China’s San’an could lead in GaN LED wafer capacity by end of 2014

Chinese die vendor San’an is projected to take the lead in gallium nitride light-emitting-diode (GaN LED) wafer capacity by the end of 2014, overtaking current leader Epistar of Taiwan.

11/13/2013


Chinese die vendor San’an is projected to take the lead in gallium nitride light-emitting-diode (GaN LED) wafer capacity by the end of 2014, overtaking current leader Epistar of Taiwan, according to IHS Inc. (NYSE: IHS).

While Epistar is forecast to continue its spot at the pinnacle this year and through most of 2014, its run at the top will end sometime in the fourth quarter when San’an is projected to take over.

Wafer capacities are calculated by IHS based on tracked metal organic chemical vapor deposition (MOCVD) installations, and San’an’s potential lead is dependent on a planned installation of new machines in 2014. “The second-phase fab of San’an in Wuhu is ready for another 100 GaN LED MOCVD tools in addition to the 100 that had been installed in 2011,”,said Alice Tao, senior analyst for LEDs and lighting at IHS.

All told, San’an could reach 10.8 percent of wafer capacity by the fourth quarter of 2014 in 2-inch-equivalent wafer capacity, followed by Epistar with a forecast 10.1 percent, LG Innotek with 6.8 percent and Samsung LED with 6.1 percent, as shown in the attached figure.  

Chinese die vendor San’an is projected to take the lead in gallium nitride light-emitting-diode (GaN LED) wafer capacity by the end of 2014, overtaking current leader Epistar of Taiwan. Courtesy: IHS

To be sure, the rankings can change depending on what is being measured. For instance, Epistar remains the top manufacturer for yielded die and binned die, even by the end of 2014. Also, companies such as Nichia of Japan, Osram of Germany, North Carolina-based Cree and Philips Lumileds of California rank high in terms of actual revenue when utilization rates and pricing are considered, even though the four manufacturers are not in the Top 5 when it comes to unprocessed wafer capacity.

While San’an’s capacity is double that of any other Chinese-headquartered manufacturer, other companies in China, such as HC Semitek, Elec Tech and Focus Lightings, are also expanding capacity. This is true despite continued overcapacity in the industry and even if some Chinese makers have been less than successful.

China was the primary destination last year for, most MOCVD shipments. The country’s prominence in the market appears uncontested for the short term, accounting for 80 percent of shipments this year and 85 percent in 2014. In comparison, shipments and orders will be low in other regions. As a result of both factors, Chinese companies are predicted to increase their overall share of the market.

Many Chinese manufacturers had jumped into the market or had expanded their capacities in 2011 when subsidies from local governments were available, However, most top suppliers continue to be based in other areas, including the Western Hemisphere, South Korea, Taiwan and Japan—many of these holding the strongest intellectual property portfolios.

Outside of Asia, Chinese companies are not particularly strong. No China manufacturers, for example, appear in the Top 10 for packaged LEDs. This makes the anticipated rise of San’an to the top in wafer die capacity by the end of next year even more striking.

More information on this story can be found in the IHS “GaN LED Supply and Demand” report, which ranks the Top 20 companies by quarter for wafer capacity, die capacity, yielded die capacity and binned die capacity.



No comments
The Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by...
Each year, a panel of Control Engineering editors and industry expert judges select the System Integrator of the Year Award winners.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
Learn how to increase device reliability in harsh environments and decrease unplanned system downtime.
This eGuide contains a series of articles and videos that considers theoretical and practical; immediate needs and a look into the future.
Learn how to create value with re-use; gain productivity with lean automation and connectivity, and optimize panel design and construction.
Go deep: Automation tackles offshore oil challenges; Ethernet advice; Wireless robotics; Product exclusives; Digital edition exclusives
Lost in the gray scale? How to get effective HMIs; Best practices: Integrate old and new wireless systems; Smart software, networks; Service provider certifications
Fixing PID: Part 2: Tweaking controller strategy; Machine safety networks; Salary survey and career advice; Smart I/O architecture; Product exclusives
The Ask Control Engineering blog covers all aspects of automation, including motors, drives, sensors, motion control, machine control, and embedded systems.
Look at the basics of industrial wireless technologies, wireless concepts, wireless standards, and wireless best practices with Daniel E. Capano of Diversified Technical Services Inc.
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
This is a blog from the trenches – written by engineers who are implementing and upgrading control systems every day across every industry.
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.

Find and connect with the most suitable service provider for your unique application. Start searching the Global System Integrator Database Now!

Case Study Database

Case Study Database

Get more exposure for your case study by uploading it to the Control Engineering case study database, where end-users can identify relevant solutions and explore what the experts are doing to effectively implement a variety of technology and productivity related projects.

These case studies provide examples of how knowledgeable solution providers have used technology, processes and people to create effective and successful implementations in real-world situations. Case studies can be completed by filling out a simple online form where you can outline the project title, abstract, and full story in 1500 words or less; upload photos, videos and a logo.

Click here to visit the Case Study Database and upload your case study.