Apple, GT Advanced Technologies And The Boule Graveyard

SeekingAlpha ^ | Nov. 20, 2014 2:33 PM ET | Mark Hibben

[Swordmaker]

• A recent Wall Street Journal report confirms my working hypothesis about what went wrong at GTAT's Mesa Plant.
• The 2000 sapphire furnaces GTAT constructed produced defective sapphire about half the time.
• The high risk inherent in the furnace approach justified Apple's decision not to purchase the furnaces.
• However, questions remain as to why Apple embarked on such a risky venture, and what might be done to salvage it.

A recent report by The Wall Street Journal makes clear that GT Advanced Technologies' Mesa plant was incapable of economically producing sapphire for Apple. The report also makes clear exactly what went wrong: GTAT had committed to an experimental production approach that was a failure from the beginning. Apple's refusal to buy the furnaces outright, labeled "bait-and-switch" by GTAT, was reasonable given the known problems with the approach.

Hypothesis Confirmed

I had written back on October 10 that my working hypothesis about why GTAT couldn't deliver sapphire to Apple was that GTAT had committed to a sapphire production process that was still experimental and ultimately failed. The key change that GTAT made was in the design of the sapphire growth furnaces used to produce 100 kg boules of sapphire. The new furnaces that GTAT built for the Mesa plant would grow 262 kg boules.

According to the WSJ, even as the ink was drying in October 2013 on the GTAT supplier deal, the first boule to be produced using the new furnace design was unusable. Subsequent production at Mesa suffered from a 50% failure rate.

No "Bait-and-Switch"

Not Quite a Settlement

. . .furnaces are(n't) actually worth anything to anyone, since they may not be fixable. The settlement let GTAT off the hook by allowing it to repay Apple out of the proceeds of furnace sales.. . .

[nascarnation]

Have Solyndra buy it and operate as a US Govt operation!

[Swordmaker]

More information on the failure of GT Advanced Technologies attempts at making Sapphire for Apple and what happened — PING!

Apple Don't Get No Sapphire from Us Ping!

If you want on or off the Mac Ping List, Freepmail me.

[Swordmaker]

Here’s more evidence the Court Document dates are wrong about the “Big boy pants” quote. . .

[RitchieAprile]

high brightness LED technology...

[Swordmaker]

high brightness LED technology...

Your point being?

[Vendome]

Smawtass...

LOL

[RitchieAprile]

I have to have a point?

[GeronL]

I want to be able to 3d print my own computers

[Swordmaker]

I want to be able to 3d print my own computers

That's scary. Then, they'd be able to reproduce. Might be able to start evolving, supplant people. . . nope, I don't think I want to be part of giving them sex. . . even if it is asexual reproduction.

[Swordmaker]

I have to have a point?

Well, no. But it might be useful in communications.