21 Jan 2021 -

Explosive growth in mini LED forces chip price up by 5-10%, says TrendForce

The price of mini LED chips is set to rise by as much as 10% due to explosive demand by Apple and Samsung for their laptops, tablets, and TVs equipped with backlight displays, according to a report by market researchers, TrendForce.

Some LED chip manufacturers have gradually increased chip prices for non-key customers and low-margin products, with an estimated increase of about 5-10%, says the report.

TrendForce said that in order to avoid rising raw material prices and shortages caused by tight production capacity, downstream manufacturers have begun to increase stocking. However, the stock of some specifications of products is insufficient, and small and medium-sized customers with a small purchase volume have been increased in price, and big customers with bargaining power need to accept more than 2 months of delivery if they do not accept the price increase.

TrendForce believes that the recent increase in the price of LED chips is mainly due to the explosion of demand for emerging applications and the underestimation of the capacity occupancy of key production links, which is expected to be resolved within half a year.

To avoid electronics supply-chain disruptions, you may also wish to consult an expert in electronics component supply. With more than three decades of supply-chain expertise, Astute Electronics is ideally placed to work with you on your daily component requirements.

Either through the hundreds of manufacturers we purchase directly from, or the international network of component supply-partners offering full product traceability, Astute Safe-Supply, run by sourcing experts and offers a deeper insight into the global components markets.

With real-time access to the latest listings and prices cultivated through several decades of close supplier partnerships, we are able to spot price disparities and leverage product price variances to deliver cost-effective solutions to customers, whilst ensuring a quality, risk-free supply.

For more help with looking at supply chain options, contact Astute Electronics here

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