Chinese LED manufacturers scaled up production again, according to a Liberty Times report. German MOCVD manufacturer Aixtron announced it received 50 MOCVD orders from major Chinese LED chip maker San’an Opto. The new equipment will be shipped and installed by fourth quarter 2014. The rebounding LED industry will be impacted if San’an Opto continues to expand production capacity.

With the aid of Chinese government subsidies, San’an Opto has become China’s top LED chip manufacturer in recent years, and the rival of Taiwanese LED chip manufacturer Epistar. If San’an Opto’s recent production expansion is included in calculations, the company’s total MOCVDs will reach 220 by the end of 2014, which is still behind Epistar by far.

Since Epistar acquired FOREPI in June 2014, the company’s total MOCVDs is expected to reach 550, more than double that of San’an Opto. Epistar will become the world’s top LED chip manufacturer. In addition, San’an Opto’s new MOCVDs will enter production by first quarter of 2015.

To maintain the global LED chip supply and demand balance, LED chip demands will need to be 3 percent higher than supplies, analyzed financial institute Morgan and Stanley.