Higher prices for copper-clad laminate (CCL), a base material for circuit boards, are lifting margins in Nan Ya Plastics’ CCL business faster than UBS expected. Based on Q3 results, UBS estimates that each $1 increase in Nan Ya’s average CCL selling price translates into about $0.70 in additional operating profit per sheet. The bank raised its Q4 2026 CCL operating margin forecast to 39% from 25% and its 2027 forecast to 44% from 30%. It points to Nan Ya’s vertical integration across resin, glass fabric and copper foil as a source of operating leverage. For 2027, UBS assumes a smaller gain of $0.60 in operating profit per sheet for every $1 price increase, factoring in higher costs as AI-grade CCL production ramps up.

Higher rates can take time to filter through the economy, making their full impact difficult to judge. Arunima Sinha from our U.S. and Global Economics team considers where the pressure may emerge next and how policymakers could navigate the competing risks. Tune into the latest Thoughts on the Market:

Higher yields offer an opportunity to lock in attractive income from U.S. Treasuries. We're taking profits in U.S. stocks to manage near-term risk while keeping our confidence in AI intact. Read more in our latest weekly commentary 👉