these substrate materials maintain high competitiveness

LED Taiwan’s 2013 Semiconductor Equipment and Materials International (SEMI) exhibition will be launched on Sept. 4, 2013 to present the latest technology from domestic and international LED manufacturers and suppliers. Main themes of forums hosted at the show will include “LED technology forum,” “2013 Automation Technology for led flood lights,” and “TechXPOT”. Over the last year, the LED industry has been more cautious in expansions, and has been elevating its oversupply situation. SEMI believes LED chip manufacturers capital expenditures will grow 17% in 2014, and that large international brands will be actively transiting into 6-inch wafer productions. Price falls in sapphire substrate prices will also help these substrate materials maintain high competitiveness.
Over recent years, the LED industry has been debating whether sapphire substrates are under pressure of being replaced by cheaper substrate materials. Upstream LED chip manufacturers are gradually switching from 2-inch and 4-inch sapphire wafer productions to 4-inch and 6-inch. Those in the industry believe sapphire substrates will still be highly competitive even after transiting into 6-inch wafer productions, as sapphire substrate prices have fallen recently, sapphire substrate material remained stable, and with mature industrial technology.

According to SEMI’s predictions, purchase of MOCVD reactors in 2014 will increase to almost 50 percent, surpassing 2013 purchases of around 150 reactors. SEMI also believes that due to market consolidation and strong competitors disappearing, many China LED wafer manufactures closed down or changed direction of production.The focus of the market is on production capacity for big named Chinese wafer manufacturers. San’an has over led high bay light machines and ETi has around 90 machines, both are currently continuing to increase wafer production capacity rate and are expected to becoming important emerging industries. Equipment expenditures in China for 2014 is expected to be 44 percent which surpasses 33 percent for 2013.

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