Taipei, Thursday, May 28, 2015 02:19 (GMT+8)
mostly cloudy
Taipei
26°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
  • TSMC to beat Samsung in 10nm race

    Bits + chips | 4h 16min ago

  • Google BrandLab to set up branch office in Singapore in 2H16

    IT + CE - Newswatch | 4h 17min ago

  • Seagate names new head for Taiwan office

    IT + CE - Newswatch | 4h 18min ago

  • MediaTek to expand workforce in 2015

    Bits + chips | 5h 57min ago

  • UMC holds technology forum in Japan

    Bits + chips | 6h 16min ago

  • Sharp to launch smartphones in Indonesia, says report

    Mobile + telecom | 6h 18min ago

  • Semi-equipment component maker Calitech applies for OTC listing

    Before Going to Press | 4h 26min ago

  • Sony launches flagship Xperia Z3+ smartphone

    Before Going to Press | 4h 27min ago

  • Panasonic to add BLU production lines at plants in Mexico and Brazil

    Before Going to Press | 4h 28min ago

  • HTC to block media from attending shareholders meeting

    Before Going to Press | 4h 29min ago

  • Taiwan becomes major revenue contributor to Google

    Before Going to Press | 4h 31min ago

  • GIS expects 2Q15 revenues to fall 15-20% sequentially

    Before Going to Press | 6h 30min ago

  • CSOT starts producing 55-inch Full HD TV panels at 2nd 8.5G factory

    Before Going to Press | 6h 33min ago

  • LCD monitor panel prices in May fall sequentially, says WitsView

    Before Going to Press | 6h 35min ago

  • GIS to list on TSE

    Before Going to Press | 6h 41min ago

  • Solar cell maker TSEC to be listed on TSE in 3Q15

    Before Going to Press | 6h 42min ago

Pause
 | 
View more

Taiwan server shipment forecast and industry analysis, 2015

RESEARCH EXTRAS | Apr 10, 15:57

The server market did not perform well in 2014 though rising demand from Internet data centers (IDCs) and China brands helped global shipments (measured by motherboards) grow 7.1% to 10.4 million. Using this as the base for growth, in 2015 the market is expected...

How China is shaping the LTE/TD-LTE market in 2015

CHINA SMARTPHONE | Apr 9, 15:42

Digitimes Research estimates that the global LTE market doubled in size to 445 million users in 2014 and we further forecast that annual growth in the number of LTE users will remain above 70% between 2015-2016, with the overall market reaching 1.466 billion...

Taiwan LCD TVs – 1Q 2015

TAIWAN DISPLAY SYSTEM | May 22, 15:51

Taiwan's LCD TV makers saw strong seasonal impacts in the first quarter of 2015. Shipments to North America saw a particularly sharp decline as a result of reduced procurement from Mexico and major client Toshiba quitting the North America market.

Taiwan handsets – 1Q 2015

TAIWAN MOBILE DEVICE | May 15, 15:58

Most of Taiwan's handset makers felt strong seasonal effects in the first quarter. Foxconn suffered particularly as a result of drastic drops in orders from Sony Mobile and Microsoft Mobile.

China smartphone market and industry – 1Q 2015

CHINA SMARTPHONE | May 13, 10:56

According to Digitimes Research's survey of the Mainland China smartphone supply chain, as well as other relative vendors, increased demand for Apple's new device models, Mainland China's high-end smartphone models experienced lackluster sales in the first quarter...

Taiwan server shipment forecast and industry analysis, 2015
Wireless broadband developments in Southeast Asia markets
Demand and supply trends in the global sapphire industry, 2014-2015
  • 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.