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China-based LED epitaxial wafer and chip maker San’an Optoelectronics has obtained first-phase subsidy of CNY124 million (US$18.7 million) from the government of Xiamen City, southeastern China, for procuring 30 MOCVD sets for making 4-inch LED wafers, according to industry sources.
San’an previously disclosed it would install 10 new MOCVD sets beginning August 2017, expecting the number to reach 450 by year-end, up 40% from year-end 2016.
While US-based Veeco Instruments and Germany-based Aixtron SE have dominated the China MOCVD set market, they face increasing competition from China-based Advanced Micro-Fabrication Equipment (AMFE), which has cumulatively shipped about 100 MOCVD sets to the China market and expects the cumulative shipments to reach 120 by year-end 2017. Prism A7, a MOCVD set produced by AMFE, can simultaneously make 136 4-inch LED wafers.
China-based makers have dominated global supply of general LED lighting products. Due to off-season effects on demand for LED lighting, prices for LED devices of common specifications dropped 5-10% in third-quarter 2017. However, prices for special-purpose LED devices remain stable.
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