In the face of the rapid expansion of market demand for upstream expansion, in mid-2010, the market price of 2-inch sapphire substrate historically rose from $9/piece to $38, and even nearly $40. This frenzied price hike even makes companies that invest in the Sapphire Crystal Project unbelievable. Since June of last year, all the capitals have invested heavily in the field of sapphire upstream crystal growth.
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However, in 2011, due to the slowdown in demand for LED terminal applications, as of the second quarter, the market price of 2-inch sapphire substrates has dropped from the highest of $38 per piece at the beginning of the year to $13-15 in August. The film has a drop of more than 50%.
On the one hand, the investment is enthusiasm, and on the other hand, the market demand is lower than expected, and the investment alarm of the sapphire substrate market begins to ring.
Global sapphire crystal rod capacity expands rapidly
At the beginning of this year, due to the continuation of the sapphire substrate price increase effect, the first quarter of the major manufacturers in the first half of the year still continued the peak season situation, showing varying degrees of growth. Among them, Rubicon, the world's leading manufacturer, expects revenue in the first quarter of 2011 to increase by about 20% from the previous quarter's $49.54 million in the fourth quarter of 2010, about three times the $1,152 million in the first quarter of 2010.
Affected by this, some manufacturers began to expand production.
South Korean manufacturer Sapphire Technology Company, under the subsidy of the Korean government, will expand its production plan in 2011 to exceed the original largest manufacturer Rubicon.
In addition to South Korea, Taiwanese manufacturers are also actively planning to expand production. Yuefeng, the fourth-largest sapphire crystal rod factory in the world, plans to expand its monthly production capacity to 450,000 mm in 2011, which is expected to surpass Japan's Kyocera and Namiki.
At present, Rubicon, Monocrystal and STC, the three sapphire crystal rods, account for more than 6-7 percent of the world's production capacity, combined with Japan's Kyocera, Namiki, kyocere and Taiwan's capacity expansion. It is estimated that the global sapphire crystal rod production capacity will be 6.5 million in 2011. About a millimeter, the expansion is more than 50%.
In addition to the top ten sapphire crystal rod manufacturers, South Korea's Samsung LED and Sumitomo Chemical jointly established a sapphire company in March 2011 with a total investment of 210 billion won and a design capacity of 2 inches and 5 million pieces (or 4 inches and 1.2 million pieces). It is equivalent to the production capacity of Kyocera in Japan. 
Text / High-tech LED Industry Research Institute