2Q26 post-results briefing takeaways: Expansion of AI in the mix and solid position in EMIB-T projects signal strong long-term margin tailwinds. Stay OW.

Research evidence excerpt

2Q26 post-results briefing takeaways: Expansion of AI in the mix and solid position in EMIB-T projects signal strong long-term margin tailwinds. Stay OW.

Update

July 29, 2026 01:27 PM GMT

Morgan Stanley Taiwan Limited+MUnimicron | Asia Pacific Howard Kao

Equity Analyst

2Q26 post-results briefing Howard.Kao@morganstanley.comIrene Yen +886 2 2730-2989

Research Associate

Irene.Yen@morganstanley.com +886 2 2730-2869

takeaways Morgan Stanley Asia Limited+

Andy Meng, CFA

Expansion of AI in the mix and solid position in EMIB-T projects Equity Analyst

Andy.Meng@morganstanley.com +852 2239-7689

signal strong long-term margin tailwinds. Stay OW.

Key Takeaways

Management targets 50-60% overall company GM in the longer term.

Unimicron is one of the three substrate suppliers developing EMIB-T substrates,

Unimicron (3037.TW, 3037 TT)

with initial yield targets of 50%, ramping in CY27.

Greater China Technology Hardware | Taiwan

Stock Rating Overweight

AI mix and proactive pricing to drive structural margin expansion: Management Industry View In-Line

provided a positive outlook for revenue growth in 2H26 and guided for q/q GM Price target NT$1,465.00

Up/downside to price target (%) 113

expansion in 3Q26, supported by a rise of AI products in the mix, ongoing Shr price, close (Jul 29, 2026) NT$688.00

52-Week Range NT$1,130.00-128.18

debottlenecking efforts, and proactive pricing adjustments. Moving into 2H26,

Sh out, dil, curr (mn) 1,505

management expects AI to reach 70%+ of the ABF substrate segment mix (including Mkt cap, curr (mn) US$31,992

EV, curr (mn) US$34,352

AI GPUs, ASICs, CPUs, and DPUs) and 65-70% within the PCB/HDI segment, driven Avg daily trading value (mn) US$456

by AI system boards and 800G/1.6T optical module boards. Fiscal Year Ending 12/25 12/26e 12/27e 12/28e