High-end CCL GM expansion on the way with potential pricing hike in 2H26 + customers booking new capacity after 2028; recommend high quality CCL names; Buy on EMC & TUC

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Equity Research

29 July 2026 | 9:53PM CST

TAIWAN CCL

High-end CCL GM expansion on the way with potential pricing hike in

2H26 + customers booking new capacity after 2028; recommend high

quality CCL names; Buy on EMC & TUC

2Q26 overview

EMC’s 2Q26 core business (OPI) was in-line with our estimate (the most bullish on

the street; only 2% below our estimate) and was 18% higher than BBG consensus,

thanks to the faster than expected pricing hike in 2Q (see here) and product mix

improvement speed (revenue was 10% higher than BBG consensus and was 20-25%

higher than the company’s revenue target, but was in-line with our estimate;

GM/OPM jumped 4.4/5.4ppt QoQ in 2Q26, which was 1.4/1.8ppt higher than the

BBG consensus, but in-line with GSe). For earnings, EMC’s 2Q26 EPS was 3% below

our estimate due to some non-op loss, but was 16% higher than the BBG consensus.

Chao Wang

Goldman Sachs (Asia) L.L.C., Taipei

Branch

Allen Chang

+852-2978-2930 |

Goldman Sachs (Asia) L.L.C.

Al Wang

Goldman Sachs (Asia) L.L.C., Taipei

Branch

TUC’s 2Q26 core business (OPI) was also in-line with our estimate (the most

bullish on the street; also 2% below GSe), and was 7% higher than BBG consensus,

mainly driven by the solid GM expansion speed (4.6ppt QoQ and was 1.8ppt higher

than BBG consensus, but was in-line with GSe), thanks to the solid demand from

high-end AI customers’ new projects ramp and 10-60% pricing hike across all

product lines. EPS in 2Q was 12%/4% below GSe/BBG consensus due to the higher

than expected tax rate (32% in 2Q vs. GSe/BBG consensus at 22%/23%) resulting

from the loss making Thailand plant (which could be breakeven in 3Q26, leading to a

much more stable tax rate).

3Q26 outlook

For EMC, considering the product mix improvement (Trainium 3 / Rubin / TPU v8 etc.

new AI server projects with solid M8/9 grade CCL demand will ramp up more

significantly from 3Q26) and potential pricing hike (we expect overall pricing will

further go up by 0-10% QoQ in 3Q), we expect the company revenue to further go

up by 21% QoQ, and GM should further expand from 33.9% in 2Q to 36.8% in

3Q26. Moreover, we expect EMC’s substrate CCL business to pass qualification in 3Q,

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