Since May 2016, Chinese players have been surging LED package prices, started with Epistar’s distributor in China, Luxlite, which announced a surge in LED package prices, citing a number of reasons for the price increase. Now, Chinese LED chips makers San’an Opto and HC Semitek has also declared hike in LED chip prices. Key LED package makers like Honglitronic, Smalit, Xuyu Optoelectronics, and Samsung will also increase prices this week. According to a report, in Q4 2016, PVC price was raised by 60%, plastic price by 30%, alluminum price by 30%, paper packaging price by 30%, and shipment cost by 33.6%. This price hike trend is expected to continue even through the first quarter of 2017.