LED chip supply is in short supply but price increase is hopeless

Recently, some media reports said that “the recent institutions have conducted research on the LED chip industry, and some of the specifications have begun to raise prices and have been accepted by downstream packaging plants since May. The industry expects that with the increasing shortage, LED chips are expected to usher in a full range of price".

The LEDinside reporter immediately called the relevant LED chip manufacturers and packaging manufacturers to investigate. What is the real situation?

"There is no plan to increase prices." Vice President of China Can Optics Co., Ltd. Bidi Fei told reporters bluntly, currently Huacan Optoelectronics is indeed facing lack of capacity, tight supply and demand situation, but will not increase prices.

Dong Zhijiang, general manager of Wuhan Diyuan also said that the chip will not increase prices. "The possibility of price increases in the future depends on the demand of the terminal. If there is a shortage of supply in the terminal lighting market, upstream LED chips will have room to increase prices."

The heads of several midstream packaging manufacturers also told reporters that they did not receive notifications of price increases from upstream chip suppliers, and that there is no possibility of price increases for LED chips.

The relevant person in charge of Ruifeng Optoelectronics believes that LED chips cannot increase prices. "We are currently using Sanan Optoelectronics' chips, and other manufacturers' chips are also in use, and there is no price increase. At present, the entire LED lighting market is showing a downward trend, and the price of upstream LED chips will also slowly decline in the long run. ."

"Of course, the current state of the chip is in short supply, it will not fall in the short term, but it will not be able to rise." The official told reporters that the current inventory of LED chip manufacturers is indeed small, if the downstream packaging customers did not communicate well in advance, may There will be situations where it is necessary to wait for supply, but the probability of price increases is small. LED chip manufacturers mainly reduce costs through technology upgrades to ensure their gross margins. "Its chip size can be made smaller. For example, it was 10*26 mils before, and it is now 10*23 mils, but the luminous flux is unchanged and the price is unchanged."

"I have not heard of this news." For the chip prices to increase things, the general manager of Hangco Electronics Yan Qianjun said.

“There is no mention of increasing prices.” Gong Wen, general manager of Crystal Optical, is a bit surprised that the current chips used are Sanan Optoelectronics, Huacan Optoelectronics, Shilan Mingxin, and Wuhan Diyuan. There are no other manufacturers. Mentioned that prices will increase.

“In the current market situation, there is little possibility that chip manufacturers will increase prices.” Wang Peng, deputy general manager of Boshi Optoelectronics, analyzed that currently, Boshi Optoelectronics mainly uses Sanan Optoelectronics' chips, and has not received news that prices will increase. .

"Last year, Sanan Optoelectronics also rose a price, but later found that the market share has become smaller, and immediately lowered the price." Peng believes that a single chip maker is less likely to increase prices, unless a number of chip factories "similar Tacitly rise together." "Of course, the chip price increase is not a bad thing for the packaging plant, because if the chip factory collective price increases, then the price of packaged devices will certainly rise."