China-based suppliers of components and materials for LED packaging have recently hiked quotes by 5-10% to reflect increased production cost, prompting local LED packagers to adjust their prices upward, according to industry sources.

As Chinese makers are main suppliers of LED lighting products to the US market, the price hikes are pushing US-based lighting vendors Valmont, Cooper Lighting and Technical Consumer Products (TCP) to increase sales prices by 8-10% beginning January-February 2021.

Chinese LED chips makers' combined production capacity has been expanded by about 20% in 2020 and a large portion of the expansion is attributable to Shenzhen MTC.