LED industry prices again!

Introduction: Price increases are good news for the industry. After the high-profile price increase of Taiwan’s Jingdian, the mainland’s leading LED companies announced price increases. The price of small and medium-sized chips was 10%. Followed by Ms. Linsen, Guoxing Optoelectronics and other RGB lamp beads also have corresponding The price increase has led to the recent rise in the LED sector.

The main factors of LED price increase

The relationship between supply and demand is the key. On the one hand, the market demand for small LED pitches is very strong, and the demand for LED lamp beads per unit area is rapidly increasing. Secondly, the overseas lighting penetration rate is rapidly increasing, and the country bans the import and sale of incandescent lamps of 15W and above on October 1st, 16th. Again, the rise of special LED applications, including red, ultraviolet light, automotive lighting, etc. Finally, the seasonal season of the industry also laid the foundation for the current price increase.

Because of the increase in labor and raw material costs, it is also the most direct incentive for price increases. After the fierce competition in the early stage, the materials reached the bottom of the rebound, including “the substrate was more than 30% higher than in June, gold was more than 27% higher than the beginning of the year”, and the MO source price increased by 10%.

The LED industry has experienced fierce competition in the past few years, and the industry has significantly reduced production capacity. In the first half of the year, the company has also reduced production to boost prices. The improvement in the industry's competitive structure is the cornerstone of price hikes and the industry's leading concentration has increased significantly.