Taipei, Saturday, February 6, 2016 06:57 (GMT+8)
haze
Taipei
12°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)

2016 global AP demand forecast

RESEARCH EXTRAS | Jan 27, 18:12

This Digitimes Research Special Report explains the dynamics of the global AP market by analyzing key trends in the market including the shift to 4G, the market strategy of the key AP vendors and GPU providers and the role various applications have in influencing...

Global tablet shipment forecast, 2016

GLOBAL TABLET | Jan 22, 16:07

In 2016, global tablet shipments will drop 4.8%, compared to a decline of 17.9% in 2015. With the exception of Microsoft and Huawei, most brands will see flat growth or a small decline in shipments. Some other key trends that Digitimes Research expects to see...

China smartphone market and industry - 4Q 2015

CHINA SMARTPHONE | Feb 5, 15:06

Looking forward to the first quarter of 2016, with both China-based makers and international brands aggressively spreading out their new products including all low, mid, and high cost models on the market in the fourth quarter of 2015, the market will have to...

China smartphone AP shipments - 4Q 2015

CHINA SMARTPHONE AP | Feb 5, 14:41

China's smartphone AP shipments grew 16.1% sequentially in the fourth quarter of 2015 mainly thanks to demand for inventory preparation from some vendors and year-end holidays.

Taiwan LCD TVs – 4Q 2015

TAIWAN DISPLAY SYSTEM | Feb 4, 14:40

Taiwan's LCD TV shipments reached 10.24 million units in the fourth quarter of 2015, increasing 12.0% on quarter but decreasing 5.8% on year.

Intel strategies in the mobile device market
2015 China smartphone panel trend forecast
Analysis of China revised domestic semiconductor industry goals
  • 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.