LED chip prices in China in fourth-quarter 2018 are expected to drop nearly 10% sequentially mainly due to increased supply and decreased demand arising from seasonality, leading to on-year decreases of 20-30% for the whole year, according to industry sources.

Taiwan-based maker Epistar indicated that shipments fulfilling orders received in the fourth quarter will last much shorter than those for the preceding quarter. However, Epistar will not lower quotes to compete for orders and will adjust idle production equipment in preparation for new products in 2019, the company noted.

According to Gaogong Industry Research Institute (GGII), China-based LED chip makers will add more than 300 MOCVD sets, equivalent to monthly capacity of 1.45 million LED epitaxial wafers, in total in 2018, with most of them expected to come into operation in 2019. With the additional tools, China makers' total monthly production capacity in 2019 is expected to reach 3.45 million LED epitaxial wafers.

By: DocMemory
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