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Sapphire crystal manufacturer insolvent – problem for Apple's watch?

June 01, 2020

The US sapphire crystal manufacturer GT Advanced Technologies announced on Monday that it has filed for bankruptcy protection. It was only in November last year that the company announced a major expansion in sapphire glass production in the United States. Apple – interested in the material for the displays of the upcoming watch and iPhones – granted GT Advanced an advance of $ 578 million for the project. Originally, the money was supposed to be repaid from 2015.

Despite the bankruptcy application, the operation should continue. GT Advanced Technologies now wants to comply with US bankruptcy law (Chapter 11) renovate. The company also has $ 85 million in cash reserves.

Sapphire crystal is particularly scratch and break resistant and is currently used primarily in high-quality wristwatches. Apple is already using it for the iPhone's camera covers. How Apple is dealing with the situation is still unclear. We wouldn't be surprised if Apple were looking for a new, strategic partner in this area in the long term.

Source: Press release 

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