The Global Market for Sapphire Substrates is Projected to Reach US$1.7 Billion by 2020

Spotlight on Silicon-On-Sapphire as a Disruptive Technology to Drive Growth in the Global Sapphire Substrates Market, According to a New Report by Global Industry Analysts, Inc.

GIA launches comprehensive analysis of industry segments, trends, growth drivers, market share, size and demand forecasts on the global Sapphire Substrates market. The global market for Sapphire Substrates is projected to reach US$1.7 billion by 2020, driven by the emergence of Silicon-On-Sapphire (SOS) as a disruptive semiconductor technology and expanding applications beyond light-emitting diodes (LEDs) production.  

Synthetic Sapphire finds widespread use as an electronic substrate in a wide range of electronic devices. Material properties such as thermal stability, high temperature resistance, low dielectric loss, good electrical insulation, chemical stability, and high strength have played key roles in encouraging the use of sapphire as an insulating substrate in CMOS integrated circuits. The LED industry represents the largest and the most dominant end-user of sapphire substrates. LED manufacturers use sapphire substrates for growing LED crystals. Sapphire (Al2O3) substrates are used in over 95% of blue LEDs produced worldwide. Key benefits offered by sapphire to LEDs include higher quality LED chips, higher brightness and luminesce, longer life, and low energy consumption, among others. A key trend in this end-use market is the migration away from 2’ inch diameter sapphire substrates towards 4 to 6-inch diameter substrates. By the year 2020, 6’ inch diameter substrates are expected to gain immense popularity and will account for a projected share of over 70% of the substrate market. A key production benefit driving the migration is the larger yields offered. A larger diameter wafer provides the “edge effect” allowing more number of chips to be made from each wafer. Strong growth of LEDs in automotive lighting and general lighting will benefit demand for 4”, 6”, and 8” inch wafers.

The coming years are forecast to witness the emergence of non-LED applications to drive growth. One of the most important non-LED applications is the use of sapphire in smartphones, with Apple setting the precedent. Other non-LED applications poised to witness healthy growth include the use of sapphire in ballistic windows, luxury watch covers, and display glass of mobile phones. Another noteworthy emerging application area is silicon-on-sapphire (SOS). R&D investments on silicon on sapphire technology are growing, with semiconductor manufacturers migrating to the Silicon on insulator (SOI) technology. As the most successful form of SOI, SOS chief benefit lies in improving integration and performance of RF circuits. SOS is already disrupting currently dominant technologies in mobile handsets, cellular infrastructure, and broadband consumer devices, among others. Silicon-on-sapphire is forecast to play a vital role in the development of next generation wireless communications devices based on the LTE (Long Term Evolution or 4G) standard. Building MOS transistors on a layer of silicon grown on sapphire substrate has numerous benefits. These include better dielectric isolation, superior thermal performance and compatibility with the popular CMOS processes for constructing electronic circuitry.

In addition to its use in smartphones and Radio Frequency Integrated Circuits (RFICs), sapphire substrates also find applications in the military sector, where synthetic sapphire is used for hardcore protection of missile systems and tanks. Sapphire is used as a transparent ceramic in the windows of fighter aircraft and other tactical vehicles including High Mobility Artillery Rocket System (HIMARS), and Electro-Optical Targeting System (EOTS).

The high cost of sapphire substrates juxtaposed with the growing need to reduce prices of LED bulbs is throwing the focus on reclaiming sapphire substrates from wafer crap generated from LED epitaxial procedures. Developments in reclaiming PSS to therefore expected to drive down production costs in the coming years. Currently under development are thermal dissociation techniques to overcome the disadvantages of the traditional chemical mechanical polishing (CMP) process. Sapphire wafer reclaim is growing into a profitable business, with wafer manufacturers expanding to offer reclaim services. Recycled sapphire wafers offer numerous financial and environmental benefits including reduced energy consumption and energy payback time, lower consumption of raw materials and emission benefits especially against a backdrop of growing concerns over the environmental impact of semiconductor manufacturing activity.

As stated by the new market research report on Sapphire Substrates, China represents the largest as well as the fastest growing market, led by the production capacity expansion efforts of LED chip producers in the country to meet the rising demand for LED lighting.

Major players covered in the report include Crystal Applied Technology Inc., Crystalwise Technology Inc., DK Aztec Co. Ltd., Gavish, Guangdong Saifei Sapphire Technology Co. Ltd., Guizhou Haotian Optoelectronics Technology Co. Ltd., Hansol Technics Co. Ltd., Hua Shun Technology Co. Ltd., Jiangsu Jeshine New MateriaL Co. Ltd., Kyocera Corporation, Monocrystal, Namiki Precision Jewel, NNanjing J-Crystal Photoelectric Technology Co., LTD., Precision Micro-Optics LLC, Procrystal Technology Co. Ltd., Rayotek Scientific Inc., Rubicon Technology Inc., Saint-Gobain Crystals, TDG Holding Co. Ltd., and USI Optronics Corporation, among others.

The research report titled “Sapphire Substrates: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, issues, drivers, mergers, acquisitions and other strategic industry activities of global companies.  The report provides market estimates and projections in US$ Million for all major geographic markets such as the United States, Japan, Europe, China, South Korea, Taiwan and Rest of World. The market is also analyzed by the end-use applications such as LEDs, Mobile Phones, and Others (Sapphire Windows for Defense & Industrial applications, and Sapphire Glass Covers for Watches). 

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