Abstract
Sapphire substrate is a critical raw material of blue/while LED. In 2010, the increasing demand and short of supply leads the price of sapphire substrates surging three times to a record high. However, with the sudden decline of market demand in 2011, sapphire substrate price also falls down quickly. Facing the fluctuate of market and competition, sapphire substrate makers start to search for an aggressive competitive strategy for future survival, meaning a new era of merge & acquisition begins in sapphire substrate industry. This research is focus on sapphire substrate industry and a case study on CWT merger with Sino-Sapphire. CWT, Crystalwise Technology Inc., is the first sapphire substrate maker in Taiwan devoting in this field for over 10 years. Facing the ups and downs in this industry and gradually intensive competition, on April 25th in 2012, CWT announced to merger with Sino-sapphire. New CWT is expected to be the top 1 sapphire substrate maker in global wide in terms of capacity. Through industry and competitive analysis, this research would like to provide insight into below issues. What is the key to success in Sapphire substrate industry? Will CWT’s merger with Sino-Sapphire increase its competitiveness and lead this company to success in long run? What is the best strategy for “New CWT”? Based on analysis result, this research will provide “New CWT” recommendations for strategy making. This research could also be a reference for companies seeking for entry point or long run business strategy in sapphire substrate industry.