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The influence of the LED chip price increases for industry?

- Aug 30, 2016 -

In mid-may, crystal electric announced that part of the chip prices 15%, then three Ann photoelectric, HuaCan has also gradually raise the price of LED optoelectronic. At that time, the LED chip prices will rise, rebound, rebound, and so on all kinds of LED industry became her cause celebre.i idea at that time, the chip prices mean for the industry? Cause what kind of impact?


The cause of the rise in price?

Review what happened, first the wafer photoelectric exclusive distributors in mainland China crystal ingots light electricity pricing contact letter released (shenzhen) co., LTD., has announced plans to gradually increase the price of sold in some series chips, reason is given in the letter the recent various raw materials and labor costs rise, more than the company cost HeSuanJia, in order to remain profitable only so.

Then showed the three Ann photoelectric executives in the south Korean news reports said "since may, in part LED chip prices have risen by 10%", three Ann explanation "market price is affected by the law of supply and demand."

Although both give their prices explain, but for the price of the industry still has a different voice, dry as lighting co., LTD. Director wu fir forest in xiamen, said the rise in price is due to the crystal electric, three Ann through early price war occupied most of market share, has certain discourse, now choose to price in order to improve the enterprise profit, belongs to the strategic adjustment. Xiamen's electronic technology co., LTD sales director also supported clock blooms, he said: "the industry profit is more and more thin, the LED chip's profits have unable to maintain the normal operation of the enterprise, the three Ann, crystal electricity market share accounted for stability, the upstream enterprise does have rise in price."

From this view, others did not follow price increases, mainly because there is no market share of leading enterprises and voice, blindly following price increases will only lose customers.

The LED industry recover?

Price of a news, the industry is a voice advocating the LED industry is bottoming out, will recover soon. Indeed according to relevant data shows that about half of LED lighting listed companies posted in the first half of the forecast, profit year-on-year growth, at least five companies double performance. But it is also in the same period, there was a lighting, the main photoelectric many famous companies such as closed.

, general manager of xiamen qi well technology Zheng Xinhan don't think this year will be better than in previous years, he said: "before a trip to zhongshan where do businesses closed a large lamp, I think this year's market is almost a little than last year." Hong as photoelectric co., LTD., research and development department manager Luo Huaguang agree with this statement, he said: "the whole industry is not very good this year, people put the leds do a very low price, I think now do the LED light is really not as good as the energy-saving lamp high earnings."

Major markets in Europe produces gaoxian electronic technology co., LTD., is now also entered the development period of sluggish encountered bottleneck, produces gaoxian electronic Ma Shijiang general manager said: "this year than in previous years, not so good, under the influence of exchange rate, the European market is sluggish, customers have asked us to ship to slow a bit, waiting for the market better."

Appear such circumstance, the clock blooms as LED lighting polarization conditions provided by shuffling draws to a close, "now is the more big businesses, small, smaller, because for metal, can be split by the quantity of purchasing the chips price gap, but small businesses don't have the strength to accept the price increases in the cost of production." He said. He also said this year was likely to be "cooler".

Markets tend to rational, the price gradually dip

So, the price war is already close to the end?

Luo Huaguang think chip can price shows that the industry will not to get a price war, "now the price of the LED is fast and patch capacitance about, you said what is the point." He said.

Colorful optoelectronic technology co., LTD. Deputy manager jian-fei zheng think now, with LED lights in the electronic market price transparency, has returned to the rational price, price war has also does not have meaning. He said: now the LED's already at the low price, including the use of the chip prices are very transparent, cost price, the overall quality of a calculate all know that competition is nothing more than to save management costs. Now very little price war, unless there is a enterprise want to occupy the market share, regardless of the cost, to do advance by capital. "

Zheng Xinhan argues that the existence of some small workshops make price war will continue for a period of time, he said: "sun yat-sen small workshops production LED lighting quality is very poor, only disturb the market price, unless they all fail, or the future price will continue for some time." Guang Ming source solid-state lighting co., LTD., engineering manager mei-lin wang also agree with this statement, he now thinks the LED lights with good quality companies don't need to rely on price war, do well win the market through a price war.

Mitsuo aurora deputy general manager wang qiang think in two years big reshuffle will be completed, he said: "these two years to bring strength slightly bad business, now LED lighting enterprise so much, but now the labor cost is high, powerful went to automation can only exit without power."

Price of the good or bad?

LED chip prices, means that the rise in the cost of production, increased costs is bound to cause stress to the lamp, but the overall is not pessimistic, jian-fei zheng think price increases on the whole, rising costs, the whole lamp nature can also sell higher.

Zheng Xinhan predicting chip will continue to maintain the trend of rising prices, he said: "chip prices is certainly will continue, it is a good thing for the enterprise, the future of products of production will each have each characteristic, the research of the whole industry development will be promoted."

Wang qiang also agreed to increase is good news for the industry, he said: "what the industry is going up, food and clothing live line to rise, for the electronics industry, can rise in price is definitely a good thing, LED the whole industry needs to change slowly."

Clock blooms are thought to be good news, he said: "the price of terminal products factory has been suppressed, as the upstream chip factory price of finished product factory is no way to actually follow to price increases, the chip purchasing cost high, but the profitability of the whole lamp can't going up, not because you chip prices to sell two cents more, the ultimate compression or terminal products factory profit, for the finished product factory is not necessarily a good thing."

In general, crystal, three Ann photoelectric, HuaCan photoelectric the price for chips by itself strength and market share to make adjustments, which also can be seen that the LED industry price war began to a close, prices tend to rationalization, the industry reshuffle will be done in the past two years, at the same time because of the price war to an industry for many years, the industry hope that calls for a higher price, but the overall situation of 2016 is still not relax.



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