科技 - 亚太区：人工智能大趋势下硬件/半导体材料的最大受益者

Highlight names with 40+% AI revenue: EMC/MPI EquityAsia-Pacific IntheTaiwan Semiconductor sectornote, our analyst Haas Liu cites that AI (artificialintelligence) compute is set to account for 37% of global semis revenue in 2025 (vs 10%in 2020), and datacenter investments by hyperscalers are expected to rise at a 24%CAGR toward 2030, reaching a scale of US$1.2tn. Within this context, we highlightnames in the hardware/semiconductor material space geared toward the structural Mike Yang>>Research AnalystMerrill Lynch (Taiwan)+886 2 2376 3729 Haas Liu>>Research AnalystMerrill Lynch (Taiwan)+886 2 2376 3727 EMC: benign outlook into 2026; sustained leadership EMC is the leaderof high-end CCL (copper clad laminate) for the PCB industry,supported by technological superiority, large capacity, an optimized cost structure,geographic diversity, and sufficiency in raw-material supply. Looking ahead, we expectEMC’s strengths to sustain, enabling it to generate 40+% of its revenue from AI server MEMS–micro-electro-mechanicalsystemVPC - vertical probe cardI/O - input/outputCSP - cloud service providerGPU - graphic processing unitR&D - research/developmentPCB - printed circuit boardROE - return on equity September/October, and that its momentum will pick up going forward, thanks to 1) thereacceleration of pull-in by a key CSP customer; and 2) potential price hike for low/mid-end CCL (though less than 30% of revenue) from December. Into 2026, we expect thecompany to deliver 40+% bottom-line growth with 45-50% ROE, which should besupported by 1) the initial shipment of M9-grade material in 1H26; and 2) securement of MPI: manageable competition risk with accelerated growth MPI has been the main (if not the sole) supplier of AI ASIC projects, and we believe thatsuch traction will help the company broaden its market share in MEMS probe card, giventhe gradual migration by these projects from VPC (or called cobra). Looking into 2026,we expect the company to generate 40+% revenue from AI server market, mainly via theASIC projects by CSPs. Recently, we notice that its peers are likely to have capacityexpansion in MEMS solutions, including 1)Technoprobe’s announcement to doublecapacity (report)in the next 24 months; and 2) WinWay’s ramp in the business. That said,we are not overly concerned about competition, considering 1) the significantlyexpanded demand (TAM) of chip-probinggiven the design-change (report)of compute This research report provides general information only. No part of this report may be usedor reproduced or quoted in any manner whatsoever in Taiwan by thepress or otherpersons without the express written consent of BofA Securities. >> Employed by a non-US affiliate of BofAS and is not registered/qualified as a research analystunder the FINRA rules. Refer to "Other Important Disclosures" for information on certain BofA Securities entities that takeresponsibility for the information herein in particular jurisdictions. BofA Securities does and seeks to do business with issuers covered in its researchreports. As a result, investors should be aware that thefirm may have a conflict ofinterest that could affect the objectivity of this report. Investors should consider thisreport as only a single factor in making their investment decision.Refer to important disclosures on page 6 to 9. Analyst Certification on page 2. PriceObjective Basis/Risk on page 2. Exhibit1:Table of recommendationStocksmentioned with ratings in this report Price objective basis & risk Elite Material (ETMCF) Our PO of NT$1,650 is based on 22x 2H26-1H27E P/E, at the mid-to-high-end of itshistorical 2016-24 range of 6-30x. In our view, the multiple is appropriate, given themarket-share expansion in server/networking, where we see structural growth inaddressable market. We believe the stock will positively react to the company's Upside risks are (1) share gain at substrate CCL, (2) stronger 5G smartphone shipment,(3) greater 5G smartphone spec upgrades, and (4) favorable FX and raw material cost Downside risks are (1) share loss at iPhone, (2) keener competition in high-end CCL, and(3) unfavorable FX and raw material cost change. MPI Corporation (XMJCF) Our PO NT$2,350 is based on 35x 2H26-1H27E P/E, which is at the high-end of thecompany's historical trading range (10x-35x). In our view, the valuation multiple isunderpinned by 1) 49% earnings CAGR in 2025-27E, 2) operating margin of 34-35% in2026-27E, 3) ROE of 40-41% in 2026-27E, 4) net cash of NT$67/share, and 5) free cashflow generation of NT$85/share across 2025-27E. Downside risks to our PO are: 1) slower end market demand, which may undermine the company's revenue growth and 2) customers' switch from VPC probe card to MEMS solution, where MPI has a less 3) keener competition especially from its foreign competitors, which may dampen the 4) failure to execute or delay of in-sourcing strategy on PCB, which may limit the firm's Analyst Certification I, Mike Yang, hereby certif