China's LED chip capacity accounts for 73% of the world

LED chip manufacturing is also an industry with continuous high investment and obvious economies of scale. With the decline in LED chip price and gross profit margin, the return on investment of LED chips is gradually decreasing. The expansion of foreign LED chip manufacturers tends to be cautious, and the growth of foreign chip supply is limited. China LED chip factory Aoyang Shunchang, Huacan Optoelectronics, III With the help of local government support policies, An Optoelectronics has actively expanded its production capacity based on the advantages of capital and scale, and the global LED chip production capacity has gradually shifted to mainland China. Since 2013, the proportion of China's LED chip industry's output value has increased continuously, from 27.0% in 2013 to 37.1% in 2017.

In 2017, the number of MOCVDs in China exceeded 1600, with a net increase of 246 units throughout the year, and LED chip production accounted for 58% of the global total. In 2017, China's Taiwan LED chip production ranked second in the world, accounting for 15%; followed by Japan, South Korea, the United States, LED chip capacity accounted for 12%, 9%, 3%.