China's LED industry is experiencing a full‑chain price increase, with dozens of companies across the upstream chip, midstream packaging, and downstream application segments issuing price adjustment notices covering key areas such as LED beads, PCB boards, commercial displays, and lighting products. This round of price adjustments is not a short‑term fluctuation but a structural shift driven by surging raw material costs, prolonged low‑price competition, and policy guidance, signaling the industry’s transition from “price competition” to “value competition.”
The price hikes reflect coordinated movement across the entire supply chain. The packaging segment initiated the move in August 2025, led by companies such as MLS and Jantai Optoelectronics. By December 2025, upstream and downstream players had broadly followed suit, with dozens of firms including Skyworth, Dahua, HKC, and Sanan Optoelectronics adjusting prices, with effective dates concentrated from mid‑December 2025 to January 1, 2026.
Price adjustment ranges vary structurally: packaging and downstream applications are seeing increases of 3%–15%, PCB boards have raised prices by about 10% due to high copper prices, and certain power supply models have increased 8%–15%. The primary driver is sharp rises in raw material costs: since 2025, gold prices have climbed over 70%, silver over 170%, and copper over 36%. These materials account for more than 70% of LED packaging costs, placing severe pressure on manufacturers.
Behind the price hikes lies a signal of the industry’s shift toward higher‑value segments. Over the past four years, LED product average selling prices have fallen 30%–40%, squeezing industry gross margins and pushing many small and medium‑sized firms into losses. Now, emerging segments such as Mini/Micro LED and automotive lighting are taking off, with the Mini/Micro LED segment projected to achieve a 93% CAGR in output value from 2024 to 2029, offering a critical path for companies to break through.
ICgoodFind : The across‑the‑board LED price increases are forcing the industry to transform. Leading companies are steering the market toward value‑driven competition, with high‑value‑added segments becoming the core growth engine for the future.
