Investment Rating - The investment rating for the company is "Buy" with a target price indicating a potential return of over 20% within the next six months [8][18]. Core Views - The company reported a revenue of 16.375 billion yuan for the first half of 2025, representing a year-over-year increase of 24.75%. In the second quarter of 2025, revenue reached 8.288 billion yuan, up 28.72% year-over-year and 2.49% quarter-over-quarter [1][2]. - The net profit attributable to the parent company for the first half of 2025 was 1.233 billion yuan, a year-over-year increase of 57.22%, with a non-recurring net profit of 1.149 billion yuan, up 51.90% year-over-year [1][2]. - The company is actively expanding its production capacity, particularly in Thailand and Taiwan, to meet the growing demand in AI servers and automotive electronics [3][4]. Financial Performance - The company achieved a gross margin of 20.28% in Q2 2025, an increase of 4.81 percentage points year-over-year, and a net profit margin of 8.93%, up 4.47 percentage points year-over-year [2]. - Operating cash flow for the first half of 2025 was 4.277 billion yuan, reflecting a significant year-over-year improvement of 53.29% [2]. Product Segmentation - Revenue from communication boards, consumer electronics, and automotive/server boards showed significant growth, with automotive and server boards increasing by 87.42% and 261.27% year-over-year, respectively [2][3]. - The company is focusing on high-end AI products, with plans to increase capital expenditures to over 30 billion New Taiwan dollars in the next two years, targeting HDI and HLC products [3][4]. Market Positioning - The company is strategically positioning itself in high-growth sectors such as AI servers, optical communications, and automotive electronics, with ongoing collaborations for next-generation products [4][3]. - The company has developed advanced technologies for flexible printed circuits (FPC) and low-orbit satellite antennas, aiming to capture future market opportunities in satellite internet and robotics [4].

Core Viewpoint - The recent surge in interest around the semiconductor supply chain is driven by NVIDIA's proposal to use CoWoP (Chip-on-Wafer-on-PCB) technology as a potential replacement for CoWoS packaging technology, leveraging advanced high-density PCB techniques to simplify system structure and improve efficiency [5][9]. Group 1: CoWoP Technology Overview - CoWoP is defined as a method where the chip is directly mounted onto the PCB after the intermediary layer is manufactured, eliminating the need for the ABF substrate used in CoWoS [8]. - The potential advantages of CoWoP include simplified system architecture, reduced transmission losses, improved data transfer efficiency, enhanced thermal management, and lower substrate costs [9][10]. Group 2: Commercial Viability of CoWoP - The likelihood of CoWoP achieving commercial viability in the medium term is considered low due to several technical challenges, including the need for finer line widths and pitches that current PCB technologies cannot meet [11]. - The existing technology roadmap of NVIDIA, which focuses on CoWoS-L and CoPoS, conflicts with the new direction of CoWoP, further complicating its adoption [11][12]. Group 3: Impacts on the Semiconductor Supply Chain - If CoWoP is successfully implemented, it could shift complex signal routing to the re-routing layer, potentially reducing the value of ABF substrate manufacturers while benefiting PCB manufacturers through increased revenue from advanced PCB specifications [15]. - The balance between high-speed performance and the demands for high current/voltage in platform PCBs presents significant challenges, with companies like Unimicron positioned favorably due to their experience in both PCB and substrate technologies [16]. Group 4: Effects on Testing and Manufacturing - CoWoP may reduce the number of final and system-level testing steps, shifting towards board-level testing, although achieving high yield rates is critical for this transition [18]. - The impact on wafer foundries and OSATs is expected to be minimal, as the chip-on-wafer process remains largely unchanged, but the lack of involvement from major players like TSMC raises concerns about the technology's success [19].