Sapphire substrate 4 inch film will gradually become the bottom of the market

Domestic sapphire material production saw a significant expansion between 2010 and 2011, but in recent years, the industry has become more cautious when it comes to equipment expansion. Most mainland Chinese sapphire factories are still producing 2-inch substrates, while South Korea and Taiwan have already moved to 4-inch technology. This technological gap has put mainland manufacturers at a disadvantage in terms of pricing power. According to Wu Yingjie, an assistant researcher at LED Inside, the sapphire substrate market has started to show signs of recovery. The 2-inch sapphire crystal rod market has benefited from both LED and non-LED demand, with prices rising in March to around USD4.2–4.5. Meanwhile, the 4-inch crystal rod market has seen stronger growth due to increased LED demand, with prices stabilizing at USD16–18. On the other hand, the 6-inch crystal rod market remains limited in its LED applications, and the shift toward SOI (Silicon on Insulator) technology has kept prices relatively stable. Thanks to strong demand in the lighting sector, the LED industry has remained resilient even during off-peak seasons. Additionally, the use of sapphire substrates in smartphones is becoming more widespread, with components like camera lenses and home buttons now incorporating sapphire materials. This diversification is driving continuous growth in sapphire substrate demand. Wu Yingjie expects that by 2014, the supply and demand for sapphire substrates will reach a more balanced state. Looking ahead, he notes that chip manufacturers have been transitioning to larger epitaxial wafers since 2012, which has boosted the demand for 4-inch sapphire substrates. LED Inside estimates that the production of 4-inch epitaxial wafers will account for 41% of the total 2-inch capacity in 2013, growing steadily to 45% by 2017. As a result, the 4-inch sapphire substrate market is expected to become the dominant force in the industry moving forward.

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