Sapphire market under the investment and development of the market price trend

Sapphire (Al2O3, English named Sapphire) is made of gallium nitride (GaN) epitaxial layer of the substrate main luminescence material, GaN can be used to produce ultra high brightness blue, green, white, blue and green LED. Sapphire substrate in the past is a large application of missile warheads and watches, and later applied to the LED substrate. The sapphire substrate of the blue LED grain is cut by the sapphire crystal rod.

Pull one hair and the whole body, with the LED lighting market demand take-off, sapphire demand is also rising. According to insiders, sapphire substrate accounted for up to 20% of the cost of LED, can be regarded as the highest cost of materials in the LED supply chain.

In July 20th this year, South Korea's Samsung LED announced a high-profile and Sumitomo chemical until 2015 to jointly set up a joint venture company invested 500 billion won ($471 million) LED production of key parts, namely the LED sapphire substrate, a sapphire substrate industry industry expansion climax. With the LED sapphire crystal rods, substrate production capacity has been out, the price of sapphire substrate on the wave of a wave after wave. So, sapphire substrate production capacity will be excessive, whether the price will decline, sapphire manufacturers will face the pressure of gross margin decline?

Types and characteristics of LED substrates

Enterprise overweight sapphire substrate

2011 sapphire crystal rod and sapphire substrate factory capacity expansion plan

Upstream crystal rod factory to speed up the expansion of production capacity, to rewrite the global pattern

From the relationship between the upstream and downstream, upstream of the sapphire substrate for sapphire crystal (for sapphire ingot), the stage of the high degree of difficulty, in the past by American Rubicon and Russian Monocrystal to control. Since 2009, LED TV penetration increased by 30%, the surge in sapphire demand, but the upstream is not timely expansion, resulting in short supply, so prices rise, the gross profit margin continued to grow, it is understood that sapphire crystal rod Rubicon last year gross margin accounted for 63%, 5 into space this year is expected. Taking into account the good prospects for sapphire substrate project this year, South Korea, Taiwan and many mainland manufacturers to invest in this area, so that the global pattern of crystal rod plant has changed.

The world's largest sapphire ingot factory in Rubicon, the end of this year, estimates of production capacity will be increased to 1 million mm, the Russian MOnocrystal is estimated to increase to about 800 thousand mm, while South Korea's STC production capacity is expected to double to 900 thousand mm, the threat of Rubicon leader.

As early as last year, Yunnan langene science and technology three phase of the project was completed, the estimated annual production of 8 million, exports over $70 million, accounting for steady China sapphire crystal rod factory boss position, more than third of the world sprint. The Taiwan as the world's fourth largest sapphire crystal rod plant, production capacity from the beginning of the year to one hundred thousand mm, expanded to the end of the 40-45 mm. The semiconductor crystal Shangzhi monthly production capacity of about 15 thousand mm, this year will be the expansion of 10-15 million mm level. Xin Crystal last output 80 kilograms of sapphire crystal, and actively with mega silver, silver, silver, silver, silver and Beifu CITIC Aetna silver jointly completed 2 billion 800 million yuan loan case signing, to expand production to prepare sufficient funds, and announced the merger with sapphire factory Zhaojing, not to be synchronous expansion of sapphire the crystal growth and substrate capacity, after the merger the new company is still in the end of this year, monthly production capacity of 600 thousand (about 2 inches) as the goal, the world's top three sprint.

At present in the upstream LED Xin crystal sapphire crystal with monthly production capacity of about 7-10 million /mm, and will build a new plant in Hukou, the new plant will be completed in Q3, Q4 units stationed in batches, capacity will be gradually opened.

In addition, due to the high technology content of the upper sapphire rod, not only has the advantage of high gross margin, and the proportion of the cost of the substrate accounted for about 6, so the sapphire substrate factory have also strengthened the homemade crystal rod. For example, trillion far in January 2010 to set up a subsidiary in the mainland of Shandong Yuan Hong, the main business is the development of sapphire crystal, is expected in the first half of the year in 2011 the crystal rod production capacity of about 1-2 million, the future will gradually expand production capacity. Mixcrystal photoelectric also quite positive, the company is expected at the end of the year to crystal homemade rate from 1 to 5 to increase the level of mixcrystal light general manager Fang Jinlong said, due to rapid growth of LED market, this year will light alloy capacity doubled, stable supply and reduce the cost of sapphire crystal rods, synchronous expansion of crystal great capacity, crystalbar homemade ratio will be from the current 10%, by the end of the year increased to 50%. crystal light capital spending this year is expected in 500 million to NT $700 million.

Sapphire substrate manufacturers competing to expand production capacity to release next year

2011 1-7 months each plant LED sapphire substrate project investment

2011, major LED sapphire factory continues to capacity expansion: at present, with 2 inches of substrate as the main force of crystalwtse technology, monthly production capacity has been expanded to 300 thousand from 150 thousand, and is expected in the third quarter will be further expanded to 500 thousand; Zhaojing current monthly production capacity of approximately 450 thousand is expected. At the end of 2011, the monthly production capacity will also be pulled up to 600 thousand pieces of crystal beauty; at the end of 2010 reached the monthly production capacity of 600 thousand, the largest plant and can be extended to a single month 1 million. It is worth mentioning that the United States and the United States in the sapphire crystal substrate market share of more than 80%, with China to accelerate the implementation of the localization of the goal of LED crystal grain, the United States and the United States has the lead in the Chinese market advantage.

In addition, the establishment of the 30 anniversary of the United States and China announced the history of the largest restructuring of the organization, the semiconductor and sapphire sector will be cut independently as global wafer and Blaupunkt technology, the two companies. Xu Xiulan, general manager of China and the United States, said by