With the mushrooming of LED business in the Mainland, about 420 MOCVD machines were added in the Mainland last year, and the total number was about 720. However, by the end of last year, only half of the newly-increased machines were introduced into mass production, still causing the global LED chip market to fall into oversupply. storm. Taiwan’s chip makers said that from the mainland’s LED factory recently started to start tapping talent from Taiwan, this year continues to introduce MOCVD machines into mass production. The current situation of oversupply of LED chips has not been eased, and even will be extended to next year.

Last year, the Mainland government vigorously supported the LED industry through the MOCVD machine subsidy policy, which caused the introduction of MOCVD machine typhoon in the mainland. However, following the government’s monetary tightening in the second half of last year, the subsidies continued to erode. Last year, the number of newly added Chinese machines was estimated from 700 Taiwan dropped to 420.

In addition to the purchase of additional machines, from the end of 2010, mainland manufacturers frequently used high-paying talents to reduce Taiwan’s talents, in order to reduce the learning curve time. For example, Sanan Optoelectronics is frequently chasing talents in Jingdian, but its technology and manpower have not kept pace with the number of newly added devices. As a result, the capacity utilization rate in the Mainland cannot be effectively increased. In the Mainland, only about 510 machines were actually mass-produced during the year, and about 210 machines were idle.

The Taiwan Photonics Association said that the mainland LED market will not completely stop purchasing MOCVD machines, but the pace has slowed down significantly. This year, the market estimates that China will add another 100 to 150 MOCVD machines, and the total number of machines will grow to 820- 870 units, but this year, the land plant is still actively importing new purchases last year. The land plant hopes to introduce mass production of 720 units last year, further increasing the capacity utilization rate to more than 80%.

Faced with the challenges of large-scale production of land plants, Taiwan Plant wins with quality. The Taiwan Photonics Association believes that the mainland chip products are mostly medium and low power with low technical thresholds, and can be applied to general indoor lighting, small and medium size panels and other fields. Although high-power LED chip products used in automotive lighting, solid-state lighting, outdoor lighting and other fields are also produced, although their price is cheap, but the quality is not good, many are eliminated by the international market, and the factory with product technology and quality is still relatively affected. Because of the preference of international manufacturers, compared with the low- and medium-power chip market that has already fallen into the price war, Taiwanese manufacturers still have room for development in the high-power chip market. For example, chipmakers such as Jingdian, Yuyuan and Guanghan have already grasped the market trend front end.