Unimicron shares recover after two-day drop
Taiwan chip substrate maker Unimicron bounced back from an early dip on Wednesday, a relief sign for shareholders after a customs scandal knocked the stock down for two days.
- Investigators searched Unimicron over claims its circuit-board plant relabeled goods to disguise where they were made.
- Buyers stepped in on the dip and pushed the stock back into the green, beating the wider Taiwan market.
- Foreign banks and local funds all called it a short-term scare and left their profit forecasts and ratings unchanged.
- The unit under investigation is a small slice of sales — circuit boards were under a tenth of last quarter's revenue, and less of the profit.
- Demand for the company's main product, ABF substrates used in advanced chips, still far outstrips supply.
Outlook: The stock looks set to trade on chip demand rather than the probe unless investigators widen the case beyond that one plant.