Taiwanese IC substrate maker Nan Ya PCB is reported to have decided against further increases in BT substrate prices in the fourth quarter, sending its shares straight to limit down that day — bad news for investors in substrate stocks.

• Nan Ya PCB is said to be holding off on further BT substrate price hikes in the fourth quarter, as raw material costs have been rising more slowly.
• Capacity utilisation and yield rates at the company's Kunshan plant in China have yet to reach full levels, which could weigh on third-quarter margins.
• Selling pressure came all at once, with trading volume exceeding the previous full session's total, and the substrate sector fell sharply across the board.
• Foreign institutional investors are less pessimistic, still projecting third-quarter revenue growth of 20% quarter on quarter and margins returning to around 30%.
• Nan Ya PCB has just won new AI HDI orders from a US ODM customer, which should support its PCB business in the fourth quarter.

Outlook: The share price is likely to remain under pressure in the near term from concerns over stalled price increases, but yield improvements at the Kunshan plant and AI orders will be key to whether the company can turn things around.