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Veeco (VECO -7.7%) and Aixtron (AIXG -5.6%) get hammered after Digitimes reports the companies...

Veeco (VECO -7.7%) and Aixtron (AIXG -5.6%) get hammered after Digitimes reports the companies slashed prices for single-wafer MOCVD LED manufacturing systems to ~$1.4M from ~$2M, and 30%-40% for multi-wafer systems, due to Chinese competition. The companies have already been struggling with weak equipment demand on account of overcapacity: Digitimes Research estimates MOCVD shipments will fall 46% this year to 148; Veeco is seen shipping 89 of them, and Aixtron 53. Cree (CREE -3.7%) and GT Advanced (GTAT -4.2%) are also selling off.
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Comments (1)
  • Bill Swiggart
    , contributor
    Comments (169) | Send Message
     
    It's somewhat odd that GTAT is down along with VECO. GTAT sapphire sales are not dependent on sales of VECO's MOCVD units and in fact GTAT is developing a superior system with Soitec. Using a blend of sapphire and gallium nitride, their Hydride Vapor Phase Epitaxy (HPVE) system will compete with MOCVD by July 2014.
    17 Apr 2013, 02:18 PM Reply Like
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