China-based LED epitaxial wafer and chip makers originally planned to order 280-300 MOCVD sets in total in 2018, but in view of continual drops in LED chip pricing, have temporarily deferred release of orders for more than 100 sets, according to industry sources.
Of the MOCVD sets they originally planned to order in 2018, 200-250 were scheduled for installation this year.
LED chip prices have been dropping since fourth-quarter 2017 mainly due to oversupply arising from China-based makers ramping up additional capacities, the sources said.
Sanan Optoelectronics and HC SemiTek, the top-two China-based LED epitaxial wafer and chip makers, lowered quotes for LED chips by up to 20% in fourth-quarter 2017, the sources noted, adding in first-quarter 2018, LED prices fell by over 10%.
China-based makers added over 240 new MOCVD sets in total in 2017, resulting in over 1,700 sets in operation at the end of the year.
China makers together take up over 50% of the global total of operational MOCVD sets. Sanan Optoelectronics, HC SemiTek and Huaian Aucksun Optoelectronics Technology together are expected to account for 47% of China-based makers' total in 2018.
Article translated by Adam Hwang
