[Source: "New Industry" June issue] As the case of the suspension of production of Xurui Optoelectronics, is it a case of China's LED chip project or the tip of the iceberg?
Since 2009, China's LED chip industry has set off an investment boom that lasted until the end of 2011. The local government's investment promotion policy and huge market prospects have spawned a batch of LED epitaxial chip projects. However, the growth rate of the LED application market is not as good as expected. The overcapacity of the LED production market has caused a red sea in the LED chip market. Most of the LED chip projects have to slow down the pace of progress, and some projects have even been forced to withdraw.
According to data from the High-tech LED Industry Research Institute (GLII), there were 46 LED chip projects in China between 2009 and 2010, and 16 projects have not been put into production so far, accounting for 35% of the total number of projects.
Most projects are progressing slowly
Statistics show that the Chinese LED chip project, which was established between 2009 and 2010, has been slow to progress in most projects.
Among the 46 projects, only 20 LED chips have been put into production, accounting for 43% of the total number of projects. At the beginning of the 46 projects, 1220 MOCVDs were introduced. Currently, only 436 MOCVDs are in place, and 436 MOCVD devices are actually put into use less than half.
Of the 46 L ED chip projects, 16 are uncommissioned, accounting for 35% of the project. Among them, only five projects introduced MOC VD equipment, namely Yangzhou Dehao Runda, Yangzhou Longyao, Yixing Arctic Haotian, Foshan Guoxing Semiconductor and Fujian Hanjing. The above five companies introduced 44 units.
The number of LED chip projects that have exited or no progress is 10, accounting for 22% of the total number of projects. The Gaogong LED Industry Research Institute learned from the progress of the above projects that the market demand is not as good as expected and the shortage of talent pool is the main reason for the slow progress of LED chip projects.
From the point of view of the LE D chip project that has been put into production, only a few domestic projects can be carried out as scheduled.
Sanan Optoelectronics is the leader of the mainland LED chip industry. The Anhui Sanan project is the fastest growing of all LED chip projects. Construction started in Wuhu Economic Development Zone on February 6, 2010, and the project started production on the same day. As of the end of April 2012, Anhui Sanan has introduced 107 MOCVDs, and 50 units have been put into production. The remaining equipment has also been commissioned.
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