On January 24, it was reported that the U.S. International Trade Commission (ITC) voted to initiate 337 investigations on specific electrical connectors and cages and their components and downstream products. Luxshare Industry Co., Ltd. and Dongguan Luxshare Industry Co., Ltd. are involved in the case!
The investigation began on December 18, 2020. At that time, the US Amphenol Company filed an application with the US International Trade Commission, accusing Luxshare Precision and its subsidiary Dongguan Luxshare and other five companies for exporting or importing in the United States. The sale of certain electrical connectors and housings and their components and downstream products in the United States infringes its patent rights and requests the US International Trade Commission to issue a limited exclusion order and a prohibition order.
That is, after one month of process approval, the US International Trade Commission finally decided to initiate this investigation.
So, how much influence does the 337 investigation have on Luxshare?
On December 21, 2020, Luxshare issued a statement announcement regarding the 337 investigation. After the company’s internal verification, the company currently has 5 US patents involved in this 337 investigation, involving conductive plastic technology and terminal horizontal injection molding technology. It is independently developed and designed by the company and used in high-speed external IO connector products. According to the statement announcement, after learning of the incident, Luxshare established a special working group and hired American lawyers to actively respond to the 337 investigation. This also means that in the face of the investigation initiated by the US International Trade Commission, Luxshare has already responded adequately.
In response to this investigation, Luxshare also responded to the media yesterday, stating that this 337 investigation will not have a substantial impact on the company’s current production and operations.
It is reported that Luxshare was established in May 2004 and listed in A shares on September 15, 2010. The initial industry of Luxshare was the connector, which once became the leading domestic connector. Luxshare has carried out vertical integration and horizontal business expansion through mergers and acquisitions, equity participation, and new establishments, and has gradually grown into a leader in the precision manufacturing industry.
At the same time, Luxshare’s performance and market value have also risen all the way, officially breaking the 400 billion yuan mark in July 2020, and the company’s latest market value is 403.7 billion yuan.
