Digitimes Research:Demand for MOCVD equipment in China to account for 68%of total global demand in 2012 Jessie Lin,DIGITIMES Research,Taipei[Friday 7 September 2012]Digitimes Research predicts Asia-based firms will take up 90%of market demand for MOCVD equipment in 2012,an increase of 10 basis points compared to 2011.In particular,equipment demand is highest in China,with an expected share of 68%out of total global demand in 2012.Nevertheless,technology of China-based firms are still at the development stage,therefore,the competitive advantages of Taiwan-,Japan-,and South Korea-based LED chipmakers are expected to continue to thrive.
In 2012,total output value of Japan-based LED firms is estimated at US$3.6 billion,with an annual growth rate of 17%.Due to successful vertical integration,total output value(including LED modules)of South Korea-based LED firms is forecast at US$3.2 billion,an on-year increase of 49.6%.Taiwan-based LED firms have been focusing on the production of LED components,hence total 2012 output value is estimated at US$1.69 billion.Excluding output value of LED models from South Korea-based firms,Taiwan is expected to outperform South Korea-based peers in 2012.
Total 2012 output value from China-based LED firms is estimated at US$1.42 billion,an increase of 30%on year.China's LED supply chain has been focusing on low-and medium-power LEDs,and so has yet to become a major threat to other Asia-based players.
Taiwan-based firms such as Epistar and Lextar reported an operating profit ratio of 5%in first-half 2012.For the same period,South Korea-based SOC,a subsidiary of Seoul Semiconductor,reported an operating profit ratio of 0.6%.LG Innotek expects 2012 operating profit ratio to be negative 4-6%while Samsung LED believes its ratio will be 7.3%.China-based Sanan Optoelectronics and Elec-Tech have been increasing the percentage of self-produced LED chips,hence Sanan's estimated operating profit ratio in 2012 is 24.8%while Elec-Tech predicts its LED chip gross margin to be 22.8%.
