Quotes for sapphire wafers have decreased, with some Taiwan-based makers lowering prices for a 2-inch wafer from a negotiable level of around US$8 in September-October to below US$7.5 currently, according to industry sources in Taiwan.
Prices for a 2-inch sapphire wafer are unlikely to further fall to below US$7 in the fourth quarter but may do so in the first quarter of 2013 and then rebound at the end of the first quarter or in the second quarter, the sources pointed out.
The price drop makes it more difficult for Taiwan-based makers to turn operations from losses into profitability in the fourth quarter of 2012. Crystalwise Technology, for example, generated a gross margin of 11.57%, net operating profit of NT$4.9 million and net profit of NT$12.8 million for the first half of 2012 but suffered a gross margin loss of 6.72%, net operating loss of NT$77.6 million and net loss of NT$75.1 million for the third quarter, the sources indicated.
In related news, Taiwan-based sapphire wafer maker Alpha Crystal Technology has expanded its monthly production capacity from 450,000 2-inch wafers in equivalent to 600,000 units and will issue up to 100 million new shares for private placement.
