Yole_Sapphire_Market_Report_2010_flyer
SAPPHIRE MARKET 2010
A comprehensive survey of the main market metrics and companies' involvement in sapphire materials for electronic applications
TOTAL SAPPHIRE MARKET FOR SUBSTRATES TO EXCEED $200 IN 2010
S
apphire product is serving mainly 2 applications in the electronics field: gaNbased LED and RF devices, both for mobile phones (Silicon-on-Sapphire "SoS" technology). The sapphire substrate market for electronic applications has reached a market volume of approximately 9 million
wafers (2" equivalent) for LED augmented by some 10's of thousands 6" and 8" wafers for SoS RF applications in 2009. Despite the 2009 economic situation and thanks mostly to LCD LED backlight applications, the c-plan sapphire wafer market grew +4% over 2009 compared to
2008 in the LED segment. On the other hand, r-plan sapphire business for SoS applications has been strongly affected by the recession as the main application markets are related to consumer appliances (mainly mobile phones). As a result, a -55% revenue decline has been observed on the r-plan side.
2" SAPPHIRE PRICE AS LOw AS EvER BUT SHORTAgE RISK COULD gENERATE TURBULENCE
he price pressure on 2" remains critical and our models showed that most of the suppliers are having a very tiny margin on that material and some of them are even losing money in that business. The 2" price level, especially in Taiwan, was extremely low and the psychological $10 threshold has probably been reached. we're forecasting a ~ 5% price increase across the board. However, just like for cores, it will be unevenly distributed through the different diameters, with 2" price to increase up to 40% in 2010 while, on the other hand, we expect 3" and 4" price to remain stable compared to their low of 2009 and actually decrease another 20% compared to their ASP through 2009. Indeed, our Demand-Capacity
Demand in LED+SoS sapphire wafer (Munits x 2" / year)
T
Sapphire material Demand vs. Capacity analysis
Manufacturing Capacity Demand SOS +LED
"Red zone". Shortage situation could occur
S1 2008
S2 208
S1 2009
S2 2009
S1 2010
S2 2010
S1 2011
S2 2011
Figure 1: Evolution of sapphire material demand and capacity
analysis shows a "risk-zone" that should occur during the second half of 2010, where all the planned capacity won't be fully installed, facing a demand in LED that can create
some turbulence. Now, we feel comfortable saying that this stress period should end early in 2011 with the full ramp-up of sapphire producers.
IS 6" SAPPHIRE ECONOMICALLy vIABLE FOR LED? ear 2009 saw the introduction of first industrial tools running 6" diameter for LED manufacture. It is still unclear how 6" sapphire can bring a strong added-value on the LED manufacturing cost as the market price of these substrates stays very high in comparison to $/ sq. inch costs for 2" and 4" wafers. we ran our proprietary Sapphire growth Cost Model tool and found that only Kyropulos and EFg growth techniques could generate a sub $6/sq. inch c-plan wafer cost in 6" diameter, which is again very expensive compared to smaller diameter materials.
Y
Typical cost breakdown for 200k x 2" sapphire W/year by Kyropulos Others 5% Polishing 15% Laping 6% Slicing 17% Growth 52%
Drilling 5%
Figure 2: typical manufacturing cost breakdown of 2" c-plan sapphire wafer
JAPAN CAPTURES ALMOST HALF THE BUSINESS ith more than 44% market share, Japanese sapphire producers are again leading the business in 2009. Kyocera and Namiki are now collecting more than $100M in sapphire revenues for both substrates and non-substrate (Optical applications) products. Shinkosha and Sumitomo Metal Mining are also part of the TOP-12 players. In the US, Rubicon has faced a severe downturn on the r-plan segment as its main client Peregrine has strongly reduced its orders. In Europe, Monocrystal Plc. remains the number one actor.
W
This report provides a complete analysis of the 2 main applications targeted by the sapphire substrates along with key market metrics. It describes the involvement of the major material suppliers and gives a snapshot of the sapphire industry playground. The report presents the $ and unit values on the 2006-2013 time scale for the GaNbased LED and SoS-based RF devices and their equivalence in substrate consumptions and related material market size.
INDEX OF COMPANIES MENTIONED IN THE REPORT: Acme Corporation, Alpha Crystal, Amberwave, Apeks, Arc Energy, Aixtron, Astek, Atlas, Azzurro Semiconductors, Bluglass, Comadur, Ching Mei Crystals, CREE, Crystal Applied Technology, Crystal gmbH, Crystal On, Crystal Q, Crystal Systems, Crystal wise, Cyberstar, Epistone, Exiton, Fujimi, group Iv semiconductor, gavish, Hrand Djevahirdjian, Hitachi ME, Honeywell, Iljin Display, International Rectifier, Impex, Insaco, Interoptec, Juropol, Kyocera, Lattice Semiconductor, Lumileds, Lumilog, MagnaChip, Matsushita, MJ Corporation, Monocrystal PLC, Murata, Namiki, Neomax/Hitachi, N-Crystals, Neomax, Nichia, OKI, OSRAM, Philips Lumileds, Picogiga, Peregrine Semiconductor, Pryroda, Renesas, Rotem Industry, Rostox, RSA LE Rubis, Rubicon Technology, Saifei, Saint-gobain Crystals, Saito, Samsung, San Chi Semiconductor, Sapphicon Semiconductor, Sapphire Technology, S&D Materials, Semileds, Shinkosha, Showa Denko, SilianTech, Siltron / Lg, Sino American Silicon, Sumitomo Chemical TPS, Sumitomo Fine Metal, Sumitomo Metal Mining, Stettler, Sunyin Crystals, Thermal Technology, Teckore, Tera Xtal Technology, Toyoda gosei, valley Design, veeco,wafer works…
TABLE OF CONTENTS
GLoSSARY LATEST NoTEWoRTHY NEWS ExEcuTIvE SuMMARY 2005-2013 SAPPHIRE ToTAL MARKET SIzE IN $M AND MSqIN (LED & SoS) SAPPHIRE SubSTRATE MARKET P9 Sapphire wafer diameter roadmap Time to market SAPPHIRE FoR NITRIDE LEDS P59 Market segmentation LED Market volume as a function of LED type LED Market Revenues as a function of LED type LED regional production capacity 2008 LED market shares LED manufacturers' position on the value chain. LED regional production capacity as of early 2009 From epi capacity to LED capacity Sapphire substrates for LED market price projection split by diameter 2005-2013 Sapphire substrates market for LED in volume, by diameter & related market size 2005-2013 Sapphire substrates market for LED in value, split by diameter Sapphire substrates consumption for LED Regional usage breakdown 2008 and 2009 Conclusion and perspectives SILIcoN-oN-SAPPHIRE P80 Antenna Switch Module (ASM market Latest noteworthy news of SoS industry what we saw, what we missed… Comparison with 2008 edition Comparison of cell-phone antenna switching module (ASM) technologies Antenna Switching Module (ASM) market data and main players Comparison of Si CMOS vs. SoS UltraCMOS architectures Comparison of main specifications of gaAs vs. SoS antenna switches 2005-2013 RF switch technology market breakdown. Main data of the SoS UltraCMOS switch manufacturing process 2005-2013 SoS sapphire substrate ASP 2005-2013 sapphire substrate market size and volume for SoS applications Estimation of 2009 r-plan sapphire wafer orders, split by company Conclusion and Outlook PoSSIbLE oTHER MARKETS FoR P93 SAPPHIRE MATERIAL coMPANY PRoFILES P98-167 Location contact, business model, overview, employees, capacity, application, products, revenues, growth technology ACME Electronics Corporation. Alpha Crystal Technology Corp.: ACTC Advanced System Technology Crystal gmbH CrystalQ Crystal Systems Crystal wise Crystal On Epistone Exiton ILJIN Display Co. Jiaozuo City Crystal Photoelectric Material Co., Ltd . Juropol Kyocera M.J Corporation Monocrystal PLC, Inc. Namiki N-Crystals Precision Sapphire Technologies Rubicon Technology Saito Optical Science Saifei Saint-gobain Crystals San Chih Semiconductor Sapphire Technology Co., Ltd Sino American Silicon Shinkosha Silian Sapphire Corporation Siltron / Lg Sumitomo Metal Fine Technology Tera Xtal Technology wafer works
INTRoDucTIoN Main applications of Sapphire-based devices Sapphire properties Sapphire characteristics by application growth methods for sapphire substrates Typical sapphire polished wafer manufacturing cost breakdown Map of sapphire suppliers location Company business model Overview of the company's products Overview Of Non Electronic Applications Companies Not Involved in the Substrate Business 2009 Total sapphire vendor revenues (Substrate + Others) 2009 sapphire vendor revenues breakdown by region 2009 sapphire for substrates. vendor revenues (split ingots + blanks & epi-ready) 2009 sapphire for substrates. vendor revenues (split by LED vs. SoS) 2009 Epi-ready substrates only geographic breakdown: Supply-chain of the sapphire business Patterned Substrates Opportunities for Equipment Manufacturers Substrate reclaiming Zoom On Korea Zoom on Taiwan Alternative to Sapphire (Si, gaN, ZnO, glass) Sapphire for LED: Diameter Trends CREE and Sapphire Sapphire Shortage: Risk analysis
BIO
Eric vIREY, Ph.D. Eric virey holds a Ph-D in Optoelectronics from the National Polytechnic Institute of grenoble. In the last 12 years, he's held various R&D, engineering, manufacturing and marketing position with Saintgobain. Most recently, he was Market Manager at Saint-gobain Crystals, in charge of Sapphire substrates and materials for optical telecoms.
BIO
Philippe RouSSEL, Ph.D holds a Ph-D in Integrated Electronics Systems from the National Institute of A p p l i e d Sciences (INSA) in LyON. He joined yole Développement in 1998 and is leading the Compound Semiconductors techno-economical market analysis department. He is 39 years old.
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