Chinese LED maker growth opportunities lie in special applications

<< Go Back Posted By:administrator on Jan 21,2015in Industry News

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The global newly installed MOCVD volume will reach 239 units in 2014, while the government will continue to provide subsidies in parts of China, the MOCVD installation scale is expected to reach over 170 units. LED manufacturers' expansion plans depend on the grants offered by local government, so large LED chip manufacturers will become increasingly powerful in the future.

With the increasingly fierce LED price competitions, manufacturers have to search for new special applications to improve profitability, such non-visible LED including UV or IR LED applications, which is gaining industry attention. Although, the market size of non-visible LED is small compared to LED lighting or backlighting applications, it requires close cooperation with system manufacturers, due to technical difficulties and customization requirements. Thus, the market has a higher entry threshold, and better gross margin than white LEDs.

Currently, IR LED and UV LED fields are dominated by Japanese, American and European manufacturers. Taiwanese LED manufacturers also have a small share, and it is expected more LED lighting manufacturers will enter the non-visible LED field future.