MOCVD installed capacity in China is lower than expected LED pressure relief

By LED, the deteriorating market conditions become more intense industry competition, lack of professionals and other factors, the recent succession came several Chinese, manufacturers will exit, or reduce the LED epitaxial grain field, including pharmaceutical group, GCL photoelectric lighting manufacturers, LED manufacturers and BDO Runda etc.. Although the actual situation remains to be further understood, but it is clear that the actual installed capacity of the mainland in recent MOCVD machines, significantly lower than the earlier release of the wind industry. It is expected that this will help to ease the pressure on LED to excess supply and to reduce prices.

Originally in the first half of this year, according to the planning of various manufacturers in mainland China, the mainland will be installed in 2011 will be more than 500 units of the MOCVD machine, and may continue to import production in 2011-2012. However, from the recent number of vendors may exit, or to reduce the amount of MOCVD machine installation to push estimates, China in 2011 the actual increase in the number of MOCVD units, there may be only more than and 300 units.

The original China manufacturers in mainland investment to expand the establishment of MOCVD like a swarm of bees machine capacity, the main reason is optimistic about the prospects, the backlight of LCD TV China government is actively promoting LED lighting policies, and local governments also provide investment subsidies. However, later by the production scale is insufficient, and the influence of yield, utilization rate, and so on all factors such as lack of professional talents, leading manufacturers in mainland Chinese output by the LED lack of cost competitiveness.

The market is expected, with Chinese, some manufacturers exit or reduction in the production of LED epitaxial grain, the excess supply pressure is expected to be slightly reduced, at least should help to reduce the existing LED vendors psychological pressure, or may make the LED grain price decline has slowed down.