Taipei, Friday, October 24, 2014 01:37 (GMT+8)
mostly cloudy
Taipei
22°C
Survey of upstream LED component industry
Jessie Lin, DIGITIMES Research, Taipei [Friday 25 February 2011]
Registration required (free) to purchase. Please sign in if you wish to continue.
As demand has increased for downstream LED application products such as LED TVs and LED lighting, the upstream LED industry has become more proactive in expanding production capacity, leading to large-scale growth for MOCVD, sapphire and LED chip manufacturers. However, in 2010, sapphire manufacturers were more conservative about expanding capacity than MOCVD machinery makers, resulting in tight supply. For 2011, sapphire manufacturers are maintaining a favorable outlook for demand growth for substrates and consequently the world's seven largest manufacturers will increase capacity by close to 100%.
Abstract
Sapphire capacity expansion by company, 2009-2011

Asia-based LED chip manufacturers from South Korea, Taiwan and China are adding new equipment, with the result being that the world's two largest MOCVD machinery manufacturers - Aixtron and Veeco, who together combine for a global market share of 95% - are seeing the Asia region become the biggest contributor to their revenues. But with demand for MOCVD machinery increasing, South Korea plans to move toward independently developing MOCVD equipment.

In addition, upstream sapphire manufacturers were more conservative about expanding capacity in 2010 than MOCVD machinery makers, resulting in shortfalls in supply. Sapphire manufacturers maintain a favorable demand growth outlook for sapphire substrates in 2011, and consequently the world's seven largest manufacturers will increase capacity by close to 100% this year.

Asia will especially drive demand, with emerging LED manufacturers such as Samsung LED, LG Innotek and Lextar, and established manufacturers such as Nichia and Toyoda, contributing to helping the Asia region become the world's major manufacturing s region. In addition, China's subsidy policies for MOCVD machinery mean that the development of China-based firms like Sanan and Elec-Tech (ETi) will be even more worthy of attention.   

Questions answered in this report:
What will MOCVD capacity be in 2011?
What are the plans of sapphire players?
Who are the main players in the upstream LED Industry?

Table of contents
Price: NT$48,000 (approx. US$1,685)
Realtime news
  • Taiwan September manufacturing production index down on month, up on year, says MOEA

    Bits + chips | 3h 52min ago

  • Taiflex Scientific, ThinFlex net NT$3.42, NT$1.85 EPS for January-September

    Before Going to Press | 4h 22min ago

  • Digitimes Research: Global LED supply in 2015 may be tight

    Before Going to Press | 5h 8min ago

  • Taiwan market: HTC maintains largest market share by sales volume in September

    Before Going to Press | 5h 10min ago

  • Supply chains still experiencing pressure to reduce panel pricing

    Before Going to Press | 5h 28min ago

  • Foxconn will not acquire TPK, says company

    Before Going to Press | 5h 32min ago

  • Taiwan makers still eyeing sales of Ultra HD TV panels, high-end IT displays

    Before Going to Press | 5h 51min ago

  • Himax Technologies sees booming orders for LCoS solutions

    Before Going to Press | 6h 6min ago

  • Innolux announces acquisition of assets from Hoya Microelectronics

    Before Going to Press | 6h 7min ago

  • Taiwan IC designers expect drops in 3Q14 gross margins

    Before Going to Press | 6h 14min ago

  • Taiwan makers 3-5 years ahead of China in LTPS technology, says AUO

    Before Going to Press | 6h 18min ago

  • Digitimes Research: Taiwan makers developing more technology for second-wave 802.11ac devices

    Before Going to Press | 6h 21min ago

  • Digitimes Research: OLED TV pricing to remain double Ultra HD TV pricing through 2016

    Before Going to Press | 6h 27min ago

  • Sony to launch 12-inch tablet in 1Q15, say Taiwan makers

    Before Going to Press | 6h 30min ago

  • Laibao reaches 80% yields on 5G line; OGS shipments reach 600,000 a month

    Before Going to Press | 6h 31min ago

  • Taiwan makers in China less interested in additional investment, says TEEMA

    Before Going to Press | 6h 37min ago

  • Intel Global Summit 2014 to focus on IoT, smart wearable devices, say Taiwan makers

    Before Going to Press | 6h 45min ago

Pause
 | 
View more

Trends and forecasts for the China FPD industry, 2014-2017

CHINA FPD | Oct 6, 12:29

With China being the world's IT production center and a country with some of the strongest consumer demand, along with benefits on custom tax, funding, loans, and subsidies provided by the government, China's FPD industry continues to show strong growth. Local...

Taiwan servers and the global server market, 2014

RESEARCH EXTRAS | Oct 3, 12:19

Taiwan makers have successfully entered the supply chain of the Internet data center (IDC) industry and may contribute over 90% of the global server shipments in 2014. Combined revenues from related product lines such as motherboards, back-end assembly, storage...

Taiwan notebooks – 3Q 2014

TAIWAN ICT | Oct 23, 11:55

US notebook brand vendors' stronger-than-expected sales fueled their Taiwan-based ODM partners' shipment growth in the third quarter. In general, the enterprise segment saw better shipment momentum than the consumer segment, as Microsoft's termination of support...

Taiwan LCD monitors – 2Q 2014

TAIWAN FPD | Aug 25, 14:48

Taiwan's monitor shipments grew 10% in the second quarter compared to a low first-quarter base. With panel makers reducing their supply of monitor applications and monitor vendors reluctant to increase their shipments, Taiwan's makers will only see a single-digit...

China smartphone market and industry – 2Q 2014

CHINA SMARTPHONE | Aug 12, 17:41

A delay in the launch schedule for low-cost 4G smartphones resulted in a mere 4.8% increase in second quarter shipments in the China market. However, with telecom operators planning on increasing their subsidies in the second half of the year, demand will be...

China FPD, 2014-2017
The transition to 4k TV - UHD TV market forecast, 2014-2017
DIGITIMES Translation Services
  • 2014 global high brightness LED market, trends and shipment forecast

    For the global LED lighting market, the market size will reach US$25.82 billion in 2014 or a market penetration rate of 23.4%. This is attributable to exponential shipment growth for light bulbs, tubes, and directional lamps.

  • Greater China touch panel shipment forecast through 2015

    This Special Report provides forecasts through 2015 for Greater China touch panel shipments with breakdowns based on technology (glass, film, resistive), application (smartphone, NB and tablet) and by firm.

  • 2014 global tablet demand forecast

    This report analyzes the main players, their strategies and shipments forecasts for 2014, as well as other factors contributing to either growth or decline in various segments within the tablet market, with a particular focus on Apple, Google, Samsung, and Microsoft, along with whitebox vendors.