Blue LED Chip Makers Flirt with HIgher Prices

Paul Lilly

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.

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