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ChipMOS Technologies Begins NT$350 Million Share Repurchase

ChipMOS Technologies Inc., a leading semiconductor assembly and test service provider based in Taiwan, has recently announced its plan to initiate a share repurchase program worth NT$350 million, approximately US$10.7 million. This move is part of the company’s ongoing strategy to enhance shareholder value and reflects the board's confidence in the company's future prospects.

Details of the Share Repurchase Program

The share buyback program has been authorized by ChipMOS's Board of Directors and will enable the company to repurchase up to 10 million shares from the open market on the Taiwan Stock Exchange. This figure represents about 1.38% of the company's issued share capital. The repurchase will take place within a designated price range of NT$21.18 to NT$35.00 per share, allowing flexibility in case market conditions cause stock prices to fall below this range. The buyback period is set from January 22 to March 21, 2025.

S.J. Cheng, the Chairman and President of ChipMOS, statedthat the decision to authorize this repurchase program aligns with their overall capital allocation strategy. He has expressed his belief that the current share prices do not reflect the true value of the company, highlighting it as a compelling investment opportunity. Cheng emphasized, “We remain confident in our financial performance and are focused on strategic initiatives to drive our growth while building long-term shareholder value.”

Strategic Importance of the Repurchase

Share repurchase programs can have several benefits for companies. Primarily, they can enhance shareholder value by reducing the number of shares outstanding, thus increasing the earnings per share (EPS) for remaining shareholders. This buyback can be perceived as a signal of confidence from the management regarding the company’s future prospects and current market valuation.

By actively managing its capital structure, ChipMOS is not just looking to optimize its stock performance but also aims to demonstrate its commitment to its shareholders during periods of market volatility. As an industry leader in providing outsourced semiconductor assembly and test services (OSAT), ChipMOS operates at the forefront of technological innovation and advancement, further underlined by this repurchase initiative.

About ChipMOS Technologies Inc.

Established with a focus on high-quality services and commitment to excellence, ChipMOS has made a significant mark in the semiconductor industry. The company operates advanced facilities across various locations, including Hsinchu Science Park and Southern Taiwan Science Park, ensuring it meets the needs of leading semiconductor companies worldwide. ChipMOS specializes in providing end-to-end assembly and test services, working closely with fabless semiconductor companies and independent foundries, which positions it favorably in the competitive semiconductor landscape.

The ongoing dedication to innovation and customer satisfaction has established ChipMOS as a trusted partner in the semiconductor supply chain. As the company continues to execute its growth strategies, the recent share repurchase program may very well be a step toward reinforcing its standing as a shareholder-focused enterprise while navigating the complexities of the market.

In conclusion, ChipMOS Technologies Inc.'s NT$350 million share repurchase program not only reflects an opportunity for investors but also serves as an indicator of the company's commitment to maintaining a profitable and competitive business model within the semiconductor industry, setting the stage for future success and growth.