According to estimates by the green energy division of TrendForce, a market research institution, the output value of LED lighting market in 2014 was 35. 3 billion US dollars, up from 2013. 8. LED lighting penetration rate will also increase to 32 in 2014. 7, of which the penetration rates of bulb lamps and lamps reached 20 and 15 respectively. Guo Zhihao, a senior analyst at TrendForce, said that in order to meet the market demand for new ball LED bulbs and lamps in 2014, it is estimated that 250 MOCVD machines will still need to be added. Judging from the growth rate of LED chip factories this year, the production capacity of Taiwan and China's first-line LED chip factories is at high-grade water level, while there are still a large number of MOCVD machines in the Chinese market. however, most of these machines are in the hands of small factories. Under the circumstance that the market price competition is still quite fierce, the cost for small factories to start these MOCVD machines is too high. It is expected that small factories will continue to withdraw from the LED supply market. Judging from the rising demand for LED lighting in 2014, competitive LED chip factories still need to continuously increase their production capacity 2014. In addition to continuously improving the yield, the number of days and the number of times the machine is running, it is estimated that LED chip manufacturers may also adopt the method of merging small factories to obtain MOCVD machines in 2014 to expand production capacity. Guo Zhihao further said that in terms of expanding the MOCVD machine mode, the LED chip factory must wait for the MOCVD manufacturer to ship after the order is placed, and it takes some time to install the machine and adjust the machine. In other words, the newly purchased machines cannot provide production capacity immediately in a short period of time. Therefore, the possibility of LED chip manufacturers increasing production capacity by merging small factories is greatly increased, so that production capacity can be prepared to meet the needs of the LED lighting market when it takes off rapidly.