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.


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 Top Plant program honors outstanding manufacturing facilities in North America. View the 2013 Top Plant.
The Product of the Year program recognizes products newly released in the manufacturing industries.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
A cool solution: Collaboration, chemistry leads to foundry coat product development; See the 2015 Product of the Year Finalists
Raising the standard: What's new with NFPA 70E; A global view of manufacturing; Maintenance data; Fit bearings properly
Sister act: Building on their father's legacy, a new generation moves Bales Metal Surface Solutions forward; Meet the 2015 Engineering Leaders Under 40
Cyber security cost-efficient for industrial control systems; Extracting full value from operational data; Managing cyber security risks
Drilling for Big Data: Managing the flow of information; Big data drilldown series: Challenge and opportunity; OT to IT: Creating a circle of improvement; Industry loses best workers, again
Pipeline vulnerabilities? Securing hydrocarbon transit; Predictive analytics hit the mainstream; Dirty pipelines decrease flow, production—pig your line; Ensuring pipeline physical and cyber security
Upgrading secondary control systems; Keeping enclosures conditioned; Diagnostics increase equipment uptime; Mechatronics simplifies machine design
Designing positive-energy buildings; Ensuring power quality; Complying with NFPA 110; Minimizing arc flash hazards
Building high availability into industrial computers; Of key metrics and myth busting; The truth about five common VFD myths

Annual Salary Survey

After almost a decade of uncertainty, the confidence of plant floor managers is soaring. Even with a number of challenges and while implementing new technologies, there is a renewed sense of optimism among plant managers about their business and their future.

The respondents to the 2014 Plant Engineering Salary Survey come from throughout the U.S. and serve a variety of industries, but they are uniform in their optimism about manufacturing. This year’s survey found 79% consider manufacturing a secure career. That’s up from 75% in 2013 and significantly higher than the 63% figure when Plant Engineering first started asking that question a decade ago.

Read more: 2014 Salary Survey: Confidence rises amid the challenges

Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
The One Voice for Manufacturing blog reports on federal public policy issues impacting the manufacturing sector. One Voice is a joint effort by the National Tooling and Machining...
The Society for Maintenance and Reliability Professionals an organization devoted...
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.