According to the statistics of GLII, the institute under China’s leading institute on emerging industries GGII (GG Industry Institute), the operating rate of MOCVD was only 50% in 2012. As MOCVD is the most important and the most crucial equipment of the whole LED upstream sector, the oversupply led to the price of 2” sapphire substrate as low as USD 6-7.

According to the data of GLII, the industrial concentration is over 50% in our epitaxial wafer and chip sector, but that of packaging sector is merely 16.8% and that of LED lighting application sector is only 5.7%. With intensified industrial competition, these two sectors are expected to be the key sectors for the industrial integration in 2013.