Goldman Sachs sets NT$2,500 target for NYPCB as ABF substrate shortage persists
NYPCB (8046.TW) said on its post-2Q26 earnings call that it is evaluating several capital-expenditure plans.
NYPCB (8046.TW) said on its post-2Q26 earnings call that it is evaluating several capital-expenditure plans. Its new Chiayi plant would focus on next-generation advanced-packaging substrates priced at more than US$1,000 per unit, with revenue contributions expected to begin in the first half of 2029.
ABF substrate average selling price growth is expected to accelerate, with growth in 2H26 faster than in 1H26. The company believes the industry’s supply shortage will not be resolved in 2027-28 and says there is “no price ceiling.”
BT substrate gross margin improved sharply, from the single-digit percentage range in 1Q26 to the low-20% range in 2Q26. Prices are rising 20-30% quarter over quarter. Kunshan plant utilization increased from 50% in 2Q26 to an expected 70% or higher in 3Q26.
Goldman Sachs maintained its positive rating and kept NYPCB on its Conviction List.
Goldman Sachs said NYPCB’s continued price increases, driven by tight ABF and BT substrate supply, along with higher Kunshan utilization and the Chiayi plant’s focus on next-generation high-end substrates, could support a significant increase in ASP over the next more than three years.
The note identifies NYPCB itself, the ABF and BT substrate supply chain, and the advanced-packaging substrate industry as potential beneficiaries.
Catalysts identified in the note include continued ABF substrate price increases with no price ceiling; faster ASP growth in 2H26 than in 1H26; continued BT substrate price increases of 20-30% quarter over quarter; achieving 20% or more quarter-over-quarter revenue growth in 3Q26; and the final approval of new capital-expenditure plans, including the Chiayi plant.
ABF substrate average selling price growth is expected to accelerate, with growth in 2H26 faster than in 1H26. The company believes the industry’s supply shortage will not be resolved in 2027-28 and says there is “no price ceiling.”
BT substrate gross margin improved sharply, from the single-digit percentage range in 1Q26 to the low-20% range in 2Q26. Prices are rising 20-30% quarter over quarter. Kunshan plant utilization increased from 50% in 2Q26 to an expected 70% or higher in 3Q26.
Goldman Sachs maintained its positive rating and kept NYPCB on its Conviction List.
Goldman Sachs said NYPCB’s continued price increases, driven by tight ABF and BT substrate supply, along with higher Kunshan utilization and the Chiayi plant’s focus on next-generation high-end substrates, could support a significant increase in ASP over the next more than three years.
The note identifies NYPCB itself, the ABF and BT substrate supply chain, and the advanced-packaging substrate industry as potential beneficiaries.
Catalysts identified in the note include continued ABF substrate price increases with no price ceiling; faster ASP growth in 2H26 than in 1H26; continued BT substrate price increases of 20-30% quarter over quarter; achieving 20% or more quarter-over-quarter revenue growth in 3Q26; and the final approval of new capital-expenditure plans, including the Chiayi plant.