Large grain shortage lack of LED sapphire substrate become aggravated

LED market expansion, in addition to the metal organic chemical vapor phase epitaxy (MOCVD) machine is in short supply, resulting in grain production capacity than out, upstream grain materials sapphire substrate is also an emergency out of stock, the second quarter price hike of 2, LED industry, is expected to supply gap will continue until the end of the year, currently undergoing a major expansion the supplier certification work, to prevent the end of stock shock deepened, as end effect, estimation for TV backlight penetration of the impact is not big, but the grain production capacity, supply will be reduced for lighting applications.

Benefit LEDTV new applications of permeability increase, coupled with the backlight and lighting applications as well as the official policy driven by the demand of LED, the sapphire substrate sought after degree rise. LED industry said that since Taiwan sapphire substrate supply sections of many manufacturers, the market in Taiwan factory LED pile up in excess of requirement, which has the advantage of adding power plant used to bargain, 2 inch chip prices of the world's most expensive, but the recent Samsung Electronics (SamsungELectronics) are out of stock, but also to Taiwan have to grab the goods, plus the 4 inch chip factory in South Korea as the main production capacity, demand, driven by the sapphire substrate market prices, over the past 2 seasons, 2 inch chip prices have raised 20%.

Past key technology of sapphire substrate material master in the United States and Japan factory. The Taiwan is difficult to compete with manufacturers, although the Department of Taiwan industry supply is not large, but the technical threshold of LED sapphire crystal industry the most upstream rod and high yield problems to be improved, and the building time is about expanding manufacturers half a year to 9 months, special gas to 1 and a half years, in the LED application by the occasion, upstream material shortages emerge tide, plus the LED MOCVD machine factory output speed is limited, LED industry estimates, the current upstream grain production capacity and sales orders, the gap has reached more than 1 times.

Reaction due to raw material prices, the industry pointed out that the sapphire substrate of the second quarter prices will be more than 2 percent increase, forcing the LED grain industry began brewing for less purchases the vendor price increases, but the LED industry also said that the LED industry has always been only rise or not, the only difference is down more or less, to the current LED application of TV backlight unit price of about NT $2 calculation, the cost price of the upstream grain mill cost control caused by challenges.

LED AUO's Dragon who was general manager Su Fengzheng said that at present the industry to grab material, is currently Lunda with upstream suppliers and negotiate about, certification, and a number of Taiwan factory he believes that the upstream raw material shortage, which has a large scale of epitaxial plant, will be more master the material, and the estimated LED grain shortage will continue in the next 3 years.

EPISTAR, canyuan LED industry is also facing the raw materials shouted missing call up the problem, but stressed that the cost rises to gain control, industry estimates, the current LED sapphire substrate upstream of tight supply, expected the second half of the soonest have a chance to relieve.