The LED industry is hot, and the price of chips has continued to rise. The increase in the first half of the year was close to 30%, and some varieties were even around 50%. A number of LED companies in Dongguan said that this is a "trouble" caused by factors such as rising raw material prices, and worried that small-scale peers will cut corners.
Chip price rose nearly half
"There are hundreds of kinds of LED chips in various colors," said Dongguan Huanyuan Electronics Co., Ltd. manager Yu Huachu, who said that the investment in the LED industry, red and yellow LED chips, blue-green LED chip prices It has risen by more than 20%, and some types of LED chips are even as high as 30%.
Li Zehe, general manager of Yinxin Lighting Co., Ltd., also had the same distress. He said that the company's imported LED chips are mainly from Taiwanese manufacturers, and the price increase is also more than 20%. Zhu Bingzhong, deputy general manager of Qinshang Optoelectronics, told reporters that the company's LED chips are imported from Taiwan and purchased from mainland chip manufacturers. The price of chips has increased by nearly 20%.
According to industry insiders, at the end of the first quarter of this year, global LED chips and epitaxial wafers began to increase in price. At present, some chips have increased by nearly 50%, and prices are expected to be consolidating in the third quarter. In this unexpectedly rapid price hike, China's major chip giants have ushered in a period of high profit growth.
Raw materials allow LED chips to rise in price
For the rise in chip prices, Xie Jiping, deputy secretary-general of the Municipal Electronic Information Industry Association, said that there is no statistical data for the time being, but the price increase has been heard. He believes that the price increase is due to supply and demand, raw materials, labor costs and other factors.
Fan Ningning, the deputy general manager of Fudi Electronics, believes that the most important reason for the price increase is that the potassium carbide gas required for the production of epitaxial wafers for the upstream raw materials of the chip is produced by more than 10 companies around the world, but it is mostly monopolized by some LED giants in Taiwan and South Korea. This directly led to an increase in the price of potassium carbonate gas. Materials such as sapphire substrates and organic metal (MO) gases, which are important raw materials, have also increased in price. For example, the two-inch sapphire substrate has risen from a minimum of $8/piece to about $30/piece, and there is still no sign of stagnation.
Despite the rising price of LED chips and epitaxial wafers, the market is still in short supply. Fan Ningning said that the essence of the rise in chip prices is still an imbalance between supply and demand. Overseas LED upstream and 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 capital and the development of corresponding industrial development strategies, the signs of repeated construction have emerged, and the industry is likely to overheat.
influences
Small businesses may cut corners
The price of the LED core component of the chip has risen directly, and the producers have directly benefited. According to the LEDinside industry research institute, in April of the first half of this year, Taiwan’s overall chip factory revenue reached 4.029 billion yuan, an increase of 12.2% compared with March.
Zhu Bingzhong said that in general, the cost of LED chips accounts for 30% of the total cost, and the price increase has a significant impact on product costs. However, he is optimistic that the company's large output and high sales can reduce the overall cost.
While Yinxin's LEDs use low-power chips, the price of low-power chips is much lower than that of high-power chips. Li Zehe said that the impact of rising chip prices has limited impact on the company.
However, enterprises have always expressed a concern. The LED industry in Dongguan has a small number of lighting companies with small scale and weak anti-risk ability. As the price of chips rises, their cost increases greatly, and it is very likely that they will cut corners.
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