Taipei, Wednesday, September 2, 2015 00:19 (GMT+8)
light rain shower
Taipei
25°C
Overview of China's LED chip industry
Jessie Lin, DIGITIMES Research, Taipei [Thursday 24 November 2011]
Registration required (free) to purchase. Please sign in if you wish to continue.
Thanks to a MOCVD subsidy programs, China is the global center of MOCVD equipment demand, accounting for 57% of shipments in 2011, helping the local LED industry gradually improve its global standing. However, the country's LED chip manufacturers remain an extremely mixed bag in terms of competitiveness. The 12th FYP aims to remedy this situation by consolidating the industry into a handful of serious competitors, namely Sanan, Electech, Tsinghua Tongfang, Silan Azure, Epilight and Changelight.
Abstract
China LED chip industry Output value, 2008-2013 (CNYm)

The global LED industry was less buoyant in 2011 than in 2010, and there has been a corresponding slowdown in the deployment of new MOCVD machines. Digitimes Research projects that global MOCVD shipments for 2011 will reach 690 units, a 14% drop on the 800-unit figure for 2010.

Nevertheless, China will account for a greater share of this demand than any other region in 2011 with some 57% of shipments. The next three regions by MOCVD demand - Taiwan, Japan and South Korea - will each account for less than 10% of global demand. It is therefore clear that the importance of the China LED industry on the global stage is increasing.

While China is scaling back its subsidy policies for MOCVD units, the country's enormous MOCVD capacity is likely to drive growth in LED chip output value in the coming years. Digitimes Research projects that LED chip output value in China will reach CNY13.0b (US$2.05b) in 2012 and CNY18.25b in 2013, representing tenfold growth over the 2008 figure.

Thanks to its MOCVD subsidy programs, not only is China the global center of MOCVD equipment demand, but the country's LED industry has also gradually improved its global standing. However, the country's LED chip manufacturers remain an extremely mixed bag in terms of competitiveness. The 12th FYP aims to remedy this situation by consolidating this disparate range of companies into a handful of serious competitors, in order to put the China industry on a par with those of Europe, North America and Japan, which each boast two or three major manufacturers.

For the reasons outlined above, in particular smaller players' plans to sell off MOCVD capacity to larger manufacturers, Digitimes Research projects that the China LED chip industry will become increasingly concentrated in the hands of the big six manufacturers: Sanan, Electech, Tsinghua Tongfang, Silan Azure, Epilight and Changelight. More and more smaller manufacturers in China are withdrawing from the LED chip sector altogether and selling off their MOCVD capacity to larger, more stable firm. Digitimes Research therefore projects that the level of concentration in the China LED chip industry will continue to increase, rising to 57% by 2013.

Table of contents
Price: NT$48,000 (approx. US$1,685)
Realtime news
  • ASE reiterates its acquisition bid for financial investment, industry integration

    Before Going to Press | 1h 36min ago

  • Inventory adjustments in semi industry comes to an end, say TSMC executive

    Before Going to Press | 1h 37min ago

  • Taiwan market: Production value of Taiwan PCB industry to edge up marginally in 2015

    Before Going to Press | 2h 53min ago

  • SEMICOM Taiwan 2015: Inotera, Applied Materials, HMI positive about semi industry outlook

    Before Going to Press | 2h 54min ago

  • Solartech Energy sees increased August revenues

    Before Going to Press | 2h 54min ago

  • Vendors focus mostly on high-end technologies at Touch Taiwan

    Before Going to Press | 2h 55min ago

  • III sets up IoT intelligent commerce SIG to promote smart e-commerce in Taiwan

    Before Going to Press | 2h 56min ago

  • Taiwan market: Smartphone sales to remain weak in 3Q15

    Before Going to Press | 2h 57min ago

  • Semi firms to highlight latest technologies, products at SEMICOM Taiwan 2015

    Before Going to Press | 2h 57min ago

  • China market: Asustek to launch Vivo Stick

    Before Going to Press | 2h 57min ago

  • Apple receiving G/G samples for iPhone released in 2016

    Before Going to Press | 2h 58min ago

  • Taiwan market: Yuanta Securities offers Apple Watch-based mobile securities purchasing services

    Before Going to Press | 2h 59min ago

  • Taichung City plans to develop Productivity 4.0 base

    Before Going to Press | 3h ago

  • HTC suspends production at Shanghai factory, say reports

    Before Going to Press | 3h 1min ago

  • VMware announces Photon Platform

    Before Going to Press | 3h 2min ago

Pause
 | 
View more

Display panels for wearable devices: Market overview and forecast through 2017

RESEARCH EXTRAS | Jul 23, 12:15

The wearables market is a growing focal point for many vendors and players in the display panel supply chain. This Digitimes Research Special Report looks at developments in panel applications in the wearable industry, with a specific focus on panel makers in...

Developments in the UV LED industry

RESEARCH EXTRAS | Jul 16, 18:28

As white LED applications are becoming more widely accepted and common in the market and China makers push more price-competitive solutions, the 2015 global high-brightness LED output value is expected to only grow 7.5% on year. It is not surprising that in a...

Taiwan LCD TVs – 2Q 2015

TAIWAN DISPLAY SYSTEM | Aug 21, 14:47

Taiwan-based LCD TV makers are seeing improving shipments. Among them, Foxconn Electronics (Hon Hai Precision Industry) will have the strongest shipment growth in the second half due to procurement orders from Mexico.

Global tablet market – 2Q 2015

GLOBAL TABLET | Aug 21, 12:11

Digitimes Research saw global tablet shipments fall to 45.76 million units in second-quarter 2015, showing a 10% decrease on quarter and representing more than a 15% decrease on year.

China smartphone market and industry – 2Q 2015

CHINA SMARTPHONE | Aug 18, 15:33

Smartphone sales in China no longer show any significant momentum for growth as the fast maturing market now increasingly relies on replacement demand from existing users.

High-brightness LED market trends and forecast, 2015
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.

  • 2015 global tablet demand forecast

    This Digitimes Research Special Report provides a 2015 forecast for the global tablet market and analyzes the strategies of key market players such as Google, Apple, Intel, and Microsoft.

  • 2015 China smartphone panel trend forecast

    This Digitimes Research Special Report analyzes the strategies of key China-based major panel makers BOE, Tianma and IVO for attacking the different market segments through technology and pricing, and their relationship to local vendors Huawei, Lenovo, ZTE, Xiaomi and Coolpad.