Rubicon Technology (RBCN), the materials provider of monocrystalline sapphire for use in LED’s announced late last week that Peregrine Semiconductor will not take additional shipments of sapphire until further notice due to weakening demand as a result of the global economic slowdown.  The contract called for a $2 million deliver late this year and another $5 million in the first half of 09, so for a company that does less than $40 in sales in a year, this is a significant setback for Rubicon.

Rubicon CEO said, “.. this will affect our production planning for the rest of this fiscal year and into next year.”

The stock tumbled another 20% on Friday and is now trading below $5.. it’s been a steady ride down from the peak around 35 in late March and the selling isn’t showing any signs of abating.