Gold at record highs, chip shortages, currency pressure — the era of cheap LED displays is drawing to a close.

A Wave of Price Increases With No End in Sight

If there is one defining feature of the LED display industry in 2026, it is that notices of price revisions have become as routine as daily weather forecasts.

Unlike previous sporadic adjustments, a striking feature of this current price rise cycle is the breadth of its impact. Cost pressures are simultaneously hitting the entire supply chain – from upstream chips and packaging, through midstream driver ICs and PCBs, right down to finished display products. According to reports from industry research organizations, more than 90 supply chain companies have already announced formal price revision notices, and it is expected that many more will follow suit.

Recent moves by driver IC manufacturers suggest a significant escalation of the situation. Fullhan Microelectronics announced that it would raise prices for all LED driver products by more than 30% from May 7, 2026. Following this, Chipone also implemented a price increase of a similar magnitude on 6 May. Lipshen has also announced similar price adjustments for all its LED driver chip products. Taken together, these moves signify what is being referred to within the industry as the second wave’ of driver IC price rises, with the scale of the increases clearly exceeding the levels seen at the start of this year.

Three Forces Hitting at Once

• Precious metal prices hit record highs. Gold, silver and copper are fundamental materials in LED manufacturing. Gold is used in bonding wires, silver in solder paste, and copper in PCB substrates and lead frames. Driven by geopolitical turmoil and a global risk-averse sentiment, the price of gold has surpassed $5,000 per troy ounce, the price of silver has risen by 170% year-on-year, and the price of copper has remained above $13,000 per tonne. The impact on related costs is significant. Silver paste alone accounts for over 30% of LED packaging costs, whilst gold, silver and copper combined account for over 70% of total packaging material costs. At current price levels, it is impossible for manufacturers to absorb this price differential on their own.
• Structural shortage of wafer production capacity is another reason. Driven by the AI boom, global semiconductor production capacity is undergoing a fundamental shift towards high-end chips. According to TrendForce data, the production capacity ratio of wafer fabs dedicated to LED driver chips has fallen from approximately 30% in 2024 to around 15% in 2025. Both TSMC and Samsung have reduced their 8-inch wafer production volumes, redirecting these resources towards high-margin AI-related orders. In its price notification, Lisheng Technology explicitly states: “Wafer fabs globally are continuously shifting capacity toward the artificial intelligence sector, driving sustained increases in both foundry pricing and packaging and testing costs for LED driver chips.”
• Exchange rates and geopolitical factors also account for this trend. Fluctuations in the RMB exchange rate, the impact of escalating tensions in the Middle East on regional markets, and rising global transport costs are further intensifying pressure on profits.

Where Prices Go From Here

Industry analysts broadly agree on the trajectory across three time horizons.

In the short term—namely from the second to the third quarter of 2026—precious metal prices are expected to remain at high levels, with no signs of cost pressures easing rapidly.

In the medium to long term, as new copper mine production capacity comes online globally in the second half of 2026, base metal prices may shift from a sharp rise to a period of consolidation at elevated levels. However, given the structural support provided by energy costs, prices are not expected to fall back to 2024 levels.

The long-term outlook reflects a genuine structural shift. The China Electronics Industry Association has noted that this cycle marks the official end of the downward price trend that had persisted in the domestic LED industry for over a decade. Analyses from various industry players all point to the same conclusion: the era of low-price competition in LED displays is over. It will be replaced not by a race to further squeeze profit margins, but by competition based on technology and value.