Affected by the epidemic, LED chip prices are expected to riseread count [324] release time：2020-04-01 22:31:00

Mainland China's LED chip factory production capacity accounts for nearly 60% of the world's total. Due to the impact of the new coronavirus epidemic, LEDinside pointed out that the supply of chip raw materials such as sapphire substrates may be interrupted. Coupled with the recent shutdown and increase in labor production costs, chip prices are expected to begin to rise after March.

The report points out that the LED industry is still in a state of oversupply in 2019. Therefore, from the perspective of LED chip production, chip manufacturers currently still have last year’s inventory products for sale, which will not cause any impact in the short term.； However, the supply of chip raw materials such as sapphire substrates may be interrupted due to the intensification of the epidemic. Coupled with the shutdown of manufacturers and the increase in labor production costs, chip prices are expected to increase.

The LED industry revealed that for LED chips used in TVs and monitors, if the epidemic continues, the shortage of raw materials and increased labor costs will indeed be reflected in the quotations, but they will still be based on certain specifications, because the supply has exceeded demand in the past few years, and a lot of inventory has accumulated. Therefore, it depends on the mid- to long-term impact of the epidemic on the industry.

Article source - China Semiconductor Lighting Network；