ChipMOS TECHNOLOGIES Inc.

Q2 2025 total 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 and down 7.4 percentage points versus Q2 2024. Net loss attributable to the company was TWD 533 million, or TWD 0.75 per basic common share (USD 0.51 per ADS), versus net profit of TWD 176 million in Q1 and profit of TWD 451 million in Q2 2024. EBITDA was TWD 1,302 million. Operating profit was TWD 21 million, with operating margin at 0.4%. The company said foreign exchange was the main drag, with a TWD 690 million FX loss in Q2 versus a TWD 62 million FX gain in Q1. 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, with memory OSAT prices increasing about 5% to 18% to offset material cost pressure; OLED momentum should improve on seasonal restocking, while DDIC demand remains soft and overall consumer demand is cautious.

S.J. Cheng said the quarter was in line with expectations, with strong memory demand offsetting macro softness in auto and industrial and NTD headwinds. He repeatedly emphasized a conservative approach to CapEx, a strong balance sheet, and a focus on supporting customers, gaining share, expanding profitability, and building long-term shareholder value. His tone on the outlook was cautious but constructive, with optimism centered on memory, data center/communications, AI-related demand, and a more favorable second half.

Silvia Su detailed that Q2 revenue was TWD 5,736 million, gross profit TWD 379 million, gross margin 6.6%, operating expenses TWD 424 million, and operating profit TWD 21 million. She highlighted that net nonoperating expense was TWD 682 million, driven mainly by a TWD 690 million foreign exchange loss, and said this FX impact should be less in Q3. She also cited cash and cash equivalents of TWD 13,662 million, first-half 2025 net free cash inflow of TWD 1,667 million, Q2 CapEx of TWD 589 million, and depreciation of TWD 1,281 million, while reiterating capital allocation through dividends and disciplined investment.

Analysts asked for a product-by-product second-half outlook and for help separating the margin hit from DDIC ASP cuts versus NTD appreciation. Management said memory should outperform DDIC in Q3, helped by DDR4 EOL, strong DDR5 demand, seasonal restocking, and OSAT price increases of about 5% to 18%; DDIC remains soft, while OLED should improve and logic/mixed signal should be stable. On margins, management said Q2 gross margin was hit by lower DDIC test ASP, NTD appreciation, higher electricity costs, and gold price increases, and it expects FX to be more favorable in Q3.