Equipment Investment will be restarted and production capacity will be expanded in 2014. According to the International Organization for semiconductor equipment and materials (SEMI)
According to the quarterly forecast report, investment in LED chip manufacturing equipment will rise 17 to 1. 2 billion US dollars by next year after experiencing continuous decline.
Equipment Investment will also show a brand-new trend: the main force of equipment investment in LED industry will be industry players and survivors, not new participants.
In 2010 and 2011, most of the expansion of production capacity was due to manufacturers' overly optimistic prediction that the LED market would grow to 2015 US dollars by 20 billion.
At present, the forecast for the LED packaging market is: by 2015, it will hover around 15 billion US dollars, with a compound annual growth rate of less than 5. 5%.
The main reason for the downward forecast is that LED has become more efficient in use (Such as improving the light pipe in the display)
The efficiency of LED packaging is greater, and the transformation to the LED lighting market is slower.
The average cost per kilogram of lumens fell from $13 in 2011 to less than 3. $65.
The number of LEDs used in televisions has dropped by 1/3, and many SSL lamps use nearly half less LEDs than in previous years.
The number of LEDs used in mobile devices and notebook computers has also decreased.
Cars are still a growing market, but their share of the entire LED market is only 10. 5%.
So many new production capacity and new enterprises, as well as the declining growth rate, have greatly reduced the price of LED packaging in recent years, causing serious financial difficulties to many enterprises, especially newly established enterprises.
The capacity utilization rate of factories has declined within the scope, especially in China.
Sales of MOCVD systems, the key production equipment for LED epitaxial wafers, plummeted.
MOCVD companies such as Veeco and Aixtron tripled their sales in 2010, but their revenue plummeted by nearly the same amount in 2012.
Chinese enterprises will continue to purchase MOCVD equipment in 2014.
The International Organization for semiconductor equipment and materials estimates that sales of MOCVD reactors will rise by in 2014.
In addition, due to market integration and the closure of many uncompetitive enterprises, many LED factories in China will be closed or rebuilt for other purposes.
Sanan Optoelectronics, which has 120 MOCVD equipment, and Dehao Runda, which has 90 reactors, are striving to improve capacity utilization and may rise to become important market participants.
Some medium-sized LED factories in China, such as enyang optoelectronics and Huacan Optoelectronics, have almost fully utilized their production capacity and are optimistic about the future.
In 2014, China Enterprise of equipment expenditure will accounted for the 44 higher than that 2013 of 33.