**Global LED Chip Industry Market Analysis**
In 2016, the global LED chip market experienced an impressive year-over-year growth of 7.88%, reaching a total market size of 44.8 billion yuan. According to estimates by the High-tech Research Institute's LED Research Institute (GGII), the global LED chip market is projected to expand to 51 billion yuan in 2017, representing a robust year-on-year increase of 13.8%.
The deployment of MOCVD machines worldwide in 2016 was heavily concentrated in regions such as Mainland China, Taiwan, Japan, South Korea, Europe, and North America. Notably, Mainland China led the world with the highest number of installed MOCVD machines.
The following chart illustrates the production value, growth rates, and forecasts for the global LED chip industry from 2014 to 2020:
*Source: Gaogong Research Institute LED Research Institute (GGII)*
A closer look at the global distribution of MOCVD machines in 2016 reveals the following:
*Source: Gaogong Research Institute LED Research Institute (GGII)*
**China’s LED Chip Industry Market Analysis**
In 2016, China’s LED chip market showed signs of recovery, with the chip market growth rate reaching 11.54%. As prices remained relatively stable in 2017, domestic chip manufacturers reported sales rates close to 100%. With ongoing expansions in production capacity, high yields, and continued research efforts, it is anticipated that China’s LED chip output value will grow by approximately 30% in 2017.
In 2016, Sanan Optoelectronics accounted for over 30% of China’s chip output value, while the top five companies collectively held nearly 60% of the market share. As large-scale factories continue to expand, industry consolidation is expected to intensify further.
The following chart shows the production value, growth rates, and forecasts for China’s LED chip industry from 2014 to 2020:
*Source: Gaogong Research Institute LED Research Institute (GGII)*
The market share of China’s leading LED chip companies in 2017 is illustrated below:
*Source: Gaogong Research Institute LED Research Institute (GGII)*
**China’s LED Chip Industry Competition Analysis**
According to data from the High-tech Research Institute LED Research Institute (GGII), the number of LED chip bases in China increased steadily from 1991 to 2011, rising from just three companies in 1991 to 95 companies in 2011. Following 2011, however, the number of LED chip bases began to decline annually, signaling an increase in industry concentration.
In 2016, the Yangtze River Delta region housed the largest number of LED chip bases in China, accounting for 44% of the total. The Northern Region followed closely behind with 14 bases, representing 25% of the total.
The following graph depicts the changes in the number of LED chip bases in China from 1991 to 2016:
*Source: Gaogong Research Institute LED Research Institute (GGII)*
The regional distribution of LED chip bases in China in 2016 is shown below:
*Source: Gaogong Research Institute LED Research Institute (GGII)*
As the global demand for LED technology continues to grow, China remains at the forefront of innovation and production, setting the stage for even greater advancements in the coming years.
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