Taiwan CCL July revenue trending much better than our bullish estimate on high end CCL players, with solid pricing uptrend

Equity Research 6 August 2026 | 6:07PM CST TAIWAN CCL

July revenue trending much better than our bullish estimate on high-end CCL players, with solid pricing uptrend; Buy EMC/TUC with ~100% upside

July revenue review - EMC/TUC revenue grew +8%/+21% MoM, which was 3/5% Chao Wang | kuan- higher than our Street most bullish estimate Goldman Sachs (Asia) L.L.C., Taipei EMC announced its July revenue at NT$19,207mn (+8% MoM, +128% YoY), which Branch

was 3% higher than our estimate (most bullish on the street; our 3Q revenue Allen Chang | estimate is 17% higher than BBG consensus already), and accounted for 35% of Goldman Sachs (Asia) L.L.C. the company’s conservative 3Q revenue guidance (see here), thanks to the much Al Wang better than expected high-end AI product demand (from Trainium 3 and Rubin AI | Goldman Sachs (Asia) L.L.C., Taipei servers) and the improving pricing level (see more here). Considering the demand Branch outlook is likely to continue to be stronger every month in the rest of the year (with more high-end AI projects ramping up), we believe the company’s August and September revenue will further go up with better product mix and pricing, implying the 3Q revenue to go up by at least 22% QoQ (vs. company’s guidance/ GSe at +15%/+21 QoQ). For August, we expect EMC’s revenue to further go up to NT$19.8bn (+3% QoQ, +126% YoY), with the solid improving product mix.

TUC also announced its July revenue at NT$5,908mn (+22% MoM, +98% YoY), which was 5% higher than our estimate (most bullish on the street; our 3Q revenue estimate is ~10% higher than BBG consensus), and we believe the solid beat on the July revenue was driven by (1) the improving pricing trend every month (we also see the M7 grade CCL pricing starting to go up from middle of July), and (2) the improving contribution from new Thailand capacity with solid demand from ASIC customers, while TUC’s solid outgrowth vs. EMC in July revenue was due to (1) its Thailand plant ramping suggesting a better market share in the ASIC supply chain, and (2) TUC’s more proactive pricing strategy for M7 & below grade CCL vs. EMC. For August, we expect TUC’s revenue to further go up to NT$6.2bn (+5% QoQ, +144% YoY), considering an even better pricing outlook (more pricing hike on high-end and low-end CCL) and the increasing contribution from new Thailand capacity (~10% of total capacity started to ramp up from middle of July, and the contribution will double MoM in August with 2x more working days).

Maintain Buy on EMC and TUC with unchanged TP of NT$10,200 / NT$3,010, suggesting ~100% upside vs. today’s close.

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Exhibit 1: We estimate EMC’s August revenue to increase Exhibit 2: We estimate TUC’s August revenue to increase by 126% YoY by 144% YoY

Source: Company data, Goldman Sachs Global Investment Research Source: Company data, Goldman Sachs Global Investment Research

Investment view We continue to see a solid S/D outlook on the high-end / high quality CCL products in coming years (see more details here), and expect the CCL technology migration will start to accelerate from 2H26 (while EMC just started the shipment of the most high end M9 grade CCL in the market) which should suggest an even better order demand/ product mix, as well as pricing level in coming quarters. The solid beat on our already bullish July revenue suggesting an even stronger pricing condition and customers’ high-end AI CCL demand going into the peak quarter (Trainium 3 order will peak in 3Q, while Rubin and TPU 8 demand will start ramping up from 3Q26 to 4Q26). We believe EMC as the key AI ASIC player will further enjoy even better demand/ product mix, while TUC, who focus on Trianium and…