Are LED chips going to make waves again? Sanan Optoelectronics is expected to expand MOCVD machines
The overall LED chip production capacity continues to be surplus. It is reported in the industry that the leading mainland LED manufacturer Sanan Optoelectronics is expected to increase its equipment expansion again in the near future. It will order 17 new MOCVD machines (equivalent to the production capacity of 34 2-inch machines) from the American equipment manufacturer Veeco. It is expected that the order will be placed before the fourth quarter, and the production capacity will be gradually released in 2017. The stable price of LED chips will add another variable.
The LED market sentiment is recovering due to the peak season effect in the second half of the year. Taiwanese LED chip major Epistar Optoelectronics is also expected to achieve its goal of turning a profit in a single quarter in the third quarter. Following the price increase by some packaging plants in March, Epistar also raised prices for its chips. Whether the price increase will become a unanimous action across the industry needs further verification, but this at least shows that the downward trend in LED chip prices is slowing down to gradually stabilizing.
ANNA