Production of LED CHIP will not overcapacity in short term and the subsidies policy may continue until next year!
According to led chip statistics, there were more than 600 MOCVD units in China in 2020. Now MOCVD equipments have been improved and its production capacity has been improved compared to previous several years. Many
LED chips manufacturers concerns the led chip market supply and demand issues. According to the development of semiconductor lighting market conditions, the semiconductor market is in great demand of led chips. Today's 350 to 400 furnaces are only a small part of the market and will not cause excess capacity.
Moreover, lots of led chip companies concerned about whether the government would stop the equipment subsidy policy as overheated investment in the LED chip market. The government's subsidy policy is likely to continue until next year. Whether there will be a new policy or not, listed companies cannot determine more.
The size of LED chip will grow to 4 inches
LED epitaxial wafers currently have small dimensions and low yields to help customers improve product yields. At present, most of led chip customers intend to use 2 inches because of the large size of sapphire. With the increase in the price of 2-inch sapphire, some led chip customers will turn to use 4 inches, but will go to 6 inches and 8 inches, depending on whether the price of large-scale sapphire will be reduced in the future. 2-inch, 4-inch, and 6-inch products are easy to exchange, simply swapping trays. The tray itself determines the size of the substrate, and the components and equipment do not need to be changed significantly. The process and control need not be much different.
MOCVD equipments will not increase the average delivery time!
Now setting up MOCVD can get equipment after 5 months on average. With good relationship with customers, delivery time can be less than 6 months, of course there are also special circumstances will encounter 9 months. MOCVD will not be out of stock. An average of 40 units will be shipped for a quarter.
MOCVD process control will develop toward a high degree of automation
Development trend of MOCVD is raising up in China. Long time ago, raw materials were out of stock, and the prices of sapphire and MO sources were rising. This shortage was short-term. Many companies are trying to increase the supply of source materials, which will not affect the market demand for MOCVD.
The demand for MOCVD in the Chinese mainland market will increase, in addition to its own domestic demand, is also a major exporter of semiconductor lighting. The technological trend of MOCVD is mainly to increase production capacity and reduce costs. To achieve this effect must be highly automated. At the same time, to reduce costs, we must find ways to reduce the consumption of raw materials and energy, such as: minimize the use of MO sources, with a thinner sapphire substrate.
Semiconductor lighting market !
LED industry is developing very fast and cannot accurately predict the scale and speed of development. But the most important thing is how to cultivate your strengths according to your own characteristics. Not only is the amount of orders high, but there are many signs that the semiconductor lighting market will take off next year. By communicating with customers, it is very challenging for customers to talk about the price and cost of their products, which will reach one-third of the current market next year.
LED applications, currently used in less lighting, mostly for LED backlight. Currently, the LED backlighting market in South Korea is slowing down. This is partly due to the fact that the data forecast by South Korea at the beginning of the year is too optimistic. The market is now subject to certain amendments. However, the market for backlighting is still relatively large, and probably more than 100 stoves are needed. However, the semiconductor lighting market has started, and the specific ratio is 10% or 15%.
Shanghai city will build training center to accelerate the process of localization.
The country wants cutting-edge core technologies to take root in China, mainly for customer technical support and training, and is expected to start in the first quarter of next year. At the same time, in the development of new technologies, as the number of device users increases, the feedback information we receive from users will also increase. Newly developed products will be more adapted to local needs, which will accelerate the speed of localization. Users have specific needs and countries have different needs. According to the positive interaction with users and more understanding of the needs of customers, we will work with customers to improve and facilitate the use of more customers.
LED industry has a very good prospect. Based on its own product quality, technology and cost advantages, we have full confidence in occupying the led chip market.
