GT Advanced Asks Court for Permission to 'Wind Down' Operations at Sapphire Plant

After filing for Chapter 11 bankruptcy protection earlier this week, Apple sapphire partner GT Advanced has asked for the court's permission to "wind down" operations at its Mesa, Arizona manufacturing plant, reports Re/code and The Wall Street Journal.

GT is said to be filing motions to get expedited hearings to cease certain operations and get out of both contracts and leases connected to those operations.

The facility, which was purchased and outfitted by Apple and run by GT Advanced, has operated for less than a year. Approximately 700 employees are employed at the manufacturing plant, where GT Advanced was rumored to be creating sapphire for use in Apple products like the Apple Watch and the iPhone 6 and 6 Plus.

sapphire_furnaces

Furnaces for sapphire production

Little information about the reasoning behind GT Advanced's bankruptcy filing is available as the company has asked for a non-disclosure in its bankruptcy proceedings. GT is subjected to a confidentiality agreement with an unnamed third party (confirmed to be Apple by a courtroom reference) that has prevented it from disclosing details about the bankruptcy. The company could be fined up to $50 million per violation for breaking the agreements.

GT's bankruptcy filing took both Apple and Wall Street by surprise. Apple has reportedly been working with GT Advanced to help it remain solvent and to help it receive its final $139 million payment, but it is unclear how this latest request will impact the relationship between the two companies.

According to The Wall Street Journal, the deal between GT Advanced and Apple may have crumbled following the former's failure to deliver sapphire iPhone screens for the iPhone 6 and 6 Plus. Apple was widely expected to use sapphire screens in at least some models, but both the iPhone 6 and the iPhone 6 Plus continue to feature Gorilla Glass displays.

GT Advanced will again appear in court on October 15 at a hearing related to its wind-down request. Apple, for its part, has again said that it plans to focus on "preserving jobs" in Arizona and that it will "work with state and local officials" as it considers its next steps.

Popular Stories

Apple Logo Black

Apple Just Made Its Second-Biggest Acquisition Ever After Beats

Thursday January 29, 2026 10:07 am PST by
Apple today confirmed to Reuters that it has acquired Q.ai, an Israeli startup that is working on artificial intelligence technology for audio. Apple paid close to $2 billion for Q.ai, according to sources cited by the Financial Times. That would make this Apple's second-biggest acquisition ever, after it paid $3 billion for the popular headphone and audio brand Beats in 2014. Q.ai has...
Aston Martin CarPlay Ultra Screen

Apple's CarPlay Ultra to Expand to These Vehicle Brands Later This Year

Sunday February 1, 2026 10:08 am PST by
Last year, Apple launched CarPlay Ultra, the long-awaited next-generation version of its CarPlay software system for vehicles. Nearly nine months later, CarPlay Ultra is still limited to Aston Martin's latest luxury vehicles, but that should change fairly soon. In May 2025, Apple said many other vehicle brands planned to offer CarPlay Ultra, including Hyundai, Kia, and Genesis. At the time,...
14 inch MacBook Pro Keyboard

Apple Changes How You Order a Mac

Saturday January 31, 2026 10:51 am PST by
Apple recently updated its online store with a new ordering process for Macs, including the MacBook Air, MacBook Pro, iMac, Mac mini, Mac Studio, and Mac Pro. There used to be a handful of standard configurations available for each Mac, but now you must configure a Mac entirely from scratch on a feature-by-feature basis. In other words, ordering a new Mac now works much like ordering an...
imac video apple feature

Apple Unveils First New Products of 2026

Monday January 26, 2026 1:55 pm PST by
Apple today introduced its first two physical products of 2026: a second-generation AirTag and the Black Unity Connection Braided Solo Loop for the Apple Watch. Read our coverage of each announcement to learn more:Apple Unveils New AirTag With Longer Range, Louder Speaker, and More Apple Introduces New Black Unity Apple Watch BandBoth the new AirTag and the Black Unity Connection Braided...
apple unsold web store

Retail Accessories Apple Won't Sell You Now Available via New Site

Friday January 30, 2026 8:46 am PST by
A newly surfaced resale operation is seemingly offering Apple Store–exclusive display accessories to the public for the first time, potentially giving consumers access to Apple-designed hardware that the company has historically kept confined to its retail environments. Apple designs a range of premium MagSafe charging stands, display trays, and hardware systems exclusively for displays in ...

Top Rated Comments

kas23 Avatar
148 months ago
So it sounds like the bankruptcy is a ploy to get out of their Apple contract.
Score: 30 Votes (Like | Disagree)
goldenboy48 Avatar
148 months ago
There is definitely something fishy going on behind the scenes.
Score: 23 Votes (Like | Disagree)
Apple... Avatar
148 months ago
Did Apple just waste all that money then?
Score: 12 Votes (Like | Disagree)
jayducharme Avatar
148 months ago
Even though there was talk of Apple's experiments with modifying sapphire, I wonder if Apple gradually discovered that the material couldn't provide the durability they expected (i.e.: scratch-proof but too easily shattered). So they postponed its use, which then sent GT into a tailspin.

Even so, Apple sunk so much money into that plant that I find it hard to believe that GT would have to file bankruptcy so soon. There must have been other customers interested in sapphire (unless Apple had an exclusivity on all production). I agree that something's amiss.
Score: 5 Votes (Like | Disagree)
nfable Avatar
148 months ago
Begs for conspiracy theories at this point, so here's mine:

Apple injects GTAT with some cash for new facility & infrastructure and gets on the same page with them about production of Apple's items.

Apple wants to be the only girl on the dance floor, but GTAT has cards in his basket of others they're slated to dance with (contractual obligations with other -potentially Apple competing- companies they must carve of production schedule to).

Apple has them implode in order to not have to pay full market evaluation of GTAT, dissolves supplier contracts with other co's, and sweeps in buying a turn-key operation and GTAT CEO becomes Apple's Chief Crystollogist and rehires key members of GTAT's team under new thrall-ship. Afterall,
Apple, for its part, has again said that it plans to focus on "preserving jobs" in Arizona and that it will "work with state and local officials"
.

Any takers?
Score: 5 Votes (Like | Disagree)
farewelwilliams Avatar
148 months ago
i can hear the power down noise now.
Score: 5 Votes (Like | Disagree)