Sapphire substrate shortage warning future LED material supply tight situation

Semiconductor lighting is a young industry, which is not only reflected in its rapid growth vigor, but also in its mature and stable supply chain. As the prospects are good, all led vendors are actively expanding production, according to statistics only in 2010 the global number of new equipment to increase the number of MOCVD reached 500 units, in 2011 this figure will only be less. Fiery investment, driven by the demand for upstream materials. At present, the industry came warning, sapphire substrate material has been tight supply situation. Even there are rumors that Samsung will take the opportunity to monopoly the upstream LED supporting the link, to prepare for the day after dominating the LED industry. LED industry how to develop this game, there are too many games will happen. LED chip upstream supply and demand situation in the end? The reasons for its formation, the impact of the effect, what is the solution? LED industry in the future will be how to develop? We need your participation, please post your opinion at the end of the article!

1, the status quo

Reported that the current LED chip upstream sapphire substrate has serious shortage, starting from the second quarter price hike of 20% is expected to supply gap will continue until the end of the year. It is also said that the recent Samsung Electronics has been out of stock due to the massive looting of goods, coupled with Han to 4 inches epitaxial film based, greater demand for Taiwan. Judging from the current situation of the industry, the LED chip has been extended to the situation of the lack of supporting material level. The future of the LED industry will repeat itself, two years ago, the solar photovoltaic industry polysilicon raw material supply shortage situation?

2 reasons

LED substantial expansion of the current round of sapphire substrate is considered to be a shortage of supply initiator. The number of fine. There is a certain truth: Sanan optoelectronics investment project, BDO run, Silan directional issuance, Hongkong ceramics capital, according to the statistical data of alliance national semiconductor lighting project and Beijing Mccann Bridge Information Co. Ltd., 2010, is expected to add 100 units of MOCVD equipment, plus the number MOCVD of South Korea and Taiwan manufacturers amplification. Indeed, the impact of the immature LED industry supply chain. But beyond that, is there any deeper reason?

3, the impact

Rapid growth of LED investment in sapphire substrate material shortage. Its influence will gradually appear, the industry is also a few happy tears. Sapphire material factory pointed out that the growth in demand for upstream materials, so that manufacturers have the opportunity to bid farewell to the past few years, the poor profitability of the poor, this year, the operation looks good, next year there is a better chance. But the situation is also tight supply of raw materials to the original situation in short supply LED chip market situation has become more complicated.

4, solve

Expansion is undoubtedly the solution to the "excess demand, supply shortage" situation, the most effective and most direct solution. However, the key technology of sapphire substrate materials are more in the hands of the United States, Japan, the LED sapphire crystal rod high technical threshold and yield problems to be improved, the expansion of the plant takes about six months to 9 months. In the short term can not change the supply and demand situation, perhaps the signing of the long association is a solution. However, whether it is the future of a large number of sapphire substrate expansion, or long association signed, first of all need to figure out a fundamental problem is that the current LED investment is not overheating at the end?

5, the industry view

Li Gang, general manager of Shanghai Blaupunkt

Currently on the market there is a shortage of sapphire substrate. Sapphire substrate prices have also risen, with an average increase of about 20%. But I think the current market is the main reason for the supply of sapphire substrate market is in a state of early warning. Because it has not heard of a business because the sapphire substrate is not on the supply and production. If you really like the media coverage, the domestic nearly 500 MOCVD all installed, then it will determine the situation in short supply. But if these capacity can really open, at least six months or so. Therefore, it is only the formation of a rapid increase in production capacity is expected. 3 to 5 months later, when the sapphire substrate will really be out of stock, but also depends on the expected capacity can be opened.

Hangzhou Silan azure general manager Jiang Zhongyong

Currently on the market there is a shortage of sapphire substrate. This situation may exist in the next two years. But I think the gap between supply and demand is not too intense, is still a normal phenomenon, is a process of industrial growth. The main reason is the sapphire substrate enterprises less capacity. But its shortage will naturally drive companies to expand production or new enterprises to participate in this industry, so that the supply and demand to achieve a balance. Of course, for enterprises, the upstream and downstream supply chain to establish a solid partnership is also very important.

Taiwan Longda electronic general manager Su Fengzheng

At present, the industry entered the stage of grab material, Ronda has with upstream suppliers settled about, and carried out certification work with a number of Taiwan factory. Facing the shortage of raw materials upstream, with a larger scale epitaxial plant, will be able to master the material.

CanaccordAdams analyst's DOS

Sapphire shortage serious problem, in order to meet the needs of LED, sapphire substrate capacity must be two to three times, but still depends on the expansion rate of the LED market. Seven months, rising demand has pushed up the price of sapphire by 50%, is expected before 2011 there will be no new production line started. Because the sapphire substrate industry is still waiting to see whether the growth in demand, capacity to meet the demand is still a