Sapphire substrate prices continued to help improve the cost of LED epitaxial crystal

Is the main supply of Dachang 2011 will be a new capacity gradually opened, coupled with the recent off-season coincides with the traditional industry, the sapphire substrate last year quotation sharp rally, the rally has stalled this year first quarter. Market is expected, since the beginning of the second quarter of this year, sapphire substrate prices may be slow down by quarter (quarterly decline of 5%). We expect this will help LED epitaxial plant in Taiwan, including EPISTAR, canyuan, Taigu, new century, after the second quarter cost structure improvement.

As for the LED capacity expansion and increased supply, the expansion rate from China in mainland China is still quite active, forecast 2011 global MOCVD machine installed capacity will increase shipments / 800-1000 Taiwan, 2010 (amplified about 800) continued to increase in 2011, and the expansion of the mainland LED epitaxial grain production capacity, in fact there are many cooperation system and Taiwan factory technology or capital investment, therefore, in fact LED epitaxial grain supply changes, effects on LED supply chain, price, remains to be seen.

It is the supply of material, including sapphire substrate, MO gas and so on, the recent tight supply and demand phenomenon, have eased, the main reason is the recent off-season coincides with the traditional industry, but more important is the main supply manufacturers this year will have new capacity gradually opened, at the same time, LED epitaxial grain manufacturers have developed mostly the multiple suppliers of raw materials.

The first quarter of this year, the price of sapphire substrate rally has been largely stagnant (flat or small or less than 5%), is expected since the beginning of the second quarter of this year, the price of sapphire substrates will be around a quarter of the rate of speed, slow down. This will contribute to the cost structure of LED epitaxial / crystalline manufacturers after the second quarter, improved.