LED and smartphone "dual drive" demand for sapphire substrates grows strongly

Market research firm IHS reported in a report released on the 14th that thanks to the increased use of sapphire substrates in electronic hardware, the consumption of 2 inch diameter sapphire ingots for the production of substrates will increase this year. 70%, reaching 54 kilometers, it is expected that the annual consumption will increase to 84 kilometers by 2016, an increase of 166% compared with 2012.

Industry analysts pointed out that while the demand for LEDs is growing, the demand for sapphire substrates in the smartphone market has also grown strongly, easing the problems caused by oversupply in the past few years to the sapphire crystal rod market. It is estimated that by 2014, the demand for sapphire ingots for the production of smartphones and other mobile device components will increase from 5% last year to 20%.

The sapphire ingot is a crystal of aluminum oxide, which is mainly used to produce a sapphire substrate, and the sapphire substrate is the basic material for the substrate required for LED illumination, and the demand is considerable. The IHS report shows that in 2012 LED market demand accounted for 90% of the total demand for sapphire crystal rods.

At the moment, the demand for sapphire crystal rods faces another growth engine. Smartphone makers, including Apple, are using sapphire crystal sticks for camera lens lenses and home button (Home) buttons, which drive demand for sapphire to grow rapidly.

Industry sources point out that Apple "pressed a button that stimulates the outbreak of demand for sapphire." In 2012, Apple pioneered the use of sapphire as a camera lens lens in the iPhone 5, and also used sapphire glass as the home button in the newly launched iPhone 5S. This has led to an increase in the interest of sapphire materials by the original manufacturers of electronic devices. At present, other smart phone manufacturers are following suit. Recently, the G2 flagship smartphone launched by LG Korea also uses sapphire camera lens lenses.

It is reported that Apple is considering using a sapphire display in the iPhone launched in 2014. Compared to glass, lens lenses, buttons and displays made of sapphire substrates are not only transparent, but also have greater scratch resistance. Industry analysts believe that the use of sapphire as a screen glass is only a matter of time. The disadvantage of sapphire raw materials is only the cost.

According to the IHS report, the demand for sapphire ingots used to produce smartphones and other mobile device components in 2012 was only less than 5% of total demand, but it is expected that by 2014, the demand for sapphire in this segment will rise to the total demand. 20%. According to another research firm, Yole, the smartphone screen will bring $1.3 billion to $2.6 billion in market demand for sapphire by 2018.

Richard also pointed out that thanks to the growth of the lighting market, global LED chip manufacturers have increased productivity in 2013, which boosted the demand for LED sapphire substrates. At the same time, demand for sapphire substrates in the smartphone market has also grown strongly. Together, these factors have helped alleviate the problems of oversupply in the sapphire ingot market over the past few years.

(This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED. Readers need to verify the relevant content by themselves.)

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