Further announcement to step up capacity expansion: Quick Note

研报英文原文证据摘录

Further announcement to step up capacity expansion: Quick Note

Global Markets Research

TUC 6274.TWO 6274 TT 29 July 2026

EQUITY: TECHNOLOGY

RatingFurther announcement to step up capacity expansion Remains Buy

Target price TWD 2,115.00 RemainsQuick Note

Closing price TWD 1,020.00 29 July 20262Q26 GM beat on favorable mix and pricing

TUC reported 2Q26 basic EPS of TWD8.02 (Fig.1), slightly lower than our estimate due

to a higher effective tax rate from early-stage loss at its Thailand factory. But TUC’s 2Q26

GM of 29.7% was above our and Bloomberg consensus estimates owing to favorable mix Research Analysts

and pricing benefits. In our last update (report), our estimate of +19% q-q growth for Taiwan Technology

3Q26F revenue was mainly supported by price hikes and a richer production mix crowding Eric Chen, CFA - NITB

out lower-tier materials, alongside continued ramp-up for an AI ASIC project. We see the eric.chen@nomura.com

growth trajectory remaining unchanged given a still-tight CCL supply/demand landscape, +886(2) 21769965

while there could be upside to our GM estimate. Our target price for TUC of TWD2,115 is Anne Lee, CFA - NITB

based on 30x 2027F EPS of TWD70.5, and the stock is now trading at 14x 2027F EPS. anne.lee@nomura.com

We are currently reviewing our earnings estimates. +886(2) 21769966

Dialing up capacity expansion scale for 2027-29F

TUC announced an additional c.TWD19bn of capex to expand capacity in Zhongshan,

China and Thailand (CNY2.359bn for the Zhongshan factory, and THB7.79bn for the

Thailand factory). The spending will fund 1.95mn sheets of monthly capacity additions in

total. Considering the lead time to build and move in equipment, we think the new capacity

will come on stream from 2028F, and TUC could have 5.3mn/5.75mn sheets of monthly