China-based LED epitaxial wafer and chip makers will add an estimated 69 and 125 MOCVD sets in total in 2013 and 2014, respectively, while Taiwan-based makers will add 212 in 2013 and 307 in 2014, according to matket watchers.
Due to China-based competitors' low-price strategies, Taiwan-based LED chip makers have been less competitive in low-power LED chips and are eager to defend their share in the mid-power segment.
While the Taiwan makers are also looking to extend their presence to high-power applications for commercial, industrial and outdoor lighting, international vendors including Cree, Philips Lumileds Lighting, Nichia and Osram have extended their product lines from high-power LED chips to mid-power ones, becoming competitors of the Taiwan-based makers.
The global LED lighting penetration rate is expected to reach 30% in 2014 and 60% in 2015, the sources noted.