China based Elech-Tech’s Yangzhou subsidiary has begun mass production of LED wafers. Equipment used at its Yangzhou factory are mainly 14x4” MOCVD wafer production units from U.S. manufacturer Veeco. The company currently has 12 units in operation with a yearly production capacity of 190,000 pcs, which can then produce 50,000 chips. 

Elec-Tech Chariman Wang Donglei faced disgruntled investors during the company’s investor conference discussing the company’s 2013 annual financial results on May 12, 2014. Although ElecTech has made it into the LED supply chain, net profit growth has yet to be seen. Wang first discussed the benefits the company recived from their aquisition of NVC Lighitng. Wang next tackled questions by investors regarding wafer expansion. 

Following the expansion of the LED lighting market, Epistar president Li Bingjie during an interview on September 4th pointed out that once LED lighting permeability broke 10 percent, usage rate increased exponentially. LED lighting wafer usage by 2015 is estimated to equal that of backlight usage. Epistar’s lighting market strategy is therefore focused on increasing market share.

The impact of the European debt crisis has affected LED market demands and resulted in a short-term oversupply; the rapid production of China’s LED chips has put product price in not only a sharp decline but also a possible further decrease. The LED market shifted tremendously in 2012; many LED chip manufacturers faced cash flow issues and deficit, and industries started to steadily integrate. A minority of Chinese industries have introduced new technologies, new products, or new methods in order to seize the market. Mr. Liang Xudong, the chairman of EpiTop Optoelectronic Co., Ltd.-- one of the upstream manufacturers of semiconductor lighting that gained profit in 2012-- was interviewed by LEDinside on issues regarding the LED market and industrial innovation.