Taipei, Thursday, July 24, 2014 04:52 (GMT+8)
mostly cloudy
Taipei
26°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

Realtime news
  • Vendors partner with Wintel to release US$199-249 notebooks for 2H14

    IT + CE | 5h 59min ago

  • Apple to become largest client for TSMC, say sources

    Bits + chips | 6h 2min ago

  • China market: Xiaomi launches new flagship smartphone

    Mobile + telecom | 6h 59min ago

  • Apple new iPhones to come with different time tables to avoid competition

    Mobile + telecom | 7h 15min ago

  • Delta expected to enjoy strong performance in 3Q14

    Before Going to Press | 6h 59min ago

  • Samsung suffering from infighting; may impact upcoming smartphone plans, says report

    Before Going to Press | 7h 15min ago

  • Han's Laser and Goodfeel to attend Touch Taiwan 2014

    Before Going to Press | 7h 26min ago

  • TCAS 2014: BenQ to promote short-distance projectors

    Before Going to Press | 7h 48min ago

  • Digitimes Research: CSOT to see increased influence in AMOLED industry

    Before Going to Press | 8h 17min ago

  • North America semiconductor equipment industry posts book-to-bill ratio of 1.09 in June, says SEMI

    Before Going to Press | 8h 19min ago

  • Chassis makers doubtful about rumors Samsung to release metal chassis smartphone

    Before Going to Press | 8h 45min ago

  • PTI reports EPS NT$1.96 for 1H14

    Before Going to Press | 9h 13min ago

  • Digitimes Research: Wi-Fi ecosystem keeps expanding

    Before Going to Press | 9h 43min ago

  • Google to incorporate NFC functionality into Android

    Before Going to Press | 9h 59min ago

  • Peak season TV demand expected to be flat on year

    Before Going to Press | 10h 1min ago

  • LCD monitor panel prices rise on tight supply, say Taiwan makers

    Before Going to Press | 10h 3min ago

Pause
 | 
View more

Analysis of China's revised domestic semiconductor industry goals

RESEARCH EXTRAS | Jul 16, 18:09

Facing a funding shortage for local IC manufacturers, the China State Council in June 2014 published guidelines to strengthen government support for China's semiconductor industry, while stating the short-, mid-, and long-term goals for the related industry supply...

The transition to 4k TV - UHD TV market forecast, 2014-2017

RESEARCH EXTRAS | Jun 26, 13:59

Ultra HD TV vendors are facing challenges due to an overall slowdown in the TV industry and are concerned whether relative supply chains can provide compatible Ultra HD content and services. However, trends show that content makers as well as panel and chip makers...

Taiwan notebooks – 2Q 2014

TAIWAN ICT | Jul 23, 12:53

Taiwan's notebook makers saw an unexpected sequential rise in shipments in the second quarter after the end of Microsoft's support for Windows XP generated a wave of replacement demand. Compared to the same period of last year, their shipments still dropped....

China smartphone market and industry – 1Q 2014

CHINA SMARTPHONE | May 15, 15:08

This report is divided into two sections; the first covers the China smartphone market, including shipments from international players and China-based players. The second section covers the China smartphone industry and covers shipments from local makers in the...

Taiwan LCD monitors – 1Q 2014

TAIWAN FPD | May 13, 15:41

Monitor shipments from Taiwan makers declined in the first quarter of 2014 mainly due to seasonality. And both upstream LCD panel suppliers and downstream system vendors remain conservative about the monitor market in the second quarter.

UHD TV market forecast, 2014-2017
2014 global notebook demand forecast