The LED industry is facing the threat of mainland China at the time of the price cuts by Korean manufacturers. In addition to continuing to buy MOCVD (Organic Metal Chemical Vapor Deposition System) machines to expand production capacity, the mainland is also more active in excavation engineers.
Zhou Mingjun, general manager of Jingdian, said that MOCVD machines in mainland China have increased all the way. Even if the penetration rate of LED TVs can be doubled to more than 40% next year, the application of LED lighting will start, but the supply and demand gap of LED chips will soon approach. Next year will be a year of intense competition.
Associate Supervisor of Jibang Technology Green Energy Business Research Department said that this year, in the purchase of MOCVD equipment, the first half of the year was mainly concentrated in Taiwan and South Korea. In the second half of the year, mainland China has a tendency to surpass, mainly because of the local government subsidy policy. And with the manufacturers are optimistic about the prospects of the LED industry. China's subsidy policy has also led more mainstream LED chip companies in Taiwan, the United States and other regions to enter the Chinese market.
China has rapidly expanded its LED industry, and the 12th Five-Year Plan will produce 70% of the LED chips in 2015, allowing Taiwan's Epistar engineers to leave. Chu Yuchao said that Taiwan’s Leijing engineers have an annual salary of about 2 million yuan, but they have doubled their salary and they are facing the threat of mainland production capacity and excavation.
Wu Qinghui, chairman of Dongbei Optoelectronics, said that the mainland plans to increase the number of MOCVD stations by more than 1,200 in the next few years. The supply of chips will continue to increase, and soon mainland China will become a competitor of Taiwan.

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