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Aixtron, Veeco keep steady lead in MOCVD market

Posted: 14 Apr 2014 ?? ?Print Version ?Bookmark and Share

Keywords:LED? MOCVD? Aixtron? Veeco?

The top three players in the metalorganic chemical vapour deposition (MOCVD) industry!Aixtron and Veeco, followed by Tayo Nippon Sanso!held on to their lead and will continue to do so for some time.

Yole D└veloppement Senior Market and Technology Analyst Pars Mukish said: "Since 2010, more than 20 players (mostly from Asia) have tried to enter the MOCVD reactor market but without real success: in 2013, these new suppliers represented only three per cent of market share (only two per cent compared to 2010)."

Yole explains in the company's 'LED Front-End Equipment Market report' that the two main reasons for the lack of success has been that new entrants have missed the first two LED growth cycles!small display and large display applications!that have allowed leaders to build their expertise and know-how as well as their networks.

Even big names, such as Applied Materials, did not achieve access to these markets. In addition, Yole estimates that the revenue collected during the 2010-2011 investment cycle!a total of more than $2 billion for MOCVD reactors, with over 90 per cent going to Aixtron and Veeco!have allowed the two companies to slash ASP and initiate a price war to stall further market entry barriers.

Yole reckons the current LED front-end industry is driven by cost reduction, given that technological evolutions are reaching their saturation point. The main strategy developed by a new MOCVD reactor supplier is to focus on decreasing cost of ownership through a new heating system, new gas flow design, and increased automation. However, even if this is the best and only strategy to adopt, the market analyst does not expect new entrants to have a big increase in future market share as the finances and expertise of the big two far surpass any of their competitors.

Yole_MOCVD

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In the short term, Yole predicts that outside the top three, only two types of suppliers will survive: those that develop collaboration with some big LED manufacturers, and the Chinese suppliers that are able to scrape together bits and pieces of the huge local market.

- Paul Buckley
??EE Times Europe





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