Price increase notice



        Recently, the prices of food, home appliances, building materials, consumer electronics, tires and other industries all over the country have seen skyrocketing prices. According to the manufacturer, since September-December this year, upstream suppliers of cartons, plastic parts, glass, hardware, copper parts and other suppliers have continued to increase prices by 10%, 20%, 50%, 100%, and individual products even increased by 500%.  As much.
   Due to the increase in the price of raw materials, the recent supply of LED chips has continued to be tight, and the price of white LED chips has risen closely. Downstream lighting application companies passively increase prices.

Raw material prices rise
        In fact, since the first quarter of this year, the prices of raw materials, including electrolytic copper, glass fiber, and epoxy resin, have risen sharply, especially the explosion in the resin factory in Jiangsu Guodu, which intensified the shortage of epoxy resin. Prices have also jumped, putting further pressure on the cost of copper clad laminates.
   Some insiders analyzed that from the downstream customers of CCL, CCL is a "bulk commodity" of electronics, and the cost ratio in the production process of the electronics industry is relatively low, and downstream manufacturers are not sensitive to prices. In addition, there are certain technical barriers in the copper clad laminate industry, and the industry concentration is relatively high. Downstream customers generally pay more attention to product quality, technical content, and supply stability. Large copper clad laminate manufacturers have high technical barriers and have a relatively strong position in the industry chain. Strong bargaining power.
It is understood that almost all raw materials have risen to varying degrees, including copper, steel, aluminum, acrylic, lamp beads, drivers, packaging, foam, aluminum substrates and other materials necessary for LED lighting, lighting, and electrical products. Significant price increases.
LED white light chip prices rise
   Due to strong downstream demand, the recent supply of LED chips continues to be tight, and the price increase is transmitted from the middle and downstream to the upstream. Upstream chip manufacturers have increased the price of Led chips. According to media reports, HC Semitek adjusted the price of lighting white light chips in November, with an increase of about 6%-8%. After the price increase, the price will be about 80 yuan/piece (2-inch piece). From the perspective of the entire market, the current general lighting white light chip price is between 60 yuan and 85 yuan per piece (2 inch piece), and the price has increased by 10% to 15% compared with the beginning of the year.
According to industry insiders, “the cost of materials is rising, and the cost of human resources is also rising. The price of general lighting white light chips has been hovering near the cost line, and it is difficult to maintain it for a long time.” Some chip factory executives believe that price increases are inevitable. The general trend. The analysis believes that the price increase of white light chips is only part of the recent increase in the price of the industrial chain. Previously, RGB packaged devices, LED display driver ICs and other products have all raised their prices.
     Since November, the prices of some LED lighting chip products in mainland China have begun to rise, with an overall increase of about 10% to 20%. In addition to the short-term imbalance between supply and demand, the price of LED chips for medium and low-end products has risen. One of the reasons is that the early price is too low and the bottoming rebound in the later period is also one of the reasons. In addition, benefiting from the recovery of terminal demand, LED chips for consumer electronics products The price of raw material sapphire substrates also rose simultaneously. However, the overall LED chip market is still in a state of oversupply. Taking into account the recovery of market demand and the completion of the release of new LED chip production capacity, it is estimated that the price of LED chips will temporarily stabilize in the short term, and the profitability of related companies will gradually improve.
Some companies believe that if this wave of low-end lighting white LED prices has the ability to continue for at least a quarter or more, it is not ruled out that there may be opportunities to prompt LED manufacturers to redistribute production capacity, which will drive the supply and demand of backlight LEDs and high-end LEDs to tighten and prices. Increase, but the actual situation needs to be observed for a period of time.

Price increase notice
        In the recent past, the prices of raw materials have soared. Iron sheet, aluminum, copper clad laminate, IC, PC/PS and other materials have risen by about 20%-100%, and they are still rising. Due to the current situation, our company has decided to make timely adjustments based on changes in market raw material prices in the future.