Since the outbreak of novel coronavirus pneumonia, resuming and resuming production has become a topic of general concern for many LED display companies. Next is whether the price of LED display will rise in 2020.
Recently, in the semiconductor field, three large-scale resistor manufacturers in the world, Guoju, Heshen and wangquan, successively reported that the resistance price has increased by more than 40%. Guoju supply chain pointed out that since March, Guoju has raised the quotation of its multilayer ceramic capacitor (MLCC) and chip resistor (r-chip) by 50% and 70% to 80% respectively. At the supply chain end of LED industry, including electronic components, packaging materials, labor, logistics, etc., there are signs of price rise.
The LED display industry will continue to hear the news of rising LED display prices. From upstream chip plants, midstream packaging plants to downstream applications, major manufacturers have maintained a high degree of market led display price increase. Among the display manufacturers in the industry, they can’t wait to have thousands of miles of eyes, refreshing and keep abreast of the latest news.
The industry has been talking about the price rise of LED display. In recent years, affected by the national supply side reform, the state has vigorously promoted the five tasks of de capacity, de inventory, de leverage, cost reduction and short board, “three clearing, one reduction and one supplement”. Policy, as well as related environmental protection, monetary policy and many other factors. Affected by this, the prices of raw materials have generally risen, and the prices of products in many industries such as hardware, chemical industry and plastics have risen for many times. LED display involves semiconductor, hardware, plastics and other fields, and is extremely sensitive to market price fluctuations.
However, although production costs have been rising again and again, labor costs and other operating costs have also been rising, the price of LED display screen has fallen instead of rising, and the price has continued to fall. We say that led display is an electronic product and follows “Moore’s law”. The price decline of LED display screen is an inevitable trend. However, affected by the epidemic, if raw materials usher in a new round of upsurge and the supply chain of the LED industry is tight, can our LED display price maintain the current level?
In 2019, with the rise of raw material prices and production and operation costs, some enterprises increased the prices of individual products, and most enterprises maintained prices through internal digestion and cost saving to avoid the loss of old customers. “Go against the trend” and made an amazing price reduction.
From the perspective of the whole LED industry chain, the prices of upstream LED chips and midstream LED packaging products have been declining in recent two years. In addition, the capacity continued to pull down downstream demand, and the profit margin was significantly compressed. If there is an “explosive” price rise of raw materials in 2020, LED chip and packaging manufacturers will undoubtedly face greater pressure. Once the price rises, it will be transmitted to downstream applications. Over the past two days, there have been reports of rising display prices in the industry.
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