His primary concern: expectations of soft near-term demand for MOCVD reactors, which are used to produce LEDs.

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Veeco and competitor Aixtron ( AIXG) are the only vendors of significance selling MOCVD reactors to growing LED manufacturers.

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An MOCVD order snap-back is inevitable as LEDs go from 5% of all lighting to over 30% over the next few years.

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Chinese subsidies have resulted in a glut of MOCVD reactors.

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