ChipMOS Technologies Predicts 2024 Revenue Growth Amid Challenges

ChipMOS Technologies Inc., a leader in outsourced semiconductor assembly and testing services, has announced its revenue expectations for 2024. The company forecasts a promising revenue growth of approximately 6.3% compared to 2023, despite facing headwinds that may affect its revenue performance in the last quarter of the year.

Revenue Insights

In its report, ChipMOS revealed that for December 2024, the company anticipates a revenue decline of 5.4% year-over-year. This decrease comes after reporting a revenue total of NT$1,780.1 million (equivalent to about US$54.3 million), which also represents a 3.0% decline from the previous month of November 2024. These figures indicate the pressures the company may endure as it navigates through market demands and pricing strategies.

For the fourth quarter of 2024, revenue is projected at NT$5,399.6 million (around US$164.7 million), reflecting a 5.7% decrease compared to the same quarter in the previous year and an 11.0% decrease from the third quarter of 2024. Despite these quarterly challenges, ChipMOS attributes its overall revenue growth to continued strength in its core markets, underscoring its leadership in the semiconductor industry.

Challenges Ahead

ChipMOS has identified macroeconomic industry pricing pressures and demand fluctuations as key challenges impacting its revenue growth in the latter part of 2024. The semiconductor market has faced volatility, which is expected to persist, causing dips in revenue during periods of expected growth and stability.

Despite these challenges, ChipMOS remains confident in its operational strategies and commitment to innovation. The company’s ability to adapt to changing market conditions is seen as vital to maintaining its competitive edge and achieving long-term growth goals.

Future Outlook

Looking ahead, ChipMOS executives expect that their robust service offerings and industry expertise will help counteract some of the revenue declines projected for late 2024. The company is focused on strengthening its relationships with integrated device manufacturers and fabless semiconductor companies alike, providing them with comprehensive assembly and testing solutions that meet a diverse range of market needs.

In conclusion, while ChipMOS Technologies anticipates a mixed bag for revenue results in December 2024 and the fourth quarter, its overall forecast for the full year remains optimistic. The predicted 6.3% revenue growth aligns with the company’s historical commitment to excellence and innovation within the semiconductor manufacturing sector,
ensuring it stays relevant amidst ongoing challenges.