Global MOCVD equipment capacity is still in oversupply while prices of LED light bulbs continue to fall. Among all global operational MOCVD tools, Taiwan-based makers account for 28.1% and China-based firms 22.3%, according Digitimes Research.
Although LED chipmakers have reported rising revenues starting from the second quarter of 2013, global MOCVD equipment capacity continues to be in oversupply. In Taiwan, only Epistar and Formosa Epitaxy plan to expand capacity slightly in 2013, according to Digitimes Research.
In South Korea, the 2012 average capacity utilization rate was around 50-60% and is forecast to reach above 70% in 2013. However, some South Korea-based firms procure products from Taiwan-based firms, and hence have no plans to expand their own capacity in 2013.
In 2013, China is expected to continue expanding LED chip capacity, yet at a smaller scale. The total number of MOCVD tools at China's top-six firms is 388 units, accounting for 22.3% of global supply.
In the downstream end-market, as Cree introduced low-price 40W retrofit LED light bulbs in March 2013, other LED light bulb brands plan to introduce 60W retrofit products with prices around US$10/unit in second-half 2013. In addition, firms have been increasing shipments of 75-80W retrofit LED light bulbs.
