On December 21st, Shang Zhi has successfully developed the sapphire crystal growth technology. In 2010, the sapphire crystal growth plant will be set up. It is expected to enter mass production in the fourth quarter of 2010. On the 17th, General Manager Li Longda said in the law conference that the demand for new LED applications is high, and the supply and demand of LED sapphire crystal rods in the industry's most upstream will have a serious gap in 2010.
   Due to the increased penetration of LED TVs and lighting in 2010, and China's active promotion such as “Ten Cities and Ten Thousand Citiesâ€, it is expected to accelerate the development of LED applications, and the demand for LED sapphire substrates will grow rapidly. Li Yongda, general manager of Shangzhi, said that Taiwan's LED epitaxial production capacity accounts for nearly half of the world's total. However, the sapphire crystal rods required for sapphire substrates are currently oligopolisted by US, Russian and Japanese manufacturers. Shang Zhi is seeing this business opportunity. Li Longda pointed out that the most upstream sapphire ingot crystal growth technology, because the production threshold is high, Taiwanese manufacturers mostly rely on imports. In recent years, Taiwan only Yuefeng and Xinjing drill a small amount of commitment, so once you cut into the long crystal technology, you can enjoy LED The industry is sitting on a huge business opportunity.
   Li Longda further pointed out that Shangzhi's sapphire crystal growth technology was jointly developed with equipment manufacturers to take out the ingots in a longitudinal direction, and the drilling rate reached 50%. The KY method adopted by the general industry is to drill horizontally and drill rate. About 30%, Shang Zhi's longitudinal drilling method can cut more sapphire chips. In addition, Shang Zhi has also successfully developed a 5-6 inch long crystal technology, which can drill 4-5 inch sapphire crystal rods in a longitudinal drilling manner, which is larger than the current 2 inch crystal rods. Li Longda said that the number of chips produced by 4 inches is about 4 times that of 2 inches, and the price gap is even larger. The 2 inch crystal rods are currently about 5 dollars per millimeter (mm), and the 4 inch crystal rods are as high as 35-40 dollars per millimeter.
   After the successful development of sapphire crystal technology, Shangzhi plans to set up a long crystal plant in Taiwan next year, with an initial capacity of 100,000 mm and a long-term production capacity of 500,000 to 1 million millimeters per month. Li Longda revealed that in addition to setting up a factory in Taiwan, it is possible to set up factories in China or elsewhere in the future in response to demand for capacity expansion.
   Li Longda said that next year's LED applications include LED TV and other backlight penetration, as well as LED lighting for white LED demand, coupled with China's policy support, the LED upstream sapphire crystal rod supply and demand gap "will be very serious", "I am afraid Can't do it, don't be afraid to sell it." He revealed that customers have already negotiated the price of sapphire crystal rods, which will rise to 7.5 US dollars per millimeter, up 50% from the current 5 dollars.
   The legal person asked if Shang Zhi will enter the slicing business in the future. Li Longda emphasized that industrial cooperation is very important. Shang Zhi has already invested in Jingmei for slicing, and the future will not be involved in the slicing business.
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