Taiwan IC substrate leader Unimicron has been searched by prosecutors and investigators over a dispute concerning country-of-origin labelling, putting short-term pressure on its share price. Foreign brokerages, however, see this as an entry point rather than a warning sign about fundamentals, and remain positive for long-term investors.

• Unimicron was searched by prosecutors and investigators last Friday over a "country-of-origin labelling" declaration issue, not a problem with its core business.
• The Hejiang plant under investigation makes ordinary printed circuit boards rather than high-end ABF substrates, so the impact on revenue and earnings is limited.
• All three major foreign brokerages have maintained a positive view, and singled out a share price below NT$950 as a level worth considering for buying.
• This case is not about the US ban on Chinese circuit boards; even if capacity in China were restricted, Unimicron could redistribute orders to plants in other regions.

Outlook: Negative short-term sentiment may keep the share price volatile for a while, but as long as the investigation does not widen to the core substrate business, institutional investors expect the price to stabilise.