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According to LEDinside, a green energy business unit of TrendForce, a global market research organization, the LED lighting market has a production value of $35.3 billion in 2014, a 47.8 increase from 2013. In 2014, LED lighting penetration will also increase to 32.7, said TrendForce senior analyst Guo Zhihao. In order to meet the market demand for new LED bulbs and lamps in 2014, it is estimated that 250 MOCVD machines will be added.
LED lighting applications have proliferated, making LED lighting demand strong. LEDinside estimates that the LED lighting market has a value of 35.3 billion US dollars in 2014, which is 47.8 compared with 2013. In 2014, LED lighting penetration will also increase to 32.7, including bulbs and tubes. The penetration rate is 20 and 15.
As for the LED lighting demand in 2014, the competitive LED chip factory still needs to continue to increase production capacity in 2014. Guo Zhihao said that in order to meet the demand for new LED bulbs and lamps in 2014, it is still estimated. 250 MOCVD machine capacity must be added.
According to the LED chip factory's utilization rate this year, the production capacity of Taiwan and China's LED chip first-line factories are all in the high-end water level. Although there are still a large number of MOCVD machines in the Chinese market, these machines are mostly small. In the hands of the factory, in the case that the market price competition situation is still quite fierce, the cost of starting these MOCVD machines by small factories is too high, and it is expected that the small factories will continue to withdraw from the LED supply market.
In addition to continuous improvement in yield, machine operating days and number of operations, it is estimated that LED chip manufacturers may adopt M&A small factories in 2014 to obtain capacity for MOCVD machines. Guo Zhihao further stated that the MOCVD machine will be expanded. According to the Taiwanese approach, the LED chip factory must wait for the MOCVD manufacturer to ship the order, and it takes some time to install and adjust the machine. In other words, the new purchase machine cannot provide the capacity immediately in a short time. Therefore, the LED Chip manufacturers will increase the possibility of increasing production capacity by acquiring small factories, so that they can prepare for capacity battles when the LED lighting market takes off quickly.