Sapphire Overcapacity

October 2012,Nanjing High Accurate Drive Equipment Manufacturing Group Co., high-brightness LED sapphire substrate project groundbreaking . Project a fixed asset investment of 10 billion yuan, the construction scale of not less than 160 Taiwan Sapphire Dan Changjing furnace, within two years of production.

Optical crystal (SZ.002273) report, the company at the end of 2010 the project started to invest in LED sapphire substrate , the current form sapphire flat monthly production capacity of 200,000 pieces , sapphire PSS monthly production capacity of 50,000 scale.

Sanan Optoelectronics Crystal Ann 's Optical Co., Ltd. , Fujian Anxi County in the construction of industrial projects LED sapphire substrate , recently also started mass production . Projects a total investment of 2.538 billion yuan , the construction period of three years, the project introduces crystal growth furnace 410 Taiwan ( sets ) and other related process equipment, designed annual production capacity of sapphire substrate 12 million.

Sapphire Dan Changjing furnace

Founded in November 2010 in Guizhou Haotian Optoelectronics is planning to fully completed by the end of 2014 , after the completion of an annual output of 30 million LED sapphire substrate material scale.

And just this month , another listed company Tiantonggufen (SH.600330) passed the " on the company to target specific non -public offering plan of the motion ," the company intends to invest an annual fund-raising through the issuance of 1,150,000 4 inches LED sapphire substrate material technology projects and supplement working capital.

GLII statistics show that only 2011 new LED sapphire substrate Dan Changjing and the number of projects reached 26 , as of the end of the third quarter of 2012 the number of new projects is 14 . Currently under construction Sapphire Dan Changjing project about two inches capacity sapphire substrate 100 million years , and the current actual market demand is just over 1000 million. Some of the epitaxial enterprises in the use of imported products , so the domestic severe overcapacity sapphire substrate.

"Now the sapphire substrate serious excess capacity , the price is low , many companies have slowed down the progress of investment expansion , direct impact on the sales of crystal growth furnace ." When asked about last year's sales situation, the crystal growth furnace company official said.

"Customer sign a long single more, supply and demand situation has improved ." Tiantonggufen Marketing Director Guoyue Bo said that , since opening orders improved, the amount of customer orders plus trend. The next three months sales and prices are on the rise . Insiders said that the downturn in the sapphire substrate prices are now so many companies lose money , are hoping this year epitaxial wafer fab capacity utilization can be improved, driven by a sapphire substrate sales and prices rise. But this year a good start can be maintained long , is a known issue.