Prices of Sapphire Ingots Have Stabilized Recently

Prices of sapphire ingots have stabilized recently but overall demand has not yet recovered to a level that will warrant makers to hike quotes. Price competition of sapphire ingots in China has been severe. Industry sources noted that China-based firms currently have the technology to make 2-inch ingots. However, the firms are likely to increase the size of ingots. Taiwan-based Acme currently produces 4- and 6-inch sapphire ingots, which allows the firm to differentiate itself from other competitors. Industry sources noted that price drops of sapphire ingots have been leveling off and orders in first-quarter 2012 have been better than the third- and fourth-quarter 2011. Order visibility is close to one month, added industry sources. Nevertheless, utilization rates have not been increasing dramatically due to inventories from fourth-quarter 2011. The market believes utilization rates will begin to rise in the second and third quarters, hence performance in the second half of the year will be better than the first half. According to industry sources, 2-inch sapphire substrates have been quoted around US$8-9/unit from Taiwan-based firms in the first quarter. With government support, China-based sapphire substrate makers have been putting pressure on Taiwan-based peers by engaging in price competition. Source: www.digitimes.com