LED chip prices due to supply in short supply?

From May onwards, some specification chips began to increase prices and were accepted by downstream packaging plants. The industry expects that with the increasing degree of shortage, LED chips are expected to usher in full price increases.

As policies continue to focus on the field of energy conservation and environmental protection, energy saving and emission reduction efforts have been markedly enhanced, people’s awareness of energy saving and environmental protection continues to increase, LED lighting products are becoming more and more affordable, and demand for terminal applications is starting to increase. This year will bring a new wave. LED lighting market growth peak.

The situation of LED chip supply shortage since March of this year is still intensifying. From the demand side, some packaging plants have been forced to switch to second-tier chip factories; from the supply side, the top two MOCVD equipment manufacturers occupy nearly 90% of the market. After the upgrade of the new products, the price of the new models has greatly increased. The chip factory is cautious in expanding production due to cost factors. The industry expects that the supply of chips will be tight or continue until the end of this year.