Is it logic behind price Increases in the LED packing supplier Industry?

In early May, MLS took the lead in announcing a price increase of 5% to 10% for its entire product line, triggering a wave of price increases in the LED industry from top to bottom.

According to a survey conducted by TrendForce, several LED manufacturers have implemented price hikes primarily focused on lighting LED chips in the upstream sector. Price increases have been the highest among low-power lighting chips with an area of 300 mil² or below, ranging from approximately 3% to 5%. Specialized chips have experienced a price increase of up to 10%.

A total of 17 manufacturers—including package providers such as DSBJ, Ruisheng Optoelectronics, Kinglight and BMTC as well as LED display makers such as Leyard, GLUX, Ledman, BOE Jingxin, and CAI LIANG—have officially announced price increases for LED display products. The price hikes are estimated to be around 5% to 10%.

With players from the upstream, midstream and downstream sectors joining in, a new round of price increases in the industry has been initiated. To determine whether this trend indicates that the LED sector has overcome the lowest point in recent years and is about to enter a new growth cycle, we have to explore the underlying logic behind this wave of LED price increases.

1. Increase in Raw Material Prices and Decrease in Product Prices

2. Sluggish Market Has Put Pressure on LED Suppliers

3. Demand Returns with the Rise of New LED Applications