LED application market expansion, in addition to the metal organic chemical vapor phase epitaxy (MOCVD) machine in short supply, resulting in chip capacity is not available, the upstream chip material sapphire substrate is also out of stock. iSuppli warns that global LED supply is in short supply in 2010, and that there may be a serious shortage of supplies at the end of the year, unless the demand for such high-capacity devices is increased.
At present, Zhengda has launched a supplier certification operation to prevent the shortage of stock-outs at the end of the year. As for the impact of the application, it is estimated that the impact on TV backlight penetration is not large, but the production capacity of the chip will be reduced for the application of lighting applications.
In the past, the key technologies of sapphire substrate materials were mostly in the hands of the US and Japan. It is difficult for Taiwan to compete with the big manufacturers. Although the Taiwanese industry is not a large supplier, the technical threshold of the LED sapphire crystal rods in the industry's most upstream is high and good. The rate problem needs to be improved, and the manufacturer's expansion of the plant takes about six months to nine months, and the special gas is more than one and a half years. When the LED application is advancing by leaps and bounds, the upstream materials are out of stock, and the MOCVD machine of the LED factory is produced. The speed is limited, the LED industry estimates that the gap between upstream chip capacity and orders has more than doubled.
In 2009, the total consumption of LEDs reached 63 billion, up from 57 billion in 2008. Due to the sharp increase in consumption, total LED consumption last year dangerously approached the overall capacity of the entire industry - 75 billion, indicating that the capacity utilization rate of many LED manufacturers is close to 100%, and demand clearly exceeds supply.
The chart below shows iSuppli's forecast for the global LED market for 2006-2013.
The supply of sapphire substrates required for the production of LEDs is in a bottleneck, which may hinder the growth of the LED industry. Financial services provider CanaccordAdams analyst Dosheimer warned that the shortage of sapphire is serious. To meet the demand of LED, the production capacity of sapphire substrate must be two to three times, but it still depends on the expansion speed of LED market. In the past seven months, rising demand has pushed up the sapphire price by 50%, but he does not expect new production lines to start before 2011. As the sapphire substrate industry is still waiting to see if demand growth can continue, it will take one to two years for the capacity to meet demand. In addition, the LED industry requires larger sapphire substrate wafers, which also increases production difficulties.
Due to the shortage of LED supply, some companies are considering reducing the shipment of their electronic products with LED as backlight material. Bill Weissman, chief financial officer of sapphire substrate maker Rubicon, said the company expects sapphire substrate prices to rise 15% this year. But Weisman also pointed out that sapphire substrates account for only 8% of LED wafer raw materials and should not be significantly affected. The terminal price of the LED.
Fpc Ffc Connectors,Car Charging Connector,Industrial Ethernet Connector,Automotive High Current Connectors
Zooke Connectors Co., Ltd. , https://www.zooke.com