The market research organization TrendForce recently released a report that pointed out that as manufacturers such as Apple and Samsung will launch laptops, tablet computers, and TV products fully equipped with Mini LED backlight displays in 2021, the demand for Mini LED chips has increased significantly, making the supply of LED chips tight.

The report pointed out that at present, some LED chip manufacturers have gradually increased chip prices for non-key customers and low-margin products, with an estimated increase of about 5-10%.

TrendForce said that in order to avoid rising raw material prices and shortages caused by tight production capacity, downstream manufacturers have begun to increase stocking. However, the stock of some specifications of products is insufficient, and small and medium-sized customers with a small purchase volume have been increased in price, and big customers with bargaining power need to accept more than 2 months of delivery if they do not accept the price increase.

TrendForce believes that the recent increase in the price of LED chips is mainly due to the explosion of demand for emerging applications and the underestimation of the capacity occupancy of key production links, which is expected to be resolved within half a year.