In addition, as the demand for LED LCD TV backlights was not as expected, Samsung switched some of its LED backlight-level chips to LED lighting, allowing the market to display 40-watt traditional bulb LED lamps that could be purchased for $10, although this This is not a lighting grade product, but it is equal to the announcement that everyone can afford LED lighting era.
According to industry sources, the two major electronics groups in South Korea originally focused on LEDTV penetration rate will be significantly increased since the beginning of last year clamored more than 200 sets of expansion plans, but due to the demand as expected, coupled with the panel factory's LED production costs, Can not compete with the Taiwan LED epitaxial plant, so the LED large-scale expansion plan suddenly stopped, the two major electronic groups have stopped purchasing machines.
It is understood that the amount of expansion of the original MOCVD machine in Korea can be compared with that in mainland China. The number is about 600. Currently, only 150 to 200 units are installed, and production is stopped. This solution to LED excess capacity is undoubtedly a booster.
In addition, the market also reported that the sapphire substrate will be reduced by 15% to 20% in the third quarter. The sapphire substrate is the upstream material of LED epitaxy. Under the material price reduction, it is expected to increase the gross profit rate of the LED epitaxial wafer plant. Under the two big profits, the long-term outlook of LED Epistar is promising.
MOCVD is the main equipment for LED upstream crystal growth. South Korea and the mainland have been pursuing MOCVD machines in the past two years. In particular, the mainland has even resorted to the policy of purchasing a machine subsidy of RMB 10 million per purchase, causing the market to worry that Taiwan will China and South Korea hit the double-sided attack, losing the status of the world's largest LED producer. Investment institutions are even more worried that the aggressive expansion of the mainland will threaten Taiwan, leaving the LED plant's high P/E ratio no longer.
However, Su Dafeng, chairman of the AUO group, said that the demand for MOCVD machines this year is about 800 to 1,000 units, mainly from the mainland, but when the production capacity of these machines is opened, the production capacity will be opened. There is not necessarily a market. Whether or not it can produce crystal grains suitable for use in LED lighting is still to be observed. Therefore, in the future, the appearance of supply and demand will not be determined yet, without excessive pessimism.
Yi Geng, chairman of the board of directors Yifu Ye, analyzed that even though the mainland had swarmed into the LED industry and bought a lot of MOCVD, it would take at least five to six years before the yield, scale, and technology would be like the level of Jingdian. LED lighting first.
Poor LED backlighting demand for Korean MOCVD expansion plan
According to the plant, South Korea's two major electronics group plans to stop the expansion of LED large factories, the original number of South Korean organic metal chemical vapor deposition machines, down from 600 to 150 units, this move is expected to resolve the LED overcapacity doubts, It will be a big benefit to the LED epitaxial power plant, Yuyuan, and the new century.