Shares of AU Optronics Corp (AUO, 友達光電) and Innolux Corp (群創) yesterday rose about 4 percent on speculation that local flat-panel makers could benefit from US sanctions on China’s ChuZhou HKC Optoelectronics Technology Co (滁洲惠科).
ChuZhou is among the 33 Chinese entities that were added to the Unverified List by the US Department of Commerce’s Bureau of Industry and Security earlier this week. Listing on the Unverified List does not mean that US exporters cannot engage with listed parties, but requires additional documentation to reduce transaction risks.
Investors were betting that Washington’s move would bring in extra orders for Taiwanese panel makers and help them recover from a severe industry slump.
Photo: Chen Mei-ying, Taipei Times
AUO and Innolux shares jumped 4.83 percent and 3.49 percent to close at NT$21.7 and NT$17.8 respectively. Turnover of both stocks more than doubled from Tuesday’s session, Taiwan Stock Exchange data showed.
Smaller LCD panel maker HannStar Corp (瀚宇彩晶) shares soared 5.04 percent to close at NT$17.7, with turnover nearly tripling from the preceding session.
However, market researcher TrendForce Corp (集邦科技) said ChuZhou HKC’s addition to the Unverified List would not have an immediate impact on its shipments.
It would also hardly affect global panel supply and demand dynamics, as the Chinese firm only accounts for about 3.8 percent of global LCD panel capacity this year, the Taipei-based researcher said.
The bureau targeted ChuZhou HKC primarily because “it plans to import panel-related analytical instruments from the US in the near future,” it said.
The move by the bureau did not target China’s panel industry as a whole, TrendForce added.
As ChuZhou HKC is in the process of submitting proposals and is negotiating with its US material suppliers, TrendForce expects there to be no impact on ChuZhou HKC’s shipments for the time being.
The Chinese firm primarily produces TV panels and monitor panels, with TV panels making up nearly 80 percent of its production.
ChuZhou HKC might face setbacks regarding TV panel shipments if the US restriction cannot be resolved, TrendForce said.
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