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LEDinside, a green energy business unit of global market research firm TrendForce, estimates that the output value of LED lighting market will increase by 47.8 in 2014 to reach 35.3 billion US dollars. The penetration rate of LED lighting will also increase to 32.7 next year. Optimistic market prospects, crystal power, Taiwanese companies such as Yiguang, Dongbei and Edison have actively expanded their production to meet business opportunities.
Li Bingjie, chairman of Jingdian, once said that LEDs must enter the lighting application and must seize market share. Therefore, it is necessary to prepare production capacity.
Guo Zhihao, senior analyst at TrendForce, said that in order to meet the demand for new LED bulbs and lamps in 2014, it is estimated that 250 MOCVD machines will be added.
In view of the capacity utilization rate of LED chip factories this year, the production capacity of the first-line LED chip factories in Taiwan and China is at the high-end water level. Although there are still a large number of MOCVD machines in the mainland market, these machines are mostly in the market. In the hands of small factories, in the case of market price competition is still very fierce, the small factory to start these MOCVD machines is too costly, LEDinside expects that the small factory will continue to withdraw from the LED supply market.
In view of the rising demand for LED lighting in 2014, the competitive LED chip factory still needs to continue to increase production capacity in 2014. In addition to continuous improvement in yield, machine operating days and number of operations, it is estimated that LED chip makers may also adopt M&A small factories in 2014 to obtain capacity for MOCVD machines.