Sapphire market back in check
Following the massive material shortage in 2010, sapphire and finished wafer prices remained high through early 2011, according to a Yole Developpement report.
The situation was aggravated as wafer and LED manufacturers, preparing for a massive intake of LED in the LCD TV market, started building up sapphire inventory for fear that supply might remain short.
But a softer than expected LED TV market and an increasing sapphire capacity, coming from established vendors, worked together to rapidly bring supply and demand back into balance this summer. This has triggered a fast drop in wafer prices that have now returned to their pre-shortage levels.
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