In 2011, the scale of the mainland MOCVD machine will catch up with Taiwan.

Under the support of the government, the scale of the MOCVD market in the mainland has rapidly increased rapidly. After the rapid expansion of MOCVD machine capacity in 2010, it will continue to increase in multiples in 2011. Recently, the market has spread more, and a mainland factory has opened 400 to the MOCVD equipment factory. 500 MOCVD machines are large, causing the order of the machine to be in short supply. The industry expects that the fastest capacity of the mainland MOCVD machine will catch up with Taiwan in 2011, and gradually engulf the low-end market to swallow the mid-level LED application market for 2011. The LED industry order has cast a variable.

In 2008, there were only about 100 MOCVD machines in the mainland. In 2010, the total number of MOCVD machines installed reached more than 330. According to the manufacturer's information, the total number of installed MOCVD machines in the mainland will reach about 700 to 800 units in 2011. Manufacturers are more optimistic about the 1,000 units, deducting foreign-funded or joint ventures led by Taiwanese companies. The total installed capacity of pure land-based MOCVD machines is expected to reach 500-600 units, which is equivalent to an additional supply of LED industry in Taiwan.

Recently, the LED industry in Taiwan has been rumored that Korean LED manufacturers have signed orders for more than 400 MOCVD machines to MOCVD machine manufacturers, which has shocked the industry, including TSMC and chip leader, Jingdian, etc., have heard this rumor. However, it is reported that the LED subsidiaries of Samsung LED and LGIT and other two major groups are affected by the sluggish market demand. In 2010, the capacity utilization rate in the second half was greatly reduced. Even in the fourth quarter, there was overcapacity, which was successively thrown at low prices to the mainland market, causing the mainland. The average upstream price of the LED (ASP) dropped by 10~15%. In 2011, the expansion plan was more conservative.

The LED industry believes that from the previous example of South Korea's active expansion of MOCVD machines in 2010, it can be seen that the upstream epitaxial production of LEDs can be done without relying on large sums of money. Training professional and technical personnel can not be done overnight, so even though mainland manufacturers have Strong funds to buy MOCVD machines, but may not be able to put into production smoothly, in addition to the mainland LED chip industry in Xiamen Sanan, it is unlikely that the Taiwan factory will be threatened in the short term.

It is reported that the total number of MOCVD machines in Xiamen Sanan by the end of 2010 is about 40. It is estimated that the installed capacity will reach 100 units in 2011, and the production capacity will be close to the standard level. The overall output competitiveness should not be underestimated. As for ranking The second and third dry photo optoelectronics and Inspur Huaguang currently have 9, 14 MOCVD respectively, and 17 or 16 units will be added in the next year from the fourth quarter of 2010.

However, the industry is worried that with the expansion of mainland LED epitaxy/chip capacity, the threats faced by Taiwan's LED manufacturers will be more difficult in the future. In the past, Taiwan's LED chip manufacturers can dump the output of secondary products to the mainland market. In order to gain revenue, but the lower-end market will face competition from the mainland industry in the future. Due to the initial introduction of the machine, a large number of sub-products will be produced in the process of crystal growth, and the market competition pressure will increase greatly, waiting for the low-end market to finish. It will slowly attack the mid-to-high-end market, and the industrial order will enter the situation of the Warring States.

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