LED industry is not yet mature, leading to tight supply of sapphire substrates

LED upstream material sapphire substrates have been in the industry for a period of time due to tight supply, which has led to price increases. There is now news that the price of a 2-inch sapphire substrate has exceeded $20, an increase of 50% compared to the price in the first quarter of 2010. Affected by this news, US sapphire single crystal manufacturer Rubic onTechnology announced that it will raise 61.5 million US dollars to expand the capacity of crystal growth and post-crystal growth. There are even rumors that Samsung is taking the opportunity to monopolize the supply of sapphire substrates and crack down on competitors in preparation for the future LED industry.

In the original industry, the level of the prosperity index, the tight supply and demand of materials, and the rise and fall of product prices are not worth making a fuss. As Li Gang, the general manager of Shanghai Lanbao, said, there is indeed a shortage of sapphire substrate supply on the market, and the price of sapphire substrates is also rising, but I have not heard of any company that stopped production because the sapphire substrate is not available. of. Therefore, it can be seen that the main reason for the tight supply and price increase of the current sapphire substrate is that the market is in a state of early warning. If, as some media reports have said, there are nearly 500 MOCVD installations, there will be a situation of short supply, but now it is only the expectation that a capacity will increase rapidly, and it seems that there is no need to worry too much. However, further considerations will reveal that an expectation has caused the price of sapphire substrates to increase by 50% in less than half a year, reflecting the immature state of the young LED industry.

Compared with the solar photovoltaic industry two or three years ago, it is also an emerging industry. The same is of great concern. The same prospects are bright. Under the impetus of financial subsidies from Germany and Spain, market demand is rapidly erupting, but this also leads to the contradiction between supply and demand. The intensification, coupled with artificial follow-up and speculation, eventually accumulates into the upstream polysilicon material stage, which has created a deformed market price: in just two or three years, the price of polysilicon materials has been raised from about $200 to $500. In order to seize this ultra-high-speed express train, Chinese companies have planned a production capacity of up to 100,000 tons of polysilicon materials.

Now, both the market demand and the state's subsidy policy have been tilting towards the LED industry. At the same time, a large number of LED chip factories have emerged. These companies have also planned amazing production capacity: Sanan Optoelectronics investment, Dehao Runda project, Shilanwei's private placement, Hong Kong microcrystalline capital increase...2010 China, South Korea It is not surprising that manufacturers in Taiwan have significantly expanded MOCVD, and there are shortages of sapphire substrates, MO gas sources, and other raw materials. As Jiang Zhongyong, general manager of Hangzhou Silan Mingxin said, the shortage of sapphire substrates may exist this year and next. The main reason is that there are fewer sapphire substrate companies and insufficient capacity. Its shortage will naturally drive the expansion of enterprises or the joining of new enterprises, so that supply and demand will reach a balance again. However, what we need to avoid is the sharp price volatility and the ups and downs of investment. It advocates orderly industry order and benign market competition. Otherwise, it will form a severe test for the immature LED supply chain system, and even affect the future development of the entire industry.

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