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Ji Yong, chairman of Haotian Optoelectronics, said that the cooperation project announced by Apple and GTAT is worth 576 million US dollars, indicating that Apple will use sapphire as the screen of the mobile phone based on the existing sapphire as the camera cover and HOME BUTTON. And this will bring a very large demand for sapphire, far more than all the current sapphire demand. This is a very big stimulus for the sapphire material market, and may also drive other smartphone component manufacturers to use more sapphire materials.
According to reports, Haotian Optoelectronics uses the GTAT HEM crystal growth furnace to produce sapphire crystals, and is a strategic partnership with GTAT. As early as 2011, Ji Yong, who was one of the four swordsmen in the US photoelectric film and materials industry, discovered and predicted that sapphire will be applied to mobile screens on a large scale, and in order to promote this market, he has communicated with GTAT CEO. I hope to promote Apple and other mobile phone manufacturers to use sapphire as a mobile phone screen material.
Although Apple signed the agreement for GTAT, GTAT set up a factory in Arizona, but Ji Yong still has confidence in the future of Haotian Optoelectronics. "If Apple needs Chinese companies to supply sapphire materials, then this company must be Haotian Optoelectronics." Ji Yong said that China is an important market for global consumer electronics. Once Apple products use sapphire materials in large quantities, they choose GTAT for transportation and labor. The cost will be high. In addition, China will use sapphire as a luxury item and impose a 10% luxury tax on imported sapphire, which will also give Chinese companies the advantage of becoming a possible supplier for Apple in the future.
As a large-scale sapphire material manufacturer in China, Haotian Optoelectronics has many competitive advantages. Guiyang, the location of Haotian Optoelectronics, has the largest alumina base in the country. Alumina is the most important raw material for the production of sapphire, and Guizhou has abundant power resources. Under the leadership of Jiuyong, Guizhou Haotian Optoelectronics, which was established in November 2010, quickly became the only strategic partner of GTAT on the world's leading photovoltaic and sapphire equipment, and soon from a small unknown. The company has grown into a leading global manufacturer of large sapphire materials.
According to reports, Haotian Optoelectronics' total investment of 4.2 billion yuan in sapphire substrate materials project is planned to be fully completed and completed at the end of 2014. Upon completion, it will form an annual output of 30 million pieces of LED sapphire substrate materials. At present, the company's products are mainly used as LED substrate materials and windows, mobile phones, watch materials, the main market in Taiwan, South Korea and Europe and the United States, there are some customers in the domestic market. 90% of Taiwan's sapphire and substrate materials companies use the company's products.
Ji Yong also revealed that sapphire materials began to be out of stock this summer, and the volume began to rise in the third quarter, mainly due to the high-power LED epitaxial wafer market demand and the strong demand for sapphire in the mobile phone market. At present, Haotian Optoelectronics has entered the state of insufficiency of products. Although the industry is also actively expanding production, it is expected that this state will continue for some time.
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A recent multi-year, $576 million high-grade sapphire material supply agreement signed by GTAT with Apple has stirred up the capital market and has once again brought attention to the sapphire material industry.