Taiwan sapphire substrate factory first quarter revenue profile warming

LED industry this year downstream imbalance is expected to ease, the sapphire substrate supply and demand balance, make the sapphire substrate prices this year by quarter decline of LED epitaxial crystal power plant, canyuan, new century, Taigu second and third seasons of operation will be helpful.

Last year at 40% to 50% times higher margin sapphire factory may be coming to an end, with gross margin drop customers LED epitaxial plant, the major plus last year expansion in capacity gradually opened this year, mixcrystal photoelectric director said, sapphire substrate prices fall this year.

In fact the sapphire substrate prices have been loosened, the 2 inch price of about $28, compared with the fourth quarter of last year fell 10% to 15%, the original decline should be larger, but because of the impact of the 311 japan earthquake brought psychological, so that the second quarter prices than in the first quarter, down 5%. Deputy chief executive said the crystal, the current estimate of the sapphire substrate prices are bearish, but the magnitude is uncertain, however, the second quarter and the third quarter is the industrial peak season, it is not easy to cut prices.

Sapphire factory also believes that last year the sapphire substrate rose too high last year, 2 inch price from $10 to $15, up to $30 to $35, even in the fourth quarter of LED industry boom reversed down, sapphire substrate prices continue to rise, LED epitaxial plant in the fourth quarter gross margin the steep fall in the first quarter but dropped to below 20%, the formation of the whole industry is imbalance.

Moreover, last year, sapphire in short supply, this year has been significantly improved, Taiwan manufacturers last year, a substantial expansion of production, will be in large quantities this year.

Due to sapphire crystal, from at least ten days to spend the next 14 days, the shadow of Japan's power supply to the price of the original price to slow down, after the disappearance of this concern, the price decline in the third quarter will expand.

Sapphire substrate prices downward trend, the cost structure of LED epitaxial plant, there will be positive help. Zhang Shixian said that the decline in raw material prices on the decline in the cost of crystal help, but the cost is still high in the second quarter, help is not great, but the decline in the third quarter may be more obvious.

Zhang Shixian said, the second quarter is still in good condition, many orders, focus on output can meet the requirement of the orders, because the LED TV specification to enhance the lot, to yield as expected, but another one to two months will solve the problem.

Canyuan chairman Jane tomoto said canyuan first quarter gross margin fell to below 20%, one of which is the cost of raw materials is very high, the third quarter of last year, in the fourth quarter although the sapphire substrate prices, but also low-cost canyuan inventory, the first quarter of this year is the high price of materials. However, the price trend of the sapphire substrate downward, canyuan first quarter is operating second bottom, and third season will be better and better.