Topco Enters CCL Supply Chain with High-End Quartz Cloth, Forging Second Growth Curve

(CNA, by reporter Tseng Jen-kai, Taipei, 21st) Topco Scientific held an investor conference today, revealing that its high-end quartz cloth, which features low dielectric loss, has been successfully integrated into the supply chains of several leading Taiwanese Copper Clad Laminate (CCL) manufacturers, with shipments currently at full capacity. In response to a significant market demand gap, Topco stated that the original manufacturer, Shin-Etsu Chemical, is actively expanding production capacity. The current monthly supply is about 75,000 meters, and the next phase capacity target is set to increase to 240,000 meters per month, which is expected to become Topco's explosive second growth engine in the coming years. Topco's first-quarter revenue reached NT$18.54 billion, a quarterly increase of 7.2% and an annual increase of 17.6%. Net profit attributable to the parent company was NT$13.2 billion, a year-on-year increase of over 40%, with earnings per share (EPS) of NT$6.86, a record high. Topco stated today that its operational growth in the first quarter overcame the traditional off-season slump, primarily benefiting from strong demand for AI and High-Performance Computing (HPC) chips, which drove robust shipments of advanced process materials. Analyzing its Q1 product revenue distribution, Topco noted that semiconductor materials remain the core of its operations. Semiconductor-related revenue in the first quarter was NT$16.07 billion, accounting for a high of 86.7% of total revenue. This was followed by environmental engineering and energy business revenue of NT$1.64 billion, representing 8.9%. Topco said it has successfully transformed in recent years from a traditional materials distributor to an integrated platform for advanced process materials and services. As the leading wafer foundry's technology advances from 3nm to 2nm processes, the yield certification and verification thresholds for materials are extremely high. Key materials supplied by Topco, such as photoresists, silicon wafers, quartz, and photomask substrates, are deeply embedded in customers' process configurations, providing customer stickiness and a difficult-to-replace strategic advantage. Recently, due to the Middle East situation causing significant fluctuations in international shipping fees and petrochemical raw material prices, the production costs of organic solvents and chemical materials have risen sharply. Topco is currently negotiating price adjustments with suppliers and customers. Various products will be adjusted dynamically based on individual circumstances, with the adjustment range being between 15% and 20%. Among them, wafer carriers FOUP and FOSB are seeing relatively significant adjustments due to increased petrochemical costs and a market of short supply. (Editor: Chang Liang-chih)