Blue LED Chip Price Drop: Reasons and Impacts

The price of blue LED chips has dropped to almost half compared to the price last year, putting a great pressure on many manufacturers. The price of 4-inch wafer (without sorting and binning) has fallen from US$ 22 in 1Q17 to around US$ 15 in 1Q18. As the cost is about US$ 15, the decrease of price could lead to deficit for LED chip makers.

(Image: LEDinside)

LEDinside anticipates that as LED chip price had risen by around five to ten percent in 2017, many LED packaging companies might have overbooked chips in case they would not get the shipment on time. Those overbooked shipments are now in stock so the demands from LED packaging firms diminished in 2018. The tariff war may also be a reason for the price drop, as international OEMs might reduce their order to Chinese chip makers. However, red LED is still in demand, so companies who have RGB LED portfolio would be less influenced by the price drop.

According to the price trend released by LEDinside in July, the demand in the lighting market has been weak. Thus, LED chip makers have cut down the share of lighting business and shifted the capacities to niche markets such as automotive applications and special lighting.

Disclaimers of Warranties
1. The website does not warrant the following:
1.1 The services from the website meets your requirement;
1.2 The accuracy, completeness, or timeliness of the service;
1.3 The accuracy, reliability of conclusions drawn from using the service;
1.4 The accuracy, completeness, or timeliness, or security of any information that you download from the website
2. The services provided by the website is intended for your reference only. The website shall be not be responsible for investment decisions, damages, or other losses resulting from use of the website or the information contained therein<
Proprietary Rights
You may not reproduce, modify, create derivative works from, display, perform, publish, distribute, disseminate, broadcast or circulate to any third party, any materials contained on the services without the express prior written consent of the website or its legal owner.

The recent outbreak of COVID-19 has prompted the large-scale search for practical solutions that can prevent the spread of the deadly virus — from researchers and scientists committed to finding a solution, to the manufacturers and consu... READ MORE

Nichia’s Tunable 757 receives rave reviews from industry leaders, including the coveted LpS Best Sustainability Technology Award. Nichia, the leader in and inventor of the high-brightness LED, announced its game-changing single LES, tuna... READ MORE