Xinxing (3037) surged to a new high of 318 yuan! Target price raised to 418 yuan, benefiting from AI substrate demand and price increases

Benefiting from strong demand for artificial intelligence and rumors of shortages in key upstream materials, the leading IC substrate manufacturer Unimicron Technology Corporation (3037) has recently shown strong stock performance. After breaking through the 300 NT dollar mark yesterday, today (20th) it briefly reached a historical high of 318 NT dollars, with an increase of over 5%, and trading volume expanded to over 80,000 shares. Over the past three trading days, Unimicron's stock price has risen from around 270 NT dollars, significantly boosting its market capitalization. Market analysis indicates that the momentum driving Unimicron's stock price is primarily due to institutional optimism about the industry's prospects. Nomura Securities, in its latest report, cited data revealed by Taiwan Semiconductor Manufacturing Company (2330) during its earnings call on January 15, stating that TSMC's capital expenditure in 2026 is expected to reach a historical high of 52 to 56 billion USD. This not only establishes long-term growth momentum for the AI industry but also directly drives market expectations for high-end ABF substrate demand. Additionally, material shortages on the supply chain side have also contributed to the rise in stock prices. Due to Japan's major electronic materials manufacturer Resonac announcing a 30% price increase for CCL (copper-clad laminate) and PP (polymer film), it reflects an extreme tightening of supply for high-end fiberglass cloth upstream. The rising costs of these raw materials are expected to lead to comprehensive price increases for BT and ABF substrates in the coming months. The market anticipates that Unimicron, as a leading substrate manufacturer, has better bargaining power and room to pass on costs, with subsequent price adjustments for BT and ABF substrates expected. JP Morgan analysis indicates that Unimicron's production progress for NVIDIA's AI HDI orders is better than expected, with high-end production lines likely to turn profitable two to three months ahead of schedule. Meanwhile, as the Yangmei and Guangfu plants ramp up high-end capacity, overall capacity utilization and average selling price (ASP) will further improve. Furthermore, Unimicron is actively developing "super large substrates" that are more than five times the size of Blackwell, positioning itself for new generation AI accelerator opportunities; industry estimates suggest that Unimicron's market share among several international ASIC major clients is expected to exceed 70%, with related order volumes doubling compared to last year. From a chip perspective, Unimicron has recently received buying support from three major institutions, and the market expects the supply-demand situation for ABF substrates to become even more severe. Nomura has raised its target price to 418 NT dollars, while JP Morgan is optimistic about a target of 347 NT dollars. Today, after a surge in volume and reaching new highs, Unimicron not only leads the substrate sector as a market focus but also becomes an important bullish force for the Taiwan stock market in challenging high points