News

22 December 2009

 

Sapphire substrate maker Rubicon details capacity expansion plans

Rubicon Technology Inc of Franklin Park, IL, USA, which makes monocrystalline sapphire substrates and products for the LED, RFIC, semiconductor and optical industries, has released additional details about its two-year capacity expansion plan outlined in early November.

The firm says that its existing facilities are nearing maximum capacity, and demand for sapphire substrates — particularly for LED applications — is expected to be strong in the coming years. “We are at the beginning of a long-term growth cycle in the LED industry,” believes president & CEO Raja Parvez. “Demand for LED backlighting for applications such as LED TVs and notebook computers continues to experience considerable growth. In addition, the other current LED applications, such as automotive and signage, should continue to strengthen as the global economy improves, and progress continues to be made in the area of general illumination,” he adds.

Rubicon plans to add a new second-generation crystal growth facility near its existing facilities in Illinois that will nearly double its current crystal growth capacity and will house larger furnaces, providing greater ability to serve the growing demand for large-diameter substrates. Concurrently, the firm will build a facility in Asia to expand post-crystal-growth processing operations, which should reduce manufacturing costs while enhancing revenue-generating capacity through the expansion of large-diameter post-crystal-growth processing capability.

“These expansion initiatives are designed to ensure Rubicon maintains its global leadership in high-quality, large-diameter sapphire substrates and to ensure our pricing remains competitive while maximizing our revenue and margins generated from our existing and new manufacturing facilities,” says Parvez.

Both new facilities are expected to open by the end of 2010, when additional capacity will begin to come on-line. Rubicon estimates that it will take about a further 12 months for all machinery and equipment to be installed and operational. It expects to spend $60–65m over the next two years on the two new facilities.

“We expect both facilities to be fully operational by the end of 2011, and that this new capacity will increase our annual revenue-generating capacity to at least $130m once the facilities are fully operational,” says chief financial officer William Weissman. “This estimate is based on today’s pricing and certain assumptions related to our product mix.”

See related item:

Sapphire substrate maker Rubicon aims to double capacity

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