Development prospects of sapphire materials in the LED industry chain

With the rapid development and extension of the domestic LED industry from the bottom up, the relevant international industrial chain is rapidly moving to mainland China.

Undoubtedly, China has rapidly developed into an important global LED epitaxial chip industry base, including a complete industrial chain from substrate materials, epitaxial growth, chip manufacturing, chip packaging, terminal display devices, lighting fixtures to applications, and formed in the Yangtze River Delta region. LED industry clusters dominated by the Pearl River Delta region.

At present, the key to the development of LED chip technology lies in the substrate material and wafer growth technology. The sapphire or silicon carbide substrate is used to epitaxially grow the wide band gap semiconductor gallium nitride. These two materials are very expensive and are foreign large enterprises. The monopoly, while the price of silicon substrates is much cheaper than sapphire and silicon carbide substrates, can make larger substrates, improve the utilization of MOCVD, and improve die yield.

In addition to traditional sapphire, silicon (Si), silicon carbide (SiC) substrate materials, zinc oxide (ZnO) and gallium nitride (GaN) are also the focus of current LED chip research.

Therefore, in order to break through the international patent barriers, Chinese research institutions and LED companies began to study from silicon substrate materials. The chip giants such as Sanan Optoelectronics, Dehao Runda and Tongfang Co., Ltd. also made breakthroughs in production capacity.

China's mainland LED chip companies are still focusing on production capacity, sapphire substrate materials and wafer growth technology. Epitaxial wafers and chips are the upstream core of the LED industry chain. The development of their technologies and products will directly affect the changes in the LED lighting market.

Sapphire, commonly known as corundum, is mainly composed of A12O3, a common simple coordination type oxide crystal. Because of its unique crystal structure, excellent mechanical properties, optical properties and chemical stability, it can be used in high temperature environments of 2000 °C. It is foreseeable that the demand for sapphire materials will increase rapidly in the future.

At present, the main application fields of sapphire materials are LED substrate and optical field, and also become the new darling of the consumer electronics market.

Sapphire as a LED substrate has two main advantages: First, most of the existing industry expertise and production equipment and sapphire production match; Second, sapphire cost low availability, can produce cheap LED products.

According to GGII data, the global market for sapphire materials is forecast to increase from 1.47 billion yuan in 2013 to 14.15 billion yuan in 2018.

Domestic LED chip companies are constantly improving the closed-loop model development of their supply chain systems. In recent years, companies including Sanan Optoelectronics and Huacan Optoelectronics have been arranging sapphire substrate projects for the main raw materials of epitaxial wafers through acquisition and self-construction.

On May 31 this year, Huacan Optoelectronics (Zhejiang) Co., Ltd. project in Suxi, Yiwu started construction, with a total investment of 6 billion yuan. The total land area of ​​the project is 350 mu. The first phase covers an area of ​​140 mu and the construction area is 290,000 square meters. .

The project mainly develops and produces LED epitaxy, chips, and deep processing of sapphire. The products are mainly used in sapphire substrate materials, LED light sources and mobile phone screens, smart wearable devices screens and many other fields.

After the project is completed, it will produce 3 million LED epitaxial chips and 13 million sapphire materials per year. After reaching production in 2021, it is expected to have annual sales income of more than 6 billion yuan and annual profit and tax of more than 1 billion yuan.

“The LED upstream epitaxial chip industry has high requirements for capital and technology, which has become the biggest threshold for entering the industry. In the increasingly fierce market competition in the future, enterprises with scale and technological advantages will gradually open the gap with competitors. Thus becoming the industry leader.” Bian Difei, vice president of Huacan Optoelectronics, said that strong upstream suppliers and downstream customers are also using strategic development vision to select advanced, well-managed, low-cost epitaxial chip manufacturing. As a strategic partner for long-term development.

The LED epitaxy, chip and industrial chain extension projects mainly focus on the construction of an internationally renowned LED industry base. The project implementation will drive the upstream and downstream of the LED industry chain and the agglomeration of supporting enterprises, which will help further expand the company's scale and cost advantages and enhance the company's core competition. Force and industry influence.

Jingan Optoelectronics Co., Ltd. is a wholly-owned subsidiary of Sanan Optoelectronics Co., Ltd., which is mainly engaged in research and development, production and sales of LED sapphire substrates. It is located in the upstream of the optoelectronic industry chain with a total investment of 7 billion yuan.

“The first phase and the second phase of Jing’an Optoelectronics completed an investment of 3.78 billion yuan, achieving an annual production capacity of 1.5 million pieces per month for LED substrate wafers, 1.06 million millimeters per month for long crystal self-made crystal rods, and 400,000 PSS patterned substrate sheets. month". According to the person in charge of Sanan Optoelectronics, in January this year, Jingan Optoelectronics Phase III project was launched, with an investment of 3.266 billion yuan, an annual planned investment of 1.05 billion yuan, and an investment of 740 million yuan.

At present, Jingan Optoelectronics has built 2,000 mu of the entire park, with a total investment of more than 10 billion yuan. It basically forms a photovoltaic industry cluster covering “substrate-chip-package-application”. After fully production, the annual output value is expected to exceed 15 billion yuan.

According to industry analysts, the sapphire industry has a broad future development space, and leading industrial chain companies are expected to gain market capital.


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