Sapphire substrate makers decreasing revenues

Jan 02, 2013

Taiwan-based sapphire substrate makers believe December revenues are likely to show a continuous decrease due to the low season and year-end inventory checks by downstream LED firms.

Taiwan-based Crystalwise and Sino Sapphire will officially merge on January 1, 2013. In addition, Crystalwise plans to expand capacity at its China subsidiary, Yuanhong, in 2013. Crystalwise noted that equipment was installed in the third quarter at its China plant and initial monthly capacity for 2-inch polished wafers will be around 50,000 units. However, equipment capacity can be increased to 100,000-120,000 units. The plant has also been producing small volumes of sapphire ingots.

To meet demand, Crystal Applied announced in the fourth quarter it will begin production at its plant in Yancheng, China. The plant has been focusing on sapphire polished wafers and initial capacity is around 200,000 units. The firm noted that capacity expansion is possible.

Tera Xtal has been considering setting up a subsidiary, and is likely to confirm plans in first-half 2013. The firm set up local offices in Zhangjiajie, China in June and began operations in July. According to the firm, setting up a manufacturing facility in China requires sufficient electricity supply and subsidies provided by the local government. Hence the firm is still evaluating constructing plants in China.

Source:digitimes.com


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