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LED chip price increase affects domestic LED color TV

March 01, 2022

"The price of LED chips has risen by at least 10% recently. It is estimated that by the first quarter of next year, the shortage of LED chips will be difficult to alleviate." Gong Weibin, general manager of domestic LED backlight source, Ruifeng Optoelectronics Co., Ltd. said at the Guangzhou Lighting Exhibition LED chip gap is as high as 70%, Ruifeng Optoelectronics now needs about 10 million LED chips, but the actual supply is only about 3 million.


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"LED backlight costs account for 10% to 15% of the total cost of LED TVs." Gong Weibin pointed out. In the context of the shortage of LED chips and the rise in chip prices, is the price of LED TVs rising or not rising this year?


"In early June, Skyworth has just lowered the price of 46-inch LED TV by 1,000 yuan." Zhong Zhifeng, general manager of Skyworth Guangdong Branch, said that although LED chips are rising, it is still difficult to judge the price trend of LED TV in the second half of this year. It is estimated that the price of LED TV will stabilize in the second half of this year. Ruifeng Optoelectronics' LED backlight devices are mainly supplied to domestic color TV manufacturers such as Konka, Skyworth, Hisense and Changhong.


In Gong Weibin's view, since domestic color TV manufacturers such as Samsung and LG have more stable upstream resources, they can also obtain stable LED chip supply under the condition of short-term LED chips. Therefore, in the second half of this year, Samsung and LG are likely to provoke a small price war on LED TVs again. "It is estimated that the price of foreign LED TVs will fall by about 10%."


And some second-tier domestic color TV brands may sacrifice their own gross margin and grab more shares in the LED TV market. Zhou Kun, deputy general manager of Nanjing CLP Panda Home Appliances Co., Ltd. revealed that Nanjing CLP Panda Home Appliances Co., Ltd. is about to launch a LED popularization storm, and is preparing to pull the LED TV below 32 inches into the 2,000 yuan mark.


"Conservatively estimate that the gross profit margin of LED TV is more than 30%. Domestic color TV manufacturers are likely to reduce the gross profit margin of LED TV products to around 20%, and continue to carry out some promotional price reduction activities." A mid-level Guangzhou Gome pointed out that due to the World Cup in South Africa It is being held, and there will be an upcoming Guangzhou Asian Games. Color TV manufacturers will naturally not miss such promotional opportunities.


Tsinghua Tongfang is also a large-scale LED TV brand in China's second-tier brands. "At present, Tsinghua Tongfang has mastered the core advantages of the LED industry chain. In the LED backlight module technology, it has reached the international advanced level." Wang Lianghai, vice president of Tsinghua Tongfang Co., Ltd., said: "With the domestic first-line color TV brands Than, Tsinghua Tongfang does have a shortcoming of brand and marketing.” Tsinghua Tongfang is the deputy general manager of the home appliance headquarters of Sharp Business (China) Co., Ltd. Liu Wei.


In fact, the reason why domestic second-line color TV brands value LED TVs so much is that LED TVs will become the mainstream of color TV market next year. If they do not pre-empt the layout, it is difficult to grab a place in the future market competition.


"With the production capacity of panel manufacturers and the installation and commissioning of new generation MOCVD (LED chip production equipment) equipment, the penetration rate of LED TV will increase from 37% this year to 80% in 2011." Gong Weibin said that next year In the second quarter, the shortage of LED chips will be greatly eased, and the price of LED backlight modules will be more than 30%. "If you calculate the supply of panels, after the first quarter of next year, the price adjustment of LED TVs will be at least There are more than 20%."

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