Summary of Conference Call Notes on Taiwan PCB & Laminates Industry Industry Overview - The conference call focused on the **Taiwan PCB & Laminates** industry, specifically the **ABF/BT/CCL sector** and the implications of **Nittobo's results** on the market dynamics [1][2]. Key Points and Arguments 1. **Nittobo's Financial Results**: - Nittobo reported its results on February 5, 2026, which were analyzed for insights into the ABF/BT substrate market [1]. - The lack of details regarding the **T glass price hike** from April was noted as disappointing, but the potential for **additional T glass capacity expansion** and further price hikes is seen as favorable for ABF/BT substrate manufacturers [1][2]. 2. **Market Dynamics**: - The anticipated price hikes in T glass are expected to benefit substrate makers in the long term, although these changes may not materialize until **2027** [2]. - Limited color options for the near-term T glass price hike could dampen sentiment in the substrate sector, as high expectations are already priced in [2]. 3. **Impact on New T Glass Vendors**: - New T glass vendors may face challenges as their business growth could be limited due to existing customer preferences for Nittobo's solutions [1]. 4. **PCB CCL Market**: - Discussions regarding **NE/NER price hikes** indicate strong demand from the **AI PCB** sector, which is favorable for overall PCB CCL companies [1]. - However, potential capacity constraints on NER could negatively impact CCL players that heavily rely on Nittobo's solutions [1]. Additional Important Insights - The overall read-across from Nittobo's results for substrate names is considered **neutral**, while the read-across for PCB CCL is viewed as **positive** due to the discussions on price hikes [2]. - The ongoing **glass shortage** remains a critical issue affecting the industry, influencing both pricing and availability of materials [1]. This summary encapsulates the essential insights from the conference call regarding the Taiwan PCB & Laminates industry, highlighting the implications of Nittobo's results and the current market dynamics.

Summary of Conference Call Records Industry Overview - **Industry**: Taiwan PCB & Laminates, specifically focusing on the ABF/BT sector - **Key Companies**: Unimicron Technology (3037.TW), NYPCB (8046.TW) Core Insights and Arguments Unimicron Technology - **December EPS**: Reported unaudited EPS of NT$0.78, lower than the expected NT$1.05 (Citi) and NT$1.44 (consensus) for 4Q25E [2] - **Gross Margin (GM) Impact**: GM profile in 4Q25E was negatively affected by the HDI segment due to a late ramp-up in the HDI Taiwan plant. Anticipated recovery from 2Q26E onwards [2] - **Market Position**: Unimicron is a major supplier for ASICs, including AWS' Trainium and Google's TPU, with increasing market share in Nvidia's AI GPU [2] - **Future Outlook**: Expected continuous expansion of ABF GM driven by high-end applications [2] NYPCB - **December EPS**: Reported unaudited EPS of NT$0.84, below the expected NT$1.27 (Citi) and NT$1.36 (consensus) for 4Q25E [3] - **GM Challenges**: The PCB segment negatively impacted GM in 4Q25E, but management's effective strategies in product mix and price hikes mitigated the negative effects [3] - **Material Support**: Nanya Plastics' support with T glass is expected to help NYPCB secure more orders and potential price hikes [3] - **Demand Forecast**: Anticipated strong demand from 800G switch and ASIC orders in 2026E [3] Sector Performance - **Earnings Revisions**: - Unimicron's 2026/27E earnings raised by 38%/81% due to better-than-expected GM recovery, with a new target price of NT$400 [11] - NYPCB's 2026/27E earnings raised by 12%/41%, with a new target price of NT$450 [11] - **Market Sentiment**: Both companies are viewed positively, with a bullish outlook on the ABF/BT substrate sector as the cycle is expected to begin [1] Additional Important Information - **Price Hikes**: Price hikes for ABF/BT products are noted, although not uniformly across the board [1] - **FX Impact**: Some earnings upside attributed to foreign exchange gains from NT$ depreciation in December [1] - **Sector View**: The overall sector view on ABF/BT substrate remains unchanged, with expectations of continued growth from October 2025 [1] Financial Metrics - **Unimicron's Financial Estimates**: - EPS for 2026E revised to NT$4.02 from NT$3.08, reflecting a 30% increase [13] - Gross margin expected to improve to 31.3% in 2027E from 22.8% [13] - **NYPCB's Financial Estimates**: - EPS for 2026E revised to NT$3.05 from NT$2.30, reflecting a 32% increase [17] - Gross margin expected to improve to 28.4% in 2027E from 23.0% [17] This summary encapsulates the key points from the conference call records, highlighting the performance and outlook of the Taiwan PCB & Laminates industry, particularly focusing on Unimicron and NYPCB.