China-based makers of LED materials, including aluminum substrates, copper foil and plastic materials, have hiked quotes by 30-40%, sending China-based LED chip makers raising prices by about 10%. China-based LED packaging service providers will soon follow suit, according to industry sources.
The material suppliers have had to raise prices to reflect rising costs of imports due to depreciation of the Chinese currency and continual hikes in labor cost, the sources said.
Some material makers have also shifted to product lines other than LED to improve profitability. Some copper foil makers have shifted their focus to electric vehicles and lithium batteries and consequently copper foil prices have risen from CNY50,000 (US$7,407)/ton to over CNY80,000/ton due to tight supply, the sources noted.
As a result of LED chip price hikes, China-based LED packaging service providers Foshan Nationstar Optoelectronics, Hongli Zhihui and Shenzhen MTC Optronics will hike quotes by 5-20%, 5-15% and about 10% respectively, the sources indicated.
Taiwan-based LED chip makers have received orders for quick shipments from China-based LED packaging service providers, especially for LED lighting, as the clients look to stock up inventory ahead of further price hikes, the sources noted.
