1200 MOCVD thinking equipment localization is the key

Recently published "2010 Chinese LED chip industry analysis report" pointed out that China planning to increase in the next few years, MOCVD units over 1200 units, including the number of 2010 planning increased more than 300 MOCVD. Although, based on historical experience, the actual number of years in China will increase the number of MOCVD will be less than the value of the plan, but the number of MOCVD planning reflects the current Chinese LED chip industry from a side of the abnormal fiery. The total number of planning is said to have at least 6 companies in more than 100 MOCVD, and Xiamen have ordered Elec-Tech and three more than 100 taiwan.

The 1200 is an amazing number

According to shuiqingmuhua Research Report, LED is currently in the electronics industry the most active areas of investment. According to LED upstream of the MOCVD machine, for example, is expected in 2010 the global MOCVD machine shipments is 662 units, is the sum of 2007, 2008, in the year of three. And is expected to be able to maintain such a high 2011 shipments. MOCVD machine, according to the number of different processing chips, each priced at about $100-300, while the Chinese local government to encourage investment in LED projects, each can be subsidized about 40% of the purchase price. Therefore, in China set off a hot investment in LED, crazy procurement of MOCVD machines, in 2010 alone in the development and Reform Commission registration of nearly 700 units, some manufacturers are not directly subsidized by the NDRC subsidies. Global MOCVD machine is almost monopolized by the German AIXTRON and the United States VEECO company, due to the limited capacity of the two, it is said that orders have been discharged to 2012.

In addition, according to SEMI's latest report, the number of upstream LED chip factory in the region by region, China is one of the fastest growing areas, basically the same as the Taiwan region, the world's leading position. As shown in the following table;

Therefore, in order to catch up with the development of China's LED industry, local governments at all levels are taking various measures to actively encourage the import of MOCVD equipment.

Assuming the importation of 1200 MOCVD to achieve, then, according to the average price per unit of 20 million yuan, the total investment of up to $24 billion, which is a huge market.

Here are some thoughts on importing so much MOCVD equipment

Advanced technology is not available

LED is almost the same as the semiconductor industry, equipment investment accounted for the dominant position. The same LED chip production equipment plays a key role. LED is currently the main reason for the popularity of the cost is too high, only equipment depreciation accounted for 1/3 of the cost, so it is almost 10 times the price of ordinary lighting. And from the high power LED development, equipment plays the role of jam.

Under such circumstances, China imports a large number of MOCVD, although it is time to shorten the project put into operation, the early realization of output value. But it can not be denied because of high price of imported equipment, the corresponding depreciation costs, resulting in lower costs is slow, lack of competitiveness, mainly for imported equipment, the patent technology master may hinder the process of independent research and development in the hands of others. Therefore, in the long run, imported equipment is almost equal to being led by the nose.

In fact, the use of imported equipment to develop the theory of China's semiconductor industry has been well received. As we all know, advanced technology is impossible to buy with money, and now in the LED industry will repeat itself.

Localization of equipment

The development of the LED industry, the card in the chip manufacturing, that is, MOCVD equipment is the key. However, many domestic scholars on the development of domestic MOCVD equipment put forward many pertinent suggestions. To sum up it is a weak industrial base, separation technology and equipment, control of patented technology, combined with the research to be improved, and domestic policy, such as import duty and import spare parts need, MOCVD can lead to domestic duty-free, with plenty of spare parts and equipment imported in the price of the lack of competitiveness. All this is not a short time to solve, but also reflects the localization of equipment is very difficult. Therefore, local governments at all levels, despite its deep reason, but first in order to meet the short-term goals of GDP, usually for the development of the device is not very enthusiastic, at least this is a national level that needs to be resolved.

Recent media reports, the India government intends to prohibit the import of photovoltaic power generation equipment to promote the rapid development of India's domestic manufacturing industry. From March next year, these projects will have to use solar cells made in India. It feels that the competent authorities in China can at least imitate. Anything must be difficult, but not to work hard, never reach the goal.

1200 MOCVD market demand is a bargaining chip, to make full use of it. Obviously, how to form a joint force is an art, test the wisdom of the competent authorities. In order to explain the 1200 MOCVD chips have multiple, to the United States Veeco company's revenue for instructions. Veeco its Q2 revenue increased $251.4% to $253 million from $72 million a year earlier, MOCVD device shipments reached $81. China's orders may account for 40% of its market share.

Therefore, it is recommended that the India government to adopt similar programs, combined with the domestic equipment factory, the joint venture with China to build factories to produce MOCVD to address domestic demand. Even at the beginning of the production model is not the most advanced, but also to make the domestic MOCVD equipment industry a big step forward.

In addition, the recent Aixtron will spend 40 million euros (about $56 million) to build an advanced R & D center, the R & D center will be located in Herzogenrath-Kohlscheid, Germany, is expected to be completed in the next 2~3 years.

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