As the main material of the LED Display Screen, the price of the LED chip has a decisive impact on the price of the LED Display. There are many kinds and brands of the LED chip used in LED Display. 
For different markets and applications, the price of the LED chip is also very different. 
We can not say that the LED Chip price is inexpensive must be poor quality or some brand means low quality because the price is low. There has a good price with high-quality products also, but we must consider many factors, such as capacity, stability, after-sales service, channels and so on. But generally speaking, the price higher means better stability and quality. 

Considering the above factors, in the LED screen industry chain in Shenzhen China, we classify the LED chip according to their price grade and we divide them into three grades.


A-Class: Excellent, the quality is fully guaranteed, on behalf of the brand has NATIONSTAR, EVERLIGHT, and so on, and there have gold wire and copper wire versions. Use this kind of LED Chips for projects which need high quality and acceptable price.

B-Class: Good, the price is lower than A-Class, for the mainstream application of the market products, on behalf of the brand KINGLIGHT, Dongshan precision, Huatian, Blue Arrow, Miyou, and so on. There are also offer gold and copper wire versions, which are aimed at cost-effective projects.

C-Class: Average, the price is the lowest version. To win customers with price, because the pursuit of the lowest price, quality is bound to be discounted, normally using alloy wire for the LED Chips. This level LED chips for the projects which price sensitive and no much quality demand.


Let's take a typical one square meter P2.5 LED Display and do a LED chip material cost analysis with different levels of LED Chips so you can understand the difference. (below prices are August 2018 ShenZhen local market prices)


Level LED Type Price / LED (USD) P2.5 LED Qty/Sqm LED Chip Costs
A-Class-Gold Wire SMD2121 $0.00794 / LED 160000 $1269.84/Sqm
A-Class-Copper Wire SMD2121 $0.00492 / LED 160000 $787.3/Sqm
B-Class-Gold Wire SMD2121 $0.00635 / LED 160000 $1015.87/Sqm
B-Class-Copper Wire SMD2121 $0.00317 / LED 160000 $507.94/Sqm
C-Class SMD2121 $0.00206 / LED 160000 $330.16/Sqm


Below is the performance difference from a professional engineer's experience (It is not the exact value, but the value estimated by experience.)


Level Life Span(Hours) After 10000 Hours, dead LED rate caused by chips Light Attenuation Rate Wavelength Errors Brightness Errors
A-Class-Gold Wire 70000 0.03% 10% / 10000Hours ± 3nm 20%
A-Class-Copper Wire 70000 0.05% 12% / 10000Hours ± 3nm 20%
B-Class-Gold Wire 60000 0.05% 10% / 10000Hours ± 5nm 30%
B-Class-Copper Wire 60000 0.07% 12% / 10000Hours ± 5nm 30%
C-Class 50000 0.15% 15% / 10000Hours ± 8nm 40%