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Under the influence of soaring raw material prices and the supply of driver ICs in short supply, the supply chain of the LED video display industry has also become the focus of attention of the industry.
HTJ learned through recent surveys that the driver IC is the tensest supply-demand relationship in the entire LED Video display supply chain. However, the supply of LED chips is relatively tight for some categories, and the supply cycle has been extended. The supply of RGB devices is generally stable, and there are no major problems at present. However, prices across the supply chain have indeed risen to vary degrees.
“The price of display driver ICs of some companies has doubled. It can be said that the money earned in a quarter can exceed the profits of the previous years.” A senior executive responsible for procurement of LED video display manufacturers told HTJ that even if it is like Macroblock The leading manufacturers of driver ICs have also increased their prices by nearly 50%. Taiwan’s foundry production capacity may be tight until the end of the year.
The information obtained by HTJ from other channels in the market also proves this point. According to industry insiders, even some of the scrapped LED video display screens have been recycled and disassembled and their driver ICs have been re-invested in market channels.
The development of the semiconductor industry is cyclical. At present, both upstream and downstream semiconductors are increasing in price, and how much price has been adjusted for LED video display products on the market?
In terms of RGB devices, thanks to the expansion of the production capacity of leading display packaging manufacturers in recent years, the current supply of RGB devices is basically stable, and there is no tension. The price increase is also within an acceptable range.
“The main reason for the increase in the price of RGB devices is the increase in the price of raw materials, which is within the acceptable range of the supply chain procurement link.” HTJ Procurement said that the supply of RGB devices is currently normal and even special models can be ordered at any time.
HTJ’s knowledge from several major RGB packaging companies also shows that the current RGB production capacity is sufficient and there is no serious shortage of goods. “The short-term delivery period of individual models may be extended.”
It shows that there is no shortage of packaging capacity. The reason for the tight supply is that the utilization rate of many companies in the first quarter was not so high, and the second is the panic stocking caused by the price increase of the device. Many LED video display manufacturers have also begun to make channels, which require a large number of channels to distribute goods, which also affects the supply of RGB devices to a certain extent. “
According to HTJ, the overall price of the RGB device market has risen by about 20%-30% compared with the third quarter of last year.
At the same time, the prices of other supporting materials such as boxes and power supplies have also risen in varying degrees.
