Taiwan-based sapphire wafer makers are expected to have 2013 revenues decreasing by 10% from 2012 because many China-based fellow makers will bring production capacities into operation in 2013 and this will cause price drops, according to market analysts.
However, some Taiwan-based sapphire wafer makers expect their 2013 revenues to slightly grow or remain unchanged from 2012.
Prices for a 2-inch sapphire wafer and a 2-inch PSS (patterned sapphire substrate) have slipped to US$7-8 and US$13 respectively, Taiwan-based makers indicated.
Sapphire ingot makers, in view of continual price drops, will reportedly reduce output, with the cut in output likely to affect prices in the second quarter of 2013, Taiwan-based sapphire wafer maker Crystalwise Technology (CWT) pointed out. CWT will focus 2013 operation on improving yield rates and controlling production cost, the company noted. Moreover, 4- and 6-inch sapphire wafers and PSS have accounted for 50% of total revenues currently, and the proportion is expected to rise further in the second half of 2013, CWT indicated.
CWT has merged with Sino Sapphire to become the largest Taiwan-based sapphire wafer maker in terms of production capacity. In addition, CWT has invested US$23 million to expand the sapphire wafer capacity of its subsidiary maker in northern China, the company noted. CWT plans to expand the subsidiary's PSS capacity as well, the company indicated.
Although there has been oversupply of 2-inch PSS, sapphire wafer prices have dropped, Taiwan-based sapphire wafer maker Tera Xtal Technology pointed out. Tera Xtal has decreased the proportion of total revenues for 2-inch PSS to below 30-40% and has been increasing production of 4- and 6-inch PSS because prices are relatively stable, the company indicated.
