Taiwan CCL Fulltech mgmt. visit Ongoing product mix shift toward high

Equity Research 24 August 2026 | 2:10PM CST

Taiwan CCL: Fulltech mgmt. visit: Ongoing product mix shift toward high end, suggesting accelerating market share from Taiwan CCL players

We held a meeting with Fulltech’s (1815.TWO, Not Covered) management. Key Chao Wang | kuan- takeaways include: Goldman Sachs (Asia) L.L.C., Taipei Branch (1) The company plans to expand its glass fiber capacity by 60%+ by 2029E, and also Allen Chang plans to add glass yarn capacity for Low DK, Low DK2 and even Low CTE (T-glass), as | the company is shifting away from E-glass to higher end/higher GM products (Low Goldman Sachs (Asia) L.L.C.

DK/Low DK2/Low CTE with GM 45-65%+, which is much higher than the company Al Wang | average GM (was at ~38% in 1H26) per GSe). The company expects 50%+ of new Goldman Sachs (Asia) L.L.C., Taipei Branch glass fiber capacity to come from its new Thailand plant by 2028E, and the company plans to allocate 50% of the total new glass fiber capacity in Thailand to LEO applications, with the remaining 50% for Low DK/Low DK2 products for AI-related applications, with the company expecting further upside to the allocation of low DK and Low DK2 capacity if demand is stronger than expected.

(2) Product mix improvement is also the key driver for both top and bottom lines due to the very different ASP/margin profile for E-glass/Low DK/Low DK2 glass fiber (more details in bullet point 3). In 1H26, E-glass and Low DK/Low DK2/Low CTE contributes to ~25% and ~55% of total revenue. The company is seeing stronger orders for Low DK2 glass fiber and continues to shift capacity from Low DK toward Low DK2, with Low DK2 glass fiber potentially accounting for 50%+ of total high-end glass fiber (including Low DK & Low DK2) shipments in 2H26.

(3) In terms of pricing, Low DK pricing is ~5x of E-glass, despite E-glass prices having more than doubled since 2025 (Low DK pricing was ~10x of E-glass previously), while Low DK2 pricing is higher than Low DK (we expect Low DK2 pricing to be 2x+ of Low DK). In terms of GM, Low DK2 has the highest margin, followed by Low DK, while E-glass has the lowest margin even after the significant price hike. If 100% of capacity were transitioned to Low DK & Low DK2, we calculate revenue could more than double while GM could reach 45-50%, compared with 1H26 levels of ~38% - assuming no further pricing hike - despite CCL companies being all willing to accept additional costs to secure sufficient glass fiber supply.

(4) For the glass fiber plant 1 in Taiwan, ~90% of revenue is generated from Low DK/Low DK2, with the remaining ~10% from E-glass in 1H26, the company will continue to shift capacity from Low DK toward Low DK2 in 2H26 to meet with the strong demand. For the glass fiber plant 2 in China, all revenue is generated from E-glass in 1H26, and the company plans to shift capacity toward Low DK & Low DK2 in 2027, with Low DK & Low DK2 revenue contribution potentially reach up to 50% of

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the plant’s total revenue, and the company further plans to add 15%+ of glass fiber capacity by 2029E, focusing on Low DK/Low DK2/Low CTE products.

(5) The company continues to make progress with Low CTE products (for substrates), and is currently shipping Low CTE glass yarn and continue to see increase in shipments. Furthermore, the company is currently working on the verification of Low CTE glass fiber. The business is beneficial to both top and bottom line with its better ASP/margins profile, and we expect Low CTE margins to be the highest among all products once production ramp up.

(6) In terms of capacity transition, the company mentioned that shifting from E-glass to Low DK would result in a ~50%…