PSS substrate profitable

According to Zhang Shixian, a spokesperson for LED crystal factory, the company’s sapphire substrate is mainly based on customer orders. If the customer requires it, it will order the PSS (Sub Pattern Sapphire Substrate) substrates from the substrate factory. He pointed out that recent orders from customers are indeed stronger than those in the first quarter, so demand for PSS substrates has increased.

PSS substrate profitable

Research institutions said that the price declines of 2 and 4吋sapphire substrates in the first quarter of this year have slowed down, and even partially low market prices have started to show slight signs of rebound. LEDinside research associate Yu Chaochao said that due to the need for backlight and lighting market in the first half of this year, the utilization rate of LED chip plants has obviously increased, which also pushes up the demand for sapphire substrates.

Xinhua Diamond spokesman Li Jizhen said that large-sized PSS substrates are cut from the upstream sapphire crystal rods and the substrates in the middle of the pipeline. There are not many manufacturers capable of mass production, and the yield rate is not very high. The prices are relatively high, including European and American customers. The demand is not bad. The company is also actively adjusting the proportion of large-size products.

Peng Zhiqiang, general manager of Zhaoyuan, said that currently, 4吋 products account for nearly 50% of the company’s revenue. If 6把 products are also brought in, large-scale product revenue has reached 50%, and the proportion is expected to increase again in the second half of the year.

Expand non-LED applications

In addition to increasing large-size products, the sapphire substrate factory also actively expands non-LED application fields this year. Previously, Apple has successfully developed camera lens covers for the introduction of sapphire substrates into the iPhone 5, including Lenovo, ZTE, and Huawei. Also plans to introduce the sapphire substrate into the mobile phone lens, and the shipment will begin as early as the second quarter.

Zhaoyuan expects to make money in a single season

According to the legal person, the hardness of the sapphire substrate is second only to that of a diamond. Therefore, it is more than sufficient to be used as a screen protector for mobile phones. The current problems to be solved are price, and how to reduce wear and tear.

Zhaoyuan’s revenue in the first quarter of this year was NT$417 million, up 6.8% from the same period of last year and more than the RMB 209 million in the fourth quarter of last year. In revenue growth, there were suppliers’ non-payment of liquidated damages. The single season is expected to turn smoothly into profit.