Abstract With the advent of AppleWatch, the second spring of sapphire seems to be coming, and related concept stocks are ushered in. In the past, the traditional sapphire industry mainly included the LED sapphire substrate market and the window market. The window market was biased towards customization, and the price elasticity was very...
With the advent of the Apple Watch, the second spring of sapphire seems to be coming, and related concept stocks are ushered in. In the past, the traditional sapphire industry mainly included the LED sapphire substrate market and the window market. The window market was biased towards customization and the price elasticity was small. The substrate market was dependent on the demand for LED downstream epitaxial wafers. Current sapphire applications are mainly concentrated on LED substrates, which account for about 90% of the total. A few years ago, the blind expansion of the LED industry led to the madness of the sapphire industry. The result of overheated investment was overcapacity, which caused the price of sapphire substrates to plummet. The price of 2-inch sapphire substrates dropped from around $35-40 to around $30. In 2012, the decline was more than 100%; in 2013, prices rebounded and fluctuated around $7.
In the first half of 2014, with the demand for LED downstream applications, the sapphire market was once again booming, especially the price of ingots continued to rise. “In the second half of the year, the price of the 2-inch sapphire ingot was maintained at around US$5/mm, while the price of the largest 2-inch substrate rebounded to around US$8, a slight increase.†Guo Yuebo, director of Tiantong’s stock market, said. The price of PSS patterned substrates has dropped to around $13. The price of a 4-inch large sapphire substrate is still 5-6 times that of 2 inches.
The huge potential market opportunity continues to increase investment confidence in the production of large-size sapphire substrate materials. The Institute of Advanced Industrial Research LED Research (GGII) pointed out that as the price of sapphire substrates rebounds, the profitability of 4-inch sapphire substrate investment projects will be further enhanced. In this regard, Guo Yuebo agreed, he said: "Future Tiantong's LED sapphire substrate products will be mainly positioned on 4, 6-inch large-size substrates."
From the perspective of cost structure, sapphire accounts for about 10% of the cost. In the case of popularization of LED lighting application products, prices continue to fall, the price increase is obviously not the general trend, which is contrary to the market competition law, especially the sapphire substrate, the related products are still falling, as a sapphire substrate customer How can upstream epitaxial chip manufacturers allow sapphire manufacturers to raise prices?
From the perspective of market demand, under the leadership of LED lighting, the production capacity of epitaxial wafers expanded by major chip manufacturers in 2014 has rapidly expanded. In order to stabilize market share and respond to market demand for lighting, Huacan, Sanan, Tongfang and other domestic first-line LED chips Manufacturers accelerate production expansion and increase capacity utilization to seize the market and further drive demand for sapphire substrates.
Take Huacan Optoelectronics as an example. In 2014, the demand for two-inch sapphire substrates was about 250,000 pieces per month. By the end of 2014, the company had about 100 MOCEVD devices with a production capacity of 450,000 pieces per month. In this regard, Hua Di Optoelectronics Vice President Bian Difei said, "After entering 2015, the production capacity will continue to expand. On this issue, the company's board of directors has a highly consistent attitude: a firm expansion."
With the development of communication, IoT technology and intelligentization, mobile phones and wearable electronic devices have placed higher demands on electronic functional materials. As a new generation of high-quality materials, sapphire has become more and more demanded in the above applications. Compared with the already mature LED market, the market is looking forward to sapphire as a protective material for consumer electronics and other consumer electronics.
According to the 2014 performance report released by Crystal Optoelectronics, the company's total operating income was 978 million yuan, a year-on-year increase of 56.16%.
The reason for the growth in performance is the rapid development of the domestic smart phone industry, which has driven the rapid growth of related mobile phone products, and the sales volume of sapphire products has increased by 234%. This is just a microcosm. From the current investment plan of listed companies involved in sapphire, although the LED substrate is still an important investment direction, the trend towards consumer electronics is more obvious.
"The market size of the LED substrate industry has been basically seen, but the mobile phone screen is a new blue ocean. The possible space for future development is very large. The capacity of the mobile phone market will reach 7 or 8 times that of the LED industry. Now more than 80% of the sapphire on the market. Both are used for LED substrates, and the mobile phone market is very small; once the sapphire mobile phone screen is applied, this ratio is likely to be reversed.†For the use of sapphire in mobile terminals, a sapphire-related listed company secretary-general described this to reporters.
In this regard, Orion Optoelectronics chairman and general manager Zuo Hongbo also held the same opinion, he said that he is very optimistic about the huge application prospects of sapphire crystal materials in the field of consumer electronics. “The company began to deploy many years ago. It is expected that the company’s revenue in this business will increase from 85.4344 million yuan to 346.153 million yuan this year, an increase of 290.98%.â€
From sapphire materials used in iPhone 5 and 5S camera lens lenses and Home keys, especially at the end of 2013, Apple and GTAT signed a $ 576 million sapphire crystal order. The market continues to report that Apple's next-generation iPhone6 ​​will use sapphire on the screen cover.
However, in the end, iPhone6 ​​and iPhone6plus did not use sapphire screens as expected, and their manufacturer GTAT went bankrupt and restructured due to debt. Sapphire's large-scale application in consumer electronics is expected to fall short. Some sapphire concept stocks in the consumer electronics field are the first to bear the brunt. The ground is affected.
"Although the US sapphire supplier GTAT has fallen, the application of sapphire materials in smart terminals is the trend of the times." Guo Yuebo said that Tiantong has a core competitiveness in this field and continues to be optimistic about the positive role of the future sapphire business in enhancing the overall profitability of the company.
This year, sapphire finally appeared on the Apple product iWatch. Obviously, Apple has not given up the idea of ​​using sapphire materials on its electronic products.
GGII believes that as long as the sapphire process, yield and production capacity are effectively improved, sapphire may still become a member of the Apple mobile phone supply chain. The use of the sapphire screen on the iPhone 7 is a high probability event.
Talking about the future, Wang Qiong, assistant to the chairman of Jingneng Optoelectronics, said that he is optimistic about silicon substrates. She believes that sapphire will still dominate the market in recent years, but with the skill and improvement of silicon substrate technology, the market of sapphire substrates will be relatively Some of the new substrate materials have a chance to be squeezed out.
For this reason, for the sapphire market, some insiders believe that on the one hand, we should see the prospects of the future sapphire market, on the other hand, we must also appeal to enterprises to look at it rationally, and not blindly follow the trend.
"In terms of market space and capacity, the sapphire industry is still in its infancy, such as the rising sun is full of hope. LED companies to fully utilize their own advantages, find a business strategy, and work harder in technological innovation will be promising." Hongbo said that with the development of technology and the continuous release of production capacity, the sapphire substrate will gradually develop from 2 inches to high value-added such as large size and high power. Under this trend, there will be a big situation of Evergrande. Enterprises with lower cost, technical advantages and quality clearance will become the leader of the sapphire industry with the most competitive strength.
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