Demand from LED and Mobile Device Spurs Sapphire Manufacturer Production Expansion Trend in 2014, says TrendForce

Increased demands from the LED and mobile device application market have spurred sapphire manufacturers to expand sapphire ingot, sapphire wafer, and PSS production, according to the recent 2014 Global Sapphire Substrate Market Report from LEDinside, the green energy research division of TrendForce. 

Sapphire ingot equipment production capacity (TIE) in 2013 was 145 million millimeters per year. Booming LED market demands starting in the first half of 2014 lead to a supply squeeze in ingot, causing prices to rise slightly. Moreover, several manufacturers restarted expansion plans due to increased demand for sapphire material used in mobile device application. It is estimated that sapphire ingot equipment production capacity will increase 53 percent YoY to 222 million millimeters per year in 2014. 

In terms of sapphire wafer, manufacturers are optimistic about market demand and have been actively expanding sapphire wafer production. With consideration to market demand and tax rate, Taiwanese manufacturers Crystalwise, Tera Xtal Technology, and Crystal Applied Technology have set their sights on expanding production in China. Global sapphire substrate market value for LED application in 2013 was US $549 million and is anticipated to increase to US $934 by 2016. 

PSS manufacturers have benefited from Taiwanese and Chinese LED chip manufacturers’ introduction of PSS in mass. Manufacturers including Rigidtech, Crystalwise, Zhejiang Crystal-Optech, and Sino Nitride Semiconductor have seen good performance after switching from 2 inch to 4 inch pattern sapphire substrate production. PSS market market value has increased 8 percent from US $656 million in 2013. The continued increase in manufacturers introducing PSS and rise in large size wafer production volume will drive up PSS market market value to US $1.1 billion by 2016, said LEDinside.