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ChipMOS Technologies Inc. Reports Second Quarter 2025 Results

ChipMOS Technologies Inc., a leading provider of outsourced semiconductor assembly and test services (OSAT), recently published its financial results for the second quarter of 2025, revealing a strong recovery in its operations. The report, released on August 12, highlights a 3.7% increase in revenue compared to the previous quarter, with overall financial performance reflecting the company's strategic adjustments in response to market conditions.

Revenue Overview

For Q2 2025, ChipMOS recorded revenue of NT$5,735.8 million (approximately US$196.6 million), marking an increase from NT$5,532.3 million (US$189.6 million) in Q1 2025 and a slight decrease from NT$5,809.6 million (US$199.1 million) observed in the same period last year. This revenue boost can be attributed to the recovery in the memory business, signaling a promising turnaround after previous declines in demand.

Margin and Utilization Rates

The gross margin for Q2 2025 was reported at 6.6%, a decrease from 9.4% in the first quarter. Nevertheless, the overall utilization rate saw an improvement, rising to 65% from 62% in Q1 2025. This increased utilization suggests that ChipMOS is efficiently leveraging its resources to meet the growing demand within the semiconductor market.

Financial Position

ChipMOS reported a net loss of NT$533.1 million (US$18.3 million) for the quarter. This stands in stark contrast to a net profit of NT$176.3 million (US$6.0 million) in Q1 2025 and a profit of NT$450.6 million (US$15.4 million) in Q2 2024. The losses were mainly due to substantial non-operating expenses, which included a notable foreign exchange loss of NT$690 million (US$23.6 million).

Despite the recent losses, the company remained in a strong financial position with a net free cash inflow of NT$1,667.2 million (US$57.1 million) for the first half of 2025 and a healthy cash and cash equivalents balance of NT$13,661.8 million (US$468.2 million). This robust financial cushion not only positions ChipMOS favorably for future investments but also reflects prudent capital expenditure practices.

Dividend Distribution

As part of its shareholder commitment, ChipMOS distributed a cash dividend of approximately NT$1.23 per common share on July 18, 2025, and US$0.836 per American Depositary Share (ADS) on July 25, 2025. This distribution reflects the company’s dedication to returning value to its investors despite a challenging earnings period.

Looking Ahead

With an eye toward recovery and growth, ChipMOS is set to hold an investor conference call on August 12, 2025, to discuss its financial results and provide insight into the overarching operational environment. The company aims to use this forum to maintain transparency and engage with stakeholders regarding its strategic direction in navigating the semiconductor industry's evolving landscape.

Company Background

ChipMOS Technologies Inc. operates facilities in Hsinchu Science Park, Hsinchu Industrial Park, and Southern Taiwan Science Park. The company is recognized for its innovative approaches and extensive experience in the semiconductor testing and assembly sector, serving multiple end markets worldwide. As it moves forward, ChipMOS continues to focus on optimizing its operations to capture growth opportunities within the evolving market.

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In light of these results, ChipMOS emphasizes its commitment to innovation and strategic financial management as pivotal factors in overcoming current challenges and fostering long-term growth in the semiconductor industry.