Since the beginning of this year, the upper, middle and lower reaches of the entire LED industry have been shrouded in a "price hike". Various companies are self-digesting their own methods to increase the cost of materials. The price increase is the last resort. Guoxing Optoelectronics, one of the domestic LED packaging giants, also issued a statement yesterday, "We are forced to increase prices, but we must not delay." And claimed that this price increase is an inevitable choice. On September 1 this year, Guoxing Optoelectronics has made the first price increase decision this year: the company's display device prices have increased by 10%. According to Gaogong LED, products that can increase prices in the LED industry chain have chosen to increase prices, including upstream chips, brackets, lamp beads, wafers, packaging materials, aluminum substrates and other raw materials, although the midstream packaging companies, the demand for raw materials The scale is limited, but the influence is not to be underestimated. According to the relevant person in charge of Guoxing Optoelectronics, “Although we have established strategic partnerships with various suppliers, the prices of raw materials have reached the highest level of the year, and the costs of independent research and development, equipment maintenance and manual manufacturing are also rising. ." In order to ensure product quality, Guoxing Optoelectronics decided: Since December 1, the price of National Star White LED products has increased by 5-20%. Yesterday, Gaogong LED launched a new round of price adjustment letters for various packaging companies (Hongli Zhihui, Smect, Jingke Electronics, Zhaochi Energy Saving Lighting, etc.), Hongli Zhihui also said that the price of products will increase by 5%. -15%. Wang Gaoyang, deputy general manager of Hongli Zhihui, said that the price increase is a necessary condition for the healthy development of the company. After the price increase, we mainly maintain through two paths. First, internal digestion, through Continuously improve the technical level and efficiency of the process to strengthen the output ratio, that is, under the premise of using the same proportion of materials, there are more product outputs that meet the industry standards; second, external assistance." Wang Gaoyang also gave his own explanation on how to protect the company's next order. “It mainly relies on three parts, one guarantees the quality of products; second, the quality control in the material link; 3. The corresponding downstream lighting enterprises Customer group's pursuit of quality." In mid-November of this year, the High-tech Industry Research Institute held the 2017 Industry "New" Opportunity and the 10th Anniversary Thanksgiving Ceremony of the High-tech Industry, and Ruifeng Optoelectronics CTO Xiao Xiaoming talked about the "price increase phenomenon" in the round-table dialogue session. In view of the fact, the products related to chips and brackets are in the price increase. For our LED packaging companies, they do not want to fall in price again, and some of the operating income gaps that may be brought about by price increases can only be digested by internal cost control. But the price increase is undoubtedly the last step that many companies can take. The relevant person in charge of Liyang Co., Ltd. said, "In the near future, we have learned that after the price adjustment of various packaging companies, we agree very much. Now, at this time, everyone is under tremendous pressure. Each company chooses not to adjust the price in order to ensure the vested interests of its customers. But now it has reached a key point. If raw materials continue to rise in price, we will have a price adjustment next month." So, what is the driving factor behind this price increase? We can't help but throw out the puzzle that many veterans who have been in the LED industry for decades have not understood, and wait for the LED people to answer them. Industry insiders admit that in fact, the price increase is not only in the LED industry, other bulk commodities are rising across the board, in terms of packaging materials, the price is raised by 50%. According to informed sources, the price of upstream chips is likely to have a new round of price increases. Whether it is due to the upward adjustment of the US dollar exchange rate or the country's macroeconomic policy regulation, it can be said that the price increase of the basic bulk raw material resources is the most fundamental trigger. All in all, this trend of continuous upward adjustment is inevitable, but the price adjustment should be analyzed in the context of supply-side reform. From the perspective of sustainable development of the entire LED industry, this covers the benign development of the upstream raw material supply chain and the midstream. Packaging companies' independent research and development and continuous improvement of technology and process improvement.
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