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TSMC Dips as IC Substrate Stocks Rally; Unimicron and Nanya PCB Lead Gains
Electronic Technology · Electronic Components · economic_daily · 2026-09-22
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Despite a pullback in TSMC, IC substrate manufacturers including Unimicron and Nanya PCB surged, contributing significantly to the Taiwan stock market's gains driven by robust AI demand.
What Happened
Substrate Stocks Lead Market Rally: While TSMC shares turned negative during the session, the IC substrate sector saw a strong rally led by Unimicron, Nanya PCB, Kinsus, and Zhen Ding-KY. These four companies collectively added approximately 100 points to the Taiex index, acting as a key pillar for market momentum.
AI Demand Fuels Capacity Expansion: Unimicron reported that AI-driven demand continues to strain ABF substrate supply, prompting plans for significant capacity increases by 2027. The company has mitigated expansion risks by securing long-term contracts and upfront payments from major clients, while also expanding into CPO substrate shipments.
Analysts Forecast Margin Growth: Analysts expect Nanya PCB to benefit from rising demand for AI servers and high-performance computing chips, with potential price hikes in the second half of the year boosting gross margins. Foreign brokerages have issued 'Buy' ratings for Nanya PCB and Kinsus, citing a widening supply-demand gap for ABF substrates through 2028.
Zhen Ding Diversifies Operations: Zhen Ding-KY reported a 19.8% year-on-year revenue increase for the first eight months, supported by peak season demand in consumer electronics and AI server components. The company is actively pursuing a Hong Kong IPO for its subsidiary, Leadtek, as part of its strategic goal to become a top-five global IC substrate provider by 2030.