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Sapphire Applications, Touch screens, displays, semiconductor, defense and consumer
Jun.2013

yole sapphire non substrate finished sapphire may 2013
5 990 €

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Description


Yole SapphireApplications 2013Non substrate applications account for 25% of the US$1 billion sapphire industry. But emerging mobile phone applications could bring this total to more than $3 billion by 2018.

Display cover applications could more than triple the size of the industry within the next 5 years

Established applications could generate US$366 million in 2018. But adoption of sapphire for smartphone display covers could generate an additional $1.3 to $2.6 billion depending on the adoption scenario.

Sapphire is currently used in some exotic, luxury phones. However the sapphire price reduction combined with the massive adoption of touch screen in smartphones have stimulated the interest of cell phone OEMS for this material. Crystal growth equipment manufacturer GTAT is leading the charge and recently created a lot of buzz around thisapplication and on the OEM front. Apple is rumored to have conducted an extended due diligence.

Yole Sapphire Adoption scenario for sapphire May 2013
Adoption of sapphire in mobile display covers represents the single largest opportunity discussed in this report. It remains, however, uncertain. We see 4 major challenges: technology, supply chain, cost and market acceptance. Crystal growth and finishing technologies still need to be optimized in order to guarantee stable performance and reduce the price gap with chemically strengthened glass like Corning’s Gorilla. We estimate that the current cost of manufacturing a sapphire display cover is around $22 but could drop to $12 and ultimately below $10. It remains to be seen if the Bill OfMaterial increase vs. the $3 glass display cover will be absorbed by the OEM in exchange for increased market share or if the consumer will value the increased durability brought in by the sapphire cover and accept paying a premium.

It is difficult to predict the success of sapphire in this application. However, we expect that some OEMs will probe the market and introduce some models featuring sapphire by late 2013 - early 2014. Initial customer reaction will have a strong influence on thefuture of the technology. If successful, strong market traction could ease the funding for the more than $1.5 billion in capex needed to serve this industry and set up the supply chain to serve this application.

Yole Sapphire Sapphire display cover May 2013
Glass cover lens manufacturers might seize the opportunity. Because of their vast existing glass finishing capacity that could be converted to process sapphire and their privileged access to leading smartphone OEMs, those companies could beat established sapphire finishing companies into this market. However, another scenario would seecollaborations between some leading sapphire and cover lens makers in order to pool technical knowledge, capacity and customer access under the push of some smartphone OEMs.

In any case, if this opportunity materializes, it will transform the sapphire industry with new players emerging, and overall production capacity increasing by a factor of more than 7x.

Defense semiconductor and other applications represent 25% of the sapphire industry revenue

These applications will bring in revenue of $240 M in 2013 and, excluding the display cover opportunity, will increase at a 9% CAGR to US$366 million in 2018. Watch windows are currently the single largest application with revenue of US$120 million in 2012. Most applications are fairly mature with relatively low growth opportunity with the exception of the emerging mobile device camera lens cover and the aerospace market, driven by the F-35 jet fighter program and the emergence of sapphire based transparent armors.

Yole Sapphire Non substrate finished sapphire May 2013
Most applications have their own “eco-systems” with preferred material vendors, finishing companies, growth technologies and barrier of entrance. The defense market for example is characterized by strong technical barriers in both growth and finishing, combined with export restrictions and national preferences. The semiconductor market is also fairly concentrated with two companies, Saint-Gobain Crystals and Gavish which both hold the bulk of the market due to their technology for growing the large sapphire tubes used in many plasma tools. However, competition is increasing on simpler parts like viewports and lift pins.

Industry transformation could open the door for new applications

Driven by the promise of large volumes for the LED industry, sapphire crystal growth and manufacturing capacity has increased by more than 8x in the last 5 years. In just the last two years, more than 80 companies have announced their intention to enter the industry, bringing the potential number of players to 130+ with more than 50 of these potential new entrants located in China.

Yole Sapphire Sapphire material capacity May 2013
The entrance of aggressive new players with large idle capacity is likely to challenge established players in many applications. We expect those players to initially enter domestic and international markets with low barrier of entrance and later expand their reach as their technology matures.

Excess capacity and increased competition have created a challenging environment for sapphire makers. However, they also drove prices down dramatically and stimulated technology improvements to further reduce cost and improve capability (crystal sizes, shapes …). We expect that ultimately, this will be favorable for the industry: lower price and improved crystal growth and finishing capabilities will open the door to a large gamut of new applications where sapphire has been considered for its performance but never adopted because of its cost.

Table of contents

Acronyms 2
Table of contents 4
Scope of the report 9
Executive summary 10
> Characteristics of major applications
> Revenue and growth potential
> Value chain
> Revenue forecast
> Display covers
> Defense applications
> Semiconductor equipment
> Point of sale
> Watch windows
> Conclusions

Applications overview 27
> Introduction
> Sapphire properties
> Application characteristics
> Parts shape and dimensions:
> Examples

Sapphire growth technologies 36
> Overview & main characteristics
> Kyropoulos
> Czochralski
> HEM
> VHGF
> CHES
> EFG
> Verneuil
> Others
> Summary

Aerospace and defense 52
> Executive summary
> Introduction
> Key players
> Window & dome materials
> Alternative materials
> EOTS & ISR
> Transparent armors
> Missile domes and windows
> Enhanced Vision Systems (EVS)
> Infra-Red Counter Measures (IRCM)
> Other applications 

Semiconductor equipment 120
> Executive summary
> Introduction
> Materials
> Plasma tools
> Plasma generation
> Tube materials in plasma tools
> Sapphire tubes
> Plasma gas abatement
> Lift pins
> Viewports: endpoint detection
> View ports and lift pins: usage and characteristics
> Others sapphire parts
> Summary
> Supply chain
> Market forecast
Point of sale barcode scanners 141
> Executive summary
> Introduction
> Scanner types
> Window cost and lifetime
> Major scanner makers
> window materials
> Sapphire requirements
> Supply chain & key players
> Scanner technology trends
> Hypothesis and forecast

Watch windows 154

> Executive summary
> Introduction
> Watch market segmentation sapphire window adoption
> Main material suppliers
> Growth methods & cost
> Slicing
> Supply chain & key players
> Market forecast
> Note on sapphire for watch
movements 

Mobile devices 169

> Executive summary
> Introduction
> Lens cover for camera phonest
> Mobile device display cover: overview
> Current status
> Touch panels
> Projected capacitive touch panels
> Touch panel supply chain
> Entry points for sapphire
> Cover lens manufacturing
> Impact on sapphire adoption
> Cover lens materials
> Sapphire cover lens: technology status
> Cost simulations
> Smart phone BOM
> The case for sapphire display cover
> Current status & latest rumors: supply side
> Current status, latest rumors: smartphone OEMs
> Adoption scenario: overview
> Step function scenario
> Conclusions on adoption scenario
> Aftermarket screen protectors
> Exfoliation as a potential enabler
> Cover lens applications

Medical, industrial, others 241

> Executive summary
> Medical applications
> Industrial and metrology applications
> Consumer applications

Annex 250

> Geometric yield
> Process yield

Companies Cited

3M
613 Institute of Aviation Industry Corporation of China
AB Saphir
Advanced Energy
Aesir Copenhagen
Airbus
ALPS
AMEC
Apex
Apple
Applied Materials
Applied Sapphire
ARC Energy
ARC Laser
Aries Industries
Armorline
Asahi
ASM
Astronic
Audemars Piguet
Aviation Industry Corporation of China (AVIC)
Axelis
BAE
Battelle
BIEL
BIELCrystal
Blackberry
Blosch
Boeing
Bombardier
BrahMos
Breitling
Cando
Canopy Design Bureau
CAT
China National Precision Machinery Import and Export
Chopard
Cidra Precision Services
Cirrus
CMC Electronis
Comadur
Coorstek
Corning
Crystaland
Crystalwise
Crytur
Daedalus Innovation
DaiIchi
Giken
Dassault Dassault Falcon
Datalogic
Denel Dynamics
Diamonex
Digitech Systems
Djeva
EBEL
ECWEELY
Elbitsystems
Emerging Material Technology
Emerson Process Management
Ensco
Esterline
Everbright Optics
Exotic Electro Optic
Fedex
First Star Panel
Flextronics
Foxconn
Fujitsu
Fukuda Labs
GTech Optoelectronic
Gavish
Girard Perregaux
Gresso
GTAT
G-Tech Optoelectronics
Guild Optical
Gulfstream
Hanns Touch
Hansol
Hitachi
Honeywell
HTC
Huawei
ICDLIG
II-VI Inc
Iljin
Iljindisplay
Impex
Insaco
Integra Life Science
Israel Aerospace Industry
ITT Defense and Information
Jade Zone
Jaeger Le Coultre
Jarvis Optic
J-touch
Jtouch
Jusung Engineering
KBM
Kollsman
Korund
Kurt Lesker Company
Kyocera
LAM Research
Lammbos
LBGK (Laibao Hi Technology)
Lenovo
Lens (one) Technology
Lens Technology
Lexavia
LG
Light Work Optical Systems
Lockheed Martin
Longines
LORD Corporation
Luminous Optical Technology
Master Meter
Mattson Technology
Max Levy Autograph
MBDA
Melfas
Meller Optics
MER Corporation
Metrologic
Meyer Burger
MKS
Mobiado
Monocrystal
Montavon
Moreens
Morgan Advanced Ceramics
Motorola
Motorola Mobility
MPI
Namiki
Naval Research Laboratory
Nippon Electric Glass
Nissha Printing
Nokia
Norinco
Northrop Gruman
Novel Optic
Nudelman
Ocular
Omega
Opto
Panjit
Patek Philippe
Pegatron
Precision Sapphire Technology (PST)
Proware
Pryroda
PSC
PSK
Rafael Defense systems
Rayotek
Raytheon
Rockwell Collins
Rolex
Rotem
RSA
Rubicon
Saab Avitronics
Saifei Sapphire
Saint-Gobain
Samsung
Sapphire Technology
Sapphy
Schott
Seamark International
Sebal
SELEX Galileo
Sevenstar
SFA
Shangcheng
Shenzhen Goodfeel Technology
Shibura
Shinkosha
Silian
S-Mac
SMK
Sony
Spaceand Missile Defense Command
Star Dentech
Stettler Sapphire
Surmet
Suzhou Crystal Element
Swatch Group
Swenc (Hanghao Tech)
Swiss Jewel
Symbol
TAG Heuer
Technology Assessment and Transfer Inc
Tera Xtal
Thales
Thechina & South Optical Crystal
Thermal Technology
Tokyo Electron
Tonino Lamborgini
Touch International
TPK
Truly
Twin Creeks
Tydex
Ulvac
Ulysse Nardin
University of Rochester's Center for Optics Manufacturing
Ural Optical and Mechanical Plant (UOMZ)
Vitalic Industry
Vympel
Wincor Nixdorf
Wintek
Wintek
Xgear
Xingxing Firstar Panel Tech
YAC
Young Fast
YuShun ("Success Electronic")
Zafirro
Zebex
ZTE

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KEY FEATURES OF THE REPORT

  • Detailed analysis of sapphire use in the following applications:
  • Aerospace & defense
  • Semiconductor equipment
  • Watch windows
  • Point of sale
  • Mobile device camera lens cover
  • Mobile devices display covers
  • Volume and revenue forecast through 2018.
  • Incumbent technologies, key drivers, main players, supply chain, revenue forecast.
  • Detailed study of the display cover opportunity with cost, technology, and supply chain status.
  • Brief overview of other medical, industrial, laboratory and consumer applications.
  • Sapphire