Price war raged, nothing more than the "price" to touch the LED industry.

In march this year, wood Tomlinson, crystal part packaging manufacturers such as part of the product price increases in a certain range. Then in May and the news that the crystal LED chip manufacturers, such as electric, three parts of the chip product price adjustments accordingly. Recently, the LED industry news from LED chip prices again.

Companies LED chip price increase

Operators are drying out a WeChat your circle of friends with pricing "xiamen three Ann semiconductor technology co., LTD." letter and letter of declaration: the price of raw material market bottomed out generally, gold (year rose more than 27%), the substrate (a rise of more than 30% in the June), and other materials to rise significantly, at the same time because of the small and medium-sized power products chip size, after process consume a large amount of sorting and testing capacity, unit labor costs rise, and lead to our chip output after fell sharply, is now considering various factors, the company decided to part for small and medium size product price rise 10%, and was started on August 25, 2016.

Despite three photoelectric, Ann HuaCan photoelectric LED chip manufacturers such as part of the product prices are also varying degrees of increase.

HuaCan photoelectric marketing director ShiSongGang told LEDinside editor, company profits for some of the original products of low price adjustments accordingly.

A relevant person in charge of a gleam of chip vendors also said that the company's LED chip prices also increased 5% to 10%.

Another second-line fab relevant responsible person, since this year, the company's part of the LED chip product prices have slightly raised several times.

It is worth mentioning that several LED chip manufacturers the price increase of products including small and medium size chip. "Small and medium size of the chip itself cost is higher, and last year LED chip manufacturer in the field of competition is so fierce, itself is the basis of the price is low, the price is reasonable correction." ShiSongGang said.

The second line, head of the fab analyzes believed that small and medium size chip price raised mainly from two aspects: one is due to the part of the centralized purchasing packaging companies in August in the third quarter with chip, the chip supply tight; Because in the wood Tomlinson expansion has strong contrast, packaging manufacturers such as LED chip manufacturers appear relatively limited capacity, the chip factory will give priority to production scheduling relatively high profits of large size chip, small size chip mainly cooperate with some customers in the production, and limited supply.

"In such a situation, small and medium-sized packaging manufacturers purchase chips will become more and more difficult." However, the head also admitted that "chip makers expansion equipment not so fast, once the input, and overbuilt will reappear, so small and medium size out of stock now is only temporary."

The above line, head of the fab argues that the LED chip price increases on the one hand is due to the rising prices of raw materials, on the other hand is due to encapsulate the market out of stock, chip is in short supply, the chip production capacity can't keep up with packaging production capacity expansion speed. "Is not only small and medium size, the same is true in other types of chip."

Part of the assembly house product price increase

Not just the LED chip factory, wood packaging companies Tomlinson also offer a price. A circulating in the circle of friends with "shenzhen wood Lin Senguang show technology co., LTD." pricing letter shows: due to the change of the market, lead to rising cost of our products according to the actual circumstance of raw material prices, is scheduled for September 1, 2016, to supply your company's display RGB lights, unified price by 5%.

Wood LEDinside editor called Tomlinson executive general manager Lin Jiliang prove this matter, the wood Tomlinson said there are some products were slightly raised, mainly for display lamp bead. "The main reason lies in raw materials prices."

Despite wood Tomlinson, also there are rumors that several other predominantly display packaging some products price also has carried on the rise for the enterprise. The main lighting encapsulation enterprise temporarily did not let out the news of the price.

"Chips, the current supply is still under the same order, as to whether it will rise in price after, now haven't received notice, temporarily didn't hear that rise in price." Hong god Wang Gaoyang hui, deputy general manager said, even if the LED chip price increases slightly, packaging manufacturers also difficult to answer the potential rise in price. "Overall LED package price is in a state of stable."

The same party, deputy general manager of photoelectric pinfu fenhua DE dongtai yanhua guocheng said, the same party main power light source and COB light source, has not informed of the LED chip prices. "LED encapsulation, in general, the price is relatively stable trend."

LEDinside senior analyst wang analysis thinks, small spacing LED display has entered the market growth, the size of the market is rapidly expanding. Downstream demand and encapsulation technology progress space will drive small spacing and chip consumption growing rapidly. Display and backlight packaging products, he argues, will be small spacing display demand, a rise in price will have a certain space, "the lighting package will be facing upstream and downstream extrusion."

Wang also, according to the analysis of LED chips, the package price increase since this year, essentially related to display market hot. Display market demand rapid growth to display packaging with the chip, and the tight supply also spillover to the lighting chip, display and lighting chip difference lies in the extension process is different, but in extension and chip production equipment on all compete on production, good display market, chip makers will turn part to display chip production capacity, which led to lighting chip supply tensions.

"But overall, lighting requirements without significant improvement, lighting chip will rise in price is mainly to the cost of repair, mark-up is not too big, and lighting encapsulation facing upstream materials rise in price, but it is difficult to pass on to the downstream customers cost."

Display demand from several major hot LED display's first-half results of listed companies. Abby's first-half revenue of 509 million yuan, up 11.69% from a year earlier. Net profit of 60.7644 million yuan, up 37.60% from a year earlier. Small spacing display implement written about 233 million yuan, an increase of about 65%, accounting for about 40% of the company in the first half of all display order.

Chau Ming science and technology to achieve revenue during the first half of 672 million yuan, up 7.60% from a year earlier. Net profit of 65.5283 million yuan, up 14.82% from a year earlier. LED small spacing product sales income is 275 million yuan, up 63.98% from a year earlier, the company's total revenue proportion is 40.97%; Orders for 426 million yuan, up 76.78% from a year earlier.

Leah's first-half revenue of 1.732 billion yuan, compared to 188.44%; Net profit of 184 million yuan, up 125.67% from a year earlier. Small spacing LED hd display order to soar, the order has reached 1.1 billion yuan, up 100% from a year ago or more).