Due to the major aggressive expansion plans of some China-based LED companies, IHS forecasts that 220 gallium nitride (GaN) reactors will be installed in 2015. This new capacity expansion is slightly different from what happened several years ago, when large numbers of LED companies in China purchased government-subsidized tools.
IHS forecasts that only large and publicly traded companies will purchase metalorganic vapour (MOCVD) phase epitaxy tools in 2015. Of the largest 20 MOCVD customers by the end of 2014, eight were China-based companies and three of those companies - Sanan, HC Semitek and Aucksun - have all announced expansion plans for 2015, IHS observed.
Most of the new reactors purchased in 2015 will be new generation tools, providing double capacity per reactor. Sanan is projected to lead in 2-inch equivalent wafer capacity share by the end of 2015, although Taiwan-based Epistar would still own the largest number of MOCVD tools. The largest three China-based companies will achieve a combined market share of 27% in 2015, IHS said.
The large number of MOCVD tool shipments will result in a 28% increase in the level of excess supply in the LED market, IHS said.
