Copper-clad laminate (CCL) upgrades to higher precision packaging substrates

Copper Clad Laminate (CCL) upgrades shift focus to higher-precision substrate packaging; Nanya, Unimicron hit record highs, Taiguang Electronics and Taya Technology hit limit-upPreviously, the market was concerned that the broader adoption of Co-Packaged Optics (CPO) could shorten the transmission distance of high-speed signals, thereby reducing demand for high-end CCL. As a result, CCL stocks came under heavy selling pressure.However, industry insiders indicate that the CCL upgrade cycle is far from over. The focus of material upgrades is shifting toward applications with higher precision requirements, including semiconductor packaging substrates and optical engine module boards.On October 5, CCL-related stocks surged. Taiguang Electronics (2383) and Taya Technology (6274) hit their upper price limits, while Nanya Plastics (1303), Unimicron (6213), and Tenghui Electronics-KY (6672) reached new intraday highs.According to industry sources, high-end CCL shipments have remained robust this year, with both volume and prices continuing to rise. The next phase of material upgrades is expected to concentrate on substrate miniaturization, as well as customized thermal characteristics and tighter control of Coefficient of Thermal Expansion (CTE).As a result, the upgrade path is shifting from large-area server and switch motherboards to semiconductor packaging substrates and optical engine module boards. CCL manufacturers capable of expanding advanced substrate materials and high-end specialty resin formulations are expected to continue benefiting as major players in the ongoing technological evolution of the industry.Meanwhile, CPO still faces several short-term challenges, including cost, manufacturing yield, reliability, maintenance, and thermal management. Therefore, its impact on high-end CCL demand is expected to remain limited in the short term.Demand for large-area motherboards used in AI servers and 800G/1.6T switches also remains solid, continuing to support the high-performance CCL materials market.Analysts point out that materials of M7 grade and above currently account for about 60% to 65% of Taiguang Electronics' business. The company began shipping M9 products in the third quarter of this year and plans to increase their prices.On Monday, Taiguang Electronics' share price opened sharply higher and then quickly rose to the daily limit at NT$5,700, surpassing the 60-day moving average.Nanya Plastics, Unimicron, and Tenghui Electronics-KY also hit new intraday historical highs. Among them, Nanya saw the largest increase, at one point rising nearly 9% to NT$285.Supply chain surveys show that Nanya’s high-end M6 to M8 CCL orders used for AI servers are expected to make significant progress in the fourth quarter.Nanya is also developing proprietary hydrocarbon resin formulations for high-grade M9 and M10 materials. The company and another Taiwanese supplier are currently undergoing sample certification for M10 materials, with initial verification results expected in the first quarter of 2027.