Taiwan Stocks Fall Below Half-Year Line as CCL Drops Sharply
US tech giants reported earnings and guidance that missed market expectations, triggering selling pressure in US tech stocks. Taiwan stocks followed suit on the last trading day of October, falling below the half-year line at 45314 points to close at 45211.83 points, down 1156.5 points or 2.49%, with turnover reaching 8792.57億元. The CCL group also weakened, with EMC (2383) falling 6.69%, Nanya (1303) falling 5.13%, TUC (6274) falling 8.99%, and ITEQ (6213) falling 7.79%. Meanwhile, PTFE fabric-free copper-clad laminate substrates became a market focus, with market rumors that Nvidia (NVDA)'s next-generation platform may adopt related materials, raising attention on the impact for the M9, M10 and glass fabric supply chains.
Ruan Muhua: High Cost and Immature Supply Chain Make Full Replacement Difficult
Financial expert Ruan Muhua said on the show "Cash Deployment" that it is still too early to conclude PTFE will fully replace existing materials. He noted that PTFE's dielectric constant (Dk) and dissipation factor (Df) outperform M9-grade materials, but due to high costs and an immature supply chain, large-scale rollout within the next two years is unlikely. Initial adoption is more likely to be gradual or hybrid, concentrated in areas such as orthogonal backplanes and Switch Trays. Even if PTFE adoption begins, the impact on EMC is likely to be limited to certain products, and it is hard to infer a rapid reversal in existing high-end CCL competitiveness.
EMC Q3 Profit Strong, Nanya Dual-Track Layout
Ruan Muhua noted that the highest-end CCL still involves different material options such as Q-Glass and PTFE fabric-free solutions, and whether large-scale adoption follows will still depend on yield, processing capability Jichengcost. EMC posted Q3 revenue of 608.85億元, gross margin of 37.7%, and earnings per share (EPS) of 40.47 yuan, with M9 already in mass production, and high-end products remain the core driver of current operations.
By contrast, Ruan Muhua named Nanya, saying the company is developing both glass fabric and PTFE technologies, leaving room to participate regardless of which material route high-end CCL takes. Nanya's product catalog has listed low-dielectric PTFE CCL since 2021, and it holds patents related to glass-fabric-reinforced PTFE prepregs and CCL, along with vertically integrated capabilities in CCL, copper foil, glass fabric and resin, covering multiple segments of the materials layout. For PTFE concept stocks that had surged sharply, he cautioned to watch whether the theme has already been fully priced in, saying it cannot yet be seen as a full replacement of the existing glass fabric and high-end CCL supply chain, with mass-production schedules, customer qualification progress and actual revenue contribution still to be observed.