company news about How should lighting companies respond to industry price increases?

How should lighting companies respond to industry price increases?

In the face of the continuous spread of global IC shortage, people may be overly optimistic about the market supply and demand relationship. But in fact, as a few days ago, the CEO of GF, the largest chip foundry in the United States, believes that the lack of core will continue until 2022 or later.

You need to know that the lack of IC only occurred in a certain field in the past, but the current shortage is a normal phenomenon in all walks of life. From an economic perspective, the less the product, the scarcer it will be, and the more valuable the product will cause the price of the item on the market to rise.

At present, the lighting industry is also in this kind of price increase logic. According to relevant statistics, since 2021, many LED lighting chip companies have raised their prices, and some companies have even increased their prices twice or three times. The increase is generally between 10%-40%.

Some industry insiders pointed out that due to the tight capacity of upstream fabs, rising raw material prices, and the recovery of terminal demand beyond expectations, midstream chip manufacturers have to speed up the pace of production adjustments, reduce their own cost pressures, and announce relevant price increases.

On the other hand, many lighting factories in China are also facing the situation that there is no IC chip available. In order not to affect the delivery, many manufacturers have begun to stock a large amount of IC, MOS, MCU and other important components used for led driver of the downlight.
In addition to IC, the prices of raw materials for many lamps, such as aluminum, copper, PC, wires, etc., have risen sharply, further reducing the profits of many manufacturers.