MOCVD system business will adopt full outsourcing model

With the impact of the economic crisis on the semiconductor industry more and more widely, such as MOCVD equipment maker Veeco Instruments is restructuring in 2008, Q4 said on Veeco's CEO John PeELer said that by the end of 2009, MOCVD Veeco will use the full outsourcing business model, in addition will take more measures to cut cost. It is reported that the epitaxial equipment supplier Veeco further MOCVD system manufacturing outsourcing to a New Jersey company, and thus cut the 1/4 position, by the end of 2009, Veeco employees less than 1000 people.

By the end of 2013, the demand for high brightness LED and multi junction solar cells in these two major markets for MOCVD and epitaxial devices remain strong. However, the Korean LED manufacturer LG Innotek ordered four sets of K465 MOCVD Veeco devices, and another MOCVD system is ordered by an unnamed multi junction solar cell manufacturers. In the $110 million in sales, LED and solar applications totaled $37 million 600 thousand.

LED and solar applications designed for equipment sales in 2008 reached $166 million, accounting for Veeco of the total sales of 43%, alternative data storage has become the largest application market Veeco. LED and solar cell devices are increasing at a rate of 69% per year, with the addition of LG Innotek to reach $44 million in 2008 Q4 sales. While some LED vendors, especially those from Taiwan, have delayed the delivery of MOCVD in recent weeks, Peeler does not think that means cancelling orders. In any case, these customers will deposit.