China's LED industry is expected to install 700-800 units of MOCVD equipment in 2011 compared to 330 units installed in 2010, a trend which is likely to enable China's LED industry to catch up with Taiwan in terms of MOCVD production capacity, according to industry sources.

One China-based LED maker has reportedly even given an order for a total of 400-500 MOCVD machines to Germany-based Aixtron, pushing the delivery lead time for shipments of MOCVD equipment in the China market to the third quarter of 2011, the sources added.

However, the threat of China-based LED chip companies, with the exception of Sanan Optoelectronics, to their rivals in Taiwan will be limited in the short-term due to insufficient supply of LED epitaxial wafers in China, the sources commented.

Sanan Optoelectronics, currently the largest LED chipmaker in China, will have a total of 40 MOCVD machines by the end of 2010 and will expand the lineup to 100 units in 2011, a capacity which will be equivalent to the installed capacity of Taiwan-based Formosa Epitaxy, the sources noted.

Number two maker Xiamen Changelight will increase the number of its MOCVD equipment from nine to 26, while the third-ranked maker Inspur Huaguang Optoelectronics will add another 16 MOCVD machines into its current lineup of 14, the sources indicated.