Industry sources noted china’s LED industry would install 700-800 units of MOCVD equipment in 2011 compared to 330 units installed in 2010, which may take China's LED industry to catch up with Taiwan.

It’s reported that a Chinese LED maker had booked about 400-500 MOCVD machines to Germany-based Aixtron, with the shipment’s delivery lead time pushed to 3Q11.

Recently, as the largest LED chipmaker in China Sanan Optoelectronics’ MOCVD machines would reach 40 set in the end of 2010 and increase to 100 units in 2011, which would have a equivalent capacity of Taiwan-based Formosa Epitaxy. Also, Xiamen Changelight would increase its MOCVD equipment from 9 to 26, while the third-ranked maker Inspur Huaguang Optoelectronics would add another 16 MOCVD machines into its current lineup of 14.

But in the short-term, the threat of China-based LED chip companies to their rivals in Taiwan would be limited, with insufficient supply of LED epitaxial wafers in China, Industry sources pointed out.