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The LED industry, which continues to be sluggish, is coming to good news! As the price of raw materials has risen and the price of the product has been oversold for a long time, the leading factory in mainland China Sanan Optoelectronics has notified the client to increase the price of some wafer items by 8%; Taiwan’s Dachang Jingdian reflected the cost last year and also lifted it. High quotation 20-40%, will it rise again this year? It will depend on the supply and demand situation.
Sanan Optoelectronics recently sent a letter of contact for the price increase to the client. The contact letter indicates that the cost will increase rapidly in response to the increase in the price of raw materials. The price of the S-30MB/S-32BB series will be raised from the 10th of this month. The amplitude is 8%.
In the second quarter of last year, in order to reflect the cost and reduce the loss, Jingdian once raised the selling price by 20-40% for different products. The land-based factories such as Sanan Optoelectronics, Huacan Optoelectronics, and Mulinsen also increased their prices in September. As a result, the price has been raised one after another.
As the two series of products raised by Sanan are 1030 products and 1032 products, these two products are mainly used as LEDs of 0.2 watts. The market demand is large, and in the past, the price is particularly fierce. Low, there are not many manufacturers willing to produce, so supply and demand are tight, Sanan had to adjust the price according to the rising cost of materials.
After the election of the new US President Trump, the market expects that the United States will launch a large number of infrastructure, so the global base materials may be a wave of price increases. Since 2016, the prices of raw materials including copper, gold wire, aluminum and PCB have risen several times. In addition, under the influence of the sharp depreciation of the renminbi, the gains have also been pushed up.
As for the Taiwan factory to follow up? Domestic wafer factory, Jingdian, and the new century have no follow-up plans at present. The main reason is that Sanan’s upgraded products are mainly used for general lighting. After a long price war, domestic wafer factories have been transformed in this application. In the new century, the low-end lighting market has been withdrawn from the market in October last year. The crystal power has also adjusted to a considerable extent, and both of them point to the price of Blu-ray chips.
Under the price increase cycle of the overall LED industry, some uncompetitive SMEs will gradually be eliminated, and future orders will gradually be concentrated in major manufacturers. The phenomenon of Evergrande, the LED industry, will become more obvious. .
The legal person said that in 2016, the fundamentals of the LED industry could not drive the stock price, and the index stocks were not improving. The booming stocks usually followed the product quotation. The LED group chips have been frozen for a long time. The low-priced stocks have the opportunity to reflect the quotation. Going up to Lido.
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