Local MOCVD equipment companies may counterattack

MOCVD is a new vapor phase epitaxial growth technique developed on the basis of vapor phase epitaxy (VPE). As the most critical equipment in the LED chip production process, the core technology of MOCVD has been monopolized by European and American companies for a long time, which seriously restricts the healthy development of China's LED industry.

According to statistics, nearly 90% of China's MOCVD market share is firmly occupied by foreign companies, while VEECO and AIXTRON are the bulk of the market share of nearly 90%. Our enterprises only occupy a poor 10% share, which makes our country's MOCVD companies very embarrassing.

However, MOCVD companies in China have realized this embarrassing situation and are catching up. On November 12, Huacan Solar issued an announcement saying that the company has received the National Ministry of Industry and Information Technology for the "Using Domestic MOCVD Equipment Development/Industrial Ultra High-Brightness LED" application according to the "2013 Electronic Information Industry Development Fund Project Guide" issued by the Ministry of Industry and Information Technology of China. The notice of the project was approved and the subsidy of 6 million yuan was approved, which was dedicated to the purchase of equipment or materials required for the project.

This is good news for China's MOCVD industry. The government's support gave our country's MOCVD companies complete confidence.

It is reported that there are about 13 companies involved in the R&D and manufacture of MOCVD equipment in China, and some of the domestically-manufactured equipment already have a high level of competitiveness. Some equipment even has certain advantages in terms of productivity and cost compared with Veeco.

Taking Chung Hung Optoelectronic Equipment as an example, in 2012, Zhongye Optoelectronic Equipment launched a large-scale home-made MOCVD device with independent intellectual property rights. Its four core competencies, including the world’s highest system capacity, lowest epitaxy production cost, good wavelength uniformity, and key performance required for large-scale epitaxial production, have reached world advanced levels. Improve the overall strength of China's MOCVD.

It can be seen that although China's MOCVD equipment market is late in its development and occupies less market share, it does not affect the "declaration of war" of foreign giants of domestic enterprises. Although in a certain period of time, China's MOCVD market will also be occupied by foreign giants, but with the development of China's MOCVD companies, we believe that we can slowly regain market share and establish the development of China's MOCVD enterprises.