Sapphire dilemma: who takes the next shot

The sapphire industry is undergoing a significant transformation, with the PSS (Patterned Sapphire Substrate) becoming a key driver of value for manufacturers. While PSS currently offers higher profit margins compared to traditional flat substrates, the sustainability of these margins remains uncertain as more players enter the market. Since last year, several sapphire substrate manufacturers—both from Taiwan and mainland China—have ramped up production of PSS, aiming to capture a larger share of this growing segment. Companies like Sino-US Blue Crystal, Zhaoyuan, Xinjing Diamond, Jingmei, and Hejing Optoelectronics have significantly expanded their 2-inch and 4-inch PSS capacities. This shift has helped boost profitability and overall revenue, as demand for PSS continues to rise, especially in LED lighting applications. Crystal Optoelectronics, for instance, reported a net profit of 2.9 million yuan in 2012 after transitioning into profitability through its sapphire substrate business. The company plans to continue expanding its PSS market presence in 2013. Similarly, Dongjing Electronics highlighted its focus on mass-producing sapphire substrates and PSS, signaling the growing importance of this technology. Despite the positive outlook, challenges remain. According to data from the High-tech LED Industry Research Institute (GLII), overcapacity in the sapphire market persists, with supply far exceeding demand. In 2012, the utilization rate of MOCVD equipment in China was only around 30%, highlighting the inefficiencies in the downstream LED manufacturing sector. This overcapacity has led to falling prices for sapphire substrates, with 2-inch flat substrates now trading near cost levels. Some manufacturers, particularly from Japan and Korea, have even raised prices by $6 due to rising costs. However, the current price increase for sapphire crystal rods is still not fully reflected in the final product, leaving many companies struggling with low margins. PSS, on the other hand, remains a more profitable option. Its ability to enhance light extraction efficiency by up to 20-30% has made it a preferred choice for epitaxial growth. As a result, PSS prices are roughly double those of flat substrates, currently around $15 per unit. This has attracted increased investment in ICP etching machines, which are essential for PSS production. Industry experts suggest that while PSS is currently a "profitable niche," the long-term sustainability of its high margins is uncertain. With more companies entering the space, competition is expected to intensify, potentially driving down prices. Nonetheless, the growing demand for LED lighting and the increasing adoption of PSS in high-end applications, such as Blu-ray chips, indicate a strong future for this technology. As the sapphire market evolves, manufacturers must balance between scaling up production and maintaining profitability. While some companies are focusing on cost reduction and large-scale crystal growth, others are investing heavily in high-value-added substrates like PSS. Ultimately, the path forward will depend on how well the industry can manage supply and demand dynamics in an increasingly competitive landscape.

ASTM A270 Sanitary Tubes

Stainless Steel Sanitary ASTM A270 Stainless Steel Tubes is the main tubing line for a piping system. Generally, ASTM A270 Stainless Steel Tubes are made in stainless steel 304 and 316l, but we provide other grade too such as hastelloy C22, 316Ti, Titanium and nickel alloy etc. Kaysen offer both sanitary seamless tubes and Sanitary Welded Tubes to ASTM A270, ASTM A249, A269, ASTM A554, DIN11850, and size is up to 12″. Inner and outer surface is polished to meet the high purity requirement of hygienic industries. Kaysen is ability to supplying qualified ASTM A270 Stainless Steel Tubes comply to your your condition and FDA,GMP requirement.

ASTM A270 Stainless Steel Tubes - Sanitary Tubing
Material: SS304, SS316L, EN 1.4301, EN 1.4404, etc
OD diameter: 1/2" - 12"
Thickness: 0.5mm - 6mm
Standard: ASTM, JIS, DIN, JIS, SUS, GB
Length: 6m or customer made
Tolerance: OD. ±0.2mm; Thickness: ±0.02mm; Length: ±0.5mm
Surface Treatment: Matt Finish or Mirror Finish (320# 400# 600#) etc
Application: Boiler, heat exchanger, construction, hygienic, pharmacy, power, petrochemical

Strength:
Heat Treatment of solution annealing for the sanitary tubings and fittings are available
High precision on dimension and wall thickness
Both seamless and welded sanitary tubings are available
Length is up to 12 meters.
Min. order quantity of sanitary tubings is from 300Kgs.
Offer industrial pipe and tubes according to order.
PMI test to verify material grade.
Visual and surface 100% examination before shipment.
End protected for shipment.

ASTM A270 Sanitary Tubes,A270 Stainless Steel Pipes,SS304 Sanitary Tubes

Kaysen Steel Industry Co., Ltd. , https://www.chinasanitaryvalve.com