The trade war between China and the United States weighed on the international economic and trade situation. Investor sentiment was revealed in the sharp rise and fall of European and American stock markets last week, and the volatility has been climbing.
The U.S. Trade Representative (USTR) announced on the 3rd issue a list of China's special 301 sanctions, recommending to impose a 25% tariff on the more than 1,300 products included in the list. The legal person stated that USTR will be held on May 15. A public hearing will be held on the day before the final list of tariffs will be confirmed. If Chinese products are subject to a 25% punitive tariff, they will lose their competitiveness. Customers in the United States will purchase other suppliers from other places. Taiwan-related manufacturers will So benefit.
Huang Wenqing, deputy general manager of Taixin Ventures, observed that the list includes batteries, televisions, LEDs, capacitors, protection components, and equipment in the electronics industry. Related Taiwanese companies have the opportunity to benefit from the transfer of orders.
From the TV perspective, due to the demand benefited from the size enlargement, 4K and 8K high-definition, and the June 2018 World Cup, the area demand for this year is expected to grow by 6% to 8%. The fundamentals are already not bad, if you add US 301 Punitive tariffs, AUO, Innolux have the opportunity to benefit.
In terms of LED, 2018 due to the subsidies for LED machines during the 12th Five-Year Plan of China entered the retirement period one after another, and the estimated annual net increase was only about 100 MOCVD machines. The increase in supply was modest, coupled with infrared light, ultraviolet light, Mini The new LED and Micro LED technology will be gradually introduced into mass production. In 2018, it will be full of business opportunities. If 301 punitive tariffs are added, Jingdian will have a chance to benefit.
The industry believes that passive components are affected by shortage of goods, Kunshan pollution contaminants, etc. This year, the fundamentals are not bad. If we add 301 punitive tariffs, passive components giants, Huaxin Branch will benefit.