Using crackle is a standard process. It depended on the quality of the original boule. If it was a good boule and cored for LED substrates the matrix would be crushed and recycled. If the boule was cracked from thermal stresses it would also be recycled. If the boule was cloudy and had a lot of poly crystalline areas it would probably be scrapped.
The feed stock is not cheap. Alumina for sapphire growth has to be 99.995 % minimum and 99.999% is preferred. It runs several $100 per Kg while alumina for ceramic applications is very cheap by comparison.
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