[Source: LED Engineering's "LED Research Review" magazine May issue of reporter / Long Zong Hui] sapphire substrate prices in 2012 exception "calm" to two inches flat sheet, for example, the average price remained at around US $ 7-8 In 2010, the price of similar products once soared to $30.
The price of sapphire substrates has turned like a roller coaster. The continued sluggish market has made most of the sapphire substrate manufacturers' expansion plans a blight, and the equipment manufacturers that accompany them have been extremely difficult.
“The lower the market, the more the sapphire crystal growth equipment can play a role in reducing the overall cost of the substrate.†Xu Yongliang, director and general manager of Zhejiang Yifeng New Energy Technology Co., Ltd. (hereinafter referred to as “Yufeng New Energyâ€) Said.
Founded in 2009, Fufeng New Energy has completed sales of 200 million yuan in 2012 under the overall downturn of the industry, and has successfully played through its subsidiary Hong Kong Core Technology Co., Ltd. Into the international sapphire crystal furnace market.
Integrated cost competition
As the core equipment of the upstream sapphire substrate, the sapphire crystal growth furnace has been the world's largest equipment manufacturer in the United States, Russia, and Taiwan.
With the continuous R&D investment of Chinese mainland manufacturers in recent years, domestically produced long crystal equipment of various processes have been mass-produced, and most of them adopt the bubble-forming process.
"Today's sapphire crystal growth furnace manufacturers are not only the price of equipment, but more consideration of the comprehensive cost of the production process." Xu Yongliang believes that whether it is the use of foreign or domestic sapphire crystal growth furnace, the current The price of sapphire substrates is very difficult for manufacturers to protect.
The reporter learned that the vertical horizontal temperature gradient cooling (VHGF) method adopted by equipment manufacturers - South Korea STC and the United States GT and the heat exchange method tailored for large-size sapphire, the comprehensive cost advantage is more obvious. Russian substrate manufacturers rely on local low electricity prices and raw material prices, even with the same equipment, can make a much lower overall cost than the mainland Chinese companies.
"Our equipment generally uses the bubble method, and the current competition can not only be regarded as the internal competition of the bubble process, nor the competition between the processes but the competition of comprehensive cost." Xu Yongliang said that the comprehensive comparison, The long crystal furnace with high degree of automation and large capacity has relatively low cost. “There is a misunderstanding in the market, and the pursuit of the kilogram of the crystal growth furnace is the key, but the balance of seeking the best price/performance ratio is the key.â€
Three years ago, the substrate manufacturers using the 30kg sapphire crystal furnace were profitable, but now even the 80kg sapphire crystal furnace can only be used.
"The development of 120kg, 160kg or more kilograms of sapphire crystal growth furnace is no problem. The problem is that the market will not accept the cost without absolute advantage." Xu Yongliang said.
At present, the sapphire crystal growth furnace of Fufeng New Energy, the equipment kilogram is locked in the best range of 80-100 kg, and will not consider too large specifications for the time being.
In the face of today's sapphire market, only the substrate manufacturers are profitable, and the equipment manufacturers that match them have a continuous living space.
Xu Yongliang said that Fufeng New Energy has been focusing on the R&D and production of sapphire crystal growth furnaces. Four years of hard work has enabled their equipment to improve the overall cost through generations of technological improvements. From the current market structure, the advantages of the bubble method for sapphire substrates are obvious, and the heat exchange method may have more advantages for the window (such as watch mirror) market, but in the end it will return to how to reduce costs and improve good products. Rate on the issue.
"Either foreign or mainland production equipment, only the perfect combination of equipment and technology, enterprises can survive." Xu Yongliang believes that from the current market feedback, the stability of our equipment has been recognized by the market.
Seize the international market
Nowadays, the price of sapphire is low. In addition to oversupply in the market, it has a certain relationship with the sales strategy of foreign sapphire substrate manufacturers. The technology of foreign chip manufacturers has always been ahead of the mainland, the substrate demand is mainly concentrated in 4 inches and 6 inches, while the 2-inch substrate is more dumped to the mainland as a low-cost scrap.
On the other hand, with the continuous improvement of the technology of mainland sapphire substrate manufacturers, they continue to enter the international market with 4-inch and 6-inch substrates with price advantages, which has lowered the average price of sapphire substrates in the international market to a certain extent. This also forced foreign manufacturers to make strategic adjustments.
“Foreign manufacturers are looking for a lower-cost sapphire substrate solution, which gives us a good opportunity to enter the foreign market.†Xu Yongliang revealed that his other company, Hong Kong Crest, is fully responsible for Fufeng New Energy. In overseas markets, the overseas market contributed more than 100 million yuan in revenue to the company last year when the substrate market in mainland China was not very prosperous.
According to the reporter's understanding, if mainland equipment manufacturers want to enter the overseas market, they must consider how to dispel their customers' worries about equipment maintenance.
Once the sapphire crystal furnace needs to be replaced frequently or with long-term maintenance, coupled with routine equipment training, maintenance costs will be difficult to estimate.
According to Xu Yongliang, the core components of the Fufeng New Energy Furnace are all imported, while the thermal field is mainly from mainland suppliers. This is the same as the procurement method of international manufacturers. The same starting line gives Fufeng New Energy an advantage in entering overseas markets.
For this year's sapphire crystal growth furnace market, Xu Yongliang believes that the market will return to the mainland. Judging from the first-quarter earnings report of mainland listed companies, whether LED backlighting or lighting is likely to explode this year is very large, which will greatly boost the operating rate of MOCVD. The 11 MOCVD equipments that Anhui Sanan Optoelectronics has not commissioned since the end of last year, the 15 MOCVD equipment purchased by Silan Microelectronics and the new equipment of the Huacan Zhangjiagang Phase III LED epitaxy project are likely to be fully operational this year.
Fortunately, at the beginning of this year, the price of the sapphire substrate began to rise slightly under the lens cover of the mobile phone and the application of the screen and window market.
Xu Yongliang believes that the LED pulling effect is small, but it will play a considerable role in balancing the price of sapphire substrates. If the KY process (bubble method) and the heat exchange method sapphire process become more mature and the price continues to drop, the flame method used in the previous small window will be squeezed, so the substrate manufacturers adopting these two routes are expected to achieve profitability.
The price of sapphire substrates has turned like a roller coaster. The continued sluggish market has made most of the sapphire substrate manufacturers' expansion plans a blight, and the equipment manufacturers that accompany them have been extremely difficult.
“The lower the market, the more the sapphire crystal growth equipment can play a role in reducing the overall cost of the substrate.†Xu Yongliang, director and general manager of Zhejiang Yifeng New Energy Technology Co., Ltd. (hereinafter referred to as “Yufeng New Energyâ€) Said.
Founded in 2009, Fufeng New Energy has completed sales of 200 million yuan in 2012 under the overall downturn of the industry, and has successfully played through its subsidiary Hong Kong Core Technology Co., Ltd. Into the international sapphire crystal furnace market.
Integrated cost competition
As the core equipment of the upstream sapphire substrate, the sapphire crystal growth furnace has been the world's largest equipment manufacturer in the United States, Russia, and Taiwan.
With the continuous R&D investment of Chinese mainland manufacturers in recent years, domestically produced long crystal equipment of various processes have been mass-produced, and most of them adopt the bubble-forming process.
"Today's sapphire crystal growth furnace manufacturers are not only the price of equipment, but more consideration of the comprehensive cost of the production process." Xu Yongliang believes that whether it is the use of foreign or domestic sapphire crystal growth furnace, the current The price of sapphire substrates is very difficult for manufacturers to protect.
The reporter learned that the vertical horizontal temperature gradient cooling (VHGF) method adopted by equipment manufacturers - South Korea STC and the United States GT and the heat exchange method tailored for large-size sapphire, the comprehensive cost advantage is more obvious. Russian substrate manufacturers rely on local low electricity prices and raw material prices, even with the same equipment, can make a much lower overall cost than the mainland Chinese companies.
"Our equipment generally uses the bubble method, and the current competition can not only be regarded as the internal competition of the bubble process, nor the competition between the processes but the competition of comprehensive cost." Xu Yongliang said that the comprehensive comparison, The long crystal furnace with high degree of automation and large capacity has relatively low cost. “There is a misunderstanding in the market, and the pursuit of the kilogram of the crystal growth furnace is the key, but the balance of seeking the best price/performance ratio is the key.â€
Three years ago, the substrate manufacturers using the 30kg sapphire crystal furnace were profitable, but now even the 80kg sapphire crystal furnace can only be used.
"The development of 120kg, 160kg or more kilograms of sapphire crystal growth furnace is no problem. The problem is that the market will not accept the cost without absolute advantage." Xu Yongliang said.
At present, the sapphire crystal growth furnace of Fufeng New Energy, the equipment kilogram is locked in the best range of 80-100 kg, and will not consider too large specifications for the time being.
In the face of today's sapphire market, only the substrate manufacturers are profitable, and the equipment manufacturers that match them have a continuous living space.
Xu Yongliang said that Fufeng New Energy has been focusing on the R&D and production of sapphire crystal growth furnaces. Four years of hard work has enabled their equipment to improve the overall cost through generations of technological improvements. From the current market structure, the advantages of the bubble method for sapphire substrates are obvious, and the heat exchange method may have more advantages for the window (such as watch mirror) market, but in the end it will return to how to reduce costs and improve good products. Rate on the issue.
"Either foreign or mainland production equipment, only the perfect combination of equipment and technology, enterprises can survive." Xu Yongliang believes that from the current market feedback, the stability of our equipment has been recognized by the market.
Seize the international market
Nowadays, the price of sapphire is low. In addition to oversupply in the market, it has a certain relationship with the sales strategy of foreign sapphire substrate manufacturers. The technology of foreign chip manufacturers has always been ahead of the mainland, the substrate demand is mainly concentrated in 4 inches and 6 inches, while the 2-inch substrate is more dumped to the mainland as a low-cost scrap.
On the other hand, with the continuous improvement of the technology of mainland sapphire substrate manufacturers, they continue to enter the international market with 4-inch and 6-inch substrates with price advantages, which has lowered the average price of sapphire substrates in the international market to a certain extent. This also forced foreign manufacturers to make strategic adjustments.
“Foreign manufacturers are looking for a lower-cost sapphire substrate solution, which gives us a good opportunity to enter the foreign market.†Xu Yongliang revealed that his other company, Hong Kong Crest, is fully responsible for Fufeng New Energy. In overseas markets, the overseas market contributed more than 100 million yuan in revenue to the company last year when the substrate market in mainland China was not very prosperous.
According to the reporter's understanding, if mainland equipment manufacturers want to enter the overseas market, they must consider how to dispel their customers' worries about equipment maintenance.
Once the sapphire crystal furnace needs to be replaced frequently or with long-term maintenance, coupled with routine equipment training, maintenance costs will be difficult to estimate.
According to Xu Yongliang, the core components of the Fufeng New Energy Furnace are all imported, while the thermal field is mainly from mainland suppliers. This is the same as the procurement method of international manufacturers. The same starting line gives Fufeng New Energy an advantage in entering overseas markets.
For this year's sapphire crystal growth furnace market, Xu Yongliang believes that the market will return to the mainland. Judging from the first-quarter earnings report of mainland listed companies, whether LED backlighting or lighting is likely to explode this year is very large, which will greatly boost the operating rate of MOCVD. The 11 MOCVD equipments that Anhui Sanan Optoelectronics has not commissioned since the end of last year, the 15 MOCVD equipment purchased by Silan Microelectronics and the new equipment of the Huacan Zhangjiagang Phase III LED epitaxy project are likely to be fully operational this year.
Fortunately, at the beginning of this year, the price of the sapphire substrate began to rise slightly under the lens cover of the mobile phone and the application of the screen and window market.
Xu Yongliang believes that the LED pulling effect is small, but it will play a considerable role in balancing the price of sapphire substrates. If the KY process (bubble method) and the heat exchange method sapphire process become more mature and the price continues to drop, the flame method used in the previous small window will be squeezed, so the substrate manufacturers adopting these two routes are expected to achieve profitability.
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