Mainland MOCVD market boom will continue

In the government's strong support, the mainland MOCVD market quickly jumped in 2010, the rapid expansion of the MOCVD machine capacity, 2011 will continue to increase, the recent market spread, a mainland factory to MOCVD equipment factory opened 400~500 MOCVD large single machine, causing machine orders in short supply, the industry is expected, the fastest in 2011 MOCVD, machine production scale will catch up with Taiwan, and from low order in order to market gradually gnaw as the LED market for the 2011 LED industry cast a variable order.

In 2008, only about more than and 100 sets of MOCVD machine, MOCVD machine installed in 2010 had a total of more than and 330 units, if the manufacturer, in 2011 the number of message projections, MOCVD machine total installed will reach about 700~800 Taiwan, some manufacturers more optimistic estimates at 1000, deducted by Taiwanese leading foreign or joint venture companies, pure land owned enterprises MOCVD the total number of machine installation is expected to reach 500~600 units, equivalent to more than one of Taiwan's LED industry supply.

Recent rumors of the LED industry in Taiwan, South Korea LED manufacturers to MOCVD machine manufacturers generous signed more than and 400 MOCVD machine orders, so that the industry was shocked, including TSMC, chip factory leading crystal electric have heard this rumor. But it is reported that, LED subsidiary of Samsung LED and LGIT 2 group by market demand downturn, the rate of reduction by half capacity in 2010, and even the fourth quarter overcapacity, continue to lower left to the mainland market, the average price of LED, resulting in the upstream epitaxial (ASP) decreased 10 ~15%, 2011 expansion plan more conservative.

LED industry that actively expand the MOCVD machine precedent known from South Korea in 2010, put into production is not on the upstream of the LED extension to drop a lot of money on it, more than half a night can do the training of professional and technical personnel, so although the mainland manufacturers have abundant funds for the purchase of the MOCVD machine, but it may not be able to successfully put into production, at present, in addition to LED the chip industry in Xiamen, likely in the short term due to the threat of the little Taiwan factory.

It is reported that Xiamen three MOCVD machine at the end of 2010 to the total number of about more than and 40 Taiwan, estimated that by 2011 the installed capacity will reach 100 units, production capacity will be close to canyuan level, overall yield competitiveness can not be underestimated, as ranked second, 3 and changelight Inspur currently there were 9 and 14 MOCVD, from 2010 the fourth quarter of the next 1 years will add 17, 16 taiwan.

But the industry worries, as the Mainland / LED epitaxial chip production capacity greatly expanded, the future potential threat Taiwan LED manufacturers are facing more difficult, because the past Taiwan LED chip manufacturers can be secondary products output, dumping to the mainland market for revenue, but after the low order market will face the mainland competition, due to the machine the introduction period, in the crystal growth process will produce a large number of secondary products, market competition pressure will increase, when the low order market after the market will slowly higher order attack, industry order will enter the ambitious four Warring States situation.