According to the market research report, the global market share of LED wafer factories in China increased to 45% last year, and the proportion of Dachang Sanan and Huacan continued to rise. In addition, some mainland wafer factories began to adopt domestic MOCVD in 2017 (organic Metal chemical vapor deposition equipment, subsequent production costs will be more competitive.
The report proposes six LED supply and demand market trends and analysis. In terms of LED supply, MOCVD equipment has been in the hands of European and American companies in the past, but with the domestically produced MOCVD equipment starting to pass the verification of mainland LED chip manufacturers, some LEDs will be introduced in 2017. Among chip manufacturers, due to the relatively low price of equipment, it is expected to further reduce costs.
The agency also pointed out that as the first-tier mainland LED chip manufacturers continue to expand production capacity, in 2016, mainland manufacturers' LED epitaxial wafer production capacity has increased to 45% of the global market share, among which a few leading manufacturers such as Sanan and Huacan Optoelectronics The share continues to increase.
In the first half of this year, thanks to the peak season effect of traditional lighting and backlight applications, the capacity utilization rate of most LED manufacturers has increased, but some new LED chip manufacturers will be moved to MOCVD machines in the second and third quarters. In the second half of 2017, more obvious output will be released to the market, which will affect the supply and demand of the industry this year.
The LED manufacturers in mainland China took advantage of the cost advantage and gradually increased their market share in the middle and low-end sectors. The international LED manufacturers lost their competition, and they commissioned the production of mainland LED manufacturers through OEM. The production capacity of mainland LED manufacturers continued to be fully loaded, and LEDs were simultaneously expanded. Packaged devices, as well as LED chip capacity to undertake OEM orders from major international manufacturers.
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