TAIPEI (Taiwan News) — Nan Ya Plastics Corp. is benefiting from its strategic transformation, positioning the company for growth as artificial intelligence and semiconductor demand rise, CTEE reported Sunday.
Institutional investors note a recent shift of market funds toward undervalued industrial companies that are more resilient to economic fluctuations. Nan Ya Plastics, a key subsidiary of Formosa Plastics Group, is emerging as a primary beneficiary.
Nan Ya Plastics holds a 67% stake in Nan Ya Printed Circuit Board Corp. and also owns Nanya Technology Corp. Beyond plastics processing and polyester products, its operations include electronics, and it is one of the world’s largest manufacturers of copper-clad laminate, a key material for printed circuit boards, according to MoneyDJ.
The global boom in AI servers is creating significant opportunities for the printed circuit board industry, which forms the foundation of most electronic devices. Copper-clad laminate serves as a core material for the boards and the vital system that connects high-speed computing chips to networks worldwide, according to Stockfeel.
The company’s full range of products, including copper foil, glass fiber cloth, and electronic-grade epoxy, has seen strong demand, driven by growth in data centers and high-performance computing. Industry sources also report that Nan Ya Plastic’s T-glass, a type of reinforced glass fiber cloth, has passed third-party certification, potentially supporting future expansion, according to CTEE.
Looking ahead to the fourth quarter, Nan Ya Plastics expects revenue to remain similar to the third quarter, but profitability is set to improve. Operating profits for electronic materials are projected to rise from 1.7% in Q3 to 4% in Q4.
Plastics processing products are expected to maintain strong single-digit margins, polyester products are returning to a small profit of 1% after a 1.3% loss in Q3, and losses in chemical products are narrowing. Analysts said these trends indicate limited downside risk and overall positive momentum for the company’s operations.
The company’s stake in Nan Ya PCB is also benefiting from strong demand for bismaleimide triazine substrates and Ajinomoto Build-up Film, with prices rising steadily. Tight T-glass supply may contribute to further ABF price increases.
BT substrates and ABF substrates are types of integrated circuit substrates. They form the base of ICs, which integrate numerous electronic components onto a small semiconductor chip to perform specific functions, according to Stockfeel and Gugu Fund.
Institutional investors expect Nanya Technology to perform strongly next year, supported by rising prices amid ongoing DDR4 memory shortages. Nan Ya Plastics’ fundamentals are on an upward trajectory, driven by tight electronic material supply and dual growth from subsidiaries, with limited downside risk.
