Die Manufacturers Turndown Sapphire Substrate Price Uptick Demands

Sapphire substrate price uptick has built up momentum for a while, according to a recent Commercial Times report. Sapphire substrate manufacturer’s price quotes for 2Q13 were up 3 percent, but LED die manufacturers have not accepted the price increase demands so price continues to fluctuate, said FOREPI Chairman Chien Fen-ren. 

Prices for upstream sapphire ingot are already high due to few manufacturers. Sapphire substrate manufacturers have been unsuccessful in raising prices for over a year. Substrate manufacturers have asked die manufacturers for their 2Q14 price quotes with hopes to  raising prices by 3 percent to US$ 0.2 (NT $6.1) by April 1, 2014. Chien confirms that die manufacturers have received the request for price quotes, but have declined the demands. 

PSS has already become  mainstream in the sapphire substrate industry. PSS makes up around 60 percent of FOREPI’s total production, and 40 percent of outside purchases. As prices drop, Chien believes that procurement ratio will increase. However, as chip manufacturers are currently in a deficit phase, prices will not easily increase. Whether or not sapphire substrate manufacturers will be able to increase prices is yet to be seen.

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