PSS Supply Shortage Leads to Rise in Price

LED upstream key material PSS is in short supply with demands unable to be met. With supply unable to meet demands from LED manufacturers last year, production capacity is lacking by 50 percent, according to Economic Daily News. This had lead to a rise in price of around 5 percent for sapphire ingot, polished wafers, and PSS in March. Manufacturers including Crystalwise, Rigidtech, Aceplux Optotech, and Crystal Applied Technology are anticipated to benefit. PSS industry insiders are optimistic towards March operations.

The PSS market is facing an overflow of orders with supply lacking. This full capacity situation is expected to last for a while with two outcomes that could take place. The first is that after the increase in price during the beginning of the year, March will see another jump in price. The other is that manufacturers will expand production capacity through fundraising, including Crystalwise, Crystal Applied Technology, Rigidtech, ProCrystal, and Aceplux Optotech.

Price for 2 inch PSS is anticipated to increase from US $12.3 (NT $372) to US $12.9 in March, and even up to US $13.5 with the average price increasing around 5 to 10 percent, driving up price for upstream ingot and polished wafer. As LED lighting enters its peak season and optic applications increase, industry persons estimate that there will be further sapphire substrate price increases this year.
 

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