The LED market is developing rapidly, with US$7 billion in 2009 rising up to US$10.7 billion in 2010 and is expected to reach US$20.4 billion in 2012.
The application of LED backlights by LCD TV manufacturers increased from 0.01% at the end of 2008 to 10% in the second half of 2009. It is expected to reach 27% by the end of 2010. And the application of LED backlights by LCD display producers grew from 0.01% at the end of 2008 to 5%.
Under this tend, the estimated shipment of MOCVD equipment in 2010 is expected to reach 662, equal to the sum total of the previous three years, and 2011 will maintain or even exceed this. The unit selling price of MOCVD equipment is about US$1-2 million. Because a maximum subsidy of 50% from the Chinese government, an upsurge of LED investment and a boom in MOCVD purchases in China is stimulated.
At present, a large number of MOCVD equipments have been bought in and the LED project in Wuhu alone needs more than 200 sets of MOCVD equipment. A single set of MOCVD equipment possesses over 2,000 parameters, thus, it is not so easy to produce qualified products. Besides, there are numerous thresholds for LED patents, and lack of vigilance could cause trouble with infringements. Some firms, especially Nichia, are never bored with patent lawsuits. Therefore there still exists some problems to be settled.