U.S. President Donald Trump signaled a dramatic escalation in his administration’s trade policy on Tuesday, revealing plans to impose a 50% tariff on copper imports. These tariff additions further pose headwinds toward the Thai electronics sector.
The share price of Hana Microelectronics Public Company Limited (SET: HANA) at the time of 10:55 a.m. was at THB 20.10, a THB 0.80 or 3.83% decrease with a total trading value of THB 189.19 million.
Delta Electronics Public Company Limited (SET: DELTA) at the same time was at THB 107.00, a THB 1.50 or 1.38% decrease with a total trading value of THB 425.22 million.
KCE Microelectronics Public Company Limited (SET: KCE) was at THB 20.40, a THB 0.60 or 2.86% decrease with a total trading value of THB 185.93 million.
According to Finansia Syrus Securities, the anticipated tariffs are a negative sentiment for the electronics sector, as semiconductors are fundamental raw materials for electronic devices worldwide.
If tariffs are imposed, HANA—an integrated circuit assembler—would be directly affected, followed by DELTA, which relies on semiconductors in its product manufacturing. KCE, a producer of printed circuit boards (PCBs), faces indirect impact since its clients require both integrated circuits and PCBs. Rising costs for manufacturers may ultimately be passed along to end consumers.
In terms of export revenue exposure to the US, DELTA generates approximately 30% of its total income from the American market, followed by HANA at 26% and KCE at 21%. However, these measures are currently proposals, as the industry is expected to be granted a period for adjustment. Market watchers are advised to monitor developments closely.
Yesterday, share prices of the aforementioned electronics group plummeted after the U.S. announced a tariff imposition on Thailand at 36%, which is expected to impact various Thai exporters, especially those which have a significant portion of incomes from the U.S.
