Raw material costs continue to rise, and at the start of 2026, numerous LED companies have collectively raised their prices.

Reporter Yuan Weibin, Shenzhen Business Daily·DuChuang Client

In early March, the LED industry chain entered a new round of price adjustments. On March 1, Songsheng Co., Ltd. announced that, due to the continued rise in global prices of various raw materials—particularly commodities—the company has decided to implement appropriate price increases of 5% to 15% across its entire range of LED power products, effective March 16, 2026.

The reporter noted that, according to incomplete statistics from industry organizations, more than 20 LED‑related companies—including those in the chip, packaging, display‑panel, and finished‑lighting sectors—have already announced price hikes. In early February this year, Leyard issued a “Product Price Adjustment Notice,” announcing that, effective February 10, 2026, it would raise prices on most of its LED display products by 3% to 15%.

The notice states that, in light of upstream market conditions, raw material precious metals… (For example, gold, copper, and silver) have seen sustained price increases, directly driving up the cost of core raw materials for LED displays, including LED beads and PCBs. , IC etc.) costs have risen sharply. In the face of the ongoing, substantial surge in upstream raw material prices, Leyard has already maximized internal cost‑containment through measures such as upgrading internal manufacturing processes and optimizing supply‑chain coordination. Nevertheless, to ensure the company’s sound operations and sustainable development, and to continue delivering compliant, high‑quality, premium products and services to our customers, the company has decided to implement this price adjustment.

On February 27, Unilumin Technology announced via its official WeChat account, “Unilumin Lighting,” that, driven by the recent sustained surge in bulk raw material prices and resulting significant market volatility, the company has decided to implement a moderate price adjustment—ranging from 5% to 15%—on select outdoor lighting products, effective April 1, in order to ensure product quality and stable supply.

To minimize the impact of the price adjustment on partners’ business strategies, Unilumin Technology has outlined two safeguard measures in its notice: First, order‑delivery assurance—orders placed on or before March 31, 2026, that remain undelivered will be fulfilled at the pre‑adjustment pricing, regardless of the originally agreed delivery date. The company will fully coordinate production resources to ensure timely and complete fulfillment of all such orders. Second, a commitment to value and service enhancement—by continuously increasing investment in R&D innovation, production quality control, and customer service, the company aims to protect long-term interests and achieve mutual benefit and win‑win outcomes.

Meanwhile, during its February investor relations event, Unilumin Technology explicitly stated that the company has established a systematic response mechanism, including strong bargaining power with upstream suppliers, having completed strategic stockpiling of key raw materials ahead of schedule last year, and actively expanding the market for high-value-added new products such as Mini/MicroLED. , LED+AI As the share of cutting-edge display business steadily increases, it effectively offsets the impact of rising raw-material costs from a profitability perspective.

In addition, starting March 1, 2026, Inventronics will adjust its product lines most heavily impacted by cost pressures, implementing moderate price increases averaging approximately 5% to 15%. Meanwhile, beginning April 1, 2026, Huapu Yongming will uniformly revise the prices of its entire product range, with increases ranging from 5% to 10%.

Tracing the root cause of this round of price hikes, the core issue lies in the sustained surge in raw material costs. Cost pressures have gradually propagated from the upstream segments of the industrial chain to downstream sectors, ultimately forcing end‑product companies to initiate price adjustments. According to a research report released by Guotai Haitong Securities on March 1, geopolitical disruptions have led to a steady rise in precious metal prices. The U.S.–Iran conflict has introduced further uncertainty at the geopolitical level, driving expectations of continued upward pressure on precious metal prices. Meanwhile, data indicate that SHFE copper… Copper rose 3.53% to RMB 103,920 per tonne, while LME copper gained 2.93% to USD 13,343.5 per tonne. The research report notes that sectors such as AI investment, grid infrastructure development, and robotics are likely to boost demand, underscoring copper’s status as a strategic resource, while stockpiling activity is also expected to provide upward support for prices.

Industry insiders believe that, while this round of price hikes appears to be a passive response by LED manufacturers to rising raw-material costs, it may also herald a shift in the industry’s competitive dynamics, potentially accelerating a major reshuffling. Leading companies with strong technological barriers, economies of scale, and robust supply-chain bargaining power are likely to offset cost pressures through modest price increases, thereby reinforcing their market position and enhancing their pricing power. Meanwhile, smaller firms with weaker negotiating leverage will face mounting operational challenges, and some may even be forced out of the market, further concentrating industry leadership.

This view has been corroborated on the corporate side. During its February investor‑relations event, Leyard explicitly stated that, in the short term, the company’s gross margin will gradually recover as a result of this price increase. At the same time, the company will further enhance its profit margins through measures such as strengthening supply‑chain management, adjusting raw materials and manufacturing processes, and upgrading its product mix. Looking ahead, some small and medium‑sized manufacturers, facing high costs, limited economies of scale, and insufficient technological barriers, are likely to accelerate their exit from the market, leading to a further rise in industry concentration and enabling leading players to capture a larger share of the market.

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