China will summit the world's largest LED chip manufacturing base in 2012

IMS Research reported on Thursday that mainland China will surpass Taiwan Province and South Korea to become the world's largest LED chip manufacturing region by 2012, when one-third of the world's LEDs will be illuminated. The diode chips are all from mainland China. Light-emitting diode chips are the main components of light-emitting diodes.

Mins Management Consulting analyst Ross Young said that China is currently only ranked fourth in the global LED chip manufacturer ranking, accounting for about 13% of the global market share. However, driven by the government's policy of supporting high-efficiency energy-saving lamps, China's LED chip manufacturing industry is expected to grow rapidly. He said that by the first quarter of 2012, China's market share in the global LED chip market is expected to increase to 32%, thus surpassing Taiwan and South Korea to become the world's largest manufacturer of LED chips.

The report said that with the rapid expansion of China's LED chip manufacturing scale, China's demand for metal organic vapor deposition (MOCVD) equipment will also rapidly increase. Metal organic vapor deposition equipment is the primary tool for manufacturing diode wafers. This means that major suppliers of metal organic vapor deposition equipment such as Veeco Instruments and Aixtron will receive a large number of orders.

Ross Young expects that metal-organic vapor deposition equipment purchased and installed in China in 2011 will account for 64% of the global market. The surge in demand in China will help ease the pressure from reduced demand in South Korea.

At present, the Chinese government provides a $1.8 million financial subsidy for each metal-organic vapor deposition equipment purchased by the manufacturer, and the average price of such equipment is only $200-2.5 million. In addition, manufacturers also enjoy other preferential policies such as tax breaks. The report predicts that about half of the world's top 20 LED chip manufacturers will be built in China.

IMS Research reported on Thursday that mainland China will surpass Taiwan Province and South Korea to become the world's largest LED chip manufacturing region by 2012, when one-third of the world's LEDs will be illuminated. The diode chips are all from mainland China. Light-emitting diode chips are the main components of light-emitting diodes.

Mins Management Consulting analyst Ross Young said that China is currently only ranked fourth in the global LED chip manufacturer ranking, accounting for about 13% of the global market share. However, driven by the government's policy of supporting high-efficiency energy-saving lamps, China's LED chip manufacturing industry is expected to grow rapidly. He said that by the first quarter of 2012, China's market share in the global LED chip market is expected to increase to 32%, thus surpassing Taiwan and South Korea to become the world's largest manufacturer of LED chips.

The report said that with the rapid expansion of China's LED chip manufacturing scale, China's demand for metal organic vapor deposition (MOCVD) equipment will also rapidly increase. Metal organic vapor deposition equipment is the primary tool for manufacturing diode wafers. This means that major suppliers of metal organic vapor deposition equipment such as Veeco Instruments and Aixtron will receive a large number of orders.

Ross Young expects that metal-organic vapor deposition equipment purchased and installed in China in 2011 will account for 64% of the global market. The surge in demand in China will help ease the pressure from reduced demand in South Korea.

At present, the Chinese government provides a $1.8 million financial subsidy for each metal-organic vapor deposition equipment purchased by the manufacturer, and the average price of such equipment is only $200-2.5 million. In addition, manufacturers also enjoy other preferential policies such as tax breaks. The report predicts that about half of the world's top 20 LED chip manufacturers will be built in China.

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