Taipei, Thursday, May 5, 2016 00:31 (GMT+8)
thunderstorms
Taipei
28°C
Apple-GTAT partnership to drive sapphire demand
Jessie Lin, DIGITIMES Research, Taipei [Wednesday 6 November 2013]

GTAT has signed a multi-year sapphire materials agreement with Apple.

Possible impacts on the industry:

1. The fourth quarter is tradtionally the LED sector's low season, during which sapphire prices should come down. However, 2-inch sapphire pricing is expected to inch up during the fourth quaeter of this year to reach US$4-4.5, as the prospect of sapphire being used in portable devices looks good.

2. Applications include: smartphone, tablet home buttons, camera lens, and even covers for iWatch and smarphones.

3. Why GTAT? One of the reasons is the US government hopes companies can move their production back to the US and create job opportunities. Another reason: GTAT's ingot growing technology can produce sapphire for large-size screens.

4. To make sure Apple will use sapphire as covers for tis devices and not competiting technologies (such as Corning's Gorilla Glass), the contract signed between Apple and GTAT requires Apple pre-pay US$578 million for equipment purchase.

5. Digitimes Research believes the US$578 million, if it's going to be all spent on buying ingot growing furnaces, will be enough to buy 2,000 units, or even more. The furnaces are estimated at US$200,000 to US$300,000 per unit, rather than the usual market price of US$600,000 quoted by GTAT.

6. The number of furnances seems high. If GTAT's target is to produce large-size 200kg ingots, monthly output could reach 5 million mm of 2-inch equivalents (yield rates not taken into consideration).

7. But if the output is meant to mainly cater to Apple's 5-inch handset screens in 2015, with the phone shipments estimated at 250 million units, the sapphire ingot capacity will still be 50%b short of demand.

8. Impact on the supply chain: Apple usually has second sources for its component supply. That means, Apple may find sufficient sapphire supply from other suppliers.

9. Potential beneficiaries: Including furnace suppliers for GTAT, KY ingot growing technology providers, and South Korea-based STC, who uses VHGF technology.

Click here to see GTAT's annoucement of the deal.

Topics: Page 2

Realtime news
  • Digitimes Research: Taiwan makers ship 49.42 million large-size TFT-LCD panels in 1Q16

    Displays | 2h 59min ago

  • Satellite device maker MTI sees revenues up on year in April

    Mobile + telecom | 3h 1min ago

  • India market: Lenovo and Apple seeing fast growth among top-10 smartphone vendors, says firm

    Before Going to Press | 3h 19min ago

  • Acer to release more ultra-thin notebooks in September

    Before Going to Press | 3h 21min ago

  • Maturing smartphone market signals falling growth for wireless semiconductors, IHS says

    Before Going to Press | 3h 22min ago

  • China firm to acquire Viking

    Before Going to Press | 3h 23min ago

  • D-Link suffers net loss per share of NT$0.34 for 1Q16

    Before Going to Press | 3h 38min ago

  • CMOS image sensors expected to set record-high sales for another 5 years, says IC Insights

    Before Going to Press | 3h 39min ago

  • Solartech Energy April revenues down on month, up on year

    Before Going to Press | 3h 40min ago

  • Microelectronics Technology April revenues down on month, up on year

    Before Going to Press | 3h 41min ago

  • Green Energy Technology April revenues up on year

    Before Going to Press | 3h 42min ago

  • Taiwan market: Smartphone shipments to grow in 2Q16

    Before Going to Press | 3h 43min ago

  • Alpha Networks to issue new shares for private placement

    Before Going to Press | 3h 43min ago

  • VIS expects to post up to 5% revenue growth in 2Q16

    Before Going to Press | 3h 44min ago

  • Qisda nets NT$0.26 for 1Q16

    Before Going to Press | 3h 45min ago

  • Gemtek Technology to deal out 2015 dividend of NT$0.60

    Before Going to Press | 3h 45min ago

  • Tatung to not deal out 2015 dividend

    Before Going to Press | 3h 52min ago

  • SerComm nets NT$1.17 per share for 1Q16

    Before Going to Press | 3h 53min ago

Pause
 | 
View more

Taiwan server shipment forecast and industry analysis, 2016

RESEARCH EXTRAS | Apr 1, 15:47

Strong demand from the cloud computing market helped Taiwan's server shipments grow 12.5% on year to break 10 million units in 2015, accounting for 90.7% of worldwide shipments and the percentage is expected to grow to 91.1% in 2016. This Digitimes Research Special...

China smartphone touch-panel industry 2016 forecast

CHINA SMARTPHONE | Feb 6, 17:23

In 2016, China's smartphone panel capacity is expected to increase steadily, with BOE and Tianma expanding 6G capacity and GVO and Truly Optoelectronics increasing their share of handset panel production. This Digitimes Research Special Report analyzes the key...

Taiwan small- to mid-size LCD panels – 1Q 2016

TAIWAN LCD PANEL | May 4, 15:05

A strong earthquake caused serious damage to Taiwan-based panel makers' production facilities in the first quarter, resulting in decreased shipments. But their shipments will rise in the second quarter as they recover from the damage.

Taiwan LCD TVs – 1Q 2016

TAIWAN DISPLAY SYSTEM | Apr 29, 14:01

Taiwan's LCD TV shipments decreased 28.2% sequentially and 1.7% on year to reach 7.35 million units in the first quarter of 2016.

Taiwan LCD monitors - 1Q 2016

TAIWAN DISPLAY SYSTEM | Apr 27, 13:37

Taiwan makers saw relatively strong sales in the first quarter of 2016, which helped their inventory return to healthier levels.

China smartphone touch-panel industry 2016 forecast
Trends and forecasts for the China FPD industry, 2014-2017
The transition to 4k TV - UHD TV market forecast, 2014-2017
  • Wireless broadband developments in Southeast Asia markets

    As of 2013, the 10 ASEAN nations had a total of over 700 million mobile subscriptions, with the CAGR from 2003-2013 reaching 24%. This Digitimes Research Special Report analyzes the various mobile broadband markets in ASEAN and looks at the respective trends in 4G LTE development for those markets.

  • 2015 global tablet demand forecast

    This Digitimes Research Special Report provides a 2015 forecast for the global tablet market and analyzes the strategies of key market players such as Google, Apple, Intel, and Microsoft.

  • 2015 China smartphone panel trend forecast

    This Digitimes Research Special Report analyzes the strategies of key China-based major panel makers BOE, Tianma and IVO for attacking the different market segments through technology and pricing, and their relationship to local vendors Huawei, Lenovo, ZTE, Xiaomi and Coolpad.