Shares of Taiwanese semiconductor materials maker Kinik surged to an all-time high, welcome news for shareholders and the advanced-process supply chain.

• Kinik gapped higher at the open today, rising more than 8% at one point during the session to set a record.

• Strong demand from advanced processes is driving demand for diamond discs, with second-quarter revenue related to 2-nanometer processes up 84% from the previous quarter.

• Gross margin jumped to 40%, beating market expectations, and the reclaimed wafer business is also shifting toward higher-end products.

• Foreign investors have been net buyers for four consecutive trading sessions, and institutional investors expect gross margin to climb further this quarter.

• The company is raising grinding wheel prices by 5% to 15% starting this quarter, which should support future earnings.

Outlook: As long as demand for advanced processes does not weaken, Kinik's third-quarter gross margin and share price still have a chance to stay strong.