Unimicron Shocked by 'Origin Washing' Scandal, Stock Hits Limit-Down; Analyst Reveals Bottom-Fishing Strategy: Focus on These Two Stocks

Unimicron Electronic has been embroiled in a scandal over suspected 'origin washing,' allegedly shipping printed circuit boards (PCBs) manufactured in China back to Taiwan and relabeling them as 'Made in Taiwan.' On the 28th, prosecutors conducted raids and took five senior executives for questioning, later releasing them on high bail. A second wave of searches was carried out today (31st), and the company's stock price has been locked at the daily limit-down throughout the session.

In response, Chen Wei-tai, an analyst at Zhong Ying Wealth, stated on the financial program 'Wake Up Call' that investors looking to buy the dip should not focus solely on Unimicron but should also closely monitor two other stocks.

Chen noted that when the raid news broke last Friday, institutional investors may not have reacted immediately. Foreign investors still bought 3,673 shares, marking the highest net purchase of the week. Trusts made minor adjustments, while proprietary traders likely sensed trouble during trading and adjusted positions faster and more significantly.

Chen emphasized that foreign investors are primarily concerned with whether Unimicron actually engaged in origin washing, as this would directly violate compliance red lines set by U.S. clients. Trusts, on the other hand, hold large positions in Unimicron and are more worried about being left holding the bag if peers sell first.

While Chen believes short-term pullbacks are likely, he does not expect a complete collapse, citing strong and sustained demand for ABF substrates in the industry. However, if the allegations are confirmed, Unimicron could face temporary shipment bans, leading to order shifts to competitors such as Kinsus and Nanya Technology.

'If you're watching Unimicron, you should also be watching Kinsus and Nanya,' Chen advised. He also cautioned that if Unimicron continues to show extreme weakness, investors should observe the entire ABF substrate sector for one or two days before making moves.

Related exclusive reports from Feng Media: - Why did Unimicron, a major ABF supplier, get into trouble? Hsieh Chin-ho reveals the inside story of 'origin washing': It started with an internal whistleblower - Allegedly relabeling Chinese goods as 'Made in Taiwan'? Prosecutors raid ABF giant 'Unimicron Electronic,' taking two VPs and an accountant for questioning