Following the GT Apple has a sapphire screen suppliers fall

Apple sapphire glass supplier GT Advanced Technologies (hereinafter referred to as GT) declared bankruptcy, Taiwan Shenghua Group two subsidiaries in Dongguan --- Massgood LCD Co., Ltd. and Liansheng (China) Technology Co., Ltd. on the 10th recently announced the official production downtime, and actively seek the integration and restructuring. The Wintek Group, Taiwan's largest LCD manufacturer, Apple, Samsung and other mobile phone suppliers.

Apple Nadia: The Secret of Blue Water

First, the sapphire is indeed a gem. Blue sapphire is usually processed into jewelry, but there are also some sapphire is transparent, so this type of sapphire can be applied in the smart phone display. Sapphire is one of the most hardest substance on earth at present, its hardness value of 9 mol (moles hardness values up to 10), second only to diamond hardness (10), and often in excess at a temperature of 3600 ° F (about 1982 ° C) the furnace synthesis. This means that only with the same hardness diamond material damage to it - unless equipped with a diamond in your pocket, or else in a pocket in a few months with a sapphire screen phone, the screen will not be any scratches.

Obviously, this is consistent with Apple's stringent requirements for the screen always. However, in August, the domestic mobile phone Huawei launched the first version of the P7 Sapphire, Apple's phone has no trace of sapphire, a look at the screen supplier GT accident bankrupt.

GT combined with Apple's difficult from the outset. Before entering into an agreement with Apple, GT sapphire production yet. And after the signing of the agreement, although you can bring billions of dollars in revenue, but it also means that the volatility of demand, low profit margins and low fault tolerance space. GT especially after the bankruptcy, insolvency Apple accused party "mismanagement", but GT has large inverted grievances: "Apple repeatedly to change the specifications of the document said Sapphire, GT has spent $ 900 million (more than $ 439 million provided by Apple two. fold) was built at the factory and make it operational, "Each side, finally, an apple or sit back, wondering to send the iphone7-- even rumors, Foxconn will become Apple's sapphire suppliers.

Wintek capital chain a problem

Taiwan Shenghua Group capital chain problems, in September had significant time horizon, "Mid-Autumn Festival, the company in the absence of any notice, no fat moon cake festival in previous years and the elimination of bonuses of $ 600 per person, triggering employee downtime three days and three nights in a row. "since the supplier's statistics show that this Liansheng size of about 120 million in arrears.

More representative of the argument is that "a few years ago the display industry is very fire, Wintek developing very fast in China after Jiangsu has linked East Massgood two plants under construction, and in 2010 in Dongguan Songshan Lake invest more than 100 million building covers an area of 600 acres of Liansheng (China) Technology Co., Ltd .. never expected, the poor market response, the expansion plans on hold. the most direct phenomenon is Liansheng area than Massgood large, but the number of employees less than Massgood three thousand. "

Embarrassing display factory

This is actually a common problem in the display industry. Over the past few years, many companies in pursuit of market share, the financial leverage used more extreme, adventure expansion. Look at the rapid development of the industry no crisis, but when slowing down or getting into the industry level, the debt problem will become a tinderbox, somewhat trouble, there will be a vendor to run businesses, corporate customers are not being paid owed money, but not the debt providers, which are prone to the risk of money-strand breaks.

Wintek has been Apple's iPhone and iPad touchscreen second largest supplier. Said the person, according to the company's prospects for growth in iPhone sales, expanded its production facilities, but with Apple's turn to produce thinner display technology that he could not keep up. This allows the company over the past few years, brought to its knees, and fell into an operating loss.

"Apple's suppliers had a common --- they get the order cost is very high, there are capacity expansion, we need a lot of input." Long-term concern display industry chain Walsall consulting analyst Liyuan Kai said that in the process many manufacturers have not survive, can succeed in the minority. But as long as demand can actually solve the apple, the back is a steady stream of orders, stable, reliable, and more "Apple foundry" brand endorsement, get the rest of orders to other plants will be relatively easy.

But as technology has also lost technology, technical process failed to enhance the direct driving down yields, these costs must be themselves, and ultimately lead to funding strand breaks.

Apple suppliers future in what?

Become Apple's supplier factories seems to be a lot of signs, but behind it is a high-risk and low profits. According to 2013 data, Apple 748 suppliers in more than 600 in Asia, 331 in China, and an apple suppliers experiencing the test, some still persist, and some fell. "It's money well earned," an Asian suppliers from Apple executives exclaimed.


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