Ye Guoguang, the marketing and sales director of Guangdong Deli Optoelectronics, said frankly that half of the mainland PSS market is from the processing and production of epitaxial chip manufacturers, and half of them are from sapphire manufacturers in Taiwan, while mainland sapphire manufacturers have missed.
At present, mainland sapphire manufacturers mainly produce flat sapphire substrates, and rarely produce equipment to process PSS. PSS gross margin is high, why mainland sapphire manufacturers turn a blind eye to this market, and Taiwan sapphire manufacturers and LED chip manufacturers are so keen?
There is a big technical risk for mainland sapphire manufacturers to do PSS. If the sapphire manufacturer does not produce high brightness, the manufacturing cost of PSS substrate is higher. According to an industry source, PSS belongs to the semiconductor category, and sapphire belongs to the field of silicon crystal. The technical processes of the two are very different. LED epitaxial chip manufacturers are originally in the semiconductor category, and they also do PSS in the original semiconductor equipment, and the technical difficulty and production cost are relatively small.
At present, domestic chip companies such as Sanan Optoelectronics (600703.SZ) and Dehao Runda (002005.SZ) are already developing and producing PSS, and companies such as Xiangneng Hualei and Huacan Optoelectronics (300323.SZ) are also trial production. .
For the phenomenon that the extension manufacturers do PSS, it is possible for Ye Guoguang to minimize the cost. “The price of a 2-inch per-sheet for a mid- to high-end PSS substrate is around $14, compared to $7 for a plain flat sapphire substrate. If the cost of an existing PSS for an extension manufacturer is only $2 per piece, calculate it compared to outsourcing. Companies can save $4 to $5 in costs."
Ye Guoguang believes that subject to the dual benefits of technology and cost, there will inevitably be more chip makers making PSS in the future. Sapphire manufacturers will take the initiative to abandon this market and seek a way out for their flat sapphire market.
However, in the Taiwan market where the division of labor is clear, the industrial division of labor for companies dealing with PSS is completely different.
"New Industry" has learned that almost all sapphire manufacturers in Taiwan have been vigorously promoting PSS substrates, such as Zhaoyuan, Xinjing Diamond and Ruijie Technology. Taiwanese chip makers have not made PSS, but have purchased PSS on a large scale from sapphire manufacturers. Previously, Jingyuan Optoelectronics disclosed that it has already included two PSS production lines for each of the two sapphire manufacturers, Zhaoyuan and Ruijie.
Benefiting from the continuous growth of PSS demand, the performance of Taiwan Ruijie Technology, which focuses on PSS, has maintained rapid growth. In the first half of 2013, Ruijie Technology achieved a revenue of NT$120 million, a year-on-year increase of 46%.
At present, some sapphire manufacturers in mainland China, such as Yunnan Blue Crystal, are also looking for Ruijie Technology to do PSS OEM.
Mainland sapphire manufacturers seem to be giving up the PSS market.
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