure the repeatability of the process, consistency and yield.

Although the mainland are catching up in the deployment and technical aspects of LED production capacity, but still optimistic about the long-term competitiveness of Geng Taiwan LED chip manufacturers.

In particular, many Taiwan businessmen began to set up joint ventures with local businesses in the mainland, in order to be closer to the mainland market, this model of cooperation rather than competition, will be able to create a win-win situation.

Ace has also seen strong opportunities for other applications, Geng said, power management components used in the GaN/Si process, but also need to use MOCVD devices, it is not very different from the LED process. At present, the market has a very clear short-term demand for MOCVD equipment, technology has gradually matured. The future will be re invested 32 nanometer memory and the process of the development of the technology of 22 nm logic.