Survey report shows that China has stopped MOCVD procurement subsidies

Citigroup (Citigroup) analyst Timothy Arcuri published a research report, survey, China has stopped providing LED manufacturing of key equipment in metal organic chemical vapor deposition system (MOCVD) equipment purchase subsidies. Arcuri MOCVD AIXTRON AG German equipment suppliers investment rating to "sell early". In Arcuri (2010) at the end of the year to have the mainland MOCVD equipment purchase subsidy policy will expire in the first half of 2011 on the grounds, the MOCVD Veeco Instruments Inc. equipment maker investment rating to "wait and see".

Recently, the trend of the United States MOCVD class 18 pullback. In the United States listed AIXTRON fell 5.45% to close at $41.43. Philadelphia semiconductor Veeco index fell 6.79%, $49.12 decline in the 30 components of the crown.

According to the report published in the latest Arcuri survey in Wuhu, Yangzhou, the results show that the mainland has several months without the approval of the new MOCVD equipment subsidy application, and the local MOCVD equipment orders may be in the third quarter of 2011 began to shrink. Although South Korea, Taiwan's capacity utilization has begun to rise, but still can not make up for the mainland MOCVD equipment orders greatly reduced dilemma. Arcuri said that the securities that the mainland's last wave of MOCVD equipment orders boom will end in the first half of 2011, while the first half of the previous approval of the follow-up orders for subsidies.

Deputy Secretary General of China national semiconductor lighting engineering research and Industry Alliance Nguyen army said in January 12th, according to the future plan for 3 years, amplification of MOCVD machine, 3 years later, the LED chip production capacity is 10~15 times that of 2009, while the investment overheating will bring overcapacity, will make the whole industry mergers and acquisitions or restructuring action.

For fear of future LED capacity surplus situation, Ruan Jun said that due to the current LED policies such as subsidies, in action, by the local government, the central is not convenient to intervene, but will continue to pay attention to and timely advice. He pointed out that, in accordance with the popularity of LED general lighting, demand and so on to assess the most appropriate amount of mainland MOCVD machine should fall between the 1200~1500 units.