Increased by more than 30%, three LED driver chip manufacturers announced price increases

Recently, Chitron North, Lipxin, and Fumanwei have successively issued product price adjustment letters. According to the announcement, affected by multiple factors such as rising upstream wafer costs, price increases in the packaging and testing process, and the AI industry's squeeze on production capacity, the three companies have decided to increase the prices of their entire range of LED driver products from now on, with the increase generally being more than 30%.

ChiSotron North: Price increase of 30% for all series of LED products to cope with extreme pressure on the supply chain

On May 6, ChiSotron North announced that due to the intensified fluctuations in the global semiconductor industry chain, wafer raw material prices have increased significantly, packaging and testing costs have also increased simultaneously, and the supply chain cost pressure has far exceeded the company's internal digestion limit. Therefore, in order to ensure the stable operation of the industry chain and maintain the supply foundation of long-term cooperation, the company will uniformly increase the prices of the company's entire series of LED products starting from May 6, 2026, with an increase of more than 30%.

According to data, Chitron North's product line covers all areas of LCD, OLED and LED display, and its LED display driver chips have long been at the forefront of the global market share. In recent years, Chitron North has continued to invest heavily in technology research and development, especially making significant breakthroughs in small-pitch and micro-pitch (Mini/Micro LED) driving technology.

Lipxin: The outbreak of AI industry has squeezed production capacity, and the company has adjusted the price of driver chips

On May 7, Lipxin Microelectronics also issued a contact letter. Lipxin pointed out that the current wafer production capacity of global semiconductor foundries is continuing to tilt towards the artificial intelligence industry, causing the wafer foundry prices and packaging and testing quotations of LED driver chips to continue to rise, and the original pricing system is no longer sustainable.

Therefore, the company announced that starting from May 7, 2026, the prices of all LED driver chip products will be increased by more than 30% on the original basis. The specific quotations will be connected in real time by the sales manager and dealers.

Lipxin Group focuses on analog and digital-analog mixed-signal integrated circuit design. The company has been deeply involved in the fields of LED lighting, commercial displays and power management chips for many years, forming a rich product matrix.

Depu Microelectronics, a brand of the group, has LED display driver chips, LED lighting driver chips, power management chips, MCUs, power devices, battery protection chips, motor control chips and other products. Its application fields cover LED display, LED lighting, household appliances, consumer electronics, new energy inverters and other directions.

Fumanwei: Raw materials and operating costs have increased, and the company has actively responded to gross profit pressure with price increases

On May 7, Fuman Microelectronics announced that due to the continued rise in raw material prices in the LED industry, comprehensive production and operating costs have continued to rise. Original product prices can no longer cover normal production and operating costs. The company has decided to uniformly adjust the prices of the company's full range of LED driver products starting from May 7, 2026. The overall increase rate is also more than 30%.

As a listed domestic integrated circuit design company, Fuman Micro's business covers many fields such as high-performance analog chips, LED control and driver, power management, and MOSFET.

In the field of LED driver chips, Fuman Micro has high brand awareness and market share, and its products are widely used in advertising displays, landscape lighting and other markets. Judging from the financial reports in recent years, Fuman Micro has been committed to increasing gross profit margins through product structure optimization. Facing the pressure of raw material costs, this price increase is a sustainable measure for the company to protect operating profits and ensure R&D investment.

Summary

The price increase of upstream materials has become the main reason for the simultaneous price increases of the three LED driver chip companies.

Looking at the upstream wafer situation, TrendForce Consulting’s latest wafer foundry industry research analysis believes that the global mature process is facing changes in supply and demand patterns, and 8-inch capacity utilization and foundry prices have stopped falling and rebounded.

Since the second half of 2025, TSMC and Samsung Foundry (Samsung Foundry) have reduced their production capacity by 8 inches, plus AI Server / General Purpose Server (General Purpose Server) and Edge The demand for power management and power from AI and other industries continues to grow. The average 8-inch capacity utilization rate of the world's top ten wafer foundries has rebounded to nearly 90% in 2026, a significant improvement from nearly 80% in 2025, and relevant foundries have successfully reported price increases to customers.

Therefore, as wafer foundry and packaging costs rise, LED display driver IC manufacturers increase product prices in order to ensure normal operations.

For the LED display industry, the price increase of LED driver chips will further increase the operating pressure on enterprises.

TrendForce believes that combined with the previous increase in raw material prices such as PCBs and LED lamp beads, the cost of LED displays will increase in 2026 with the same quality. However, from the demand side, the demand for LED display terminals is stable and there is no sign of significant improvement; from the supply side, the production capacity of some industrial chains continues to increase. This will cause the gross profits of various LED display industry chains to be compressed, small and medium-sized enterprises will face greater competitive pressure, and the industry will accelerate reshuffle and increase concentration.