Chinese LED chip manufacturers resume capacity expansion

According to the report, some Chinese LED manufacturers are optimistic about the growth of the LED lighting market in 2019 and have resumed the capacity expansion plan that was suspended last year. Statistics show that the MOCVD equipment that originally planned to be installed and put into production last year can produce about 2 million wafers per month.

Last year, a Shenzhen lighting company planned to invest 438 million US dollars in Nanchang to build a LED chip factory to shorten the supply cycle and increase the production. However, due to the slowdown in industry growth in 2018 and the overall price decline, the company suspended the project at the end of last year. At present, the plan has been restarted, and the plant installation has been carried out in an orderly manner. It is expected that trial production will be available by the end of the third quarter of 2019.

Furthermore, many well-known Chinese chip manufacturers such as Sanan Optoelectronics, Huacan Optoelectronics, and Xiamen Ganzhao Optoelectronics also announced the corresponding increase in production plans. According to industry insiders, many suppliers have begun to deploy mini LEDs in addition to the expansion of traditional production lines, and the demand of mini LED is expected to increase significantly in the second half of 2019 or 2020.