ChipMOS TECHNOLOGIES Inc.

Q2 2025 revenue was TWD 5,736 million, up 3.7% sequentially and down 1.3% year over year. Gross profit was TWD 379 million and gross margin was 6.6%, down from 9.4% in Q1 2025 and down 7.4 percentage points from Q2 2024. Net loss attributable to the company was TWD 533 million, or TWD 0.75 per basic common share and USD 0.51 per basic ADS; EBITDA was TWD 1,302 million and ROE was negative 8.8%. Operating profit was TWD 21 million, with operating margin at 0.4%. The main bottom-line pressure was net nonoperating expense of TWD 682 million, largely from a TWD 690 million foreign exchange loss. Cash and cash equivalents were TWD 13,662 million at June 30, 2025, and Q2 CapEx was TWD 589 million. For Q3, management expects memory momentum to be better than DDIC, memory OSAT price increases of about 5% to 18% to help offset material costs, and foreign exchange to be more favorable; no formal revenue or EPS guidance was given.

The CEO emphasized that ChipMOS is leaning into its leadership position in memory while staying conservative on capital spending and keeping the balance sheet strong. He framed the quarter as one where strong memory demand offset macro softness in auto and industrial end markets and a stronger NTD. His tone was cautious but constructive, with repeated comments about supporting customers, gaining share, improving profitability, and building long-term shareholder value.

The CFO highlighted the quarter’s key financials: revenue of TWD 5,736 million, gross margin of 6.6%, operating profit of TWD 21 million, and net loss attributable to the company of TWD 533 million. She pointed to net nonoperating expense of TWD 682 million, including a TWD 690 million FX loss, as the main reason results fell from Q1 and from last year. She also said cash and cash equivalents were TWD 13,662 million, net free cash inflow for 1H25 was TWD 1,667 million, and Q2 CapEx was TWD 589 million, while reiterating that the company is balancing growth investments with dividends and shareholder returns.

Analysts asked for product-level second-half outlook and for the split between DDIC ASP cuts and NTD appreciation on gross margin, plus whether those pressures would continue into Q3. Management said memory should outperform DDIC, helped by DDR4/DDR5 dynamics, EOL-related supply-demand imbalance, and OSAT price increases of about 5% to 18%, while OLED should improve seasonally and logic/mixed signal should remain stable. On margin pressure, management said Q2 gross margin was hurt by lower DDIC test ASP, USD depreciation, higher summer electricity charges of TWD 102 million, and gold cost increases; it expects FX to be more favorable in Q3.