Sapphire past and present: the main battlefield from the LED substrate to mobile phone screen

Sapphire glass and gorilla that mobile phone screen is the military a hotly contested spot, it means not only the consumer loyalty bring growth revenue, high margin, high frequency of consumption, but also close to sapphire glass and gorilla in the future as well as many interests of the game.

Behind this game, sapphire glass enterprises, mobile phone manufacturers, mobile phone companies have been involved in the "screen" of the war has not fully started, but when there is a small scale "regional conflicts", although mobile phone glass enterprises can firmly control the war, but in a few battlefield has been on the defensive.

The last one or two years, Dong Hui (a pseudonym), a well-known domestic sapphire enterprise consumer electronics division director frequently from the major brands of mobile phone companies to explore the application of sapphire in the field of mobile phones. In addition to the large-scale application of the camera has begun, HOME keys, etc., the use of sapphire screen in the mobile phone has become the focus of attention of Dong Hui.

Such exchanges and exchanges, Dong Hui has not remember how many times, in his memory, the major mobile phone manufacturers from supply chain management to technology development, designers, he has made many friends.

Although in the past one or two years, where Dong Hui sapphire business in the field of watches, mobile phones, smart phones and other sales and profits have nearly doubled growth, but he still dare not slack off. This year there are a lot of sapphire enterprises in the expansion of production, and consumer electronics is mainly mobile phones and other areas will certainly be the focus of these companies to capture the sapphire market. Dong Hui pointed to a laptop on a large sapphire new production capacity of the release of the figure, the main battlefield of sapphire LED substrate market prices fell 20% degrees in 2015, the pressure is considerable.

Competition for the mobile phone screen has become a sapphire enterprise under the main battlefield, who can win the battle in the mobile phone screen, is not yet known.

Sapphire past life

Back to the year of September 2014, the domestic mobile phone brand vivo launched a sapphire glass screen mobile phone vivoX5L exclusive version, compared with the ordinary version of the vivoX5, equipped with a sapphire screen vivoX5L has a better performance in wear resistance of the screen, completely eliminates the trouble of film.

And this is the first time in the domestic mainstream mobile phone applications in sapphire screen.

This also indicates that the sapphire as a large application of LED substrate material after the beginning of a new force, and this battlefield is more than the LED lighting market space more new business opportunities.

During 2009-2010, LED concept has attracted numerous capital jingsheyao. Statistics show that in 2010, China's LED industry contracted investment amounted to 217 billion 885 million yuan, of which only a sapphire substrate reached a $22 billion 700 million.

In 2010, domestic chip began the first round of investment boom, the sapphire substrate market demand soared, the price of 2 inch tablet was soaring to 30 dollars, the profit rate at a high level.

Sought after in the capital, the temptation to invest in sapphire sapphire prospects, the establishment of a number of domestic sapphire sapphire project. Until 2012 the project capacity release, while LED is in the downstream application end of sluggish growth dilemma, resulting in a number of pre project chip companies die halfway, have been put into the chip factory capacity utilization was also in the low end. At this point, sapphire overcapacity dilemma, the price plummeted to below $5 production costs.

Until 2013, the proportion of LED lighting market share is still very small, which also led to the inclusion of LED materials, including sapphire, including overcapacity embarrassment.

Turnaround in the second half of 2013, when its global LED lighting into the fast lane, maintaining an average annual growth rate of more than 30%.

Statistics show that in 2014 China's LED industry output value reached 344 billion 500 million yuan, an increase of 31%. Among them, the upper reaches of the LED epitaxial chip, midstream packaging, downstream application output value of 12 billion yuan, respectively, $56 billion 800 million, $275 billion 700 million, an increase of 43%, respectively, an increase of 32%.

With the popularization of LED application, especially the outbreak of LED lighting market, the rapid development of LED industry. As the most important raw material for LED sapphire substrate also ushered in the golden period of demand. Research institutions are expected in 2015 the global LED industry on sapphire crystal rod demand reached 98 million 730 thousand mm, an increase of 12%, is expected in the first quarter of 2016, the demand of about mm, in 2016 the demand will be more than 100 million mm.

However, due to the rapid decline in prices, in 2015 China's LED sapphire market size of only 1 billion 520 million yuan, down by 11%.

At present, the price of sapphire substrate is still low, the plant may be in the vicinity of the cost line, while the price of small factories can not afford the cost. There are anonymity sapphire business sales director told the author, even in the first half of 2016, a few cases of a slight rebound, sapphire business earnings are still very low.

Sapphire large east crystal electronic 2016 semi annual report shows that its LED sapphire business gross margin was -14.80%, compared with the same period last year fell by 21.99%. This also means that even in the first half of 2015, East crystal electronic sapphire business gross margin was only 7%.

Domestic production and sales of sapphire ranked first "big boss" red in the first half of 2016 sapphire business gross margin was only reached 0.68%, representing a decrease of 31.04%.

Expand the application of new high margin has become the only way for sapphire enterprises, and consumer electronics, especially mobile phones