GLII: Most domestic sapphire projects are put into production

The proportion of enterprises in the Yangtze River Delta increased to 40%. China's sapphire crystal rods and substrate companies are mainly distributed in the Yangtze River Delta, the Pearl River Delta, the Bohai Sea, other southern regions and other northern regions.

According to the report of the High-tech LED Industry Research Institute (GLII), in the past two years, the regional distribution of domestic sapphire crystal rods and substrate companies has undergone major changes, among which the Yangtze River Delta region has the strongest development momentum, and the number of enterprises accounted for from 2009. The 10% rate rose rapidly to 40% in 2011, and the number of other companies in the South increased from 20% to 30%. The proportion of enterprises in the Pearl River Delta, Bohai Rim and other northern regions has declined to varying degrees. As of the end of 2011, the proportion of enterprises in the above three regions fell to 7%, 10% and 13% respectively. (see picture 1)

Figure 1 2009-2011 China sapphire crystal rod, substrate enterprise distribution area



Note: In the distribution area, the Pearl River Delta refers to Guangdong; the Yangtze River Delta includes Shanghai, Jiangsu, and Zhejiang; the Bohai Sea includes Shandong and Liaoning; the other southern regions include Hunan, Hubei, Anhui, Fujian, Jiangxi, Yunnan, and Sichuan; and other northern regions include Heilongjiang. Inner Mongolia, Xinjiang.

Source: Gaogong LED Industry Research Institute (GLII )

As of the end of 2011, the number of sapphire crystal rods and substrate companies in the Yangtze River Delta region has exceeded 10, an increase of 110% compared with 2009, accounting for 40% of the total number of sapphire enterprises in the country. Representative companies include GCL Optoelectronics, Shangcheng Technology, and Jixing. New materials and Jiangsu Tongren Electronics.

The main reason for the rapid increase in the number of enterprises in the Yangtze River Delta region is that the LED epitaxial wafer enterprises in the region have achieved rapid development under the policy support, which indirectly accelerates the transfer of upstream sapphire enterprises to the Yangtze River Delta region.

GLII statistics show that between 2009 and 2011, the number of LED epitaxial wafer manufacturers in the Yangtze River Delta region increased by 50%. Among them, in order to build a 100 billion yuan LED industry base, Jiangsu's support policy for introducing MOCVD equipment is more favorable than other provinces. Yangzhou is the first in China to introduce a subsidy policy for purchasing MOCVD equipment with a single subsidy of 10 million yuan in cash, attracting a number of LED epitaxial wafer companies including Yuanyuan, Ganzhao, Zhongke Semiconductor, etc., and set off a wave of investment. LED epitaxy and chip manufacturing boom.

Nearly 70% of the enterprises that have been put into production in the Yangtze River Delta and the southern region GLII data show that nearly 70% of the sapphire crystal rods and substrate companies that have been put into production are distributed in the Yangtze River Delta and other southern regions.

Among them, the number of enterprises that have been put into operation in other southern regions accounted for 39% of the total number of enterprises that have been put into production, mainly including Chongqing Silian, Yunnan Lanjing, Guizhou Haotian and Jiujiang赛赛; the number of enterprises that have been put into production in the Yangtze River Delta has accounted for 30% of the total number of enterprises put into production; the proportion of the number of enterprises that have been put into production in the Pearl River Delta, Bohai Rim and other northern regions accounted for 9%, 13% and 9% of the total number of enterprises already put into production, representing enterprises including Harbin Institute of Technology, Ao Ruide, Anhui Kang Blue Optoelectronics and Shandong Tianyue. (See Figure 2)

Figure 2 Regional distribution of the put into operation



Source: Gaogong LED Industry Research Institute (GLII )

Although more than 60% of the companies that have been put into production are located in the Yangtze River Delta, the Pearl River Delta, the Bohai Rim and other northern regions, most of the sapphire projects in these regions were established in 2011, and the enterprises that can achieve mass production are still mainly concentrated in 2011. Projects that were previously put into production.

Among them, Yunnan Blue Crystal is one of the enterprises that entered the sapphire field earlier in China. It benefited from the shortage of product supply in the sapphire substrate market from 2009 to 2010, and achieved rapid development. At present, the company's sapphire crystal rod production capacity ranks first in China. one.

36% of uncommissioned companies are located in the Yangtze River Delta region
As of the end of 2011, 36% of the domestic unproduced sapphire enterprises were distributed in the Yangtze River Delta region, 22% in the other southern regions, 20% in the other northern regions, 14% in the Bohai Rim region, and 8% in the Pearl River Delta region. .

Among the un-produced sapphire enterprises in the Yangtze River Delta, 75% of the uncommissioned enterprises are located in Jiangsu Province, with an planned annual production capacity of about 100 million pieces (equivalent to 2 inches of sapphire substrate), and the remaining 25% of the uncommissioned enterprises are located in Zhejiang Province, with planned annual production capacity. About 6 million pieces (equivalent to a 2-inch sapphire substrate). (See Figure 3)


Figure 3 Regional distribution of uncommissioned enterprises



Source: Gaogong LED Industry Research Institute (GLII )

According to the GLII survey, although the planned sapphire projects in China are too numerous to enumerate, it is still unknown whether these projects can be put into production as planned. Even some of the sapphire projects planned as early as 2010 have not broken ground yet, and the telephones of related companies have been shut down.

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