Demand for general lighting applications remains robust for LEDs, though the LED oversupply remains significant. This could explain why orders for metal organic chemical vapor deposition (MOCVD) tools have ticked slightly higher, but primarily limited to Epistar and some small China orders.
From a chip perspective, discussions suggest Cree (NASDAQ:CREE) stepped on some large customers toes when it acquired Ruud Lighting in August 2011. Ruud makes outdoor lighting fixtures based on LEDs. This has had greater than expected negative impact on chip demand, Citi says. The downstream acquisition for the LED maker is viewed by some customers as directly competitive with their businesses.
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