Demand for LED chips continues to rise as prices for materials rises

Demand for materials used to make LED chips has continued to increase, meaning prices set to rise again in the fourth quarter.

Prices of sapphire ingots have been rising since the early part of this year due to tight supply, and are now set to rise by 40 per cent in the fourth quarter.  This is following a 50 percent jump in the third quarter, according to Taiwanese wire Digitimes.

Suppliers are having to continue to expand capacity at great cost as it is predicted that demand will remain in excess of supply well into 2011.

It is expected that sapphire ingot shipment s will reach 22 million micrometres this year, following 17million mm last year, while shipments are expected to rise again in 2011 to between 35-37million mm.