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LEDinside: China Plans to Increase over 1200 MOCVDs – Special Report on China’s LED Chip Industry(3)
According to LEDinside’s latest Report on China’s LED Chip Industry in 2010, China has planned to introduce over 1200 MOCVDs and more than 300 units will be added in 2010.
In light of historical experiences, the annual MOCVD increase in practice will be less than the planned number. The planned MOCVD number reflects the extraordinary prosperity of China’s LED chip industry. At least 6 enterprises have planned over 100 MOCVDs, for example, Xiamen Sanan and Elec-Tech Elect International have already ordered over 100 units. The main reasons for MOCVD increase are subsidy policies of local Chinese governments and the huge LED market prospect seen by enterprises, which have greatly encouraged LED manufacturers to massively introduce MOCVD equipment.
First, in view of the fiscal subsidy for introducing MOCVD equipment, LED companies can basically receive a subsidy of RMB 8~10 million Yuan per unit from their own local governments, which will substantially reduce their equipment purchase cost and enable a significant rise of planned MOCVD number. The government fiscal subsidy policy is the major cause for LED manufacturers to plan large-scale MOCVD introduction. Moreover, Policies issued by local government to attract investment, particularly MOCVD subsidy have effectively promoted China market entrance of more mainstream LED chip enterprises from Taiwan, U.S and other regions.
Second, the great LED market prospect is also important. In addition to the enormous market potential of future general lighting, new application fields have been continuously developed. Meanwhile, the existing applications markets keep growing mature. In China, there will always appear a market rush immediately when a new industry emerges, such as PV business, not to mention the obviously promising LED industry. The number of LED chip plants has soared in the past more than a year thus the planned MOCVD number has followed to increase.
Meanwhile, most companies have little understanding of the status quo of China’s LED chip manufacturers, for instances, the number of LED chip enterprises, the planned MOCVD number of each one, the total planned MOCVD number, the forecast of MOCVD market volume, etc. A lack of accurate investigation into China’s LED chip industry has resulted into blind industry entrances and the overoptimism about the planned MOCVD number of many manufacturers.
Finally, a lack of related technology talents turns out to be inevitable. Because of the unexpected increase of China’s LED chip enterprise, most of which have MOCVD introduction plans, the shortage of R&D personnel related to epitaxial wafer production will become a great challenge. Personnel will play an important role in the future market competition between China’s LED chip enterprises.
LEDinside has made an in-depth research on the status quo of China’s LED chip industry. For detailed information about the planned MOCVD number of each manufacturer, please refer to LEDinside’s Report on China’s LED chip industry 2010. The report elaborates on the MOCVD number currently owned by China’s LED chip companies and its future plannning. Nevertheless, the MOCVD number will not transfer into the real productivity until the product can be accepted by the market and the technology keeps in pace with the market development.
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