Earlier this week, a securities firm reported that several areas in China will begin raising LED chip prices in May due to recent adjustments to the LED chip market infrastructure in China. The report continued that the supply shortage is anticipated to intensify, which will cause a price hike in all LED chips. LEDinside reporters questioned several Chinese chip and package manufacturers to see if this is truly the case. 

The LED industry has been engulfed in a wave of M&A as it moves into the lighting era. The past few years have been an intense restructuring period for Taiwanese LED chip manufacturers, said Chein Fen-ren, Chairman of FOREPI. The M&A wave has recently hit Chinese LED manufacturers and Chein estimates that within two to three years, Chinese manufacturers will be whittled down from the current 20-30 to only five. 

Recent studies by different research organizations in China show lighting manufacturers’ orders are on the rise as industry moves closer to peak season in March. Chip manufacturers, however, remain indecisive about expanding production. LED chip supply and demand will be more optimistic compared to last year.