Substrate market stable consumer electronics into a new sapphire blue ocean

With the advent of Apple Watch, sapphire second spring seems to come ,, related stocks ushered rose. Past the traditional sapphire industry, including LED sapphire substrate market and the window film market, where the window film market tend to be customized, the price is very inelastic; substrate market will depend on the impact downstream LED epitaxial wafer demand.

Current applications are mainly concentrated in the Sapphire 90% LED substrate, probably total. A few years ago, the blind expansion of industries sapphire LED industry driven crazy, the result of overheated investment in excess capacity, resulting in a sapphire substrate prices plummeted, two-inch sapphire substrate prices fell from a peak of around $ 35-40 to around $ 30; 2012 decline more than 1 0 0%; 2013 prices have rebounded, in $ 7 fluctuate.

To the first half of 2014, with demand-pull LED downstream applications, the market once again showed sapphire boom, especially in the ingot prices continue to rise. "By the second half of the price of 2 inches Sapphire Ingot prices remain at $ 5 / mm, while the price of the largest amount of 2 inches of the substrate is back up to around $ 8, a slight rise." Tiantonggufen (600330.SH) market Director Guoyue Bo introduction, PSS-patterned substrate prices have fallen to around $ 13. The 4-inch sapphire substrate size flat sheet prices are still two inches of 5-6 times.

Huge potential market opportunities spawned large investor confidence continues to climb sapphire substrate material. LED production and research Engineering Institute (GGII) that the future price rise as a sapphire substrate, sapphire substrate 4 inches profitability of investment projects will be further enhanced. In this regard, Guoyue Bo agrees ,, he said:. "Next day through the LED sapphire substrate products will be mainly located in the 4.6-inch large-size substrate"

From the cost structure, the sapphire proportion accounted for about 10 percent of the cost. In LED lighting applications popular, prices continued Zoudie case, the price is clearly a non-trend, which is contrary to the competition rules of the market, particularly sapphire substrates and related products continued to decline in the case, as a sapphire substrate customers upstream epitaxial chip makers is how prices might allow sapphire manufacturers do?

Well, from the point of view of market demand, driven by LED lighting, in 2014 major chip makers rapid expansion of wafer production capacity to expand, in order to secure market share and in response to the needs of the lighting market, Hua Chan, Saman, Tongfang and other domestic LED chip manufacturers to speed up the expansion and capacity utilization, to seize the market, further driving demand for sapphire substrate.

In HC SemiTek example, in 2014 two-inch sapphire substrates month demand of about 250,000, as of the end of 2014, about 100 companies MOCEVD equipment, production capacity reached 450,000 / month. In this regard, while 迪斐 vice president HC SemiTek said, "entered after 2015, production capacity will continue to expand on this issue, the attitude of the Board of Directors of highly consistent: strong expansion"

As communications, IOT technology and intelligent development, cell phones, wearable electronic devices for electronic functional materials put forward higher requirements, sapphire as a new generation of high-quality materials in such applications demand more and more widespread. Compared to the LED market has matured, the market is highly anticipated that the sapphire as a protective material for electronic consumer products such as mobile phones.

In the crystal optical (002273.SZ) released 2014 performance report, the company total revenue of 978 million yuan, an increase of 56.16%.

The reason is the growth performance of rapid development of domestic smart phone industry, led to the rapid growth of mobile phone-related products, and sapphire, product sales increased 234%. And this is just a microcosm of the current listed companies involved in sapphire investment plan view, although the LED substrate is still an important investment direction, but the trend for consumer electronics products is already obvious more obvious.

"The market size of LED substrate industry has basically seen, but the phone screen is the new blue ocean, may the future development of space is very large, the capacity of the mobile phone market will reach 7,8 times the LED industry is now on the market for more than eighty percent of sapphire LED substrates are used, the mobile phone market is very small; once the sapphire mobile phone screens are applied, this proportion is likely to be reversed, "the sapphire used in the mobile terminal, a sapphire-related listed company secretaries to" Engineering LED. "correspondent thus described.

In this regard, Aorui photoelectric chairman, left Hongbo, general manager also holds the same view, he said he was optimistic about the huge sapphire crystal material application in the field of consumer electronics. "Years ago the company began to layout, in this year, the company expects revenues to increase from 88,534,400 yuan to 346,153,800 yuan, an increase of 290.98%."

IPhone5 and 5S camera lens in the lens and Home key applications from sapphire material, especially by the end of 2013, Apple signed a sapphire crystal and GTAT an order for $ 578 million worth of. The market will continue to spread the new generation of Apple iPhone6 ​​sapphire cover message on the screen.

But in the end, iPhone6 ​​and iPhone6plus not as expected sapphire screen, the manufacturers GTAT reason to go bankrupt because of debt restructuring, sapphire applications in consumer electronics is expected to fall sharply, sapphire stocks of some large-scale investments in the consumer electronics field layout brunt affected.

"Although the United States Sapphire supplier GTAT down, but intelligent terminal application sapphire material is the trend." Guoyue Bo said the company Tiantonggufen in this field has a core competence, continue to favor an active role in the future to enhance the company's overall sapphire business profitability.

Sapphire this year finally appear on the Apple iWatch, obviously Apple did not give up the use of sapphire material on its electronic products in mind.

GGII as long as sapphire technology, yield, production can be effectively improved, sapphire is still possible to become Apple's supply chain, a mobile phone, iPhone7 sapphire screen is a high probability event.

Turning to the future, LatticePower Assistant Chairman Wang Qiong said they saw a silicon substrate, sapphire she believes in recent years will still occupy the mainstream market, but with the skill and technology to improve the silicon substrate, the market will be relatively sapphire substrate part of being squeezed out, other new substrate materials also have the opportunity.

For this reason, the sapphire market, insiders believe that, while we should see the market prospects for the future of sapphire, on the other hand have called on companies to rational view, do not blindly follow the trend.

"In terms of market space and capacity, the sapphire industry is still in its infancy, as the rising sun of hope .LED enterprises to make full use of its advantages, to find the right business strategy, more efforts in technological innovation is certainly promising." Left Bo said that with the sustained-release technology and production capacity, the progressive development of the sapphire substrate from two inches in the direction of large-size and high-power, high value-added. In this trend, there will be the bigger of the situation, with low cost, technology and quality through the most competitive companies will become the leading sapphire industry.


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