Recently, Li Bingjie, the chairman of Jingdian, and Zhou Mingjun, the general manager of the company, visited the downstream packaging customers. The industry pointed out that in addition to the number of orders placed by customers in 2011, the two parties also discussed the recent price of epitaxial products. Downstream packaging customers such as Yiguang, Huaxing, and Dongbei are all optimistic about the application of LED backlights in large-size backlights, lighting and tablet computers in 2011. Faced with the pressure of falling prices, the packaging factory is expected to bargain 10 upstream products. ~15%, and even some products bargained to 20%. Taigu also said that the quotation of the sapphire substrate 1Q11 will still maintain the high level of 4Q10. Yuyuan said that the price of the upstream sapphire substrate plant has begun to loosen, and the price of the 2-inch sapphire substrate has dropped from $30 to $35 at the end of Q3 to $25 to $30. At the same time, the price of sapphire substrates continued to rise, which forced the upstream epitaxial plants such as Yuyuan to turn to the sapphire substrate factories in China and Russia. As 2Q11 will face the peak season of LED, LED epitaxial plant is also worried about re-emerging the price of sapphire substrate.
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