Unimicron

Research evidence excerpt

Unimicron

J P M O R G A N Asia Pacific Equity Research

30 July 2026

Unimicron Overweight

3037.TW, 3037 TT

ABF GM could reach 60% Price (29 Jul 26):NT$688.00

▲Price Target (Dec-26):NT$1,225.00

Prior (Dec-26):NT$1,150.00

Unimicron held a local analyst meeting on 29 July. The strong 2Q GM margin

expansion and rising capex are consistent with the thesis in our results flash note Technology

(link). We lift our 2026/27e outlook on faster-than-expected margin expansion, Jerry Tsai AC

thus our PT rises from NT$1,150 to NT$1,225 (still based on 27.5x 2027e EPS). (886-2) 2725-9867

While no exact guidance was provided, we expect 3Q rev to be up 15% q-o-q, while jerry.tsai@jpmorgan.com

J.P. Morgan Securities (Taiwan) Limited

GM could expand by another 6-7ppt this quarter. We found management’s

Josie Yucomments on long-term ABF margin and EMIB-T developments quite insightful,

(886-2) 2725-9877

and think this should boost investors’ confidence in the medium to long run. josie.yu@jpmorgan.com

• Strong outlook for long-term ABF GM. Management (we believe for the first Gokul Hariharan

time) indicated that, given the rapid spec migration and ability to deliver value-

(852) 2800-8564

adds to customers, ABF GM could eventually reach 60% on a recurring basis. gokul.hariharan@jpmorgan.com

We expect such a level to be attained by 2H27e, which could help Unimicron J.P. Morgan Securities (Asia Pacific) Limited/ J.P.

set a new GM record (overall company) in early 2027. The company also Morgan Broking (Hong Kong) Limited

echoes our view that, going forward, the importance of mix improvement could

outweigh like-for-like price hikes (the key margin drivers in 2Q/3Q, consistent Key Changes (FYE Dec)

with our view). The AI mix in ABF is rising from 60% in 1H to +70% in 2H, Prev Cur Δ