(Credit: IHS)
Seoul, South Korea--Global demand for "precursor," a class of material used in manufacturing light-emitting diodes (LEDs), is set to more than double from 2012 to 2016 as the market for LED lighting booms, according to a new report called "Precursor for LED MOCVD–Market and Industry Analysis" from Displaybank, which is now part of IHS (www.ihs.com; NYSE: IHS).
The market for precursor used in the metalorganic chemical-vapor deposition (MOCVD) manufacturing process for making LEDs will rise to 69 tons in 2016, up 114% from 32 tons in 2012 (see figure).
"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 a core material that ensures the optimal light efficiency for each LED epi layer. It is used in the MOCVD process, which is the most important process in manufacturing LED chips. Major precursors include trimethylgallium (TMGa), trimethylindium (TMIn), trimethyl aluminum (TMA), triethylgallium (TEGa), and C2Mg2. Among these, TMGa is the most widely used and commands about 94% of total demand.
Demand for MOCVD equipment also rising
Global shipments of MOCVD equipment are on the rise, with shipments expected to climb by 17% in 2013. The largest buyers of MOCVD equipment -- South Korea, Taiwan, and China -- account for about 80% of the global demand for precursors. China, which is generating the highest growth in installation of MOCVD equipment among the three countries, is expected to make up 45% of the global demand for precursors in 2016.