Taiwan Tech June Sales: Server strength drives upside again in Q2

Research evidence excerpt

Taiwan Tech June Sales: Server strength drives upside again in Q2

expectations diana.chang@ubs.com

growing +4%QoQ/-8% YoY, rebounding in June after a sub-seasonal May. Despite +886-2-8722 7335

strength, ODMs still see high component cost impacting demand and a weak H226. We Ally Chen

trim full year 2026 total ODM shipments from -9% YoY to -10% YoY, closer to our Analyst

global PC model forecasts of -11% YoY. While Apple has held up YTD, sell-through did ally.chen@ubs.com

slow from +9.5% in April to 8% in May and build plans are flattish for H226. +886-2-8722 7347

Annie Chen

Semiconductors: June/Q2 ahead across sectors with equipment the largest beat Associate Analyst

annie.chen@ubs.comThe UBS Taiwan semis coverage saw June sales up +7.3% MoM, +54% YoY to NT

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$705bn, 100%/102% of Q2 UBSe/street estimates for +13%/11% QoQ growth.

Foundry sales were up +6% MoM and +72% YoY, in-line/ahead at 100%/101% of Q2 Ryan Sun

UBSe/street. UMC and PSMC led the strength at 103%/104% of consensus, with Nanya Associate Analyst

ryan-za.sun@ubs.comTech at 103% keeping up an impressive 620% YoY in June as memory inflation

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continues. Back-end sales were up +3% MoM and up +32% YoY in June, largely in-line

with UBS estimates and slightly ahead of consensus to track a 10% QoQ growth. Christine Chen, CFA

Equipment was once again the outperformer with Chroma and Hon Precision Associate Analyst

christine.chen@ubs.com

108%/114% of consensus, while fabless tracked ahead at 103% of consensus with the

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standout Faraday, Silergy, GUC, Mediatek and Andes while Alchip was light as it

transitions from legacy projects into Trainium 3 which still started its ramp-up in June.

Outlook: Hyperscalers capex likely to see continued upside