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Sino-US trade war affects LED manufacturers? Cree said there was no real impact

Date:2018-07-30 Reading number:

On July 6, the Trump administration officially announced a 25% tariff on 34 billion US dollars of goods, including machinery, accessories, electronics, agricultural ploughs, machine tools and communications satellites. At the same time, the United States also plans to impose a 25% tariff on Chinese imports of electronic products and other accessories worth $16 billion.

 

According to the Wall Street Journal, the Office of the US Trade Representative Office (USTR) has launched a two-day public hearing on July 24th for "a $2 billion tariff on Chinese imports." It is reported that the $16 billion imported products are mainly electronic products and other accessories.

According to reports, the hearing will be held from 9:30 am to 5:30 pm on July 24, 2018, and from 9:30 am to 12:00 pm on July 25. Representatives attending the public hearing include Applied Materials, Cree, Inc., SolarWorld Americas, Inc, Logitech, Inc., etc.; industry associations attending the hearing include the International Semiconductor Industry Association (SEMI), SIA And the Consumer Technology Association (CTA) and so on.

The Wall Street Journal recently reported that Ke Rui, a manufacturer of LED chips in the upstream of LEDs, was unable to obtain an exemption from the Trump administration. The products shipped back to the US from the Huizhou plant on July 6 will face a percentage. The five tariffs. In the written testimony, Cree mentioned that non-US competitors such as German manufacturer Osram and Japanese manufacturer Nichia Corp. may have unexpected gains.

The top executives of Taiwan LED Factory said that Cree has only one Huizhou factory in the mainland, and the packaging is mainly in the later stage. After the completion, the products will be sent back to the United States to make high-end lamps. At present, Cree is the largest manufacturer of outdoor lamps in North America, mainly Production of high-power LED lamps, in addition to outdoor lighting, but also plant lighting, higher-end headlights.

In terms of industry competition, Cree's high-power LED market and North American high-end lighting market do not have much competition with Taiwan's LED industry. Taiwan's LED industry executives also believe that the German manufacturer Osram and the Japanese manufacturer Nichia, especially the high-power products of Nichia, are still produced in Japan, and they are relatively optimistic about the opportunity to accept the transfer.

However, Career said that the tariffs imposed on the Sino-US trade wars did not have a material impact on the company.

In fact, the Sino-US trade war has been condemned by all walks of life since its opening. The Semiconductor Industry Association (SIA) expressed concern about the hearing: "Tarms will weaken US technology leadership, lead to job losses and adversely affect US semiconductor product consumers and US semiconductor manufacturers." Meanwhile, the United States The National Retail Federation (NRF) and 65 business groups warned USTR on the 24th that tariffs on Chinese imports would not produce the results that the Trump administration hoped to see.

Analysts pointed out that the Sino-US trade war is bound to be a "double lose" situation, which is adversely affecting both China and the United States and the global economy. The United States will eventually "satisfy its own fruit."

Related tags:LED