Taipei, Monday, November 24, 2014 23:20 (GMT+8)
haze
Taipei
22°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
  • ARM seeing troubles penetrating into PC, server industries; IoT becomes new battlefield for Intel, ARM

    IT + CE | 53min ago

  • ASMedia announces partnership with AMD

    IT + CE - Stockwatch | 1h ago

  • Will Xiaomi be a target for Foxconn's new collaboration with Innolux?

    Displays | 1h 9min ago

  • Taiwan IC designers see demand slowing down

    Bits + chips | 1h 14min ago

  • Server player AIC sees SSD server orders from Sony and France client, says paper

    IT + CE - Newswatch | 1h 16min ago

  • Taiwan October manufacturing production index up on month, year, says MOEA

    Bits + chips | 1h 17min ago

  • China market: Online search value over CNY15 billion in 3Q14, says Analysys

    IT + CE | 1h 19min ago

  • ITO film demand expected to grow 25.6% in 2014

    Displays | 1h 22min ago

  • TSMC orders equipment for NT$2.4 billion

    Bits + chips - Stockwatch | 1h 25min ago

  • Some Taiwan solar cell makers plan to cut personnel

    Green energy | 1h 31min ago

  • Acer, Asustek pushing Chromebooks and inexpensive notebooks

    Before Going to Press | 1h 49min ago

  • Taiwan October manufacturing production index up on month, year, says MOEA

    Before Going to Press | 1h 55min ago

  • China-based Coolpad unveils smartphone for sale under sub-brand ivvi

    Before Going to Press | 1h 57min ago

  • TSMC to grab 40-50% of A9 chip orders

    Before Going to Press | 1h 58min ago

  • Lenovo reportedly to launch wearable device, says report

    Before Going to Press | 1h 59min ago

  • Will Xiaomi be a target for Foxconn's new collaboration with Innolux?

    Before Going to Press | 2h 1min ago

  • Taiwan and Kora makers expanding touch-embedded solutions in 2015

    Before Going to Press | 2h 1min ago

  • China market: Online search value over CNY15 billion in 3Q14, says Analysys

    Before Going to Press | 2h 2min ago

  • Digitimes Research: China makers to drop pricing for Full HD panels by 11.5% in 2015

    Before Going to Press | 2h 3min ago

  • Mirle, Hiwin expect sales growth in 2015

    Before Going to Press | 2h 4min ago

  • Digitimes Research: Global tablet shipments to decline 11.8% in 2015

    Before Going to Press | 2h 6min ago

  • China-based Xery able to produce 50,000 home-use 3D printers a year

    Before Going to Press | 2h 7min ago

  • More monitor vendors expected to release 5K units in 2015

    Before Going to Press | 2h 8min ago

Pause
 | 
View more

Wireless broadband developments in Southeast Asia markets

RESEARCH EXTRAS | Nov 12, 10:53

As of 2013, the 10 ASEAN nations had a total of over 700 million mobile subscriptions, with the CAGR from 2003-2013 reaching 24%, and the share of the global user base rising from 4.9% to a high of 10.6%. This Digitimes Research Special Report analyzes the various...

Trends and forecasts for the China FPD industry, 2014-2017

CHINA FPD | Oct 6, 12:29

With China being the world's IT production center and a country with some of the strongest consumer demand, along with benefits on custom tax, funding, loans, and subsidies provided by the government, China's FPD industry continues to show strong growth. Local...

Taiwan handsets – 3Q 2014

TAIWAN ICT | Nov 20, 10:53

Taiwan's top handset ODM Foxconn Electronics lost a significant amount of feature phone orders from Microsoft Mobile in the third quarter, while the biggest brand vendor HTC also saw a sharp decline in its shipments. But for others in Taiwan's handset sector,...

China smartphone market and industry – 3Q 2014

CHINA SMARTPHONE | Nov 14, 19:21

Looking at smartphone sales in the local China market, under the influence of stagnating sales of international brands, a lack of differentiating features in high-end and high-cost/performance ratio products marketed by China-based makers, and ultra-low-cost...

Taiwan LCD TVs – 3Q 2014

TAIWAN FPD | Nov 14, 15:51

Taiwan's LCD TV manufacturing sector saw mixed performances among its players in the third quarter of 2014, resulting in only slight growth in overall shipments. For the whole of 2014, the Taiwan makers are expected to see a 1.8% growth in shipments, falling...

Advantest - VOICE Developer Conference
Demand and supply trends in the global sapphire industry, 2014-2015
Greater China touch panel shipment forecast through 2015
  • 2014 global high brightness LED market, trends and shipment forecast

    For the global LED lighting market, the market size will reach US$25.82 billion in 2014 or a market penetration rate of 23.4%. This is attributable to exponential shipment growth for light bulbs, tubes, and directional lamps.

  • Greater China touch panel shipment forecast through 2015

    This Special Report provides forecasts through 2015 for Greater China touch panel shipments with breakdowns based on technology (glass, film, resistive), application (smartphone, NB and tablet) and by firm.

  • 2014 global tablet demand forecast

    This report analyzes the main players, their strategies and shipments forecasts for 2014, as well as other factors contributing to either growth or decline in various segments within the tablet market, with a particular focus on Apple, Google, Samsung, and Microsoft, along with whitebox vendors.