March 6th news, market research firm The Information Network released last year's report "pointed out: Solid State Lighting revolution cuts" market analysis and depth of observation of the production cost, the period from 2009 to 2012, high brightness LED (HB-LED) market volume is expected to double. Robert CastELlano, President of the company, said that the scope of application of HB-LED in the expansion, such as notebook backlighting, car headlights, LED market is growing rapidly, which also prompted LED manufacturers to invest huge sums of money. LED has created a niche market for traditional semiconductor process equipment suppliers, especially for MOCVD equipment suppliers.
America MOCVD reaction equipment manufacturer Veeco company said, from six the analyst consensus. They predicted that the annual output of global MOCVD will grow from 208 units in 2009 to the set of 415 in 2011.
Information Network predicted in the report: 2009 at MOCVD the average annual output is 30 million LED, with the same volume, unless the MOCVD equipment suppliers to increase production and improve the rate of finished products in order to reduce the cost of ownership, by 2011 the output of LED add up missing 15 million 500 thousand. DOE's solid-state lighting manufacturing roadmap will be set as follows: every five years, the cost of manufacturing equipment increased by two times. The firm claims to be able to slow down the production shortfall if the supplier is able to successfully improve production time, consistency and repeatability, temperature control and flow geometry.
Castellano added, obviously MOCVD suppliers are not interested in this, increase the cost of ownership will reduce sales; but in the capital market, the competition is always the key contributing factors, it will force these suppliers to improve the competitiveness of the equipment.
Compared with the semiconductor market and $250 million, HB-LED market reached $5 billion. The above mentioned 415 sets of MOCVD equipment, for each 2 million 500 thousand dollars, it represents a market of over US $1 billion. So for a packaged LED MOCVD accounted for 8% of the cost. Other front-end devices accounted for only 3%, which is equivalent to a $500 million lithography and measurement equipment market. In addition, the largest portion of the back-end process consists of 65%, including substrate removal, chip cutting and packaging.
Information Network pointed out that the backlight will become part of the growth of the HB-LED market, in 2007-2012, by LCD TV (CAGR=300.3%) of HB-LED's CAGR value will be more than 40%.
Market research report recently another market research company IMS Research issued a position in the white light and red light LED, the report pointed out that by the end of last year the world's 75 LED manufacturer has a total of 1413 sets of deposition equipment, LED production reached 188 billion a year.
Is expected to report, 2010 MOCVD reaction equipment sales will reach 348. Nevertheless, IMS pointed out that its potential market total of 588 units, so there is still a surplus of 195-240 sets of equipment, thus calculating the LED chip market this year, there will be a shortage of 120-140 billion, this state will continue until 2013. Market research firm concluded that the potential shortage of supply equipment suppliers and LED manufacturers will be under pressure and force them to increase production, improve equipment performance and speed up the production of equipment.
The senior adviser to the company and OLED Association executive director Barry Young said, "2010 HB LED demand is expected to grow 61%, provide opportunities and not consistent with the supply of new producers and new equipment manufacturers".
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