Nomura Greater China Tech Hardware: Asia Tech Tour Takeaways
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Nomura recently hosted an Asia Tech Tour in Taipei, engaging with three AI supply chain companies: AVC, EMC, and TUC. AVC projects at least 35% revenue growth in 2026, driven by GB300 in the first half and ASICs in the second half, with ASIC revenue potentially surpassing GPU revenue by Q4 2026. Although AVC holds a 70-80% share in GB200/300 liquid cooling modules, it expects this to normalize to 40-50% long-term as customers diversify suppliers. Meanwhile, EMC is experiencing severe supply constraints due to strong AI server demand and plans to expand monthly capacity from 5.85 million sheets in late 2025 to 7.5 million by late 2026. EMC is also considering price increases for M6 and above CCL products and holds over 70% market share in LEO satellite CCL. Furthermore, TUC has begun mass-producing next-generation CCL using HVLP4 copper foil for key ASIC clients at its Thailand facility. TUC intends to add 300,000 sheets of monthly capacity in Thailand by Q2 2026. Nomura maintains Buy ratings on all three firms. Target prices are set at NT$1,700 for AVC, NT$2,330 for EMC, and NT$604 for TUC, based on 27x, 27x, and 23x 2027 EPS estimates, respectively.