The mainland enterprises to expand production of LED epitaxial chip, domestic MOCVD prices can gain another victory

From All flowers bloom together. to overcapacity from small workshops to shuffle Starving people fill the land., medium scale business failures, the price from the Red Sea to the blue ocean for subdivision...... LED industry booming short ten years, it is ups and downs, arduous and tortuous. When passed through the trough, the industry once again usher in large-scale expansion, industry how to the next stage?

The mainland enterprises to expand production, the mainland has become the Chinese LED chip foundry base"

LED industry market conditions turn better, the chip maker, expansion strength. Australia Shunchang recently announced that the company's subsidiary Huaian photoelectric intends to implement LED wafer and chip expansion project, the company will in Huaian on the basis of the existing production capacity of photoelectric LED wafer and chip production capacity expansion to 16 million 500 thousand (equivalent to 2 inch tablets).

In fact, not long ago in high chip enterprises Sanan optoelectronics conference call also said, Sanan optoelectronics will begin to MOCVD speed of 10 units per month to launch new production capacity from August this year, the three MOCVD about 360 taiwan. An optoelectronic current global market share of about 12%, the company said that the future will be 30% as the goal.

In addition to Sanan optoelectronics, HC semitek, changelight have also implemented expansion. In July 14th, HC semitek Zhejiang held in Yiwu LED industry trends conference, President Liu Rong said Yiwu Huacan base project in two phases, a total investment of 6 billion yuan. The first phase investment of 3 billion yuan, after the annual production capacity of 3 million 4 inch LED epitaxial chip and 3 million 200 thousand 4 inch sapphire substrate.

And changelight after the July 17th announcement that the company will be based on the original production of LED epitaxial chip on the LED epitaxial chip continues to expand the scale of production, the New District intends to invest 5 billion yuan in Jiangxi city of Nanchang province (two input), can be built to produce 1 million 200 thousand tablets (2 inch tablets) blue chip production base scale; an expected investment of 2 billion 500 million yuan, can be built to produce 600 thousand tablets (2 inch tablet) blue chip production base scale.

Compared with the tillage LED epitaxial chip companies, LED packaging companies in Siu Chi shares announced in June this year, the company will invest not less than 1 billion 500 million yuan and not more than 1 billion 600 million yuan investment in the construction of LED wafer and chip in Nanchang high tech Industrial Development Zone production project. The project of a plan by the two parties to jointly invest 5 billion yuan (land, building construction and renovation costs including construction plan in 2018), equipment installation and commissioning in place and formally put into operation.

From the current LED epitaxial chip manufacturers in the expansion plan, the expansion of overseas manufacturers lack of power, the main expansion is Chinese mainland manufacturers. From a global perspective, the manufacturers in the Taiwan area Chinese reduction, and international manufacturers Samsung and PHILPS and other OEM factory through three expansion instead of elec-tech.

With the LED chip enterprises bigger situation becomes clearer, the upstream end of the reshuffle has entered the end, mainland enterprises to join a new round of LED epitaxial chip expansion wave, will become Chinese mainland LED chip foundry base".

To accelerate the expansion of domestic MOCVD stimulated LED chip costs rise, will gain another victory

With the continuous expansion of the mainland LED epitaxial chip, MOCVD domestic equipment will also usher in a new wave of growth. It is reported that in 2016 the world's new MOCVD 136, the quantity of 3102 units, and in the next year to gradually eliminated 2010-2012 years of procurement of equipment to reach 1800 units.

According to the MOCVD equipment supplier Ace strong (AIXTRON) announced the first and second quarter financial results on 2017. The first half of 2017, AIXTRON LED revenues of 50 million 200 thousand euros (397 million 400 thousand RMB) accounted for 44%. Veeco Q2 2017 revenues of $115 million 100 thousand (about 772 million yuan), compared with the same period last year increased by 52.86%.

Although Ace is still the biggest city, MOCVD and Veeco share, but according to the Veeco Q2 Veeco reported a second quarter on quarter revenues accounted for Chinese area (43%) decreased greatly, this point to vigorously promote the localization of MOCVD in recent years, domestic equipment started by domestic LED chip manufacturers verified are inseparable.

It is understood that in 2016 the domestic MOCVD equipment market share in total only 11%, but after 2016 the client after verification, 2017 domestic MOCVD will usher in a new machine, especially the big expansion of the mainland manufacturers, is bound to bring a strong driver of domestic MOCVD.

MOCVD machine at the same time in 2010-2012 expansion during the peak period of the purchase is now facing the aging will be eliminated, and this kind of MOCVD accounted for about 60% of the amount of the world population, nearly 50% of the global production of LED epitaxial chip, is expected this batch of equipment will be eliminated gradually in 2018-2020.

The rise of domestic MOCVD, LED chip for the enterprise, due to its introduction will let LED chip cost another victory. (LEDinside / skavy)

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