Universal Display ‘Pulled In’ $15M-$20M in Orders From Panel Makers Seeking to Beat Tariffs

OLED materials and technology supplier Universal Display estimates it “pulled in” $15 million to $20 million in "prepurchase" orders in Q2 from Chinese panel makers that would have been placed in 2019's second half if U.S. importers had not tried to beat the possible implementation of List 4 Section 301 tariffs on a wide array of consumer tech products, said CEO Steven Abramson on an earnings call Thursday. The “pre-buying” happened throughout the quarter, said Chief Financial Officer Sidney Rosenblatt. It was “not just one customer” but “across the board for our Chinese customers,” he said. Universal spoke to its panel customers, “and we understand what they were doing,” he said. “We think that prepurchases this time are a little different than we’ve had in the past,” when any pre-buying activity was “contract-related,” he said. The Trump administration announced the proposed List 4 tariffs on smartphones, TVs, monitors and other consumer tech products in the middle of the quarter (see 1905140025). and President Donald Trump tweeted Thursday that he will put 10 percent List 4 tariffs into effect Sept. 1 (see 1908010059). Industry awaits Federal Register publication of a notice from the Office of the U.S. Trade Representative delineating which products on List 4 will have tariff exposure and which will be spared the higher duties.