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In 2017, LED Chips Will Be In Short Supply
Jul 14, 2017

In 2017, LED chips will be in short supply

The company has issued a price increase notice to raise the price of the s-30mb/s-32bb series of products by 8%, and the first shot of the 2017 LED chip will be fired, the company reported.

Guangfa securities believes that the price increase of SAN 'an is the cause of cost. On the other hand, with the withdrawal of small and medium-sized manufacturers, the industry of LED chips is mainly concentrated in the hands of several large manufacturers, and the position of the seller is stronger.

Experts say that after deep shuffling of the LED industry, supply-side reform is adequate.

From the upstream of LED, the concentration degree accelerates, forming higher industry barriers and strangles the expansion of disordered capacity. At the same time, the downstream applied innovation-driven industrial chain development. From the current situation, LED lighting accelerates penetration, LED lighting intelligently, networked drive small space to show the market acceleration explosion, becoming the main driving force of the new round of LED industry growth.

By the end of 2017, according to guosen securities, leds will have an effective capacity of 83.28 million tablets, with a demand of 92.35 million. Among them, the demand for lighting chips is 4704 million, up 20% year on year. Outdoor full-color screen demand 26.02 million tablets, up 5% year on year; The small spacing in the household is 1.02 million, up 50% from the previous year. The phone's back light demand is 1.39 million pieces, the tablet computer has the back light demand of 410,000 pieces, the computer and the TV back light demand 6.99 million pieces, the automobile lamps and lanterns needs 1.06 million pieces.

Industry insiders believe that LED chip capacity is still below demand. Given the steady growth of demand in 2017, LED chips will be in short supply.