GT Advanced Technologies Officially Announces Sapphire Settlement With Apple

gt_sapphire_furnaceEarlier this week, it was revealed that Apple and its sapphire supplier GT Advanced Technologies had reached an agreement to effectively dissolve their partnership and allow GT to shut down operations at the Apple-owned sapphire production plant in Mesa, Arizona. Under the deal, GT will seek to sell off the over 2,000 sapphire furnaces currently installed at the facility, with the majority of the proceeds from those sales going to Apple to help repay $439 million in loans Apple made to help the operation get underway.

GT has now officially announced the deal and published the full agreement, redacting only the amounts Apple will be paid per furnace sold.

Under the terms of the settlement agreement, which is subject to approval by the Bankruptcy Court, GT will be released from all exclusivity obligations under its various agreements with Apple. GT will retain ownership of all production, ancillary and inventory assets located in Mesa and Apple is provided with a mechanism for recovering its $439 million pre-payment made to GT over a period of up to four years without interest, solely from a portion of the proceeds from ASF® [Advanced Sapphire Furnace] sales. The agreement provides for a mutual release of any and all claims by both parties. As a result of the agreed upon terms, GT retains control of its intellectual property and will be able to sell its sapphire growth and fabrication technology, including ASF and Hyperion™, without restrictions.

While the two companies are severing their production agreement, they will remain in contact as GT continues its research work focused on producing larger sapphire boules of over 165 kilograms. The two companies will meet at least quarterly to discuss GT's progress on that front, with potential collaboration still possible if both sides agree to move forward.

GT filed for bankruptcy earlier this month as it became clear the company was spending over a million dollars per day to run the operation even as it was apparently unable to produce sapphire of the quality required by Apple. GT's troubles began as early as February as it was late in meeting milestones to qualify for Apple loan payments. Apple's continued withholding of the final $139 million payment may ultimately have resulted in GT deciding to pull the plug on the operation, even as Apple reportedly continued to try to help overcome GT's technical problems.

GT is looking to wind down its sapphire production operation by the end of the year, wrapping up sapphire boule production currently underway and decommissioning the furnaces to prepare them for storage and resale. Roughly 650 employees at the Arizona plant have already been laid off, and the company will continue to lay off additional employees across its locations as it brings the production partnership with Apple to an end.

(Image: GT's Advanced Sapphire Furnace)

Top Rated Comments

stevers Avatar
81 months ago
And that's what happens when you scroll to the bottom and click Accept without reading an agreement.
Score: 22 Votes (Like | Disagree)
Kissaragi Avatar
81 months ago
Maybe they can pay in gems?
Score: 9 Votes (Like | Disagree)
azentropy Avatar
81 months ago

Why is it so baffling? When you make investments, they don't always pan out. You do what you can to recoup as much as possible and then you move on.


Exactly. Apple has had internal projects that have failed as well were they have invested millions in R&D for something that didn't produce the desired results. This one just happened to involve a third party and be more public.
Score: 7 Votes (Like | Disagree)
bpcookson Avatar
81 months ago

This is completely baffling.

Apple gives that company half a billion dollars, gets nothing out of the partnership, and now both parties just walk away?

I hope a few years from now we'll find out what really happened there.


Why is it so baffling? When you make investments, they don't always pan out. You do what you can to recoup as much as possible and then you move on.

What more do you expect to learn? I doubt there is much of interest left to be discussed at this point.
Score: 7 Votes (Like | Disagree)
foobarbaz Avatar
81 months ago
This is completely baffling.

Apple gives that company half a billion dollars, gets nothing out of the partnership, and now both parties just walk away?

I hope a few years from now we'll find out what really happened there.
Score: 5 Votes (Like | Disagree)
Iconoclysm Avatar
81 months ago

$1M per day - sheesh


That is an absurd amount of money for a company producing virtually nothing. I'm still thinking back to that sales guy GT let go around April 2014 who claimed on his resume that he sold the sapphire idea to Apple. I'm guessing that's part of why he was let go, also guessing that he might want to remove that from his resume.
Score: 5 Votes (Like | Disagree)

Top Stories

cook cbs this morning

CBS This Morning: Apple to Make 'Big Announcement' Tomorrow Morning

Tuesday January 12, 2021 8:46 am PST by
CBS This Morning today shared a short clip of an upcoming interview with Apple CEO Tim Cook in which addressing last week's events at the U.S. Capitol, with Cook saying "it's key that people be held accountable for it." Following the clip, Gayle King of CBS noted that the interview with Cook was not specifically arranged to address the current controversy over Parler and other repercussions, ...
ipad pro 2021 mysmartprice cad

Allegedly Leaked 2021 iPad Pro CAD Images Suggest Few Design Changes

Tuesday January 12, 2021 3:38 am PST by
Tech blogs 91mobile and MySmartPrice on Tuesday posted a series of allegedly leaked factory CAD images of Apple's upcoming fifth-generation 11-inch iPad Pro. Rumors suggest Apple plans to announce two new iPad Pro models in both 11-inch and 12.9-inch versions, and today's images offer perhaps the clearest indication yet that Apple's next-generation iPad Pros will have minimal, if any,...
prototype iphone 12 pro

Prototype iPhone 12 Pro Shown Off in Photos

Wednesday January 13, 2021 3:39 pm PST by
Developer Giulio Zompetti, who often shows off prototype versions of Apple devices, today highlighted a prototype version of the iPhone 12 Pro. The iPhone 12 Pro is running an operating system called SwitchBoard, a nonUI version of the iOS 14 update that Apple uses internally. We've seen SwitchBoard on prototype devices before, as Apple uses it to test new features. Zompetti's prototype...
find my app safari post

Safari Allows Users to Enable Hidden 'Items' Tab in 'Find My' App Ahead of AirTags Launch

Wednesday January 13, 2021 5:45 am PST by
As seen in screenshots obtained by MacRumors in 2019, Apple's long-rumored AirTags items trackers are expected to be managed through the Find My app on iPhone, iPad, and Mac. Now, any user can get an early look at this tab. MacRumors reader David Chu today alerted us that the hidden "Items" tab in the Find My app can be enabled on an iPhone or iPad by typing in the link findmy://items in...
iphone x camera close

iOS 14.4 Will Introduce Warning on iPhones With Non-Genuine Cameras

Thursday January 14, 2021 8:07 am PST by
In the second beta of iOS 14.4 seeded to developers and public testers this week, MacRumors contributor Steve Moser has discovered code indicating that Apple will be introducing a new warning on iPhones that have had their camera repaired or replaced with aftermarket components rather than genuine Apple components. "Unable to verify this iPhone has a genuine Apple camera," the message will...
mac anti reflective coating issue

Apple's Anti-Reflective Coating Repair Program Still in Effect for Some MacBooks With New Mail-In Policy

Tuesday January 12, 2021 10:07 am PST by
In an internal memo obtained by MacRumors, Apple recently informed its network of Apple Authorized Service Providers that mail-in repair is now required for Mac notebooks with anti-reflective coating issues in the United States. The new policy went into effect January 4, 2021 and means that customers who take an eligible 12-inch MacBook or MacBook Pro exhibiting this issue to an Apple...
pioneer carplay wc5700nex

The Best Apple-Related Accessories at CES 2021

Wednesday January 13, 2021 1:16 pm PST by
CES 2021 is taking place digitally this year, and it hasn't been as exciting as in past years because many vendors have opted out. That said, some companies are still showing off some interesting Apple-related accessories that are coming out this year and that will be of interest to Mac, iPad, and iPhone users. Subscribe to the MacRumors YouTube channel for more videos. Pioneer Wireless...
Hue module dimmer switch

Philips Hue Announces New Wall Switch Module, Dimmer Switch, and Outdoor Light Bar

Thursday January 14, 2021 3:11 am PST by
Philips Hue has announced a new wireless dimmer switch module that lets Hue bridge owners directly control the smart lighting from their standard wall switches. The new Philips Hue wall switch module is the ideal addition to any Philips Hue set up. Installed behind existing light switches, it allows users to turn their existing switch into a smart switch and ensures their smart lighting is...
whatsapp wallpapers 1

WhatsApp Affirms User Privacy Following Backlash Over Data Sharing With Facebook

Tuesday January 12, 2021 6:39 am PST by
Following backlash after changing its terms and privacy policy to consolidate a significant amount of data sharing with Facebook, WhatsApp is now assuring users about the privacy measures built into its app. Last week, WhatsApp began informing users of updates to the app's terms of service and privacy policy. The updated agreements, which users must consent to in order to continue using...
apple racial equity justice initiative propel center render 01132021

Apple Launches New Nationwide Racial Equity and Justice Initiative Projects

Wednesday January 13, 2021 4:08 am PST by
Apple today announced a set of new projects as part of its $100 million Racial Equity and Justice Initiative (REJI) to help dismantle systemic barriers to opportunity and combat injustices faced by communities of color. Rendering of the Propel Center The projects include the Propel Center, a global innovation and learning hub for Historically Black Colleges and Universities (HBCUs), an Apple ...