OK, I’ve read the court papers filed last week by GT Advanced Technologies in a New Hampshire bankruptcy court.
Not much was revealed about where Apple’s chief supplier of sapphire crystal went wrong, except that GT [fortune-stock symbol=”GTAT”] now finds “oppressive and burdensome” the terms of a contract it happily signed less than a year ago.
But Mark Hibben, writing in Seeking Alpha about the GT “debacle,” has a plausible narrative — and a pretty smart take on where Apple has to go from here.
For Hibben it starts with GT’s announcement in May that it was building a new generation of furnaces capable of producing 40% larger sapphire boules.
My working hypothesis,” he writes, “is that GTAT committed to the larger experimental furnaces for the Mesa plant, and this is how they got themselves into trouble. They built the larger furnaces assuming that they would realize production scale economies…
View original post 383 more words