Goldman Sachs: Taiwan CCL/PCB Industry Update: Stronger Than Expected Pricing Outlook, with Lengthening Lead Times
Summaries are public. PDF access requires an active membership; all members have the same access. Sign in
Goldman Sachs published an optimistic industry update on Taiwan's copper clad laminate (CCL), printed circuit board (PCB), and substrate sectors, citing a stronger-than-expected pricing environment and extending lead times. The firm raised target prices for four key stocks while maintaining Buy ratings across the board. surging artificial intelligence adoption is driving significant product mix improvements and severe supply-demand imbalances. Low-end CCL lead times have stretched beyond 20 weeks, while high-end CCL projects reach 12 weeks. Consequently, April CCL prices are projected to surge 30% sequentially for low-end products and 15% for high-end variants. The PCB sector is also experiencing roughly 10% price increases, excluding consumer electronics, fully offsetting rising CCL costs. Meanwhile, ABF substrate shortages are expected to persist through 2028. ZDT emerges as a major beneficiary, positioned to enter the supply chains for Rubin computing trays and Google TPU 8. Its ABF substrate capacity is slated to reach full utilization by the second half of 2026, potentially capturing meaningful market share and generating operating margins of 35% to 45% during the upcycle. Taiwan's high-speed CCL suppliers are additionally expected to penetrate the substrate CCL market starting in the second half of 2026, expanding their addressable markets and significantly boosting gross margins.