Sapphire Substrate Supply Shortage Drives up Price in 3Q14

Sapphire substrate related manufacturers are unable to meet increasing demands as the LED lighting industry enters peak season and Apple prepares to launch the new iPhone 6. Prices for upstream ingot and downstream substrate increased in 3Q14, with ingot prices up 5-10 percent. Rise in price has driven up business performance for sapphire substrate related manufacturers.

Rising demands from the LED lighting industry and Apple has led to an undersupply in the sapphire substrate market, driving up cost and profit margins. Sapphire ingot prices have increased to US $4 for 2 inch and US $16 for 4 inch. Prices for 4 inch sapphire ingot has seen a gradual increase each quarter, starting at US $13 in 4Q13 to US $16 in 2Q14, and could increase further to US $16.8-17.65 by 3Q14. Ingot prices in total have increased 30 percent since 4Q13. Price for downstream substrate has likewise increased.

Among sapphire related manufacturers benefiting from increasing ingot and substrate prices, ProCrystal Technology’s revenue has grown over 90 percent over the past five months. Revenue for June is hoped to break RMB 100 million (US $16.1 million), according to legal persons. In addition, 2Q14 will see an increase of 15 percent and YoY revenue is anticipated to show exponential growth. In addition to increase in PSS substrate shipments, ProCrystal Technology has the chance to turn loss into profit during the second half of 2014.

PSS market supply shortage exceeded 30 percent, driving up PSS industry performance. According to legal persons, June revenue for sapphire manufacturers Ridgetech and Aceplux Optoelectronic have the chance to see substantial growth, with Ridgetech’s July revenue anticipated to reach a new record high.

Disclaimers of Warranties
1. The website does not warrant the following:
1.1 The services from the website meets your requirement;
1.2 The accuracy, completeness, or timeliness of the service;
1.3 The accuracy, reliability of conclusions drawn from using the service;
1.4 The accuracy, completeness, or timeliness, or security of any information that you download from the website
2. The services provided by the website is intended for your reference only. The website shall be not be responsible for investment decisions, damages, or other losses resulting from use of the website or the information contained therein<

Proprietary Rights
You may not reproduce, modify, create derivative works from, display, perform, publish, distribute, disseminate, broadcast or circulate to any third party, any materials contained on the services without the express prior written consent of the website or its legal owner.