Goldman Sachs is bullish on Taiwan's chip substrate makers, raising price targets across the board as a supply crunch in a key material is set to worsen for years.

• Goldman raised targets on four major Taiwan substrate makers (Nan Ya PCB, Kinsus, Zhen Ding, and Unimicron), expecting profits to grow sharply through 2028.
• The shortage in BT substrates, a material used heavily in memory chips, is expected to widen steadily through 2027 and 2028 as demand from AI and memory chips outpaces new factory capacity.
• Suppliers are shifting production toward a different, pricier substrate type, which is making the BT shortage worse and pushing prices up double digits for the next few years.
• Related material and equipment makers tied to AI servers and high-end circuit boards are also seeing stock prices jump, with some companies' order books already full through 2027.
• Big institutional investors have reportedly kept buying these substrate stocks even during recent market swings, suggesting confidence the rally has more room to run.

Outlook: Analysts expect this group of stocks to keep climbing as the supply shortage and price increases continue over the next two to three years.