Taipei, Tuesday, July 26, 2016 14:44 (GMT+8)
thunderstorms
Taipei
31°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
  • Intel Dalian fab put into operation, says report

    Bits + chips | 10min ago

  • AMD introduces new professional graphics

    IT + CE | 27min ago

  • SK Hynix profits fall

    Bits + chips | 56min ago

  • Component makers to see weak orders for tablets and wearables

    IT + CE | 2h 19min ago

  • Ritek steps into bio-testing optical discs

    IT + CE | 2h 42min ago

Pause
 | 
View more

Taiwan server shipment forecast and industry analysis, 2016

RESEARCH EXTRAS | Apr 1, 15:47

Strong demand from the cloud computing market helped Taiwan's server shipments grow 12.5% on year to break 10 million units in 2015, accounting for 90.7% of worldwide shipments and the percentage is expected to grow to 91.1% in 2016. This Digitimes Research Special...

China smartphone touch-panel industry 2016 forecast

CHINA SMARTPHONE | Feb 6, 17:23

In 2016, China's smartphone panel capacity is expected to increase steadily, with BOE and Tianma expanding 6G capacity and GVO and Truly Optoelectronics increasing their share of handset panel production. This Digitimes Research Special Report analyzes the key...

Global tablet market – 1Q 2016

GLOBAL TABLET | Jun 1, 14:09

There were an estimated 44.89 million tablets shipped globally during the first quarter of 2016, falling 31.3% on quarter and 12.1% on year.

China smartphone AP shipments – 1Q 2016

CHINA SMARTPHONE AP | May 27, 16:04

First-quarter 2016 smartphone AP shipments in China were slow with a sequential decrease of 16.9%.

Taiwan handsets – 1Q 2016

TAIWAN MOBILE DEVICE | May 26, 16:04

Taiwan's handset brand vendors and ODMs both saw sharp declines in their shipments in the first quarter of 2016. The brand vendors' shipments will improve in the second quarter due to launches of new models, but the ODM shipments will drop further.

Taiwan server shipment forecast and industry analysis, 2016
Display panels for wearable devices
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.