LEDinside, the green energy business unit of TrendForce, a global market research organization, estimates that the output value of LED lighting market will grow by 47.8 in 2014 to reach 35.3 billion US dollars. The penetration rate of LED lighting will also increase to 32.7 next year. Looking at the market prospects, Jingdian ( 2448), Yiguang, Dongbei, Edison and other Taiwanese factories are actively expanding production to meet business opportunities.
Li Bingjie, chairman of Jingdian, once said that LEDs must enter the lighting application and must seize market share. Therefore, it is necessary to prepare production capacity.
Guo Zhihao, senior analyst at TrendForce, said that in order to meet the demand for new LED bulbs and lamps in 2014, it is estimated that 250 MOCVD machines will be added.
In view of the capacity utilization rate of LED chip factories this year, the production capacity of Taiwan and China's LED chip first-line factories are all in high-end water level. Although there are still a large number of MOCVD machines in the Chinese market, these machines are mostly in small factories. In the hands, in the situation that the market price competition is still quite fierce, the small factory to start these MOCVD machines is too expensive, LEDinside expects that the small factory will continue to withdraw from the LED supply market.
In view of the rising demand for LED lighting in 2014, the competitive LED chip factory still needs to continue to increase production capacity in 2014. In addition to continuous improvement in yield, machine operating days and number of operations, it is estimated that LED chip makers may also adopt M&A small factories in 2014 to obtain capacity for MOCVD machines.

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