ChipMOS TECHNOLOGIES Inc. Q1 FY2025 earnings call

• Q1 revenue increased 2.5% compared to Q4 2024. • Q1 gross margin was 9.4%, flat with Q4 2024. • Q1 net earnings were NT$0.24, down from NT$0.32 in Q4 2024. • Overall utilization rate in Q1 2025 was 62%, with Bumping UT rising to 65% from 54% in Q4, Assembly UT 55%, average test utilization 61%, and DDIC 65%. • Balance sheet is strong and capital expenditures are conservative. • Total revenue in Q1 2025 was NT$5,532 million. Net profit attributable to the company was NT$176 million. Net earnings per basic common share were NT$0.24 or US$0.15 per basic ADS. EBITDA was NT$1,425 million. Return on equity in Q1 was 2.8%. • Compared to Q4 2024, total revenue increased 2.5%, gross profit was NT$518 million with gross margin 9.4% (flat with Q4), operating expenses were NT$411 million (7.4% of total revenue, down 4.7% from Q4), operating profit was NT$116 million with margin 2.1% (flat with Q4). • Compared to Q1 2024, total revenue increased 2.1%, gross margin decreased 4.8 ppts, operating expenses decreased 4.3%, operating profit margin decreased 4.6 ppts. • Board approved NT$1.2 per common share dividend and a new share repurchase program.

In Q1 2025, assembly represented 24.4% of revenue. Mixed signal and memory testing accounted for 21.8%, and wafer bumping made up 25.4%. DDIC product was 27.3% of total revenue, with gold bumping about 23.9%. DRAM and SRAM revenue was 14.1% of total Q1 revenue, and mixed signal products were 10%. Memory products were 38.8% of total revenue. DRAM was 13.6% of total Q1 revenue, increasing 10.7% compared to Q4 2024. Flash revenue was 24.7% of Q1 revenue, up 4.9% from Q4 2024 and 8.6% year-over-year. NAND Flash was 37.7% of Q1 flash revenue, up significantly from Q4 2024. NOR Flash decreased 7.2% from Q4 2024 but increased 27.6% year-over-year. Driver IC and gold bump revenue was about 51% of total Q1 revenue, up 2.9% from Q4 2024 and 0.7% year-over-year. Gold bump revenue increased significantly 24.5% from Q4 2024 and nearly 30% year-over-year. DDIC revenue was down 10.6% from Q4 2024. Auto panels related DDIC revenue was 33% of Q1 DDIC revenue, down slightly from Q4 2024. OLED was 25.6% of Q1 DDIC revenue but decreased 2.5% from Q4 2024. Automotive and Industrial revenue was 27% of Q1 revenue, increasing 13% from Q4 2024. Smartphone revenue was 36.5% of total Q1 revenue, TV panel was 14.3%, Consumer related was 18.7%, and computing was 3.5%.

• Strategically, improving utilization rate is a priority. • Expect memory momentum to be better than DDIC in Q2 due to customers' restocking in memory product business, stable prices, and growth in commodity and niche DRAM, and signs of Flash rebounding in Q2. • In DDIC product business, smartphone product UT level is improving, especially OLED product with customers' re-stocking in Q2. • 2025 CapEx is conservative, planned to invest carefully in new capacity based on customer demand and UT level. • Expect memory momentum to be better than DDIC in the second half. • Among memory products, NOR Flash is better than low power DDR and then NAND Flash.

• Facing fluid trade policies related to U.S. and China restrictions, which can impact outlook and cause uncertainty about coming quarters. • The impact of tariffs and China restrictions has led to uncertainty for the coming quarters.

Q: Can you please give us more color about the momentum and demand of DDIC product for the second half of 2025? Would it be expected to decline compared to the first half?

A: As everyone knows, we are all facing fluid trade policies as it relates to the U.S. and China restrictions. It has been to cause uncertainty about the coming quarters and second half. Therefore, as our Chairman just mentioned, for the 2Q outlook, we expect memory momentum will be better than DDIC in Q2.

Q: A follow-up question for better memory momentum in Q2. Is the visibility be as clear in Q3?

A: We expect our customers will benefit from the stable prices, and expanding end-applications. Therefore, we expect memory momentum will be better than DDIC in second half.

Q: Could you give us the momentum sequence of Niche DRAM and Flash product for second half?

A: Among our memory product, NOR Flash is better than low power DDR and then NAND Flash.