The LED industry was barely back-end packaging for many years in China supported by Taiwanese LED houses to put their factory in China since end of 80’s such as Liteon, King Bright, LEDtech, Everlight, Mainbright.
Support by the Chinese Government that has introduced the “National Semiconductor Lighting Project’ in 2003, selected certain Special Economic zones such as Dalian, Shanghai, Nanchang, Xiamen and Shenzhen for this LED technology development. China has delegated enormous financial support in this energy saving programme including illumination by Semiconductor, the LED industry was boosted with tremendous growth. In China mainland, there are over 1,100 LED package Plants and 2000 LED application system and 68 wafer and chip fabrication plants included those are under construction and as planned.
In 2009, the gross product revenue of LED chips was 2.3 billion RMB which has increased 21 percent compared with 2008. The gross product revenue of LED packaging was 20.3 billion RMB in 2009, an increase of 10 percent over 2008 even in the notorious economy crisis.
There were 68 LED wafer and chip fabrication companies in the mainland, including 45 companies that are under production or in pilot run. Over 85 percent of the companies running GaN-based wafers and chips. There are another 19 new wafer or chip manufacturers under construction, 18 of constructing LED fabs which will cover both epitaxial wafer and chip fab. In total, 48 LED fabs engage in epitaxial wafer process exist in the China mainland. Amongst these companies, many of them are Taiwanese Investment.
These are some of them:
Elec-Tech Optoelectronics has investment of 3.5b RMB, LED Chip, Package and Lighting products, the new plant has 150,000 sq metres under construction. They ordered 130 sets MCCVD from Aixton and Veeco with 100 sets in WuHu Plant and 30 in YangZhou Plant.
Kunshan Government (51%) and Genesis Photonics (49%) in Kun Shan City, with first investment of USD$60M of total $270M, 25 MOCVDs will be installed by Dec 2010. Yangzhou Government has subsidized USD$1.46M for each purchase of MOCVD. They will start run in Q3 2010.
Inspur Hua Guang in Wei Fang Shan Dong, with additional 20 MOCVDs purchased and is installed in Q2 2010. Shan Dong Government subsidizes them USD1M for each of the MOCVD purchase.
Cree Hui Zhou, set up a plan for Chip fabrication including lapping, dicing, testing and sorting, Construction in progress, they will not expand their Penang sorting capacity with their OEM Globetronics, all the expansion will be made in Hui Zhou factory onwards as there is no more space and Malaysian Government incentive on Cree.
Their equipment demand would be tremendous and we believe that they will need additional 500 LED laser scribing and blade sawing machine, 2,000 Prober machine and 2,500 Map sorter machine in 2010-2011.