Sapphire prices shrink

Picture courtesy of Wikimedia CommonsA perceived lack of demand for LEDs has led to price cuts in the market with increased numbers of suppliers forcing the price of sapphire to fall by 30 percent during the month of September.

Trendforce, which tracks component prices in different industries, said that sapphire manufacturers have reacted to pressure from LED makers by drastically cut prices.

Sapphire substrates are crystallised wafers used to manufacture LEDs and the race is on to create larger wafers for the market to minimise costs and improve performance.

Prices are largely determined by product quality, Trendforce said but intense competition from the many suppliers has forced a price war to please manufacturers of LEDs.

The sapphire wafers are made by slicing ingots and then using them as a substrate.

In general, the industry expects the prices of complete LEDs to continue falling over the next few years.