GGII: Table of Contents for the 2017–2018 LED Sapphire Report

Category: Company News

Release date: 2018-03-20

Summary: Sapphire, as the most critical substrate material for LED chips, currently accounts for over 95% of the LED‑chip substrate market. As China’s LED industry rapidly expands and extends along a bottom-up value chain, related international supply chains are swiftly shifting to mainland China.

Sapphire, as the most critical substrate for LED chips, currently accounts for more than 95% of the LED‑chip substrate market.
　　As China’s LED industry has rapidly developed and expanded along a bottom-up value chain, related international supply chains are swiftly shifting to mainland China.
　　Undoubtedly, China has rapidly emerged as a major global hub for the LED epitaxial wafer and chip industry, boasting a complete industrial chain that spans substrate materials, epitaxial growth, chip fabrication, chip packaging, end‑use display devices, lighting fixtures, and downstream applications. It has also given rise to LED industry clusters centered in the Yangtze River Delta and the Pearl River Delta regions.
　　Meanwhile, sapphire, as the most critical substrate material for LED chips, currently accounts for over 95% of the LED‑chip substrate market. In addition, a shift in the supply‑demand balance in 2016 led to a stabilization and subsequent rebound in LED‑chip prices, while China’s LED‑chip output value continued to grow rapidly. This recovery in the LED‑chip sector has also spurred a bottom‑out and subsequent rebound in China’s LED sapphire and substrate industries.
　　According to data from the GGII LED Research Institute, LED sapphire substrates—key raw materials for LED chips—generated a production value of RMB 2.05 billion in China in 2017, up approximately 6.4% year over year. GGII forecasts that China’s LED sapphire substrate market will reach a production value of RMB 2.15 billion in 2018, representing a year-on-year growth of 4.8%.
　　As is well known, the LED sapphire substrate industry has relatively low demand for upstream raw materials and processing auxiliaries, making it a technology- and capital-intensive sector. Consequently, compared with the more concentrated industrial distribution in the midstream and downstream segments of China’s LED value chain, investment projects in the upstream sapphire substrate segment are geographically more dispersed.
　　As the LED chip industry continues to see a trend of “the strong getting stronger,” several well-known domestic and international manufacturers have begun deploying resources in sapphire substrates. Gaogong LED has compiled an overview of the R&D efforts and strategic deployments related to sapphire substrates undertaken by various companies since 2017.
　　Monocrystal launches a 350-kg-class sapphire crystal.
　　In March 2017, Monocrystal, a leading Russian manufacturer of sapphire substrates, unveiled the world’s first 350‑kg‑class sapphire crystal grown using the Kyropoulos method. The company aims to enhance crystal uniformity, boost production of large‑size sapphire boules required by the LED industry, and expand into optical applications that place greater emphasis on large‑format sapphire substrates and sapphire materials.
　　A 450-kilogram sapphire crystal has been produced in China.
　　In July 2017, Jinghuan Electronic Materials Co., Ltd. successfully developed an ultra-large‑size, high‑quality sapphire crystal grown by the Kyropoulos method, weighing approximately 300 kilograms. This achievement represents a major breakthrough for China in the field of sapphire crystal growth.
　　In February 2018, the world’s heaviest and largest single‑crystal synthetic sapphire was once again produced at Jinghuan Electronics’ manufacturing facility. Weighing 450 kilograms, it shattered the previous world record of 350 kilograms—held by Russia—by a full 100 kilograms.
　　This achievement by the Jinghuan Electronics R&D team once again demonstrates that “enterprises are key drivers of technological innovation.” The emergence of this new core technology has also quietly reshaped the landscape and international competitiveness of China’s synthetic gemstone industry.
　　Huacan has built the world’s largest sapphire substrate production capacity.
　　In August 2017, Lanjing Technology, a wholly owned subsidiary of HC SemiTek, signed a framework agreement with the Hongta District Government of Yuxi City for an expansion project to increase annual production capacity by 35 million LED substrate wafers. The project is expected to require a total investment of RMB 1 billion. Upon completion, Lanjing Technology is poised to become one of the world’s largest sapphire substrate manufacturers in terms of production capacity.
　　Just recently, another investment decision by Huacan Optoelectronics has sparked intense debate within the industry. In February 2018, Huacan Optoelectronics announced its plan to invest RMB 10.8 billion in the Yiwu Information Optoelectronics High-Tech Industrial Park to build an advanced semiconductor and device project, which includes a sapphire substrate initiative.
　　Yunfeng Technology has signed a contract for a sapphire crystal growth furnace.
　　In August 2017, Yunfeng Technology (836709) entered into a procurement agreement with Shandong Hengtong Crystal Materials Co., Ltd. for sapphire furnace equipment. The total contract value was RMB 33 million, and the subject matter of the agreement was the ISS-series sapphire crystal growth furnaces, including their thermal systems.
　　Of course, there are also several companies that have been steadily expanding their presence in the sapphire substrate market in recent years, such as Sanan Optoelectronics, Oerlikon, and Bern Optics.
　　However, it is worth noting that, as technological barriers continue to rise, domestic sapphire manufacturers are undergoing a process of market consolidation, with the fittest surviving and the rest being weeded out. Of the hundreds of companies that once operated in this sector, most have now either ceased production or shifted to other lines of business—this reflects both an inevitable market-driven evolution and the outcomes of advances in cutting-edge, high‑precision technologies.
　　Against this backdrop, the GGII LED Research Institute, drawing on its comprehensive field surveys of upstream LED sapphire and substrate manufacturers nationwide, has compiled the “2017 China LED Sapphire and Substrate Industry Research Report.” The report provides a detailed analysis and forecast across key areas, including upstream MOCVD equipment, epitaxial wafers, sapphire substrates, industry players, government policies, investment risks, and market prospects. Through rigorous empirical research, the GGII LED Research Institute aims to deliver the most accurate and insightful report for investors, industry professionals, securities firms, and anyone seeking a deeper understanding of the LED sapphire and substrate sector.
　　Data Range Description:
　　The data in this report are updated as of December 2017.
　　This report primarily presents data from mainland China, with limited coverage of other regions worldwide.
　　Report price: RMB 20,000 per copy (Chinese), USD 8,000 per copy (English)
　　Contact Person: Mr. Chen, research1@gaogong123.com
　　Contact Information: 0755-26981898-717
　　Copyright Notice: This report is copyrighted by the GGII LED Research Institute and is intended solely for internal use by the authorized company; it may not be disclosed to any third party.
　　Table of Contents
　　Chapter 1: Overview of LED Sapphire and Substrates
　　Section 1: Overview of LED Sapphire Technology
　　I. Definition of Sapphire
　　II. Properties of Sapphire
　　III. Applications of Sapphire
　　IV. Types of Sapphire Substrates
　　Section 2: Development of the LED Industry Value Chain
　　I. A Brief Overview of the LED Industry Chain
　　II. Scale of the LED Industry’s Output Value
　　III. Development of the LED Market
　　Chapter 2: Current Status of LED Sapphire and Substrate Manufacturing Processes
　　Section 1: Sapphire Substrate Processing Flow
　　Section 2: Sapphire Crystal Production Process
　　I. Sapphire Crystal Production Technology
　　II. Comparative Analysis of Sapphire Crystal Growth Technologies
　　Section 3: Sapphire Substrate Processing Technology
　　I. PSS (Process-Specific Simulation) Technology
　　II. Nanoimprint Lithography (NIL) Process
　　Chapter 3: Analysis of the Current Development Status of the Global LED Sapphire Industry
　　Section 1: Global Sapphire Market Size Analysis
　　Section 2: Analysis of the Global Sapphire Industry Competition
　　Chapter 4: Analysis of China’s LED Sapphire Industry
　　Section 1: Analysis of China’s LED Sapphire Production Capacity and Output Value
　　Section 2: Market Analysis of China’s LED Sapphire Prices
　　Section 3: Analysis of the Development Characteristics of China’s LED Sapphire Industry
　　Section 4: Analysis of the Competitive Landscape in China’s LED Sapphire Industry
　　Chapter 5: Analysis of China’s LED Sapphire Substrate Industry
　　Section 1: Analysis of China’s LED Sapphire Substrate Production Capacity and Output Value
　　Section 2: Market Price and Cost Analysis of LED Sapphire Substrates in China
　　Section 3: Analysis of the Competitive Landscape in China’s LED Sapphire Substrate Industry
　　Chapter 6: Analysis of Downstream Demand Markets for LED Sapphire Substrates in China
　　Section 1: Analysis of the Sapphire LED Chip Market Development
　　I. Analysis of Market Characteristics in the LED Chip Sector
　　II. Market Size Analysis of LED Chips
　　Section 2: Analysis of the Scale of Sapphire LED Chip Enterprises
　　I. Changes in the Scale of LED Chip Enterprises
　　II. Changes in the Number of MOCVD Systems Held by Enterprises
　　Section 3: Analysis of Sapphire Demand and Trends in the LED Chip Industry
　　I. Analysis of LED Chip Demand for Sapphire Substrates
　　II. Trends in LED Chip Demand for Sapphire Substrates
　　Chapter 7: Business Analysis of China’s LED Sapphire and Substrate Enterprises
　　Section 1: Analysis of Key Domestic Sapphire Enterprises
　　I. Blue Crystal Technology
　　II. Chongqing Silian Optoelectronics
　　III. Harbin Aoride Optoelectronics
　　IV. Tiantong Holdings
　　Section 2: Analysis of Key Domestic Sapphire Substrate Enterprises
　　I. Jing’an Optoelectronics
　　II. Zhongtu Semiconductor
　　III. Tongxin Optoelectronics
　　Chapter 8: Investment Analysis of China’s LED Sapphire and Substrate Industry
　　Section 1: Investment Opportunities in China’s LED Sapphire and Substrate Industry
　　Section 2: Investment Risks in China’s LED Sapphire and Substrate Industry
　　Section 3: Investment Recommendations for China’s LED Sapphire and Substrate Industry

Keywords: GGII: Table of Contents for the 2017–2018 LED Sapphire Report

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