Orders of MOCVD equipment from China LED makers are significantly large. Many of them place their orders with ten as their least procurement unit, says John R Peeler, Veeco’s CEO, at the opening ceremony of its Shanghai office. Veeco has already sold 85 units of MOCVD equipment in China, and the figure is expected to 100 soon.

Veeco has sold over 200 units of its K-series MOCVD products worldwide, among that, over 100 units is its main product, K465 (45 wafers), which is adopted by 80% of leading global LED companies.

Johm R Peeler announced that their product advantages include:

1. Mass production capability, which could enhance the output efficiency and reduce cleaning and repair time. The process of cleaning is time-consuming because the machine needs to be cooled down from 1000℃ and then return it to 1000℃ after the wash.

2. High automation to decrease manual operation. For instance, its product design incorporates an automated function that orders the machine arm to exchange sapphire substrate after production completion.

3. Assistance with older equipment upgrades. To avoid new equipment edging out the older one, Veeco has set up an upgrade project to connect the old equipment with new ones to enhance yield rate of products.

John R Peeler expressed that Veeco’s new production line for MOCVD is about to commence, which could effectively alleviate capacity shortage. Veeco will boost its investment in R&D and capacity.

Insights from LEDinside

Amid the short supply of MOCVD equipment this year, Veeco holds an advantageous position, especially in the China market, with sales growth of 80% YoY. According to LEDinside, Veeco has begun to increase its output through outsourcing some of its orders, and the scale of its output is catching up to that of industry leader AIXTRON. Hence, the short supply of MOCVD equipment is expected to resolve next year.