Thailand’s three leading semiconductor manufacturers saw gains in their stock price on Friday, boosted by optimism about the Chinese government’s plan to extend tax breaks for new electric vehicles until 2027.
As of 11.14 A.M. Bangkok time, the share price of Delta Electronics (Thailand) Pcl. (SET: DELTA) rose THB1.00/share, or 1.02%, to THB99.00/share, with a trading value of THB248 million.
The share price of Hana Microelectronics Pcl. (SET: HANA) rose THB1.00/share, or 2.30%, to THB44.50/share, with a trading value of THB155 million.
The share price of KCE Electronics Pcl. (SET: KCE) rose THB1.25/share, or 3.31%, to THB39.00/share, with a trading value of THB129 million.
China on Wednesday extended tax breaks for the purchase of electric vehicles until 2027 in an effort to bolster domestic demand as the country faces a decline in sales as a result of the economy’s slowing growth.
In an effort to drive up weakening auto demand, the government has launched a 520 billion yuan ($72.3 billion) program to boost sales of electric vehicles (EVs) and other green autos over the next four years.
According to a statement released by the Ministry of Finance, buyers of new energy vehicles (NEVs) in China will be exempt from paying a purchase tax of up to 30,000 yuan per car in 2024 and 2025, with the amount of the exemption decreasing to 15,000 yuan in 2026 and 2027.
According to Krungsri Capital Securities, China’s announcement of a $72 billion tax break for electric vehicles (EVs) has boosted the sentiment among companies tied to the Chinese electric vehicle industry, including semiconductor and auto component manufacturers.
Stocks in the Thai electronics industry with a high proportion of their revenue coming from China are among those beneficiaries.
