ChipMOS REPORTS SECOND QUARTER 2025 RESULTS

Rhea-AI Summary

ChipMOS Technologies (NASDAQ:IMOS), a leading semiconductor assembly and test services provider, reported mixed Q2 2025 financial results. Revenue increased 3.7% quarter-over-quarter to NT$5,735.8 million (US$196.6 million), driven by memory business recovery, but decreased 1.3% year-over-year.

The company reported a net loss of NT$533.1 million (US$18.3 million) in Q2 2025, compared to a net profit of NT$176.3 million in Q1 2025. This decline was primarily due to a significant foreign exchange loss of NT$690 million. The overall utilization rate improved to 65% from 62% in Q1 2025, while gross margin decreased to 6.6% from 9.4%.

ChipMOS maintained strong liquidity with cash and equivalents of NT$13,661.8 million (US$468.2 million) and generated net free cash inflow of NT$1,667.2 million in H1 2025. The company distributed a cash dividend of NT$1.23 per common share in July 2025.

Positive

• Revenue grew 3.7% quarter-over-quarter to NT$5,735.8 million
• Utilization rate improved to 65% from 62% in Q1 2025
• Strong net free cash inflow of NT$1,667.2 million in H1 2025
• Robust cash position of NT$13,661.8 million
• Memory business showing recovery signs

Negative

• Net loss of NT$533.1 million in Q2 2025 vs profit in Q1 2025
• Significant foreign exchange loss of NT$690 million
• Gross margin declined to 6.6% from 9.4% in Q1 2025
• Year-over-year revenue decrease of 1.3%

Insights

Semiconductor Industry Financial Analyst

ChipMOS shows mixed Q2 results with revenue growth but significant losses due to foreign exchange impacts, despite improving memory business and strong cash position.

ChipMOS's Q2 2025 results present a complex picture that deserves careful analysis. The company reported quarterly revenue of NT$5,735.8 million (US$196.6 million), representing a 3.7% sequential increase but a 1.3% year-over-year decline. This growth was primarily driven by recovery in the memory segment, which signals improving demand in this historically cyclical business.

However, the headline figure is the substantial net loss of NT$533.1 million (US$18.3 million), a stark reversal from profits in both the previous quarter and year-ago period. The primary culprit was a massive NT$690 million (US$23.6 million) foreign exchange loss, highlighting the significant currency risks faced by Taiwanese semiconductor firms with international operations.

Particularly concerning is the deterioration in gross margin, which fell to 6.6% from 9.4% in Q1, suggesting pricing pressure or operational inefficiencies. The utilization rate improved modestly to 65% from 62%, but remains well below optimal levels, indicating persistent overcapacity issues affecting profitability.

On a more positive note, ChipMOS maintained strong liquidity with NT$13,661.8 million (US$468.2 million) in cash and equivalents. The company generated NT$1,667.2 million (US$57.1 million) in net free cash flow during H1 2025, demonstrating effective cash management despite operational challenges. This robust cash position enabled the recent dividend distribution of approximately NT$1.23 per common share, providing some return to shareholders despite the quarterly loss.

The combination of modest revenue growth, disciplined capital expenditure, and strong cash generation suggests management is appropriately navigating a challenging semiconductor market while maintaining financial flexibility for when industry conditions improve.

• 2Q25 Revenue Grew 3.7% Compared to 1Q25
• 6.6% 2Q25 Gross Margin Compared to 9.4% in 1Q25
• Overall Utilization Rate Increased to 65% from 62% in 1Q25
• NT$1,667.2 Million or US$57.1 Million Net Free Cash Flow for the First Half of 2025
• Revenue Growth and Prudent CapEx Further Strengthen Financial Position with Cash and Cash Equivalents Balance of NT$13,661.8 Million or US$468.2 Million
• Distributed Cash Dividend of Approximately NT$1.23 per Common Share on July 18, 2025 and US$0.836 per ADS on July 25, 2025

HSINCHU, Aug. 12, 2025 /PRNewswire-FirstCall/ -- ChipMOS TECHNOLOGIES INC. ("ChipMOS" or the "Company") (Taiwan Stock Exchange: 8150 and Nasdaq: IMOS), an industry leading provider of outsourced semiconductor assembly and test services ("OSAT"), today reported consolidated financial results for the second quarter ended June 30, 2025. All U.S. dollar figures cited in this press release are based on the exchange rate of NT$29.18 against US$1.00 as of June 30, 2025.

All the figures were prepared in accordance with Taiwan-International Financial Reporting Standards ("Taiwan-IFRS").

Revenue for the second quarter of 2025 was NT$5,735.8 million or US$196.6 million, an increase of 3.7% from NT$5,532.3 million or US$189.6 million in the first quarter of 2025 and a decrease of 1.3% from NT$5,809.6 million or US$199.1 million for the same period in 2024. Growth was led by a further recovery in the Company's memory business.

Net non-operating expenses in the second quarter of 2025 was NT$682.2 million or US$23.4 million, compared to net non-operating income of NT$82.1 million or US$2.8 million in the first quarter of 2025, and net non-operating income of NT$127.6 million or US$4.4 million in the second quarter of 2024. The difference between the second quarter and first quarter of 2025 primarily reflects a negative foreign exchange impact, with a foreign exchange loss of NT$690 million or US$23.6 million in the second quarter of 2025, a foreign exchange gain of NT$62 million or US$2.1 million in the first quarter of 2025, and a foreign exchange gain of NT$25 million or US$0.9 million in the second quarter of 2024. The year ago period also included a gain on disposal of non-current assets held for sale of NT$72 million or US$2.5 million.

Net loss attributable to equity holders of the Company for the second quarter of 2025 was NT$533.1 million or US$18.3 million, and NT$0.75 or US$0.03 per basic common share, as compared to net profit attributable to equity holders of the Company of NT$176.3 million or US$6.0 million, and NT$0.24 or US$0.01 per basic common share in the first quarter of 2025. This compares to net profit attributable to equity holders of the Company of NT$450.6 million or US$15.4 million, and NT$0.62 or US$0.02 per basic common share in the second quarter of 2024. Net losses for the second quarter of 2025 were US$0.51 per basic ADS, compared to net earnings of US$0.17 per basic ADS for the first quarter of 2025 and net earnings of US$0.42 per basic ADS in the second quarter of 2024.

Net free cash inflow for the first half of 2025 was NT$1,667.2 million or US$57.1 million with a strong balance of cash and cash equivalents was NT$13,661.8 million or US$468.2 million.

Second Quarter 2025 Investor Conference Call / Webcast Details

Date: Tuesday, August 12, 2025
Time: 3:00PM Taiwan (3:00AM New York)
Dial-In: +886-2-33961191
Password: 3300012 #
Webcast and Replay: https://www.chipmos.com/chinese/ir/info2.aspx
Replay: Starts approximately 2 hours after the live call ends

Language: Mandarin

Note: A transcript will be provided on the Company's website in English following the conference call to help ensure transparency, and to facilitate a better understanding of the Company's financial results and operating environment.

About ChipMOS TECHNOLOGIES INC.:

ChipMOS TECHNOLOGIES INC. ("ChipMOS" or the "Company") (Taiwan Stock Exchange: 8150 and Nasdaq: IMOS) (www.chipmos.com) is an industry leading provider of outsourced semiconductor assembly and test services. With advanced facilities in Hsinchu Science Park, Hsinchu Industrial Park and Southern Taiwan Science Park in Taiwan, ChipMOS is known for its track record of excellence and history of innovation. The Company provides end-to-end assembly and test services to leading fabless semiconductor companies, integrated device manufacturers and independent semiconductor foundries serving virtually all end markets worldwide.

Forward-Looking Statements

This press release may contain certain forward-looking statements. These forward-looking statements may be identified by words such as 'believes,' 'expects,' 'anticipates,' 'projects,' 'intends,' 'should,' 'seeks,' 'estimates,' 'future' or similar expressions or by discussion of, among other things, strategies, goals, plans or intentions. These statements may include financial projections and estimates and their underlying assumptions, statements regarding current macroeconomic conditions, including the impacts of high inflation, foreign exchange rates and risk of recession, on demand for our products, consumer confidence and financial markets generally; changes in trade regulations, policies, and agreements and the imposition of tariffs that affect our products or operations, including potential new tariffs that may be imposed and our ability to mitigate with respect to future operations, products and services, and statements regarding future performance. Actual results may differ materially in the future from those reflected in forward-looking statements contained in this document, due to various factors. Further information regarding these risks, uncertainties and other factors are included in the Company's most recent Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission (the "SEC") and in the Company's other filings with the SEC. 

Contacts: In Taiwan Jesse Huang ChipMOS TECHNOLOGIES INC. +886-6-5052388 ext. 7715 IR@chipmos.com

In the U.S. David Pasquale Global IR Partners +1-914-337-8801 dpasquale@globalirpartners.com

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SOURCE ChipMOS TECHNOLOGIES INC.

FAQ

What were ChipMOS (IMOS) key financial results for Q2 2025?

ChipMOS reported Q2 2025 revenue of NT$5,735.8 million (US$196.6 million), up 3.7% from Q1 2025, but posted a net loss of NT$533.1 million due to significant forex losses.

How much was ChipMOS (IMOS) foreign exchange loss in Q2 2025?

ChipMOS recorded a foreign exchange loss of NT$690 million (US$23.6 million) in Q2 2025, compared to a gain of NT$62 million in Q1 2025.

What is ChipMOS (IMOS) current cash position in 2025?

ChipMOS maintained a strong cash position with cash and cash equivalents of NT$13,661.8 million (US$468.2 million) and generated net free cash inflow of NT$1,667.2 million in H1 2025.

What dividend did ChipMOS (IMOS) distribute in July 2025?

ChipMOS distributed a cash dividend of NT$1.23 per common share on July 18, 2025, and US$0.836 per ADS on July 25, 2025.

What was ChipMOS (IMOS) facility utilization rate in Q2 2025?

ChipMOS reported an overall utilization rate of 65% in Q2 2025, an improvement from 62% in Q1 2025.