In 2011, sapphire substrates sparked a wave of investment. However, the rush led to overcapacity, causing prices to plummet and many companies to struggle. By May 2013, oversupply remained a major issue, with some experts warning that LED sapphire substrates would continue to face surplus for some time. Yet, recently, interest in sapphire substrates has been rising again. What’s behind this sudden revival?
One key factor is Apple's increased use of sapphire. In 2013, the iPhone 5S was one of the first devices to incorporate sapphire twice—first for the camera lens and later for the Home button. This boosted demand and caused a price increase after a period of stability. Industry insiders noted that with the success of Apple's products and growing demand for LED lighting, the sapphire market was under pressure. Previously, low prices had discouraged expansion, but now, both LED and Apple-related demand are competing for limited production capacity.
Additionally, the sapphire used in the iPhone’s Home button requires a more complex process—double polishing and two-sided treatment—which effectively doubles the production requirements. As a result, the cost of sapphire substrates for Apple is significantly higher than standard ones. This has put pressure on manufacturers and contributed to the recent price rise.
Another reason for the recovery is the diversification into non-LED applications. While LEDs remain a major driver, consumer electronics such as smartwatches, touchscreens, and other devices are also consuming sapphire materials. If smartphone screens or camera lenses start using sapphire more widely, it could create massive new demand. Some industry analysts believe this shift could lead to another shortage in the sapphire market.
Moreover, the LED market is expected to enter its golden age in the next few years. Experts predict rapid growth in LED lighting and related applications, which will drive up the need for sapphire substrates. Many manufacturers are already struggling to meet demand, with some reporting shortages and others expanding their capacities. China, in particular, has seen significant growth in its sapphire industry, altering the global competitive landscape.
Lastly, years of intense competition have reduced the number of players in the market. With signs of recovery becoming clearer, and with emerging applications like smartphones and wearable devices increasing demand, the market may soon shift from oversupply to scarcity. If this trend continues, the sapphire substrate industry could be heading toward a new era of growth.
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