ChipMOS REPORTS 10.4% YoY INCREASE IN MAY 2024 REVENUE

Rhea-AI Summary

ChipMOS Technologies reported a 10.4% year-over-year (YoY) increase in revenue for May 2024, totaling NT$2,024.3 million (US$62.3 million). This marks an 8.4% increase from April 2024. The company attributes the growth to improved customer inventory stabilization and overall market expansion. All figures are based on an exchange rate of NT$32.48 to US$1.00 as of May 31, 2024.

Positive

• Revenue increased by 10.4% YoY, indicating strong annual growth.
• Revenue for May 2024 was NT$2,024.3 million (US$62.3 million), up 8.4% from April 2024.
• Improved customer inventory stabilization contributed positively to revenue.
• Broad market growth provided a favorable business environment.

Negative

• The data presented is unaudited, which may lead to later revisions.
• Dependence on exchange rate NT$32.48 to US$1.00 could affect future revenue reports.

Insights

Financial Analyst

ChipMOS's reported 10.4% year-over-year increase in revenue for May 2024 to NT$2,024.3 million (approximately USD 62.3 million) is a positive indicator of the company’s performance. It signals growth amidst the broader market, reflecting stabilized customer inventories and an upswing in market demand.

Financial metrics: The month-over-month increase of 8.4% in revenue from April 2024 to May 2024 is notable. This consistent growth trajectory suggests that ChipMOS is effectively navigating market fluctuations. Investors should monitor if this trend continues in subsequent months, as it could indicate sustainable long-term growth.

The use of a stable exchange rate (NT$32.48 to USD 1) provides clarity for international investors, making it easier to assess their returns and investment strategies in a global context. It also reduces exchange rate risk, which is beneficial in forecasting future revenues and profitability.

Broader Market Context: The semiconductor industry has been experiencing significant demand due to growth in technology and consumer electronics sectors. Given this backdrop, ChipMOS's performance could be seen as a reflection of favorable industry trends. Investors looking for exposure to the semiconductor assembly and test services market might find ChipMOS’s upward revenue trend reassuring.

Market Research Analyst

Increased revenue for ChipMOS indicates improved conditions in the semi-conductor market, with the company benefiting from both customer inventory stabilization and broader market growth. This could suggest that any previous supply chain disruptions or excess inventories have been managed effectively, allowing for a healthier sales environment.

Strategic Implications: Investors should be aware that revenue growth in the semiconductor sector often signals broader tech sector health. The rise in ChipMOS's revenue might be tied to increased demand in areas such as consumer electronics, automotive technology and other high-growth tech areas. It's also a sign that ChipMOS's services are in demand, potentially positioning them well for future contracts and business opportunities.

Given the company’s role as an OSAT provider, consistent revenue increases might also reflect stronger relationships with key clients and potentially larger market share. Investors should consider the company's ability to maintain these relationships and continue leveraging market growth.

Tech Industry Expert

ChipMOS’s 10.4% year-over-year revenue growth is significant within the context of the semiconductor industry. This sector has faced challenges such as fluctuating demand and supply chain constraints. The reported figures indicate that ChipMOS is adept at handling these industry-wide issues, perhaps through efficient supply chain management and robust operational capabilities.

Industry Dynamics: The reported increases suggest that ChipMOS might have secured new contracts or clients, or perhaps expanded its service offerings in semiconductor assembly and testing. Such developments could fortify its market position and create opportunities for further growth. Investors should view this as a positive sign of the company's strategic execution and resilience in a competitive market.

Moreover, the semiconductor industry’s cyclical nature means that periods of growth can be followed by periods of contraction. Investors should consider this cyclical trend when evaluating the long-term sustainability of current revenue growth.

HSINCHU, June 7, 2024 /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 its unaudited consolidated revenue for the month of May 2024. All U.S. dollar figures cited in this press release are based on the exchange rate of NT$32.48 to US$1.00 as of May 31, 2024.

Revenue for the month of May 2024 was NT$2,024.3 million or US$62.3 million, representing an increase of 8.4% from April 2024, and an increase of 10.4% from May 2023. The Company is benefiting from improved customer inventory stabilization and broader market growth.

Consolidated Monthly Revenues (Unaudited)
	May 2024	April 2024	May 2023	MoM Change	YoY Change
Revenues    (NT$ million)	2,024.3	1,867.6	1,834.3	8.4 %	10.4 %
Revenues    (US$ million)	62.3	57.5	56.5	8.4 %	10.4 %

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 plans, objectives and expectations 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

View original content:https://www.prnewswire.com/news-releases/chipmos-reports-10-4-yoy-increase-in-may-2024-revenue-302166773.html

SOURCE ChipMOS TECHNOLOGIES INC.

FAQ

What was ChipMOS's revenue for May 2024?

ChipMOS reported a revenue of NT$2,024.3 million (US$62.3 million) for May 2024.

How much did ChipMOS's revenue increase in May 2024 compared to April 2024?

ChipMOS's revenue increased by 8.4% from April 2024 to May 2024.

What was the year-over-year revenue growth for ChipMOS in May 2024?

ChipMOS saw a 10.4% increase in revenue in May 2024 compared to May 2023.

What exchange rate was used in ChipMOS's May 2024 revenue report?

ChipMOS used an exchange rate of NT$32.48 to US$1.00 in its May 2024 revenue report.