According to the latest ‘ 2017 Global Sapphire and LED Chip Market Report by LEDinside, a division of the global market research firm TrendForce, LED chip market value was USD 6,329 million in 2015, while it grew by 3% to USD 6,502 million in 2016. Since the second half of 2016, Chinese LED packaging manufacturers have scaled up rapidly, targeting applications expected to prevail in the market for the next three years, including general lighting, automotive lighting, and display application. That further fosters Tier 1 Chinese LED chip manufacturers to volume up their productivity.

The Capacity Expansion of Chinese LED Chip Manufacturers Reshuffles 2017’s Productivity Ranking

LEDinside estimates MOCVD equipment (Equiv. K465i) will reach 322 sets in 2017, contributed mainly from China and Malaysia. The market dynamic showed Chinese LED chip manufacturers, including San’an Opto, HC SemiTek, Aucksun, and even IRICO Epilight plan to expand production capacity. Some manufacturers have added equipment into plans since 2H16. It is estimated that in 2017 the total shipments of MOCVD in China will reach 231 sets. Some of the old machines will be phased out of the market, yet in general, China is still the market that will encounter the largest scale of productivity surge, expected to take up to over 50% of the global LED chip manufacturing productivity in 2017.
 

As for the dynamics in other regions, Osram will complete the construction of its fab in Malaysia by 2017, and the design capacity is expected to volume up after the introduction of manufacturing equipment.
 

The Capacity Expansion Boosts The Demand for PSS in Chinese Chip Market

 

In 2016, global LED epi wafer capacity reached TIE 78.4 million pieces and it’s estimated that LED epi wafer capacity will be 114.7 million pieces by 2020. Judging by regions, China is the largest LED epi wafer production base, with 4-inch epi wafer as the major. As Chinese chip manufacturers are still demanding for patterned sapphire substrates, Chinese PSS suppliers volumed up their output on a large scale. The top five Chinese PSS suppliers in 2017 will be reshuffled to be Sinopatt, Jing’An, Rigidtech, ECEC, and Crystal-Optech, of which the production cost control and techniques for yield rate improvement outperform the PSS manufacturers in other regions.

 

Author: Roger, Joanne / LEDinside

2017 Global Sapphire and LED Chip Market Report

Release: 08 December 2016

Language:  Chinese / English

Format:  PDF

Page:  180

 

Chapter I Advanced Technology in Sapphire Industry

1.1 Mainstream Sapphire Ingot Technology

1.2 Mainstream Sapphire Wafer Technology

1.3 Mainstream Pattern Sapphire Substrate Technology

PSS OEM Price Analysis

 

Chapter II Global Sapphire Equipment

2.1 Sapphire Ingot Furnace

2.2 Overview of Sapphire Sawing, Lapping, Grinding and Polishing Machine, Chamfering Machine, Printing, and Coating Machine

2.3 PSS Equipment

 

Chapter III Supply-Side Analysis of Global Sapphire Industry

3.1 Sapphire Ingot Manufacturer Capacity and Market Value Analysis

3.2 Sapphire Wafer Manufacturer Capacity and Market Value Analysis

3.3 Pattern Sapphire Substrate Manufacturer Capacity and Market Value Analysis

3.4 Major Sapphire Manufacturer’s Business Performance and Market Development

3.5 Sapphire Industry Development Strategies

3.6 Sapphire Substrate Industry Sufficiency- Supply and Demand

 

Chapter IV Global Sapphire Market Price Trend

Sapphire Ingot Market Price

2” Sapphire Wafer and PSS Market Price

4” Sapphire Wafer and PSS Market Price

6” Sapphire Wafer and PSS Market Price

 

Chapter V Sapphire Market Demand in LED Industry

5.1 LED Market Outlook and Perspective

5.2 MOCVD Installation Volume Forecast and LED Epi Wafer Market Trend

5.3 LED Chip Manufacturer Revenue Ranking and Capacity Estimates

5.4 Major LED Chip Manufacturer Profile

5.5 Chip House PSS Introduction Rate and PSS in-house Production Rate

5.6 Chip Manufacturers' Sapphire Substrate and PSS Supply Chain

5.7 Cost Analysis of Sapphire Substrate in LED Chip

5.8 Pros and Cons on Four-inch and Six-inch Wafer Production

5.9 Alternative Materials in LED Application Market

 

Chapter VI Sapphire Market Trend in Mobile Device Industry

6.1 Sapphire Requirement in Mobile Device Applications

6.2 Major Suppliers and Supply Chain Development

6.3 Sapphire Market Perspective in Applications