LED tariffs are difficult to raise in the short term

On August 21, there were rumors that the LED import tariffs would be significantly increased, causing fluctuations in the market's corresponding targets. The reporter asked a number of insiders to learn that China's LED import tariffs are basically not likely to increase sharply in the short term, because the current sharp increase in import tariffs will hit the popularity of LED products in the Mainland to some extent.

It is rumored that the Ministry of Commerce intends to increase the import tariff on LED production, and its tax rate will be raised from the current 4% to 10%, and the increase rate will be as high as 150%. At present, LED upstream products in mainland China mainly come from Taiwan. Due to the news, the price of Taiwan LED chip leading products such as Jingdian and Yuyuan has fallen, while the LED sector in the A-share market has risen sharply. Among them, Jufei Optoelectronics has a daily limit, Ming Technology [-2.91% Capital Research Report], Liard and Huacan Optoelectronics all increased by more than 7%.

The reporter asked the multi-party for this matter. Many responsible persons of domestic LED companies said that they have not heard of this news and have not been exposed to relevant documents. A person close to Taiwan's Jingdian and Yuanyuan also told reporters that the two Taiwanese companies have not received such notices.

The above-mentioned people believe that there is currently no possibility of a significant increase in LED tariffs in the short term. If the tariff is raised to 10%, it will have a greater impact on the industry. At present, the imported LED products in the mainland are mainly chips, which will greatly stimulate the sales expectations of domestic LED chip manufacturers.

A person in charge of a domestic LED listed company believes that although it seems that the upward adjustment of tariffs can promote the shipment of mainland chip manufacturers, it is not entirely positive from the perspective of the overall LED market. At present, LED lighting and other application fields are in an accelerated growth stage in China. If the tariff is raised, the direct result will be a price increase for Taiwanese chip makers, which will also cause the price of end products to rise. This and the current industrial law It does not coincide, and this will also have a negative impact on the downstream popularity of LED products to a certain extent.

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