Wearable devices have stolen the show at the Mobile World Congress (MWC) in Barcelona, according to Chinese-language United Evening News. Companies including Samsung, LG, Sony, and Huawei Device have all showcased their wearable designs at the show. Increasing investment from manufacturers is leading to a rise in sapphire material applications. Sapphire material prices began to rise at an average of 5-7% during 1Q14, which stimulated listed company Crystalwise Technology and ACME Electronics Corp. rising stock prices on Feb. 25, 2014. This in turn led to LED stocks strong growth.
Crystalwise mainly incorporates sapphire substrate into lighting applications. Although consumer proportions are still low, the company has already secured brand clients. Their current production capacity is fully open and monthly production is around 80-85 pieces for 2 inch substrate. The company has benefited from increase in LED lighting demands, causing demand to exceed supply. After reaching balance in supply and demand, the market will become a seller’s market. Quoted price this year has already started increasing.
The sapphire ingot produced by ACME belongs to the upper part of the upstream supply chain. The company’s subsidiary USI Optonics Corp., which produces raw sapphire material, is optimistic that the size of material application in consumer products will continue to increase. Sapphire ingot makes up 50 percent of ACME’s operations, and the business is doing well this year, especially with the consumer application market user larger volumes of sapphire material. The company anticipates receiving outsourced purchase orders.