Recently, PIDA of Taiwan held the 2010 Optoelectronics Future LED Seminar. Zhen Mingli (1868) Zheng Jianwen, general manager of Taiwan, said at the meeting that Zhen Mingli will vertically integrate upstream, put into production MOCVD machines to produce LED chips, and predict that the LED lighting market will fall into cost war in 2010.
In order to improve production efficiency and quality, and reduce costs, downstream manufacturers are bound to integrate upwards, so they began to do their own LED chips. On the other hand, traditional lighting manufacturers hope to consolidate the market and adopt a horizontal integration strategy for the LED industry.
Zhen Mingli is expected to put into operation 30 MOCVD machines to obtain the abundant capacity of LED chips. It is also intended to have 100 MOCVDs at the largest scale. The company believes that this depends on market conditions.
Zheng Jianwen also believes that the vertical integration trend of the LED lighting market will remain unchanged. It may be the big one, and the LED lighting market is based on traditional lighting. The market transparency is high. It is expected that 2010 will be a fierce cost war.
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