MOVCD vendors US-based Veeco Instruments and Germany-based Aixtron SE have lowered quotes in the China market from about US$2 million to about US$1.4 million for a single-wafer MOCVD set and by 30-40% for a multi-wafer model mainly because at least four China-based makers are set for market competition, according to industry sources.
The four China-based MOCVD makers are Tang Optoelectronics Equipment, Advanced Micro-Fabrication Equipment, Brilliant Light Technologies and Ideal Energy Equipment, the sources indicated. In particular, Tang Optoelectronics claimed that its MOCVD equipment can lead to production of 155lm/W LE chips.
As China's 12th Five-year Plan promotes domestic supply of LED production equipment, the China government has been supporting China-based makers developing MOCVD equipment since 2011. Consequently, a few China-based makers are technologically poised to start production of MOCVD sets, the sources noted.
Since local governments have ended subsidies for China-based LED makers procuring MOCVD sets, and total LED production capacity is 20-30% in excess of demand in China, the MOCVD market has been in favor of buyers, the sources indicated. As a result, Veeco and Aixtron have faced bottlenecks marketing MOCVD equipment due to shrinking demand and less price competitiveness, the sources said.
According to Digitimes Research, there will be 148 MOCVD sets shipped globally in 2013, dropping 46% from 2012, and Veeco and Aixtron will reach market shares of 60.2% and 35.8% respectively. Some China-based makers have begun shipments of multi-wafer MOCVD sets and there have been a few China-based LED makers adopting locally made equipment, Digitimes Research indicated.
