According to research TrendForce, last year the LED chip market fell due to both volume and price, and the global output value dropped by 23% annually to only US$2.78 billion. This year, with the recovery of LED lighting demand, it is expected to further drive the return of LED chip output value to 2.92 billion. million dollars, an annual increase of 5%.
The survey pointed out that last year, the global demand for LED terminals declined significantly, and the LED lighting, LED display and other markets continued to slump, resulting in a decrease in the utilization rate of the upstream LED chip industry, an oversupply in the market, and a continued decline in prices, which also led to a 23% drop in annual output value. .
However, starting this year, the application of LED commercial lighting has recovered the fastest. From the perspective of the supply side, the LED lighting industry has entered a low period since 2018, causing some small and medium-sized players to withdraw, and other traditional lighting supply chain players also turned to display and other high-margin industries. The development of the market has resulted in reduced supply and low inventory levels.
Therefore, some LED manufacturers have raised prices recently, and the main price increase items are concentrated on lighting LED chips. 5%; Special sizes can increase up to 10%.
According to TrendForce’s survey, current LED supply chain players generally have a strong willingness to raise prices. In addition to the fact that more companies are interested in raising prices, some LED chip manufacturers are fully loaded with orders, and the items to be raised are also expanding to reduce losses. , while actively reducing low-margin orders.
According to TrendForce’s analysis, the main global suppliers of LED lighting chips are concentrated in China. In recent years, as the industry reshuffle has intensified, some international players have been forced to withdraw from the LED lighting chip market. Chinese LED chip manufacturers have also reduced the proportion of lighting chip business, and most of them remain in the market suppliers, its LED lighting chip business has been in a state of loss for a long time.