Text / "High-tech LED" reporter Liu Qiaomei
Recently, a chip manufacturer in China told the Gaogong LED reporter that "the price of chips in the low-end market has been declining at present, because the production capacity has been released one after another, and the supply exceeds demand. From the beginning of the year to the end of April, the price has dropped by 20% to 30%, so some manufacturers will pass. It’s very hard, especially for those who have a large plate, but the products don’t meet the high-end requirements.â€
"In any case, this year will not be very good, we must shrink and diet." The executive is a bit frustrated with the current market situation.
This is just a microcosm of the domestic LED chip market in the first half of 2011. An industry insider told reporters that the price war is the only way for LED chip manufacturers to go through, and even ushered in a brutal price. To a certain extent, this also tests the chip manufacturer's plan for the product roadmap. It is not excluded that at this stage, some manufacturers who make low-end products and thinner homes will be eliminated.
MOCVD continues to boom
On May 10th, Veeco, one of the two largest MOCVD giants in the world, was completed in Shanghai. As the most important LED market in the world in the future, Veeco's move means that the Chinese market will become a global battleground for LED upstream manufacturers in the future.
John R. Peeler, CEO of Veeco Global, said in an exclusive interview with Gao Gong LED reporter that the proportion of MOCVD equipment shipments in the global market in China increased from 12% in 2009 to 32% in 2010, and is expected to be as high as 60% in 2011. . According to the global MOCVD equipment shipments of 850 to 1100 units this year, MOCVD shipments in China will reach 510 to 660 units.
According to the monitoring data of the High-tech LED Industry Research Institute (GLII), the total investment in China's LED industry contracted plans in 2010 was 217.885 billion yuan, of which the investment in epitaxial wafers was about 124 billion yuan, accounting for 56.9%. In the first quarter of this year, there were 8 new LED epitaxial chip projects in China (excluding the original enterprise expansion projects and undetermined projects), with a total planned investment of 15.1 billion yuan, and plans to introduce more than 250 MOCVD. Obviously, the upsurge of upstream investment has not subsided, which may prove to some extent that foreign equipment manufacturers represented by Veeco have eroded the Chinese LED market.
It is undeniable that local government subsidies for MOCVD equipment (8 million yuan / Taiwan ~ 12 million yuan / Taiwan) is one of the important factors that lead to crazy investment in domestic and foreign chips. Wang Keyang, general manager of Veeco Greater China, said frankly, "The local government's subsidy for MOCVD equipment is a potent drug, and this drug is quite effective."
However, with the subsidies continuing to stop, it is not ruled out that some LED manufacturers will speed up the progress of the machine orders before the end of the subsidy policy, enjoy the final subsidies and share the benefits of non-operating income, before the equipment capacity has not been digested. The situation of overcapacity of LED chips will be even more severe.
Recently, a chip manufacturer in China told the Gaogong LED reporter that "the price of chips in the low-end market has been declining at present, because the production capacity has been released one after another, and the supply exceeds demand. From the beginning of the year to the end of April, the price has dropped by 20% to 30%, so some manufacturers will pass. It’s very hard, especially for those who have a large plate, but the products don’t meet the high-end requirements.â€
"In any case, this year will not be very good, we must shrink and diet." The executive is a bit frustrated with the current market situation.
This is just a microcosm of the domestic LED chip market in the first half of 2011. An industry insider told reporters that the price war is the only way for LED chip manufacturers to go through, and even ushered in a brutal price. To a certain extent, this also tests the chip manufacturer's plan for the product roadmap. It is not excluded that at this stage, some manufacturers who make low-end products and thinner homes will be eliminated.
MOCVD continues to boom
On May 10th, Veeco, one of the two largest MOCVD giants in the world, was completed in Shanghai. As the most important LED market in the world in the future, Veeco's move means that the Chinese market will become a global battleground for LED upstream manufacturers in the future.
John R. Peeler, CEO of Veeco Global, said in an exclusive interview with Gao Gong LED reporter that the proportion of MOCVD equipment shipments in the global market in China increased from 12% in 2009 to 32% in 2010, and is expected to be as high as 60% in 2011. . According to the global MOCVD equipment shipments of 850 to 1100 units this year, MOCVD shipments in China will reach 510 to 660 units.
According to the monitoring data of the High-tech LED Industry Research Institute (GLII), the total investment in China's LED industry contracted plans in 2010 was 217.885 billion yuan, of which the investment in epitaxial wafers was about 124 billion yuan, accounting for 56.9%. In the first quarter of this year, there were 8 new LED epitaxial chip projects in China (excluding the original enterprise expansion projects and undetermined projects), with a total planned investment of 15.1 billion yuan, and plans to introduce more than 250 MOCVD. Obviously, the upsurge of upstream investment has not subsided, which may prove to some extent that foreign equipment manufacturers represented by Veeco have eroded the Chinese LED market.
It is undeniable that local government subsidies for MOCVD equipment (8 million yuan / Taiwan ~ 12 million yuan / Taiwan) is one of the important factors that lead to crazy investment in domestic and foreign chips. Wang Keyang, general manager of Veeco Greater China, said frankly, "The local government's subsidy for MOCVD equipment is a potent drug, and this drug is quite effective."
However, with the subsidies continuing to stop, it is not ruled out that some LED manufacturers will speed up the progress of the machine orders before the end of the subsidy policy, enjoy the final subsidies and share the benefits of non-operating income, before the equipment capacity has not been digested. The situation of overcapacity of LED chips will be even more severe.
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