Sapphire substrate shock wave

LED chip upstream material sapphire substrate due to tight supply, leading to rising prices have continued for a period of time in the industry. There is news that 2 inches sapphire substrate offer has more than $20, compared to the first quarter of 2010 prices, an increase of 50%. Affected by this news, the United States sapphire manufacturer Rubicon Technology announced on the day before, will raise $61 million 500 thousand, the expansion of crystal growth and crystal growth after capacity. Even there are rumors that Samsung to monopoly the sapphire substrate supply, against competitors, to prepare for the day after dominating the LED industry.

Originally an industry boom index of high and low, material supply and demand elasticity, product prices rise and fall is not worth making a fuss. As the general manager of Blaupunkt Shanghai Li Gang said that the current market does appear on the sapphire substrate supply shortage, sapphire substrate prices are on the rise, but haven't heard what a company discontinued because the supply is not on the sapphire substrate. Therefore, we can see that the current round of sapphire substrate supply constraints, the main reason for price increases, in fact, the market is in a state of early warning. If it is true that some media reports said, nearly 500 MOCVD are installed, there will be a shortage situation, but now most are merely formed a production capacity will rapidly increase the expected only seems to not need to worry too much. However, further consideration will be found, an expected price of sapphire substrate in less than half a year's time, a 50% increase, which fully reflects the immaturity of the young LED industry.

Compared to two or three years ago, the solar photovoltaic industry, is also a new industry, the same concern, the bright prospects of the same, in Germany, Spain and other countries to promote financial subsidies, the market demand quickly broke out, but it has also led to the intensification of contradictions between supply and demand, coupled with the suit and hype man, eventually accumulated to a contradiction the upstream polysilicon material stage, spawned deformity of the market price: two or three years a polysilicon material price from about $200 to $500 up. In order to grab a round of super high price express, China companies actually plan up to 100 thousand tons of polysilicon materials production capacity (2006 China annual capacity of only 400 tons), domestic and even once the crucible smelting production of sand, material source phenomenon. As a result, the price collapse, the impact of the healthy development of China's solar PV industry as a whole.

Now, whether it is the needs of the market, or the national subsidy policy, have tilted to the LED industry. At the same time, but also the emergence of a large number of LED chip factory, these companies also plan an astonishing capacity: Sanan optoelectronics investment, Elec-Tech project, Silan directional issuance, Hongkong ceramics capital...... According to the statistical data of alliance and the national semiconductor lighting project, 2010 Chinese, is expected to add 140 units of MOCVD equipment, together with the number MOCVD of South Korea and Taiwan manufacturers amplification, emergence of a sapphire substrate, MO source, and other raw material shortages, rising prices of the phenomenon is not surprising. Hangzhou Silan azure as general manager Jiang Zhongyong said, the sapphire substrate in the next two years the shortage may exist, the main reason is the sapphire enterprise less, lack of capacity. Its shortage will naturally drive enterprises to expand production or new enterprises to join, so that the supply and demand balance. However, we need to avoid the sharp fluctuations in prices and the ups and downs of investment, promote orderly industry order and healthy competition in the market. Otherwise, it will not mature LED supply chain system to form a severe test, and even affect the future development of the industry as a whole.