LED investment structural excess general lighting market needs to be accelerated

John R. Peeler, CEO of Veeco, the world’s second-largest LED equipment supplier, recently stated in Shanghai that MOCVD equipment shipments in mainland China accounted for only 12% of the global market in 2009, rising to 32% in 2010, and in 2011 In 2009, MOCVD shipments in Mainland China are expected to be much higher than those of other countries and regions, and their share will account for 60% of the world's total.

In the past two years, LED upstream manufacturing has become the focus of domestic deployment. All over the country has announced that it has invested heavily in purchasing MOCVD equipment. Mainland China has thus become the fastest growing region in global LED production capacity. According to statistics, in 2010, the number of new MOCVD equipment planned to be added to the mainland will be 50% of the global supply of MOCVD in 2009. In the next three years, 1,466 new MOCVD units will be planned, which will exceed the sum of global MOCVD equipment in 2009.

It is worth noting that, under the upsurge of investment in the ups and downs of the LED industry, the current peak demand for the domestic LED market is far from coming. With the successive production of MOCVD equipment purchased by companies in the past two years, it is expected that the wafer production capacity in mainland China will be 10-15 times that in 2009. The industry is worried that there will be a significant overcapacity in the future.

Qi Faxin, an analyst at the International Semiconductor Equipment and Materials Association's China market, said that at present, China's LED upstream should be more careful about structural overcapacity. Domestic LED epitaxy and chip manufacturing are mostly concentrated in the blue-green light part. In addition, most of the manufacturers' technology and process capabilities are relatively concentrated in small-size chip products. The application directions are display screens and decorations.

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