IMOS — ChipMOS TECHNOLOGIES Inc.

ChipMOS Technologies Q2 2025 Earnings Call Summary

1. Key Financial Results and Metrics

• Total Revenue: TWD 5,736 million, up 3.7% from Q1 2025 but down 1.3% year-over-year.
• Gross Margin: 6.6%, a decrease of 280 basis points from Q1 2025 and down 7.4 percentage points year-over-year.
• Net Loss: TWD 533 million (TWD 0.75 per share), a significant decline from a profit of TWD 176 million in Q1 2025.
• EBITDA: TWD 1,302 million.
• Operating Profit: TWD 21 million, with an operating profit margin of 0.4%, down from 2.1% in Q1 2025.
• Total Assets: TWD 43,521 million; Total Liabilities: TWD 20,265 million; Total Equity: TWD 23,256 million.
• Cash and Cash Equivalents: TWD 13,662 million, down TWD 1,557 million year-to-date.

2. Strategic Updates and Business Highlights

• The company is focusing on supporting customers, increasing market share, and expanding profitability while maintaining a conservative CapEx approach.
• Memory products represented 45.3% of Q2 revenue, with a notable increase of 21.2% from Q1, driven by pricing and volume.
• The assembly segment accounted for 27.9% of revenue, with improvements in utilization rates across various product lines.
• The company continues to prioritize higher-margin product areas and has recently distributed dividends as part of its capital allocation strategy.

3. Forward Guidance and Outlook

• For Q3 2025, ChipMOS expects cautious consumer demand but anticipates strong momentum in memory products, particularly due to supply-demand imbalances in DDR4 and MLC NAND.
• The company expects to increase OSAT prices for memory products to offset material cost increases and improve profitability.
• While DDIC products may continue to face demand weakness, OLED products are projected to benefit from seasonal restocking.

4. Bad News, Challenges, or Points of Concern

• The gross margin decline was attributed to lower ASPs in DDIC products and foreign exchange losses, with a significant loss of TWD 690 million in Q2 due to currency fluctuations.
• Operating profit decreased by TWD 95 million compared to Q1, and the company reported a net loss compared to a profit in the previous quarter.
• The automotive and industrial sectors showed macro softness, impacting overall performance.

5. Notable Q&A Insights

• Management confirmed that the conditions affecting gross margin in Q2, including lower ASPs and increased costs, are expected to persist into Q3, though with potential improvements from price increases.
• The company remains optimistic about Q3 despite uncertainties, citing positive trends in memory products and stable automotive panel demand.
• Regarding dividend policy, management indicated no changes are expected for 2026, emphasizing a stable payout supported by retained earnings.

Overall, while ChipMOS faced challenges in Q2 2025, particularly with net losses and declining margins, the company remains focused on strategic growth areas and is optimistic about improving conditions in the second half of the year.