China to have largest number MOCVD reactors in 2012

China to have largest number MOCVD reactors in 2012

30 Jun 2011

By the end of 2012, China is expected to be the global leader in MOCVD
ownership with over 1000 tools according to a newly updated report from
Displaybank.


A newly updated report from Displaybank, a market research and
consulting firm based in Seoul, Korea, reveals that China is rapidly
becoming the largest owner of metal-organic CVD (MOCVD) systems in the
world.

The report, entitled LED Chip Production Capacity Analysis and Forecast
by Maker (MOCVD, Epi-Wafer/LED Chip), shows Chinese LED manufacturers
are investing heavily due to government support, foreign investment and
expansion from existing players in the country.


 
By 4Q 2012, China will own over 1000 MOCVD tools. Veeco recently
estimated the total available market for MOCVD systems from 2011
through 2015 at greater than 5,000 reactors.
“Overall LED industry has seen many changes such as delayed
investments due to the year-long oversupply and many Chinese makers
entering the industry,” said Brian Bae, senior analyst at Displaybank
research group.
 

Bae added “especially in the case of China, as fast-paced investments
are made, China’s share of the number of MOCVDs owned remained at 3
percent in 2009 but the share grew up to 15 percent as of second
quarter of 2011. If the current investment plan holds, China will show
growth rate of 64.2 percent year-over-year and [will be] ranked as
world’s number one for the number of MOCVDs owned.”

As a latecomer to the industry, the current LED manufacturing
technology level of China is not as sophisticated as that in other
countries, but China is rapidly recruiting engineers from developed
regions including Taiwan. The growth rate is rapidly increasing due to
demand from Chinese LED manufacturers.

Duke Lee, research director at Displaybank noted “In the case of
Korea, the demand for MOCVDs have increased sharply from 2009 to 2010
as LED backlights for large-sized LCDs grew. Investments have gone down
due to the downed LCD TV market but it is expected to resume with the
preparation for the general lighting market.”

Taiwan also sees increased MOCVD demands through the growth of LED
backlights for large-sized LCDs with investments coming from such
companies as Lextar and CMLT, affiliates of AUO and CMI Group.

Japan is more advanced in LED technology and its general lighting
market is seeing rapid development with equipment investments from
several significant players. Japan’s LED manufacturers are putting
more emphasis on lighting and automotive LEDs, and have greater
penetration into the large-sized TV backlighting sector.