High-purity metal organic compounds (MO source) function as the supporting source materials of the modern compound semiconductor industry and the source materials of the semiconductor lighting (LED) industry chain. After 2009, the explosive growth of the global LED industry has promoted the demand for MO source, which reached 53.5 tons in 2012, up 19.4% year on year. In the same period, due to the high technical threshold of the MO source industry, the speed of capacity expansion has been limited, as a result, the global MO source market witnessed an ever widening demand-supply gap for consecutive three years in 2009-2012. In particular, due to the wider demand-supply gap than other MO source products, trimethyl gallium (TMG) has become an investment highlight in the industry.
In 2012, Taiwan and South Korea gradually became new MO source production bases following the United States, Europe, Japan and Mainland China. Taiwan and South Korea are the most important production bases of the global LED industry and occupy a large proportion of upstream epitaxial wafer and chip manufacturing in the industrial chain, therefore, both of them act as the largest MO source consumer market. Meanwhile, Taiwan and South Korea have to import MO source products from Europe and America because of the absence of local manufacturers, resulting in the deteriorated contradiction between the regional supply and demand. Currently, Kaohsiung and Taoyuan of Taiwan as well as Cheonan and Yeosu of South Korea have become MO source investment hotspots.
China LED epitaxial chip industry performed sluggishly in 2012. The phasic overcapacity of low- and medium-end chips and falling prices led to the declined profitability of the majority of enterprises which suffered losses. Thus, Chinese MO source market saw slowdown in 2012 and dropping prices. However, with the improved Chinese LED industrial chain and the growing quantity of MOCVD equipment, the domestic MO source demand will surge in 2013, but the tight supply situation will still exist.
For more information on the Global MO source market, please click here: Global MO source market
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