Earnings Takeaways UMC (2303 TT, UMC) * Maintained constructive view despite lower TP; >90% UTR guidance and firm pricing support margin expansion into 2027, yet higher depreciation a partial offset * Raised 2026 capex to US$2bn, driven by Singapore fab cleanroom and 12A P7/P8 shell construction. * Product upgrade (22/28nm, AI, optics) remains the key earnings driver, with AI revenue targeted to exceed US$1bn within 3 years. * Foundry landscape remains favorable as Samsung scales back mature nodes while AI/optics demand stays strong. * Intel collaboration remains on track, with tape-out expected in 2027 on Intel 12; we removed our previous expectation for Intel 3/4 due to lacking engineering power for leading nodes * 3Q26 guidance: shipments +high-single digit QoQ, firm ASP, GM in the mid-30%, UTR >90%. Celestica (CLS US) * Strong beat-and-raise: raised 2026 revenue outlook to US$20.5bn and EPS to ~US$11.3, reflecting improving AI demand visibility. * 2027 revenue expected to grow >65% YoY, driven by hyperscaler AI deployments. * CCS remains the growth engine (+84% YoY), benefiting from 800G/1.6T networking and AI compute platform demand. * Google TPU share loss is largely priced in, with upside from other hyperscalers and AMD programs. * Neutral #UMC# #CLS#