LED chip prices cited concerns small businesses cut into hidden dangers

Led hot industry, chip prices also followed continued to rise, the first half rose nearly 30%, some varieties even is around 50%. Dongguan LED enterprises said that this is because the upstream raw material prices and other factors of "trouble", worried about the small scale counterparts from jerry.

Chip prices rose by nearly half

"LED chips on a variety of colors, there are price increases. "Dongguan Xin Light Electronics Limited company manager Min Huachu said slightly impatiently, all over the country have invested in the LED industry, the red and yellow light blue green light LED chip, LED chip prices rose more than 20%, some even as high as 30% kinds of LED chip.

Silver Xin Lighting Co., Ltd. General Manager Li Zehe also have the same distress. He said the company imported LED chips mainly from Taiwan manufacturers, prices rose more than 20%. KingSun deputy general manager Zhu Bingzhong told reporters that the company LED chip is imported from Taiwan, has purchased from mainland chip manufacturers, chip prices are up nearly two or three.

Insiders said that at the end of the first quarter of this year, the global LED chips and epitaxial chips began to rise. Currently some chips have been close to 50%, is expected in the third quarter, prices are still high consolidation. In this unexpected rapid price increases, China's major chip giants ushered in a period of high profit growth.

Raw materials allow LED chip prices

For chip prices, Electronic Information Industry Association Deputy Secretary General Xie Jiping said that there is no statistical data, but prices have heard, he believes that the reason is the relationship between supply and demand, raw material prices, labor costs and other factors.

Fortune electronic deputy general Fan Ningning believe that the price is the most important reason, epitaxial wafer production chip of upstream raw materials required by the production of potassium carbide gas, the global total of more than and 10 enterprises, but many were China in Taiwan and South Korea have some LED giants monopoly, which led directly to gas prices of potassium carbide. As the sapphire substrate, an important raw material for organic metal (MO) gas and other materials also appeared price volume reduction. For example, two inches of sapphire substrate has been from the lowest $8 / piece rose to about $30 / piece, the current rally is still no signs of stagnation.

Despite the rising prices of LED chips and epitaxial wafers, the market is still in short supply. Fan Ningning said that the essence of chip prices or supply and demand imbalance. Overseas LED upstream companies believe that Chinese LED companies will continue to increase, so they do everything possible to control the upstream.

It is understood that, with the influx of a large number of capital, coupled with the development of various industries have developed strategic planning, signs of repeated construction has emerged, the industry fear of overheating trend.

Influence

Small businesses or Jerry

Chip LED core components of the price rise, manufacturers directly benefit, according to industry research firm LEDinside statistics, in the first half of April, Taiwan's overall chip plant revenues of 4 billion 29 million yuan, an increase of more than in March of $12.2%.

Zhu Bingzhong said that, in general, the cost of LED chips accounted for 30% of the total cost, the price impact of product cost is not small. However, he is optimistic that the company's production, sales, can reduce the overall cost.

The silver Xin company's LED multi use low-power chips, low power chips are much lower than the price of high-power chips, Li Zehe said, chip prices have limited impact on the company.

But companies invariably are revealed a concern, Dongguan LED industry some lamps of small scale, weak anti risk ability, with the chip prices, a rise in their costs, is likely to cut corners.