LED market to accelerate the pace of integration of Taiwan manufacturers

Market research firm ledInside expects LED market size in 2013 will be 3 times higher than in 2009 market size, the large-size backlight and LED lighting will become the main application, high brightness LED market accounted for 42% and 25%. LED thermal industry, and now South Korea's heavyweight manufacturers Samsung and LG are quickly cut into the LED industry, Samsung to invest in the next 10 years will be 23 trillion won LED. In the LED industry plays an important role in China's Taiwan LED manufacturers feel the potential crisis, is accelerating the pace of investment and integration.

Taiwan LED investment amounted to $600 million

With TSMC, EPISTAR, AUO, Xinqimei actively build LED factory, international semiconductor equipment and Materials Industry Association (SEMI) estimates that in 2010 Taiwan LED plant and equipment investment amounted to US $600 million, the largest in the world. At the same time, the LED plant boom will drive related materials and equipment (such as organic metal chemical vapor deposition equipment and substrates) procurement. LEDInside is optimistic that the global organic metal chemical vapor deposition (MOCVD) of the new equipment market will grow from 280 units in 2009 to more than 580 units in 2010. Among them, China's mainland and Taiwan, South Korea will be the largest amount of procurement and use of the region.

In materials research report, Yole expects the global high brightness LED packaging materials market will grow by 25% per year.

Accelerated Fab integration

Korean manufacturers Samsung and LG are quickly cut into the LED industry caused by the impact of the China Taiwan LED factory. Data show that in 2008, metal organic chemical vapor deposition equipment around the world have 700, Taiwan market share of about 40%, but last year the global MOCVD equipment 1000 Taiwan, this year will increase to 1700 units, Taiwan's market share has declined. By the end of this year, Taiwan MOCVD machine is about 400 units, the market share will fall below 30%. This is mainly a large number of investment in the field of LED in Korea, Samsung will have 200 MOCVD this year, LG plans to set up a total of MOCVD units, the number of MOCVD investment in the light of these two plants are close to the total number of manufacturers of MOCVD equipment in Taiwan. Taiwan manufacturers to break out of the siege, integration is an inevitable choice.

Recently, LED extension leading factory EPISTAR (the crystal electric) already moves, spend more than 8 billion 600 million yuan, achieved Guangjia photoelectric 47.88% stake, replace the Inventec became the largest shareholder of gallium. In recent years, the upstream epitaxial crystal electric LED active in the field of mergers and acquisitions, the first time for a patent consider the merger of the League of nations, then focus on the mainland market with China yuan arsenic, last year in Taigu photoelectric, this year has more than 40% stake in South Asia photoelectric. Has now become the largest shareholder after huga, Blu ray MOCVD machine pan crystal electric group has reached 296 Taiwan, EPISTAR has officially surpassed Cree, even more than Japan's Nichia, become the world's largest manufacturer of blue LED.

China in Taiwan LED factory, crystal electric leading wide gallium and canyuan strength in about the same, EPISTAR and Guangjia cooperate, can improve the competitiveness of Taiwan LED industry in the international market. Li Bingjie, chairman of crystal electricity, said the strategic alliance with the wide spectrum of gallium, the main consideration is the rapid rise of Korean manufacturers. In order to cope with the enemy, Taiwan LED plant to speed up the integration, in order to improve the global market share, compete with South Korean manufacturers. The strategic cooperation with the wide GA can not only share resources and technical cooperation, enhance the strength, but also can jointly develop different markets in order to create a win-win situation. EPISTAR and Guangjia will double brand attack in different markets, and the other LED epitaxial plant such as canyuan photoelectric, photoelectric new century marginalized, and make the same investment LED epitaxial industry group and Chi Mei Group to seek acquisitions or accelerated cooperation object.

Accelerate the package layout

Taiwan extension factory in speeding up the layout, but also part of the package there is no lack of excitement.

Billion light, reashine and LG display (LGD) in Wujiang, recently decided to Chinese group led package factory. The project investment of $30 million, the future production of LED will be given priority to LG electronics and Rui Xuan's Vizio, in order to fight against samsung.

The project investment amounted to US $30 million, billion light 60% stake, reashine and LGD accounted for 20%. Previously LGD and Rui Xuan also invested billions of dollars can be Switching Company debt, the two sides will be closer cooperation. Said billion light charge, the first stage prediction capacity of 100 million, second per month for the 200 million stage, LED packaging factory in Wujiang in November and the trial production, mass production in December, before mass production, reashine and LG required LED will be supplied by Suzhou billion light factory.

LED rapid application in LCD TV, because of the permeability can reach 20% by the end of this year, LED has caused the demand, in order to consolidate the source of LED TV manufacturers, have extended channels. The LED supply chain is quite distinct from each other, mainly divided into Samsung and LG two forces. Before Ruixuan together with the LGD investment LED Fab canyuan, crystal electric for Samsung supplier, which makes the two camps LED backlight LCD TV officially surfaced, one party is Samsung, EPISTAR and East Bay, the other is LG, Ruixuan, canyuan and billion light. In the LED package, infodisc is the earliest Samsung into the supply chain, AUO and Chi Mei optoelectronics have their own supply chain, for example, Ronda and Kai yiu. Now billion light surfaced, become LG and Rui Xuan's strategic partner.