China will account for 59% of global MOCVD equipment sales in 2011, up from 35% in the first half of 2010, according to Digitimes Research. Taiwan's share will drop from 33% to 26% during the same period, and South Korea from 32% to 15%.

The country's LED market is extremely competitive with roughly 3,000-4,000 LED lighting companies currently, and due to lack of standardizations, each player has their own product direction and the market remains highly fragmented. The top ten companies in shipments only constitute about a 13% share of the China market. With the Chinese government providing strong support for the LED industry in its next five-year plan, more companies will likely enter the market. Unlike Taiwan LED companies, China-based companies are active in pursuing vertical integration to lower cost and strengthen their influence over the supply chain.

China-based GCL-Poly, which is primarily a solar material maker, has entered the LED sector from upstream material supply, and its chairman Zhu Gongshan reportedly has met with Foxconn (Hon Hai Precision Industry) chairman Terry Gou to discuss possible alliances in renewable energy and LED. Foxconn also has its own LED chip production and chip packaging subsidiaries.