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The price increase began to see whether the LED display can be developed benign!
Latest company news about The price increase began to see whether the LED display can be developed benign!



In March of this year, the prices of some products of some packaging manufacturers such as Mulinsen and Jingtai were raised to a certain extent. Then in May, it was reported that LED chip manufacturers such as Jingdian and Sanan had adjusted the price of some chip products.

Since entering August, the LED industry has started a price hike. Starting from the upstream chip, Sanan Optoelectronics, Huacan Optoelectronics and other first-line chip manufacturers have made price adjustments for small-sized chips. Then, domestic packaging faucet Mulinsen and Guoxing Optoelectronics also carried out price of LED packaging devices for some display screens. In the end, this “price hike” naturally spread to the downstream industry. At the end of August, many LED screen companies such as Cisco Ruiguang and Jingcai Optoelectronics also adjusted prices for some products.

The author believes that the current price hikes in the LED industry cannot be stopped for a while.

First of all, the price increase of upstream chip companies is bound to fluctuate throughout the industry chain. As the procurement cost of chips increases, midstream packaging and downstream application companies are bound to bear the cost pressure, so there should be more packaging companies. And downstream application companies participate in the price increase.

Secondly, starting in the second half of the year, the LED industry will gradually enter the peak season of demand, which will drive the demand for LED materials. Last year, there were not many enterprises in the LED industry chain, and the expansion projects of Sanan, Huacan, Mulinsen and other enterprises have not yet been put into production. The increase in demand and production capacity have not really reached synchronization, so the price increase will not be avoided. .

Finally, after the "price war" in 2015, it can be said that most LED products have repeatedly bottomed out, and the vast majority of enterprises are basically making money at a loss. Especially in the chip industry, the finished product price is almost equal to the cost price, and there is no room for price reduction. However, if the enterprise wants to survive, what should we do?

Therefore, looking at the entire industrial chain, the price increase is not a temporary rise, but the demand for the benign development of the industry. However, in response to this price hike, the LED circle has exploded, and there are some people who like it.

Of course, as for the root cause of the price surge, the OFweek Industry Research Center believes that it can be analyzed from three aspects.

First, in the second half of the year, all major companies are rushing to performance, and the performance report for the middle of the year is quite different from the target set at the beginning of the year;

Second, the price hike is related to the adjustment of many international large-scale enterprises. Philips and Osram have successively divested the general lighting business, Philips focused on health lighting and commercial lighting, while OSRAM focused on automotive lighting, industrial lighting and specialty lighting; while GE recently announced its withdrawal from the Asian and Latin American markets, focusing on North America, Europe and Middle East market. The adjustment of the large international LED business has given Chinese LED companies more opportunities.

Third, LED market demand is growing. From the data of LED products export in 2015 (June-June) and 2016 (June-June), the export volume of LED products in the first half of 2016 was higher than that in the same period of 2015, and it is gradually increasing.

In summary, price increases are a choice made by the market. However, the author suggests that the capital of all parties should not be blindly optimistic, so as not to lead the industrial chain to another quagmire.


First of all, from the data point of view, although the LED market demand is growing, but the momentum is not strong enough, this shows that the LED market is in a period of steady growth. If the speed of capital (expansion or LED transformation) exceeds the market growth rate, it will inevitably lead to a new round of overcapacity.

In addition, from the current situation, this stock price increase may also be the practice of LED companies. The price increase may push the LED industry to further reshuffle. The small price increase of the upstream chip may have little impact on the first column enterprise, but some SMEs may be unable to withstand the pressure. But in any case, the price hike has started, the LED industry capacity will be further released, and it will also guide the industry from the past price competition to the quality contest.

Pub Time : 2022-01-22 13:53:04 >> News list
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