Blue LED Chip Makers Flirt with HIgher Prices
Blue LED Chip Makers Flirt with HIgher Prices
Posted 03/29/2010 at 7:16am
| by Paul Lilly
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Take a survey of all of your electronics, whether in the computer room or your living room, and you'll likely notice a whole bunch of blue LEDs. Now commonplace, the cost of these little lights might soon be going up.
Citing sources within the LED chip market, DigiTimes says manufacturers are thinking about increasing the ASP (average selling prices) by 10 percent. The reason? The recent surge in demand for LED backlighting has put the squeeze on upstream suppliers who are unable to ship materials on schedule.
In addition to higher prices, Lee Biing-jye, chairman of LED chip maker Epistar, says this year's worst shortage of LEDs will come in the second quarter. He didn't offer up any specific numbers, but current supply is already about 30-40 percent short of demand.
The continued shortage might also be a reason why Samsung is considering lowering its shipment goal for LED-backlit TVs.
Image Credit: media.digikey.com
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Keith E. Whisman
March 29, 2010 at 6:07pm
I really don't see why they don't ramp up production if they know they don't have enough to fill demand. It's like they really want a shortage so it will get to a point that they can charge whatever they want for LED's.
And a ten percent increase in LED's? Are all LED manufacturer and suppliers going to increase their prices as well? If they do then I will scream price fixing.
You can't tell me that LED's are so hard to make that only a few companies can make them. This whole thing is starting to sound fishy. I'm sure someone is involved in anti competitive practices.
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