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

Domestic sapphire material production experienced rapid expansion between 2010 and 2011, but in recent years, the industry has become more cautious about equipment expansion. Most sapphire material factories in mainland China currently operate at a 2-inch scale, while South Korea and Taiwan have already transitioned to 4-inch substrates. This technological gap puts Chinese manufacturers at a disadvantage when it comes to pricing power and market competitiveness. According to Wu Yingjie, an assistant researcher at LED Inside, the sapphire substrate market is showing signs of recovery. The 2-inch sapphire crystal rod market has seen a gradual price increase since March, with prices now hovering around USD4.2 to USD4.5. This improvement is driven by both LED and non-LED demand. Meanwhile, the 4-inch crystal rod market, heavily influenced by the LED industry, has reached a more stable price range of USD16 to USD18. On the other hand, the 6-inch sapphire crystal rod market remains limited in terms of LED demand, as most manufacturers are still focused on SoS (Silicon on Sapphire) applications. As a result, the price for 6-inch rods remains relatively flat. The growing demand from the lighting sector has helped sustain the LED industry even during off-peak seasons. Additionally, the use of sapphire substrates in smartphones is becoming more widespread. Components such as camera lenses and home buttons are increasingly incorporating sapphire materials due to their durability and scratch resistance. This diversification is driving continuous growth in sapphire substrate demand. Wu Yingjie expects that by 2014, the supply and demand in the sapphire substrate industry will reach a more balanced state. Looking ahead, the trend in epitaxial wafer development shows that chip manufacturers have been shifting toward larger-scale production since 2012. This shift has increased the demand for 4-inch sapphire substrates. According to LED Inside, the production of 4-inch epitaxial wafers is expected to account for 41% of the total 2-inch capacity in 2013, rising steadily to 45% by 2017. As this trend continues, the 4-inch sapphire substrate market is likely to dominate the industry in the coming years.

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