Sino-American Silicon Products (SAS) has estimated that sales of its patterned sapphire substrates will top NT$2 billion (US$68 million) in 2011, and growth in the high-margin product segment is expected to buoy the company's overall gross margin performance.

Sapphire substrates accounted for only 2-3% of SAS's overall sales in 2010, according to the company, which specializes in the manufacture of semiconductor- and solar-grade wafers.

SAS said its gross margin for the first quarter of 2011 will likely climb to 26-27%, buoyed by rising revenues generated from the company's sapphire substrates.

SAS also revealed plans to grow its sapphire substrate capacity to 180,000 2-inch equivalent units a month by June 2011, up from the current 90,000. The expansion will be completed six months ahead of schedule, the company said, adding that demand for LED-backlighting and general lighting applications is promising.

SAS makes sapphire ingots itself, and also procures from other suppliers. SAS noted that its in-house capacity for sapphire ingots remains insufficient to satisfy demand.

In other news, 2-inch sapphire ingot prices reportedly climbed to US$25 at the end of 2010 from less than US$10 in 2009, due to tight supply.