Sapphire wafer price increase led to a rise in LED chip prices
Sapphire Wafer (SapphireWafer) prices have risen since the sapphire silicon ingots (SapphireIngot) appeared in 2009. The current price of sapphire wafers has tripled compared with the same period in 2009, compared with the first quarter of 2010. About 50% also contributed to the rise in the price of finished products such as LED packages. The industry is working hard to ensure price and supply. At the end of 2010, wafer supply is in short supply.
According to the industry, the world's top two sapphire silicon ingot production in the United States Rubic on and Russia Monocrystal entered the third season, both to increase product prices, so that sapphire wafers, LED chips and packaging prices are also unstable. Sapphire wafers account for about 10% of the cost of LED chip materials, which is a very important raw material for making chips.
In 2008, silicon ingots were still oversupply. In 2009, LED manufacturers competed with each other for production, which led to the situation of short supply. Rubicon will produce 5 million silicon ingots cut into 2 sapphire wafers in 2009. It is expected to expand production capacity to 6.5 million in 2010, but this plan may not be realized until the end of the year. Monocrystal's production capacity in 2009 is about 4 million pieces, and by 2010 it will only increase by 500,000 to 4.5 million pieces.
The South Korean companies such as Iljin Display and CrystalOn, which order silicon wafers to produce wafers from the above two companies, are burdened with raw materials. In the past, the price premium of sapphire silicon ingots was partially passed on to the wafer manufacturers. LED manufacturers such as Samsung LED and LG Innotek have recently increased their purchase prices with the price of silicon ingots. It is quite rare for South Korea to increase the cost of raw materials for display operators who perform price adjustments every quarter. This shows that the sapphire silicon crystal ingots are out of stock. The situation of raising prices is quite serious.
The price of LED chips and packaging has risen, which has a profound impact on the downstream industries such as Samsung Electronics and LG Electronics, which have recently increased the proportion of LEDTV production. In addition, the LED lighting industry is in trouble on the spot, although it is not used for backlight modules. LED, Samsung LED from May to provide total distributors, agents and other LED lighting products have also increased by 30% price. As the price of sapphire wafers has risen, the unit price of LEDs for lighting has also increased.
According to industry sources, the number of organometallic chemical vapor phase epitaxy (MOCVD) devices has been closely related to LED production in the past, but now the number of silicon ingots and wafers is used to determine the utilization rate. Currently, MOCVD investment is increased to increase production capacity. it's meaningless.
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