【Member News】Lanhe Technology: A Leading Company in Compound Semiconductor Deposition Equipment, Enabling Breakthroughs in Emerging Industries

      Recently, Chuangyu Investment successfully invested in Lanhe Technology (Shaoxing) Co., Ltd. (“Lanhe Technology”), becoming an important strategic partner of the company.

01 Project Overview

      Lanhe Technology was founded in 2020 by a professional team with more than 20 years of experience in the global semiconductor equipment industry. It is currently the only high-tech company in China that has achieved mass delivery of a full range of compound semiconductor MOCVD equipment.

      The company focuses on the core equipment sector for compound semiconductor epitaxy, covering second-generation, third-generation, fourth-generation semiconductors, and two-dimensional materials. With independently developed core technologies, Lanhe Technology is breaking the long-standing overseas monopoly and becoming a key force in domestic semiconductor equipment substitution.

02 Industry Analysis

1、MOCVD Equipment Has Become a Critical Bottleneck for Capacity Expansion in Optical Communications, Space Photovoltaics, and Other Fields

      MOCVD (Metal-Organic Chemical Vapor Deposition) equipment is the core manufacturing tool for compound semiconductor epitaxial production. It is widely used in the fabrication of advanced devices such as optical chips, RF devices, power semiconductors, space photovoltaic cells, and Micro-LEDs.

      As one of the most technologically challenging and strategically important pieces of equipment in the compound semiconductor supply chain, MOCVD directly determines the performance, yield, and production capacity of downstream devices.

      Driven by the rapid growth of AI computing power and 800G/1.6T high-speed optical modules, demand for high-end optical chips is accelerating. Meanwhile, the expansion of commercial satellite launches is driving growth in gallium arsenide (GaAs) solar cells. In these emerging applications, MOCVD equipment has become a key bottleneck in the epitaxial manufacturing process, with global supply remaining highly constrained and equipment delivery cycles often exceeding one year.

Figure 1. Development history of major downstream applications of compound semiconductors

2、Urgent Demand for Domestic Substitution of MOCVD Equipment

      For a long time, the global high-end MOCVD equipment market has been dominated by overseas companies such as Aixtron and Veeco. Most domestic equipment manufacturers have focused only on LED-related MOCVD systems, resulting in limited product portfolios that cannot fully support applications such as optical communications, RF devices, and space photovoltaics.

      Currently, overseas equipment faces challenges including high procurement costs, long delivery cycles, slow after-sales response, and potential supply chain risks. Therefore, achieving independent and controllable domestic supply chains has become an urgent requirement for the compound semiconductor industry.

Figure 2. Global MOCVD equipment market share (2025)

3、Full-Portfolio MOCVD Mass Production Capability and Strong Competitive Advantages

      Lanhe Technology has achieved mass delivery of a complete range of compound semiconductor MOCVD systems, including standard and high-pressure MOCVD equipment required for special materials and advanced devices.

      Leveraging its differentiated advantages in technology, product portfolio, production capacity, and service capabilities, the company continues to advance high-end equipment localization. It is supporting the improvement and upgrading of China’s compound semiconductor industry chain, while enabling strategic emerging industries such as optical communications, aerospace technology, and advanced displays.

Figure 3. Lanhe Technology’s MOCVD equipment portfolio

03 Project Evaluation

      The East China team of Chuangyu Investment believes that compound semiconductor applications cover a wide range of fields and have significant growth potential. Among them, wide-bandgap semiconductor materials have been highlighted in China’s “15th Five-Year Plan,” providing a clear strategic direction for the development of the compound semiconductor industry.

      As a core manufacturing tool for compound semiconductors, MOCVD equipment plays a critical role in determining the performance, yield, and reliability of final devices. Meanwhile, downstream sectors including commercial satellites, AI computing, advanced displays, and blue-green laser diodes have entered a critical stage of industrialization, making MOCVD equipment an increasingly important bottleneck for industry development.

      With its technological advantages, Lanhe Technology is precisely addressing key capacity expansion challenges in the industry and supporting the independent development of strategic emerging sectors.

      Chuangyu Investment will continue to identify core companies in strategic emerging industries and work together with industry partners to accelerate technological innovation and industrial growth.