Reporter: Wang Xiaolei
The LED PCB Price Increase announced by MLS, Guilin Hengtai, and Heying Circuit is driving costs and reshaping the LED display industry. Recently, three companies—MLS Co., Ltd. (“MULINSEN”), Guilin Hengtai Electronics Technology Co., Ltd. (“Guilin Hengtai”), and Heying Circuit Co., Ltd. (“Heying Circuit”)— each issued a notice increasing the price of PCB boards for LED display screens by about 10%. The main reason cited is: raw material price increases, cost increases, and, in order to guarantee product quality, a price increase is hereby announced.
This is a new round of price hikes following those in May and August of this year. Whether this will lead to price increases among LED packaging companies and terminal LED display screen firms remains to be seen.
Reasons Behind the PCB Board Price Increase and Its Impact on the LED Industry
PCB — printed circuit board (also known as printed wiring board) — is an important electronic component, serving as the support body for electronic components and the carrier for their electrical interconnections. Because it is made by an electronic printing process, it is called a “printed” circuit board. PCBs are indispensable raw materials for LED display screens, accounting for approximately 8% to 25% of the total cost.
Because the prices of key raw‑materials for PCB copper‑clad laminate (CCL), such as copper foil, epoxy resin, and glass‑fiber cloth (electronic fiber), have been at high levels or continuing to rise, and energy costs (especially copper smelting) and transportation costs also drive up PCB manufacturing costs, PCB suppliers naturally adjust their product prices in response to market changes.
Once PCB prices increase, they will exert a certain impact on the LED industry. At present, the entire LED display screen industry is in a period where profit growth is not ideal — on one hand, market demand is affected by the economy and is growing slowly; on the other hand, competition in the LED display screen industry is fierce, new entrants continue to emerge, and price wars among traditional manufacturers are intensifying, further compressing companies’ profit margins. PCB price increases will push up costs for downstream companies.
However, PCB price increases are not new. In order to resist risk and reduce costs, leading LED manufacturers are integrating upstream PCB capacity to realize cost self‑control, and are accelerating the implementation of Mini/Micro LED technology to reduce layered dependence.
This means that PCB cost rises may accelerate the penetration of Mini/Micro LED in backlight (high‑end TV/Monitor/Notebook) and direct‑view (commercial display, cinema) fields, because those applications are relatively less cost‑sensitive and more focused on performance and differentiation. But for small and medium‑sized firms, cost increases will bring more risks.
Conclusion
In the short term, PCB will inevitably bring cost pass‑through and pressure for terminal price increases, accelerating industry reshuffling and eliminating small and medium enterprises with weak risk resistance; in the mid to long term, it is expected to promote the industry to accelerate development toward scale, high quality, and high technology, forcing innovation and cost optimization, and reshaping the supply‑chain landscape. Leading companies are expected to consolidate or even expand their advantages amid challenges. The end‑market reaction will show divergence, with high‑end, value‑oriented segments being more resilient.