1st November 2017
As the demand for LEDs continues to grow, Chinese vendors up and down the supply chain are scooping up the business.
In his latest IHS Markit Ranking, analyst Jamie Fox, highlights how Nationstar has become the second packaged LED maker from mainland China to break into the LED top ten revenue earners, following in the footsteps of MLS. But for the first time ever, China-based MOCVD players are also muscling in on the market.
As Fox points out, this year, MOCVD suppliers Amec and Topec have seen a sharp increase in sales and are the first companies to seriously challenge longstanding industry heavyweights, Germany-based Aixtron and Veeco, US.
"A couple of years ago Aixtron and Veeco had complete market dominance with more than 90% of the market between them," says Fox. "Many other companies had tried to compete and failed, but this year has seen a drastic change."
As the analyst highlights, while only last year Amec was a minor market player with few shipments relative to the big two, its actual shipments are now catching up with Veeco.
"Veeco will remain ahead across the entire year, but Amec could rival or even overtake Veeco in the second half of this year," says Fox.
"One to two years ago, Amec wasn't perceived as being ready for the market," he adds. "But the company has taken years to develop a good system and now appears to have done this and convinced customers as well."
Right now, Amec's revenue-recognised shipments of its Prismo A7MOCVD tool chambers are estimated to come in at between sixty and seventy units for 2017. But as Fox emphasises, total shipment figures, not just those based on received revenue, are significantly larger. Indeed, latest figures from the company indicate shipments have already reached 100 since the product's introduction last year, and this figure is set to rise to 120 by the end of this year.
And while Topec's figures, of five to ten units, are much lower than Amec's mighty numbers, Fox also anticipates growth from this China-based MOCVD supplier.
But what makes these results all the more important is that only China is seeing rocketing MOCVD demand.