Taipei, Saturday, January 31, 2015 14:04 (GMT+8)
mostly cloudy
Taipei
14°C
China driving MOCVD demand in 2011, says new report from Digitimes Research
Press release, DIGITIMES, Taipei [Tuesday 8 March 2011]

As global penetration of LED TV's increases and LEDs get ready to take the lighting sector by storm, global demand for metal organic chemical vapor deposition (MOCVD) has been increasingly markedly since 2010, according to a recently published DIGITIMES Research Special Report titled "Survey of upstream LED component industry."

The report notes that global demand for MOCVD equipment increased by a staggering 277%, from 212 units in 2009 to around 800 units in 2010. DIGITIMES Research explained that the main reason behind this is that LED manufacturers in regions of Asia such as South Korea, Taiwan and China are actively expanding MOCVD equipment capacity.

Over the last two decades, LEDs have gone from obscure components to indispensable parts of everyday life. Today, everything from computer and TV screens to household lighting and even car parts contains LEDs, and this increase in demand is driving a boom in upstream components, materials and equipment for the LED sector. The most critical of these are LED components themselves, chiefly chips and packaging; the artificial sapphire materials from which key LED components are made; and the MOCVD equipment (reactors) used in their manufacture.

In the context of this booming demand, a sea change is taking place within these industries. World leaders in sapphire production such as US-based Rubicon are expanding capacity while focusing on profitability. The traditionally strong Japan-based manufacturers such as Toyoda Gosei and Nichia are facing new challenges from increasingly technically sophisticated and commercially ambitious competitors based in Taiwan and South Korea; while the Taiwan and Korea-based manufacturers are expanding capacity and developing their own technologies, with government assistance in some cases. Moreover, a new wave of China-based companies is emerging, many of which will find themselves ideally placed to capitalize on the LED boom, as a result of the government subsidies they are receiving, and their undeniable advantages in terms of labor costs and proximity to customers. The LED industry recovered quickly from the recent global financial crisis, but has also faced challenges from recessions around the world, and rising prices of vital rare earth materials, further complicating the picture.

The DIGITIMES Research Special Report brings together all these complex threads, providing an understanding of the key issues and major players that are reshaping the upstream LED industry. The report provides a clear overview of the industry and forthcoming trends on both a company-by-company and region-by-region basis, accompanied by a wealth of easy-to-read charts, useful data and incisive analysis.

Survey of upstream LED component industry

Source: Digitimes Research, February 2011

For more information about the report

About DIGITIMES Research

DIGITIMES Research is the research arm of DIGITIMES Inc., Taiwan's leading high-tech media outlet. Operating as an independent business unit, DIGITIMES Research focuses on monitoring key high-tech industries, while also guiding clients toward suitable new business as well. Market intelligence and analysis is provided to more than 1,000 corporate customers worldwide. Research and consulting services cover a full range of industries, including information and communications technology (ICT), flat panel display (FPD), renewable energy and semiconductor design and manufacturing.

Contacts:

Michael McManus (Michael.mcmanus@digitimes.com)
Shannen Yang (Shannen.yang@digitmes.com)

Topics: Page 2

2015 China IC design market forecast

RESEARCH EXTRAS | Jan 23, 10:50

Global economic growth is forecast to reach 3.8% in 2015, up from 3.3% in 2014. From the perspective of the electronics industry though, PC shipments will continue to decline, smartphone shipment growth will drop, and tablet shipments may decline. Despite the...

2015 global AP market forecast and vendor analysis

RESEARCH EXTRAS | Jan 23, 10:46

Digitimes Research estimates that total 2014 AP shipments will reach 1.52 billion units worldwide, up 19.6% from 2013, and in 2015 the global market will see shipments of 1.65 billion units, growing 8.5% on year. The slowdown is mainly due to a shrinking tablet...

Taiwan digital cameras – 4Q 2014

TAIWAN ICT | Jan 28, 10:51

Taiwan makers saw an on-year rise in DSC shipments during the fourth quarter of 2014, as driver IC shortages that had hampered their shipments in the previous quarter eased. But shipments for the entire 2014 continued to fall, and the trend of decline does not...

Taiwan notebooks – 4Q 2014

TAIWAN ICT | Jan 21, 15:53

The notebook market saw significant demand for entry-level devices whose pricing levels were comparable to those of tablets in the fourth quarter of 2014, which maintained Taiwan ODMs' overall shipments at a level comparable to that of the previous quarter. But...

China touch panel industry – 3Q 2014

CHINA TOUCH | Nov 28, 18:54

The third quarter is a traditional boom season for touch panels and therefore China-based touch panel makers saw shipments increase for all major applications.

2015 China IC design market forecast
Wireless broadband developments in Southeast Asia markets
The transition to 4k TV - UHD TV market forecast, 2014-2017
  • Wireless broadband developments in Southeast Asia markets

    As of 2013, the 10 ASEAN nations had a total of over 700 million mobile subscriptions, with the CAGR from 2003-2013 reaching 24%. This Digitimes Research Special Report analyzes the various mobile broadband markets in ASEAN and looks at the respective trends in 4G LTE development for those markets.

  • 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.