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How LED display manufacturers face chip price increases

June 21, 2021

How do LED display manufacturers face chip price increases, LED display prices increase or decrease! How do Shenzhen’s LED display manufacturers treat it? What is the final result? How does Shenzhen Terence Electronics Co., Ltd. face this problem? Let’s listen to some of Terence’s views on this price increase!

Based on the traditional LED large-screen display technology and products, the share of LED display application products in the industry market is increasing year by year. The development of the LED upstream industry has a significant role in promoting the development of the display application industry. A benign interaction between the upstream and downstream of the LED industry chain has been achieved. New products and new technologies have been promoted and applied rapidly. Based on the development of LED chip materials, driver ICs, control and other technologies, many companies in the industry are engaged in comprehensive LED applications, semiconductor lighting, and lighting projects. A certain technological foundation and production engineering foundation have been formed in other aspects.

LED upstream epitaxy and chip prices have increased for the first time. The world’s top three LED manufacturers, Epistar, have already released information about price increases to leading downstream packaging manufacturers; Chen Jincai, chairman of Guanggal Optoelectronics, confirmed that they have given Seoul Semiconductor Increase the price by 5% to 10%. As LED factories are widely used in TVs, laptops, lighting and other products, it is expected that the prices of terminal products may follow up with price increases.

Due to the shortage of components, the price of electronic products has changed from a fixed price drop in the past to a price increase instead of falling. The price of LED chips used to fall by 20% every year, but this year, the price has risen against the trend. This wave has risen first from the second-tier factories. Including Canyuan, Guanggal, New Century, Taigu, etc., these companies have quietly increased prices when their production capacity is full; Jingdian’s production capacity and revenue are more than four times that of second-tier factories. After the leading factories followed up, The entire industrial chain will bring pressure on prices. LED display products are not immune. More or less will be affected.

Facing the situation of price increase, some companies have begun to change from the foundation and carry out comprehensive technological innovation. my country’s LED display application industry has always had a good foundation in the development of new technologies and new products. To adapt to the changes in the needs of the LED display application market, in 2009, many companies in the industry actively carried out work in product technology development, patents and intellectual property protection, and many new technological achievements were directly used in key projects such as the 60th anniversary celebration of the National Day. got a good result. Some enterprises have undertaken research on relevant scientific and technological projects of national and local governments, and a large number of enterprises in the industry have obtained the qualifications of high-tech enterprises.

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