MOCVD Equipment Sales Decline by 18% in 2012

It is understood that the demand for LED devices is gradually shifting from price-driven to technology-driven, and LED devices tend to be more complex and more efficient. In 2011, LED-related equipment sales were outstanding. However, the outlook for capital output in 2012 is clouded. Many market analysis shows that sales of MOCVD equipment have been declining this year and will drop 18% this year.

Traditionally speaking, the highest cost of LED production process is equipment cost. This is especially true of the downstream manufacturing process after MOCVD growth. However, today, these factors are constantly changing. With respect to the development of technology, people are demanding more and more chips for lumens and efficiency, and therefore require more complicated production processes and production equipment.

The industry means that LED manufacturers are more concerned with higher automation speeds, increased throughput, and higher output than other traditional cost-price concerns. The cost is still an important factor constraining the development of solid-state lighting technology and efficiency. In order to enhance market competitiveness, LED devices must provide higher efficiency production technologies. To this end, the three major elements that LED equipment must have are specified, namely, capital efficiency, floor space efficiency, and cost of ownership.