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Surge in LED market to push demand for precursors

Posted: 21 Aug 2013     Print Version  Bookmark and Share

Keywords:Displaybank  IHS  LED market  precursor  MOCVD process 

According to the latest prediction from Displaybank, part of IHS, the global demand for precursor, a material used in manufacturing of LEDs, is set to more than double from 2012-2016, as the market for LED lighting continues to surge. The market for precursor used in the metal-organic chemical vapor deposition (MOCVD) manufacturing process for making LEDs will rise to 69 tons in 2016, up 114 per cent from 32 tons in 2012, added the market analytics firm.

The boom in the precursor market reflects the rising operating rate of MOCVD as the LED lighting market grows," said Richard Son, senior LED analyst at IHS. Precursor is used in the MOCVD process in manufacturing LED chips.

Major precursors include trimethylgallium (TMGa), trimethylindium (TMIn), trimethyl aluminium (TMA), triethylgallium (TEGa) and C2Mg2. Among these, TMGa is the most widely used and commands about 94 per cent of total demand.

IHS expects that the global shipments of MOCVD equipment will climb by 17 per cent in 2013. South Korea, Taiwan and China, the largest buyers of MOCVD equipment, account for about 80 per cent of the global demand of precursors. China, which is generating the highest growth in installation of MOCVD equipment, is expected to make up 45 per cent of the global demand of precursors in 2016. In the early stage of the LED market, Dow Chemical Co. was the unrivaled leader in the precursor market, noted Displaybank. However, new players have been investing in R&D and manufacturing facilities while breaking into the market with low prices for similar-quality product.





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