Market demand for MO sources (metal organic compound sources) is growing and industry concentration is high

Metal organic compound source, referred to as MO source, refers to metal or elemental organic compounds used as basic materials in vapor phase epitaxial growth technology (MOCVD). MO sources have the advantages of stable chemical properties, high purity, and easy storage, and are widely used in aerospace, photovoltaic power generation, new energy vehicles, semiconductors, LEDs and other fields. There are many types of MO sources. According to different precursor materials, they can be divided into metal film MO sources, metal oxide MO sources, and metal nitride MO sources.

The upstream of the MO source industry chain supplies raw materials, including indium, gallium and other rare metal materials. Gallium is a silver-white or gray-blue metal with a high boiling point, low melting point, and easy oxidation. It can be used to produce semiconductor materials such as gallium phosphide, gallium nitride, and gallium arsenide. my country is the world’s largest gallium producer. In 2022, our country’s gallium reserves will exceed 200,000 tons, and production will reach nearly 600 tons. At present, my country’s gallium industry as a whole is in a situation of overcapacity, and the output can fully meet the demand for MO source production.

The middle reaches of the MO source industry chain are product manufacturing, including metal film MO sources, metal oxide MO sources, and metal nitride MO sources. Metal oxide MO source refers to a product produced by reacting a medium such as water or ozone with an MO source. Metal oxide MO sources have high technological maturity and excellent overall performance, and are the most widely used MO sources. As the market demand for segmented products grows, the prosperity of the MO source industry continues to increase.

The downstream of the MO source industry chain is in application fields, including aerospace, photovoltaic power generation, new energy vehicles, semiconductors, LED, etc. The LED field has the largest demand for MO sources. In recent years, with the growth of Micro LED and Mini LED market demand, the development speed of the MO source industry has further accelerated. According to the “2023-2028 China MO Source (Metal Organic Compound Source) Industry Market In-depth Research and Development Prospects Forecast Report span>》shows that the global MO source product market size will reach US$150 million in 2022, with demand reaching nearly 130 tons. In the future, as market demand becomes increasingly strong, the development space of the MO source industry will be further expanded.

The MO source industry is highly concentrated, and there are only a few companies in the world with its production capabilities, including Swedish Nouryon (NOURYON), Taiwan’s SAFC Hitech, and the American Dow Chemical Company (Dow). and Jiangsu Nanda Optoelectronic Materials Co., Ltd., etc., the above companies account for nearly 80% of the global market share. Nanda Optoelectronics is my country’s leading MO source company, and the company’s products can be used to produce the fourth-generation semiconductor material gallium oxide.

           Industry analysts said that as a supporting source material for the semiconductor industry, MO sources have an increasingly strong market demand. In the future, as the level of technological innovation of local enterprises continues to improve, the prosperity of my country’s MO source industry will further increase. In terms of market competition, my country’s MO source industry has a high degree of concentration. As a leading company, Nanda Optoelectronics has a competitive advantage in the global market with product quality.