China LED industry as technology advances, the cost of further reducing the volume and rapid growth in the downstream market for lighting applications and entered a rapid development period . Industry chain River out of the doldrums all aspects of production and sales continued to grow, corporate profitability has started picking up .

From just past the first quarter of 2014, industry performance, upstream epitaxial chip companies continues to improve capacity utilization , production of major chip companies are still tight, chip products in short supply.

"Technology and the overall strength of the formation of the future of chip scale enterprises have to face barriers to competition . " Edge Difei that there is no scale chip companies can not do the best price , naturally can not survive the fierce market competition and development.

Chip companies large and packaging manufacturers signed a supply agreement to form a strategic alliance to become more popular this year .

Many industry insiders believe that the second half of the chip supply remains tight , this strategic alliance for the chip and packaging companies are good , since such cooperation may be more.

Midstream packaging industry after years of development , now has a considerable economies of scale , to become one of the world's leading LED packaging production base, occupying the majority of the domestic packaged devices domestic market share of imported packaged devices in the Chinese market quickly reduce .

A quarter of packaging companies also continued last year's good times , remains a simultaneous increase in revenue and net profit . Meanwhile, with a variety of technical courses and package technology advances, flip, no packaging, etc. abound.

Downstream applications this year , due to the lighting needs at home and abroad dual heat , combined with the implementation of national local government tenders , Guangdong , Fujian and other significant acceleration , LED lighting, public outreach is still hot in 2014 , while in the hotel , the field of LED lighting Chaodeng replace also become a trend.

Engineering LED Lighting Fair 2013 exhibitors - Sunshine Lighting (600261.SZ) Yong , general manager , said the official , LED lighting as a mainstream position has been determined, essentially 100% LED outdoor applications , business according to 80% of new project with LED, home to 90% of new products is the use of LED.

Consolidated first half of this year , LED industry still brings up the chain of mergers and acquisitions , price war, war and other traditional channels, magic , more focused on the fast growing trend of LED lighting end-market demand, the price for the market . Expected in the second half of 2014, this trend will continue .


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More low-profit projects face channels , many businesses have expressed their " powerless " , still adhere to the " do not abandon, do not give up " principle , LED era lighting let us see how the performance of the Channel how industry experts ? commentary .

Age of the Channel LED Manufacturers Directly Involved

The era of the traditional lighting of the Channel and LED lighting era made ​​a comparison: In the era of traditional lighting , lighting manufacturers usually completed in conjunction with the dealers , only a handful , such as the Olympic Games, World Expo , the Games because of the tender requirements such as high the need to work directly with manufacturers . In the LED era , due to the government's promotion efforts, a growing number of outdoor projects and municipal reconstruction project by the manufacturers directly involved , reducing the dealer link , greatly increasing the profits of manufacturers , making the project the channel has become a lighting industry ' fat ' .

For manufacturers direct access to the Channel this point , in the original works , such as mode of direct marketing agency , to operate the project brings more possibilities, more space. existing traditional channels of cooperation projects , relatively simple way , engineering agency funding pressure, project follow cumbersome. Engineering channels and circulation reduces the risk in the project operation, ultimately, more successful profit gains .

How The Channel Stage Performance ?

Engineering channel LED era with traditional channels , there are some differences , then how the Channel LED performance under this mode of operation and now it ? Profits and how ?

Profit project channels a certain stage is relatively lower . The main factors leading to change are: First, the intense competition in the market ; Second , LED market matures , the price system is also becoming stable . now works profits decline : the previous works in product pricing by 50 points or more , and now some of the projects are basically not very profitable , everyone grab one , this is the result of competition . Large projects are generally tender , the fight is their strength . Because the owners may specify a brand or set up some special ( standard ) threshold, which allows general contractors can not intervene ; while for small projects in general , there is not much special requirements, we can go for a relative pressure also small . As engineering problems of payment , multi- contract to go, ordering the payment of part of the goods to pay part of the completion of the payment of part of the point is that there are about 3-10 shelf aftermarket gold, basic after-sales back section more difficult, it also works when you quote need to consider the cost . engineering market with high return characteristics, but high returns are often associated with high risk , the risk of investment in various sectors and to face the pressure of the flow than normal and retail channels is much greater, regardless of the date of China 's LED lighting or other companies, this channel is the LED lighting project risks and opportunities.


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2013 domestic sapphire furnace equipment manufacturers anxious awaits dawn , although ingot prices from early 2013 began to gradually pick up, but early overcapacity can still waiting for the market to digest the growth of the LED chip . This party is the utilization of a gradual recovery in domestic MOCVD machine , there upstream equipment factory orders still failed to get the real feed their families .

Touches on the window film market for field use sapphire material being widened , from camera to Apple 5S bonnet of the home button , Apple last October GTAT got three sapphire orders , be given the sapphire market gust of warm air, but whether there how many domestic plant can have a share , probably still needs our common efforts and innovation.

Let's look at 2013 , what kind of market information transmission and trends :

4 inches above the replacement rate 1.LED chip rapid increase domestic MOCVD new models and the existing 2-inch machine upgrade , Samsung and other foreign chip plant began mass production as 6 inches , 4 inches unit costs relative to the 2 absolute advantage inches more prominent. Reason to believe that this year, for the assessment indicators in LED crystals are converted into 4 inches , which requires the development of large-capacity single-crystal furnace can keep up as soon as possible . (> 120kg, there must be a stable and reliable solution for our current and previous rounds of simulation experiments show the 125 kg level has greatly improved the overall cost than 85kg)

2 , where is the sapphire cost ? Many customers are more concerned about the ingot market prices , without considering the tariff and subsidy cases, the decision is nothing more than the real cost of the following three points : equipment utilization and crystal yield , unit energy consumption , mainly life and cost thermal field components. Who can make a breakthrough and innovation above elements will occupy a very favorable competitive position.

3 In the window film market , if the phone screen really spend sapphire , sapphire it would be a subversion of industrial production , the vast majority of equipment manufacturers actually do not have large quantities in this application , low-cost technology model , the industry is really no need also entangled in the GT 's "Ruby" problem , at least for now they are the only one to really get the order window film plant. We believe that the need for the existing equipment technology roadmap , new materials and processes in order to make efficient integration of real customers have the confidence to make the window film release orders for sapphire . The research in these areas is precisely the weak link in the chain of the domestic industry , the domestic sapphire plant to be considered more in the long run , the system in terms of cooperation on downstream . In accordance with the sapphire cost today , most domestic mobile phone manufacturers are also difficult to accept to replace the sapphire glass screen.

Let's look at Sapphire crystal furnace technology future trends : sapphire furnace market will be more segments : LED applications and window film will have more targeted models.

1 more emphasis on traditional techniques dig stick quantity , unit cost, crystal size , EPD and other indicators, equipment manufacturers lack the quality of the crystal growth process understanding ; With power and brightness LED chips in terms of continuous improvement , sapphire lining for chip plant optical , stress midsole material performance requirements will be more stringent , long crystal manufacturers in the process for material performance impact needs to do more research. For example, the impact of annealing time and temperature stress release , the seeding process for the control of crystal defects , which requires equipment manufacturers to develop a more flexible and stable single crystal furnace , crystal growth technology enables staff have sufficient room for adjustment , the characteristics of the material itself of the single crystal growth furnace on the thermal field deformation determines the long-term use and the attenuation , the future development direction of the single crystal furnace power control precision, and independent thermal field phasing control , intelligent power adjustment and prediction there is a great need to improve the space .

2 Even in the field of window film , the market for equipment made ​​a completely different direction, such as the current camera ripe bonnet and fingerprint recognition , a small area of its own , for the existing 2-4 inches of substrate utilization higher cost of materials to meet the existing models ; but is widely expected mobile phone screen applications , the new generation of crystal growth process route , using energy-saving thermal field of new materials and other aspects have yet to be industry colleagues to work together. Finally , said that large-scale sapphire production automation equipment requirements will be higher, including automated seeding stage and late stage technology thermal field after using automatic adjustment, the current control of our ongoing research and development of artificial intelligence .


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Sapphire--it's not just for jewelry anymore. In the last few years, Apple has increased its use of the material in its products, and that trend seems to be on the upswing. On Monday, Arizona governor Jan Brewer announced that Apple will open a manufacturing facility in Mesa; that plant will be operated by GT Advanced Technologies, which will be providing sapphire for Cupertino's products.

The plant will employ 700 workers and seems positioned to provide a lot of sapphire. Currently, Apple uses the material in relatively few places: It covers the lens on the iPhone 5c and 5s and is used as the top layer in the Touch ID sensor on the iPhone 5s. In both cases, it's harder and provides much more scratch resistance than conventional glass.

By investing in a facility designed for the production of sapphire, though, it seems possible that Apple's expecting to need more of the material than it would require simply to make lens covers. Daring Fireball's John Gruber speculates that Apple may actually plan to use the factory to produce sapphire glass displays for its devices; earlier this year, a report suggested that Apple had already begun to investigate the possibility, though doing so in the necessary volume had proved challenging.

The Arizona plant also moves Apple towards another one of its goals: bringing more manufacturing jobs back into the U.S. In the past, the company had come under fire for its heavy reliance upon overseas firms like China's Foxconn, which itself had been criticized for its lack of worker protections. Last December, Apple CEO Tim Cook announced that Apple would move some Mac production back into the United States; the revamped Mac Pro, which will be released later this year, is the first new Mac to be assembled domestically.

As with Apple's other recent facilities, such as its data centers in Oregon and South Carolina, the Arizona facility will rely on 100-percent renewable energy.


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Apple is building a manufacturing plant in Arizona that will be used by GT Advanced Technologies to make sapphire crystals for use in its products. Apple currently uses sapphire in its home buttons and camera lens covers, but several details about the material itself and the nature of its deal with GT indicate that it could be expanding its interests in the hard crystalline substance over the next several years.

Sapphire, specifically synthetic, manufactured sapphire, has several properties that make it of interest to Apple. First of all, sapphire is superior to glass, even Corning’s Gorilla Glass material, in several ways. Synthetic sapphire has no color, as it’s a single crystal grown to be optically transparent — making it look very similar to glass. But it’s also extremely hard — 9 on the Mohs scale — which means better scratch resistance.

“Chemically strengthened glass can be excellent, but sapphire is better in terms of hardness, strength, and toughness,” says Matthew Hall, Director of the Center for Advanced Ceramic Technology at the Kazuo Inamori School of Engineering at Alfred University. “The fracture toughness of sapphire should be around 4 times greater than Gorilla Glass – about 3 MPa-m0.5 versus 0.7 MPa-m0.5, respectively.”

The hardness of sapphire will make it resistance to ‘flaw initiation’ (aka starting to scratch) and its ‘toughness’ is how it resists fracture once a flaw has begun (cracking altogether). This strength doesn’t come without a bit of cost, Hall notes. “The density of Gorilla Glass is 2.54 g/cm3 while sapphire is 3.98 g/cm3. Given equal-sized pieces, Gorilla Glass will always be lighter.”

The counter-point to the greater weight is that Apple could use thinner pieces of sapphire due to its greater strength overall. This would result in weight and thickness reduction, which is something Apple is very conscious about. You may have noticed that the latest iPad Air was reduced in thickness in part due to its use of thinner glass and IGZO display panels.

Sapphire has fairly good optical qualities, as well, says Hall. Both materials have roughly similar absorption properties, though sapphire’s refractive index is a bit higher, which would mean a tradeoff in light transmission for durability.

“Gorilla Glass is about 1.5 while sapphire is about 1.76 — the exact number is wavelength-dependent,” Hall says. “The reflection that occurs at an interface is directly proportional to the refractive index difference between the two media creating that interface.”

The technical details of GT Advanced’s sapphire product match up well with these numbers, you can read those here (pdf). This means that, in roughly the same amount of incident light, Gorilla Glass would allow for a brighter image than sapphire. The key difference between the two materials, and this is where we get to why Apple just ensured its own supply, is the manufacturability of sapphire vs. glass.

“The down draw process for making display glass is currently more scalable and energy-efficient than sapphire production,” Hall says. “I admit to being less familiar with the details of sapphire production, but it’s my understanding that all methods are batch-based while the relevant glass making process is continuous in nature. I don’t see an immediate solution for sapphire to compete with glass on economies of scale, but I would certainly be interested in learning what may be in the works.”

Hall says that there are questions about the methods of producing large amounts of thin sapphire that is not cost-prohibitive. Which may be why Apple is building a new facility which GT Advanced will inhabit, with its own machinery and processes. GT has been developing a method for making sapphire sheets thinner than a human hair, which are then laminated on top of glass material to protect it — a more cost-effective solution than a pure sapphire sheet.

A report earlier this week from Cantor Fitzgerald analyst Brian White noted that sapphire glass accounted for about 11 percent of GT’s sales this year — around $28.9 million in revenue. In 2014, GT expects to make between $480 million and $640 million from its sapphire business alone. So clearly it expects Apple’s additional business to increase its production quite a bit.

What chunk of that increased revenue will be sucked up by Apple? The answer lies in GT’s Q3 release, which notes that Apple will provide it with a $578 million prepayment, which GT will reimburse over the next five years. Apple’s deal length wasn’t mentioned, but it’s likely to last at least those five years. Note that this is only the pre-payment, Apple’s investment in sapphire may go well beyond that.

In its statement about the deal, GT said that it “has accelerated the development of its next-generation, large-capacity ASF furnaces to deliver low-cost, high-volume manufacturing of sapphire material.”

This increased volume indicates significant interest by Apple, for both its current products and future ones. A few months back, there were reports that production volume of sapphire materials was a ‘problem,’ which we’ve confirmed were accurate.

An MIT Technology Review piece from March of this year noted that production levels were one of the biggest barriers to sapphire being used in smartphone screens. At current volumes, sapphire was just too expensive. At the time, GT said that a sapphire display could cost 3-4x as much as a Gorilla Glass one, but people at the company noted that its prices would fall further as GT “improved the quality of its furnaces and as the manufacturers that purchase those furnaces streamline operations.”

Though Apple currently uses sapphire for its touch sensors, GT’s increased output in 2014 points to a much larger role for the material in Apple’s business. This could point to Apple beginning to use sapphire for the screens of its devices. Though there are production challenges, it’s technically possible that Apple has found a way to make it economically feasible to replace the glass material that they’re using with sapphire.

In supply chain analyst circles there is chatter that Apple no longer uses Corning’s Gorilla Glass for its iPhone screens, and hasn’t for some time now. But it still makes them out of glass. Expanding sapphire production and buying its own plant indicate a massive interest in the crystalline material by Apple.

“First, this material must be extremely strategic, says Creative Strategies Analyst and Techpinions columnist Ben Bajarin. “It is necessary for Touch ID because it is extremely scratch-resistant. If a scratch got on your thumb scanner it wouldn’t work. So then the question becomes what else may they want or need to use a scratch resistant screen for. This is where the wearables idea or watch comes in.”

There has been a lot of chatter about Apple and wearables, and it is indeed working on something in that arena. Apple’s M7 motion coprocessor likely has something to do with it, and there are some indications that it’s being worked on by both Bob Mansfield and ex-Adobe CTO Kevin Lynch.

Watches, a popular wrist-mounted wearable you may have heard of, often use sapphire for their face covers because of their durability. They simply get knocked around more than phones do.

“This, for now, is more about smaller screens than bigger. But perhaps it is also a learning process or investment for them to take this to other screens,” says Bajarin.

This is how Apple operates with its suppliers in China like Foxconn. If custom machinery or processes are needed for their products, they often put the money into the deal for those. It’s not disclosed in GT’s deal, but there may be a possibility that it’s helping it build the furnaces that it needs. It’s certainly building a fancy new facility for the manufacturing, complete with a renewable energy source in the form of a solar farm.

Apple’s investment in sapphire glass displays just how important it views the material. This could also mean that it is setting itself up to protect the supply of material over the course of the next few years. Apple has often done this with components like Retina displays.

Around the time HP was trying to build its TouchPad tablet, we had heard that the company was frustrated because Apple had locked up super high-res display production for some time. HP couldn’t get the panels even if it wanted to, and would have to wait until Apple’s exclusivity deals ran out. This may be a similar scenario, where Apple buys out capacity to prevent others from having access to it.

Or it could simply be a matter of building up production levels to where Apple needs them to be just to provide it for themselves. This is probably the likelier scenario, especially given the relative scarcity of sapphire and the production processes used to make it in enough volume. Especially if Apple expands production of its sapphire home buttons and TouchID systems to the iPad line in the coming year.

Either way, Apple is planning on using sapphire on a much larger scale than it has previously. There’s no telling exactly when we’ll see the fruits of this increased production, but GT’s increased production levels point to a much bigger use of sapphire by Apple in 2014 and beyond.


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Moment , LED lighting products are slowly replacing traditional lighting position in the same proportion increases every year . According to market research data show that China's LED lighting market in 2008 was 9.061 billion yuan of output value , output value of 48.888 billion yuan in 2013 , an increase of 48 percent in 2008 . China Indoor LED lighting products increased from 012 million yuan worth to 2013 of 9.82 billion yuan , an increase of 90%. This growth rate represents not only the booming LED industry, but also on behalf of the status of the traditional lighting of the already precarious . LED has been accepted by more and more consumers and needs .

With the gradual expansion of the overall semiconductor market size extension , indoor lighting products are also in the overall semiconductor market is a large proportion , intelligent lighting products also account for a certain percentage. The development and application of high-tech and high demands on the quality of people's lives continue to promote the development of intelligent lighting applications , will continue to penetrate into the LED home lighting . At present, the country such as Shenzhen , Shanghai , Nanjing and other cities already in the promotion and popularization of the use of intelligent home products, and small and medium sized cities in intelligent lighting penetration is generally not high . However, intelligent lighting applications humane, comfortable , technology , etc. are also popular, combined with LED lighting products fiery , intelligent control will open a new era of home lighting .


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In the mobile Internet era, even the bulbs are eager for the ancient lighting industry must find their own sense of presence in them.

Biennial Frankfurt International Lighting Fair is considered to be a professional lighting show the world's most influential. LED lights have become the show's most important product. Because the energy-efficient LED lights and obtained a huge market success and is considered the best alternative to the incandescent lamp, is also considered a revolution in the industry for the first time since the invention of the incandescent lamp.


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Last year, Apple and GT Advanced struck a deal to open and operate a manufacturing facility in Mesa, Arizona related to sapphire crystal components.

Earlier this year, we learned that Apple is “aggressively” pushing to make the facility operational by February 2014 and that the building would produce a “critical” and “new” sub-component for future Apple devices. Due to the vagueness and secrecy surrounding Apple and GT Advanced’s plans, there has been little to no confirmation regarding what exactly the partnership will yield for future Apple products.

But, thanks to new documents and information that we have uncovered with help of analyst Matt Margolis, we have a clearer picture of Apple’s plans…

As we speculated in a previous article, it appears that Apple is planning to build sapphire-crystal displays for future iPhones. This is opposed to this facility building sapphire components for future Apple Touch ID fingerprint readers and caps for camera sensors. The proof that GT Advanced is preparing to manufacture sapphire for displays comes from import/export records. As can be seen in the image above, GT Advanced has ordered Intego Sirius Sapphire Display Inspection Tool components.

The machines will allow GT Advanced to ensure that the sapphire crystal displays meet high-quality standards. These machines are specific for display-grade components, not small pieces of sapphire that could be used for Home buttons or cameras.

The machines are large and can process several slabs of sapphire crystal screen covers simultaneously. Above is a drawing of the equipment.

Because GT Advanced is not owned by Apple, it may be unclear if every component purchase by GT Advanced is for Apple-related purposes. Of course, GT Advanced has had several partners in the past. However, information from a recent GT Advanced SEC filing seems to point to all current work being exclusive for Apple-related uses:

Based on the above details from the SEC filing, Apple and GT Advanced are currently in an exclusive partnership in relation to “Consumer Electronics Products,” and this makes it unlikely that the new sapphire crystal display work could be for any other technology company’s products.

Besides the sapphire crystal display testing tools, GT Advanced has ordered several other components throughout the past few months. Most importantly, several furnaces and chambers. The sapphire furnace and chamber system is pictured above. The silver-colored metal drum is the chamber, and the entire machine makes up a completed furnace.

Both pieces work together to transform sapphire crystal material into “boules” that look like large hockey pucks. Those “boules” are then re-processed, polished, and sliced into the shapes of displays.

As of now, according to shipping documents and other data from Margolis, GT Advanced has received 518 of the pictured units, with another 420 machines on order (that have yet to be assembled). The first 518 units, according to Margolis, could build between 103 million and 116 million ~5-inch displays per year. The additional machines would nearly double that annual output with an additional 84 million to 94 million screen covers. GT Advanced has also ordered over 100 tons of graphite material to heat the furnaces.

As we’ve previously noted, sapphire crystal displays would make the iPhone’s screen much stronger and scratch resistant. The new screen could be a headline feature of the next iPhone model, which is expected to see a larger screen along with curved glass edges. We’re currently investigating some other developments regarding Apple’s plans for the Mesa, Arizona manufacturing plant, so stay tuned.


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Over the past three decades , the formation of the global output and 15 billion trillion or so lampholder stock market ; Our lighting industry output in 2013 reached 4800 billion. With LED lighting to improve penetration in the lighting industry , LED lighting and intelligent control period to replace the traditional lighting of the advent of China's LED lighting industry will maintain rapid growth of the state in the coming years .

Relevant survey report shows that the rapid development of China's LED lighting is still sustainable three to five years. 2013 China's lighting industry output value of 480 billion yuan , including $ 35 billion in export volumes and more than 2000 billion domestic market. 200 billion yuan in 2013 relative to the domestic market , the stock market over the past three decades lighting formed larger. 2012 LED lighting in the lighting industry 's penetration rate of 10% , in 2013 this proportion rises to 17% ; 2014 are more likely to rise to around 40%. The next three to five years are large-scale LED lighting market replacement cycle , which is mainly the introduction of appropriate national energy policy guidance due.

While the pattern of change in the industry , the global LED lighting products prices are starting to show "no white " effect. By the upstream chip technology to enhance the impact of the rapid decline and prices , the price gap between LED lighting and traditional lighting products are gradually narrowing between the upstream and downstream LED lighting products prices has become an indisputable fact. Currently, the price of LED lighting products is growing at an annual rate of approximately 20% decline in many areas of both the LED bulb to replace 40W or 60W minimum price has been below $ 10 even , gradually approaching the price of traditional energy-saving lamps .

Impact of LED product prices, pushing prices there are two main factors aspects: one is to enhance the technology makes LED production costs to decline. In recent years , LED upstream chips huge investment , the current chip prices have dropped 30 percent in 2010 ; same time, new technologies emerging industries and enterprises to become the face of price pressures coming LED powerful weapon . On the other hand , due to the enormous prospects of LED lighting has attracted numerous influx of capital , the market competition is becoming increasingly fierce competition makes the price cuts have become an important means of LED enterprises.

Related research institutions that , thanks to the gradual decline of the middle reaches of the price advantage to the 2014 global LED lighting product price still fell space is expected from 2013 to 2014 China LED indoor lighting products prices fell an average of about 20%, LED lighting market is expected to usher in a new round of strong eruptions.

In the 11th general lighting LED driver and intelligent control technology seminars , IHS senior analyst at the internationally renowned analyst Alice Tao participants who will analyze the development trend of global lighting market , the interpretation of the global lighting market. The seminar organized by the big bits of information , the semiconductor device applications network contractor , will be held at the Westin Ningbo May 30 .


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The idea that it may be used in the next iPhone screen elicited a strong response from Corning’s Senior VP, Tony Tripeny at a Morgan Stanley conference last week.

When we look at it, we see a lot of disadvantages of sapphire versus Gorilla Glass,” said Tripeny. “It’s about 10 times more expensive. It’s about 1.6 times heavier. It’s environmentally unfriendly. It takes about 100 times more energy to generate a Sapphire crystal than it does glass. It transmits less light which … means either dimmer devices or shorter battery life. It continues to break. I think while it’s a scratch resistant product it still breaks…”


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