The Chinese LED industry is experiencing widespread price increases across the value chain, from upstream chips to midstream packaging and downstream applications. Dozens of companies, including MLS, Kinglight, Shenzhen MTC, HKC, NationStar, and San'an Optoelectronics, have announced price adjustments. These increases, generally ranging from 3% to 15%, are driven by rising raw material costs (especially gold, silver, and copper) and years of intense low-price competition, which have severely compressed profit margins. The price adjustments, many effective in late 2025 or early 2026, are seen as necessary for companies to cope with escalating operational costs, particularly for smaller firms facing gross profit margins below 20%. The industry is also shifting towards higher-value segments like mini/micro-LEDs and automotive lighting.