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[Weekly King CTWANT] The Taiwan Printed Circuit Association (TPCA) said today (3) that Taiwan's PCB output value in the fourth quarter of last year was NT$217.5 billion, a year-on-year increase of 2.8%, indicating that the market is gradually recovering. The annual output value in 2024 will reach NT$816.8 billion, an annual growth of 6.1%. Looking forward to 2025, AI servers, satellite communications and electric vehicle electrification will continue to drive market growth, and the annual output value is estimated to reach NT$854.1 billion, a year-on-year increase of 4.6%.

Global geopolitical changes continue to drive the restructuring of the industry supply chain, and the PCB industry is also accelerating its pace into Southeast Asia. More than 40 PCB companies from Taiwan and mainland China have settled in Thailand.

The Taiwan Stock Exchange closed up 275.02 points yesterday (5), an increase of 1.22%, closing at 22,871.90 points. There are 6 stocks that have been rising strongly for several days in a row. Among them, CoWoS concept stock, optical inspection equipment manufacturer Motion (3563) recently announced its February revenue of 271 million yuan, a monthly increase of 26.1% and an annual increase of 196%, setting a new high for two consecutive months. The stock price has soared again recently. Foreign capital has been buying for 13 consecutive days, with the amount of buying exceeding 1.3 billion yuan. Yesterday, it rose 6.35% and closed at 511 yuan, setting a nearly 7-year high.

TSMC has expanded its investment in the United States, sparking a new wave of semiconductor investment. The best semiconductor equipment manufacturers came to the Taipei International Machine Tool Show, including UC, Tongtai (4526), ​​Baide, Takizawa, Hoda, Hiwin, and Gaofeng. Many domestic and foreign semiconductor supply chain buyers flocked to the booths in the past two days, and the order scale continued to expand. The industry estimates that potential orders will challenge NT$100 billion.

Goldman Sachs Securities Greater China Technology Industry Research Director Zhang Bokai pointed out that benefiting from the progress of generative AI, data centers have been upgraded to 800G and 1.6T high-speed transmission, and the silicon photonics (SiPh) supply chain will usher in strong growth in 2024. Epitaxy silicon wafer suppliers Lianya (3081) and Xinxin (2455) are important early beneficiaries. They were both given a "buy" investment rating when they were first included in the research scope, and the estimated reasonable share prices are 686 yuan and 233 yuan respectively.

Silicon photonics (SiPh) has become a prominent field in the future development of chips, and domestic IC design company MediaTek is stepping up its layout in the field of silicon photonics. According to media reports, MediaTek's development direction prioritizes the development of optical co-packaging (CPO) heterogeneous integration technology. The reason is that there are many manufacturers that can provide photonic integrated circuits (PICs), but few that can provide integrated solutions. What customers need is a service that can integrate all content, which has also become a strategic consideration for MediaTek.