Good Morning! 5/19 Foreign Media Summary - Mature Process Nodes: US Firms Say Upcycle Beginning * Upgrade/Rating Upgrade & Target Raise: UMC * Downgrade but Target Raise: GlobalWafers * Target Raise: Vanguard International Semiconductor (VIS) US major banks state that mature process capacity shortages are expected in 2H27. AI power IC demand will more than offset weakness in consumer electronics and smartphones. This is further supported by spillover orders from TSMC and Samsung. They believe TSMC will manage older-generation capacity in a more disciplined manner. Broker observations on UMC: Demand is recovering and wafer prices are being raised. Average prices in 2H26 are expected to rise 5-10%, with further increases next year. Capacity is expected to be tight from 2H26 to 2028. For VIS : Brokers note that TSMC is outsourcing part of its interposer production to them. The interposer business at the Singapore fab will also have higher gross margins than other power-related products. Due to tight capacity, prices will be raised in 1H26, including for LDDIC. Finally, for GlobalWafers: Brokers believe the market has already priced in the price recovery in the second half, improved LTA fulfillment, and progress in compound semiconductors. - ABF Substrates: US Firms Raise Targets for Unimicron & Nan Ya PCB; Upgrade & Target Raise for Zhen Ding US major banks have raised their ABF supply gap forecasts, expecting the shortage to widen to 22% by 2030 (previously ~15%).Brokers have raised Unimicron’s 2026-2028 EPS estimates to NT$11.6 / $24 / $49, valued at 51x forward P/E. For Nan Ya PCB, estimates raised to NT$11.5 / $23.8 / $51, valued at 54x forward P/E. For Zhen Ding Technology Holding: Brokers expect IC substrate revenue to triple by the year after next. In addition to benefiting from growing Chinese chip demand, they see the company competing for Google TPU substrate certification. It already has mSAP capability in the optical module segment, and BT market share is also rising. Raised 2026-2028 EPS to NT$13.8 / $21.1 / $28.5, valued at 25x forward P/E. - 2383 EMC: US Firm Reiterates Positive Stance US brokers estimate that capacity will need to expand another 20% in the year after next to meet demand. In mSAP, Elite Material has maintained ~80% market dominance since 2019 (first introduced in smartphones). They expect volume production in CPO applications. Near-term momentum: 2Q price increases to reflect rising costs, with gross margin recovery expected. Positive rating reiterated. - 3023 Sinbon: Asian Firm Raises Target Asian brokers have raised this year’s outlook and forecast revenue exceeding NT$50 billion in the year after next. Next year’s momentum will be driven by semiconductor equipment and automation trends; the year after by humanoid robots and drones. Latest EPS estimates for 2026-2028: NT$15.7 / $19.1 / $22.5, valued at 21x forward P/E, with target raised.