Price of 2-Inch Sapphire Substrates From China Suppliers Has Fallen to Around US$6/Unit

The price of 2-inch sapphire substrates from China suppliers has fallen to around US$6/unit, with the low price adding pressure on Taiwan-based makers, according to industry sources. The sources believe that China-based sapphire substrate firms have been supported by the government, and they have lowered their quotes in order to clear out their inventories. Despite the falling prices, Taiwan-based sapphire substrate maker Crystalwise managed to see December revenues rise 40% on month to reach NT$139 million (US$4.6 million). Crystalwise's 2011 total revenues reached NT$2.256 billion, up 23% on year. Tera Xtal's December revenues dropped to NT$96 million, but its 2011 revenues of NT$2.324 billion represent an on-year rise of 36%. Tera Xtal has become the largest sapphire substrate firm in Taiwan. Crystal Applied and Wafer Works Optronics both reported falling December revenues. Meanwhile, the traditional low season has resulted in LED chipmakers reporting declined revenues for December. The revenues falls range from 10-30%. LED chipmakers indicated they have been selective in taking up orders and some firms may only have capacity utilization rate of 40%. Source: www.digitimes.com