Since 2011, sapphire substrate manufacturers have expanded their production; and the total production capacity has far exceeded the current market capacity. With capacity releases of these companies, it is inevitable that the sapphire substrate price will drop.
In China, ZheJiang East Crystal Electronic Co., Ltd. is the first one to invest in "LED Sapphire Wafer Technology Transformation Project (with the annual output of 7.50 million pieces)". The project will be put into production in H2 2012, and will generate handsome profit before the sapphire price starts to drop.
Sapphire Substrate Projects of ZheJiang East Crystal Electronic Co., Ltd.
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2012
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2013
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Progress
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The investment in Phase I will be completed.
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Total investment will be completed; and the production will commence.
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Annual Capacity
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2.2 million mm of sapphire crystal rods, 3 million pieces of LED-use sapphire wafers
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7.50 million pieces of LED-use sapphire wafers
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Expected Annual Revenue (RMB bn)
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0.69
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1.55
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Expected Annual Profit (RMB bn)
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0.205
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0.46
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