ChipMOS REPORTS 28.4% INCREASE IN JANUARY 2024 REVENUE YEAR OVER YEAR

Rhea-AI Summary

ChipMOS TECHNOLOGIES INC. reported a 28.4% year-over-year increase in consolidated revenue for January 2024, amounting to NT$1,708.5 million or US$54.6 million. This marks a 9.2% decrease from December 2023 but a significant improvement from January 2023. The company attributes this growth to improved inventory stabilization and demand recovery in its memory products, offsetting the impact of broader market softness due to order patterns and inventory management.

Positive

• 28.4% year-over-year increase in revenue for January 2024
• Positive impact from improved inventory stabilization and demand recovery in memory products

Negative

• 9.2% decrease in revenue from December 2023

Insights

Financial Analyst

The reported 28.4% year-over-year revenue growth for ChipMOS is a robust indicator of the company's expanding market presence, particularly in the outsourced semiconductor assembly and test (OSAT) services sector. This growth signifies that ChipMOS is capturing a larger share of the market, likely due to increased demand for its memory products. The growth figures surpass typical industry averages, which usually hover around single digits, indicating a strong competitive position for ChipMOS.

However, the 9.2% month-over-month decline in revenue raises questions about the sustainability of this growth trajectory. This could be a sign of cyclical demand or inventory adjustments by customers, which are common in the semiconductor industry. Investors should monitor subsequent months to discern if this is a short-term fluctuation or indicative of a broader trend.

Market Research Analyst

ChipMOS's mention of inventory stabilization and demand recovery for memory products suggests a positive outlook for the memory segment of the semiconductor industry. The company's ability to offset broader market softness illustrates resilience and adaptability in its business model. This resilience is particularly important given the semiconductor industry's susceptibility to rapid changes in technology and consumer demand.

Furthermore, the reference to conservatism in order patterns and end demand related inventory management indicates a cautious approach by clients, which could be due to macroeconomic factors or sector-specific trends. This conservatism may affect the industry at large, potentially leading to slower growth rates for competitors who are less equipped to handle these market conditions.

Economist

The financial results of ChipMOS reflect broader economic trends, such as the global demand for semiconductor components. The company's performance is a microcosm of the economic health within the tech sector and its revenue increase suggests a recovering demand post any downturns experienced in the industry. This recovery could be indicative of a wider economic stabilization or growth, which can have positive implications for employment and investment within the tech sector.

It is also important to consider the impact of exchange rates on reported revenues. The figures are based on the exchange rate of NT$31.29 to US$1.00, which means that fluctuations in currency values could have either amplified or dampened the reported revenue growth when expressed in U.S. dollars, adding an additional layer of complexity to the financial analysis.

HSINCHU, Feb. 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 January 2024 increased 28.4% on a year over year basis. All U.S. dollar figures cited in this press release are based on the exchange rate of NT$31.29 to US$1.00 as of January 31, 2024.

Revenue for the month of January 2024 was NT$1,708.5 million or US$54.6 million, representing a decrease of 9.2% from December 2023, and an increase of 28.4% from January 2023. The Company noted that it is benefitting from continued improved inventory stabilization and demand recovery in its memory products. This strength is helping to offset the ongoing impact of broader market softness due to conservatism in order patterns and end demand related inventory management.

Consolidated Monthly Revenues (Unaudited)
	January 2024	December 2023	January 2023	MoM Change	YoY Change
Revenues    (NT$ million)	1,708.5	1,881.5	1,330.2	-9.2 %	28.4 %
Revenues    (US$ million)	54.6	60.1	42.5	-9.2 %	28.4 %

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-28-4-increase-in-january-2024-revenue-year-over-year-302055431.html

SOURCE ChipMOS TECHNOLOGIES INC.

FAQ

What is the consolidated revenue for ChipMOS TECHNOLOGIES INC. in January 2024?

The consolidated revenue for ChipMOS TECHNOLOGIES INC. in January 2024 was NT$1,708.5 million or US$54.6 million.

What contributed to the revenue growth in January 2024?

The revenue growth was attributed to improved inventory stabilization and demand recovery in the company's memory products.

How does the January 2024 revenue compare to December 2023?

The revenue for January 2024 decreased by 9.2% from December 2023.

What factors offset the impact of broader market softness on ChipMOS TECHNOLOGIES INC.?

The company noted that improved inventory stabilization and demand recovery in its memory products helped offset the impact of broader market softness due to order patterns and inventory management.