LED bulbs will enter the sweet spot in 2012 and expect to start market demand. Therefore, the pressure of LED industry chain to reduce costs is quite large. Li Bingjie, chairman of Jingdian, said that under the pressure of terminal price, there are still price cuts for the key material sapphire substrate of Epitaxial. pressure. He pointed out that although the Taiwan factory substrate has now fallen to near cost, the mainland government has tried to slap the substrate, and the Huiyou tax system has now spurred the land manufacturer to sing $6, which is lower than the cost price of most US factories.
LED epitaxial key material sapphire substrate only saw a drop last month, but recently because mainland investors shouted downwards, attracting many Taiwanese crystallizers to purchase their eyes. A French research institute estimates that the price of 2-inch sapphire in the second quarter of 2012 may hit an all-time low.
Li Bingjie pointed out that the price of LED lights replacing 60-watt energy-saving light bulbs in October 2012 will drop from the current $35 to $12. Approximately 65% ​​of the price decline has a great pressure on the cost reduction and efficiency improvement of the entire LED industry chain, including the key material sapphire substrate used in crystal epitaxy.
Compared with the international epitaxial plant, which has entered the production end of the sapphire substrate, Li Bingjie believes that the crystal power is not needed. He pointed out that the mainland is very strong in the key material substrate (substrate), so it provides a terrestrial substrate. The factory provides a preferential tax system and even subsidies, which makes the cost advantage of the mainland substrate factory quickly rise.
According to the statistics of a research institute, the investment boom of mainland sapphire substrates is planned according to the expansion of various manufacturers. By 2015, the production capacity of mainland manufacturers is over 90 million pieces, and it is mainly 2 inches. In order to avoid the Red Sea market, the Japanese sapphire substrate factory will expand the factory to 6 inches. Yole's recently released "Sapphire Market" report shows that under the competition of the new sapphire substrate factory in mainland China, the scale of the industry can control the cost below $5, and the price of the 2-inch sapphire substrate may hit the historical low. .
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