Bournes smile: the cost control of sapphire is the key to the market growth potential

In recent years, sapphire market has been in a quiet stage, and prices are falling and overcapacity. It is understood that after the recession, the sapphire market seems to have begun to warm up, and it will start to boom again after 2017.

The mention of sapphire will be associated with the 2017 sapphire company, the Bourne sapphire company, which continues to act in the sapphire industry in 2017. During the struggle and shuffling of the sapphire market, what is Bourne's view of the sapphire limited to the industry? How do they survive in a depressed market environment and continue to make technical breakthroughs, and what layout and coping strategies will they have in the future? With curiosity, LED inside editing during the 2017 Shenzhen light exhibition interviewed Bourne dew shareholders laugh, Bourne Optical Co. Ltd. vice president Yan cebi.

Cost control is the key to the development of sapphire

According to Yan fourth, Bourne roshow on display in this exhibition are basically belong to new products. Bourne roshow had been using the kyropoulos method KY method; this year, began to do the crystal ball, imported from the United States of large size sapphire crystal growth furnace, using the method of HEM, namely the heat exchange method. The products are mainly used in watches, new iPhone 8 cameras.

Yan fourth said Bourne roshow beginning in an environment of overcapacity, homegrown performance losses last year, compared with last year, this year the yield has been increasing, products are mainly raw materials, first half revenue of about 150 million yuan, the basic balance of payments. Because the cost is well controlled and has a relatively stable market share, Bourne's performance is now on an inflection point and is expected to be profitable.

On the cost side, up to LEDinside Yan introduced by the editor, Bourne roshow have price advantage in Inner Mongolia base, thanks to the local government subsidy policy. In addition, although the cost of alumina materials is rising, but Bourne Lu laughed before buying a batch of GP alumina raw materials, the price is relatively cheap.

Sapphire is not a complex technology product, and its application will also increase in the future. So a lot of manufacturers have been put into production one after another, but why have they quit or are facing bankruptcy? In this regard, Yan fourth said, this is mainly in the cost control problem, namely the use of electricity and materials, many manufacturers do not understand the sapphire production of electric and material dependent so large, especially in the mainland, electricity cost is quite large, cost control is not down, so it is difficult to obtain profit. Bourne roshow is not the same, on the one hand, thanks to Inner Mongolia's electricity subsidies, the price is relatively cheap; on the other hand is a technical advantage, cost control and improve the technology of a larger relationship, Bourne roshow have their own technical team, product bubble less impurities, high utilization rate, the yield is higher, the cost is reduced, so the cost control is a key problem.

Look for the potential growth potential of the sapphire Market

The overall situation in the sapphire market, Yan fourth said, sapphire is the most difficult time has passed, the market of many small manufacturers are basically semi production and production status, and soon after, they may turn to other industries, or focus on a particular field of sapphire. In 2017, sapphire production has been shrinking, shuffling process is basically over, the overall market demand has increased steadily, but because before capacity put too much, relatively speaking, the growth proportion is relatively small, so now is in a situation of overcapacity. But once some manufacturers withdraw from the market and the capacity is reduced, the growth momentum will be better.

During the downturn of sapphire market, Bourne has been studying sapphire technology, expanding production and building factories and actively layout new fields with his technological superiority and market share.

As a watch glass lens originated in the business enterprise, for the application of sapphire market in the future, Yan fourth said, now more and more wearable products, wearable product all, such as watches, bracelets and so on, are likely to be the replacement of sapphire glass. In the case of cost reduction, it can be realized if the production meets the requirements.

In addition, the handset cover is now starting to use sapphire, such as HTC. Yan fourth said, in addition to electricity advantages, will begin production of alumina and other raw materials after Bourne roshow. If some manufacturers like HTC are interested in the development of sapphire cover, Bourne will laugh at the cost and join hands with such manufacturers to cultivate and match the sapphire cover market.

Refer to the LED sapphire substrate, fourth Yan believes that the sapphire in the field of LED chip use ratio is about 70%, with sapphire substrate accounted for the entire lighting industry is about 30%, the overall trend is: sapphire will gradually to some market share of energy-saving lamps, because energy-saving lamps will gradually be LED lamp replacement. The original sapphire substrate is expensive, but with the market price down, sapphire substrate will gradually squeeze into the market of incandescent lamps and energy-saving lamps, which will be an increment for sapphire.

Yan fourth promising in the field of LED sapphire growth and long-term growth potential of the market, he said, roshow will be the second half began to cut into the LED market, 4 inch, 6 inch LED substrate, the exhibition is a transformation of Bourne roshow, the future will actively layout LED market.