Since the end of 2020, global chip prices have been soaring, and have continued to this day.Why will chip prices continue to rise this year?Mainly because chips are in short supply, the so-called scarcity is more valuable.In other words, there is a lot of demand for chips from related industries that involve chips, but chipmakers can't supply them.So which industries are most affected by the "wave of chip shortages"?According to relevant data: up to 169 industries around the world are affected by the chip shortage, including LED lighting industry.

With the orderly recovery of China's domestic market economy, the demand for electronic chips in LED industry is unprecedentedly strong. However, the increasing epidemic situation overseas and the ceaseless notice of stop-work have LED to the chip shortage becoming more and more severe.

LED lighting industry

Since the end of 2020, there have been many news of short supply of chips in major networks. By the beginning of 2021, the situation of lack of LED lighting chip is becoming more and more serious.

What's causing the chip shortage?

First: the global high-tech electronics industry continues to increase, and the chip demand rebound, including the automotive industry, LED lighting industry, 5G intelligence, LED drive power manufacturers concentrated order to chip supply side has brought great pressure.Lead to IC chip, semiconductor supply is very tight.

Second: The COVID-19 epidemic has accelerated the digital transformation and reduced the capacity of chip processing plants to some extent, resulting in chip supply outstripping demand.2020 outbreak of the new champions league around the world, which leads to the production chain link between is not smooth, many of the normal operation of the company's production and have closed down, causing the IC chip shortage, in order to maintain enough chips to support the supply chain operation, manufacturers have increased the demand forecasting and increase the safety stock, and the agent has already started to increase inventory and improve chip prices.

Third: China-US trade frictions lead to changes and instability in supply chains and market shares, exacerbating the impact between chip supply and demand.The chip shortage has worsened.

How long will the chip shortage last?

TSMC, UMC and other foundries in the first half of the advanced and mature process capacity has been fully booked by customers.Just a few days ago, Malaysia, a major producer of semiconductors, was closed from 5th to 12th to 6th to 7th due to the worsening of the COVID-19 epidemic.In general, the closure of Malaysia, together with the outbreak of the epidemic in India, South Asia and other countries, is bound to have a great impact on the semiconductor industry, and the domestic foundry is also operating at full capacity;Chip industry related people estimated that tight capacity will continue to judge at least until the third quarter of 2021 after.

What is the impact of the chip shortage on the LED power supply industry?

Due to the impact of the market environment, the purchase price of raw materials for LED power supply continues to rise, IC chips and semiconductors are seriously out of stock, and the price rise is more than 40%. At the same time, the increase of non-ferrous metals (aluminum, copper, tin, etc.) is more than 25%-35%. The normal operation of many LED power supply manufacturers is greatly affected.Since the beginning of the year, several batches of product prices have been raised, and the whole industry has basically formed this state: to buy LED drive power, but also to add money.

From April 10th, YSD LED power supply also issued a notice to increase the price of power supply. However, compared with the same industry, our price increase is relatively low. Although affected by the shortage of IC chips, our product quality and service can still be guaranteed, so that customers can order the best quality products with the least money.For the latest prices, please contact Manager （Bran-Wu）    Whatsapp：+86 13632807457  Email：brian@szyswps.com