LED Sapphire Substrates Will Improve From The Preceding Quarter in Second-Quarter 2012

Global demand for small- to medium-size semiconductor-grade silicon wafers and LED sapphire substrates will improve from the preceding quarter in second-quarter 2012, while demand for solar-grade silicon wafers will be uncertain due to feed-in tariff (FIT) cuts in Germany, according to MK Lu, chairman and CEO of Taiwan-based Sino-American Silicon Products (SAS). Lu noted that demand for LED sapphire substrates has been rebounding in first-quarter 2012 and will continue to heat up to the second quarter. However, SAS' performance in the second quarter will depend on the solar market, added Lu. Solar market conditions in Europe have been plagued with uncertainties mainly due to the April 1 incentive cuts in Germany. Some believe Germany's 2012 installations still have a chance to hit 8GW while others question the possibility. Lu pointed out that after the incentive cuts, the internal rate of return (IRR) for solar PV systems in Germany will decrease. Solar firms have been focused on adjusting capacity utilization rates to prevent large-scale losses since prices have been low enough. If prices fall further, Lu added, most of the products in the market should be from inventories. The supply chain will wait until inventories run out before beginning to increase production output. Source: www.digitimes.com