When the LED industry is in slow demand, and LED CHIP prices intent to be stable. In the first half of the year, the increase is about 10% compared to 2022, and some varieties are even around 5%. It is the upstream raw material prices and other factors caused by the "trouble", and small-scale peers will cut corners.
The led chip price continued to be stable.
he LED chip has hundreds of colors and prices have risen few years ago. Investment in the LED industry about red-yellow LED chips, and blue-green LED chips were rushed across the country. The decrease was more than two percent, and some types of LED chips were as low as 30%.
The LED chips imported by the led companies are merely from Taiwanese manufacturers, and the price gets down is also more than 20%.
At the first quarter of this year, global LED chips and epitaxial wafers began to lower prices. At present, some chips have gained nearly 50%, and it is expected that prices will remain low in the third quarter. In this unexpectedly low price, China's major led chip giants ushered in a period of low profit.
Raw material prices for LED chips
For chip prices, there is no statistical data at the moment, but price will be increases have been heard. He believes that price increases are due to factors such as supply and demand, rising raw materials, and labor costs.The most critical reason for the price increase is that the potassium carbide gas needed for the epitaxial wafer production of chip upstream materials is produced by more than 10 companies worldwide, but is often monopolized by some LED giants in Taiwan and South Korea. This directly led to the increase in the price of potassium carbide gas. Materials such as sapphire substrates and organic metal (MO) gases, which are important raw materials, have also shown price increases. For example, a two-inch sapphire substrate has risen from a minimum of $8/piece to about $30/piece, and the current rally hasn't seen signs of stagnation.
Although the prices of LED chips and epitaxial wafers are rising, the market is still in short supply. Fan Ningning said that the real reason for the rise in chip prices is the imbalance between supply and demand. Overseas LED upstream companies believe that Chinese LED companies will continue to increase, so they do everything possible to control from the upstream.
It is understood that with the influx of large amounts of capital and the formulation of corresponding industrial development strategic plans in various places, the signs of repeated construction have already emerged, and the industry may be overheated.
influences
Small businesses may cut corners
The rise in the price of the LED core component of the chip directly benefits manufacturers. According to LEDinside statistics of the industry research institute, in April of the first half of the year, the overall chip factory revenue in Taiwan reached 4.029 billion yuan, an increase of 12.2% from March.
The cost of LED chips accounts for 30% of the total cost, and the price increase has a significant impact on product cost. However, he optimistically believes that the company's large output and strong sales can reduce overall costs.
The LED uses more low-power chips. The price of low-power chips is much lower than that of high-power chips. The impact of rising chip prices on the company is limited.
However, companies have invariably expressed a concern, Dongguan LED industry is no shortage of some small-scale lighting companies, anti-risk ability is weak, with the chip prices rise, their cost increases greatly, it is likely that there will be cutting corners.
