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Taiwan's Taiyao Surges as Copper Clad Laminate Prices Rise Amid AI Demand

From Liberty Times · () Chinese

Translated from Chinese, summarized and contextualized by DistantNews.

At a glance

News Sources not specified New plan
  • Copper Clad Laminate (CCL) prices are expected to rise 10-15% this quarter due to tight upstream material supply and strong AI server demand.
  • Taiwanese company Taiyao (6274) reported a significant profit increase in June, with net profit soaring 219.2% year-on-year, driven by price hikes and product mix optimization.
  • Taiyao's stock surged to its daily limit on the news, reflecting positive outlooks for the second half of the year, including new AI server orders and the adoption of advanced M8 grade CCL for high-speed network switches.

The price of Copper Clad Laminate (CCL), a crucial component for printed circuit boards, is set to increase by 10-15% this quarter. This rise is attributed to tightening supplies of upstream materials and robust demand from the AI server market, according to industry analysts.

Taiwanese manufacturer Taiyao (6274) has seen its fortunes improve dramatically. The company announced a substantial net profit increase of 219.2% year-on-year for June, reaching NT$900 million. This surge was driven by a combination of product price increases and an optimized product portfolio, leading to a single-month earnings per share of NT$3.06.

CCL will increase prices again by 10-15% this quarter.

— U.S. investment firmAnalyzing the reasons for the upcoming price hike in Copper Clad Laminates.

Following this positive financial report, Taiyao's stock price jumped to its daily trading limit of NT$1235. The company's outlook for the second half of the year remains strong. Taiyao has already begun shipping new orders for AI servers since the second quarter, with expectations of continued volume growth. Key clients are set to widely adopt M8 grade CCL, featuring Low-DK2 glass fiber material, for next-generation 1.6T network switches.

This strategic shift towards higher-end materials like M8 grade CCL for both 800G and 1.6T switches, coupled with price increases and market share gains, is poised to further boost Taiyao's profitability and gross margins. The company's performance highlights the dynamic interplay between material supply, technological advancements in AI, and market demand within the semiconductor supply chain.

AI server new orders have started shipping in the second quarter, and demand is expected to continue to increase throughout the year.

— TaiyaoProviding an optimistic outlook for AI server business in the latter half of the year.
DistantNews Editorial

Originally published by Liberty Times in Chinese. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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