ChipMOS REPORTS 6.7% YoY INCREASE IN 2Q24 REVENUE AND 7.2% YoY INCREASE IN JUNE 2024 REVENUE

Rhea-AI Summary

ChipMOS Technologies reported a 6.7% year-over-year (YoY) increase in revenue for the second quarter of 2024, totaling NT$5,809.6 million (US$179.0 million). This marks a 7.2% increase from the first quarter of 2024. The company attributed this growth to a rise in DDIC demand and high utilization of its high-end test platforms. For June 2024, revenue was NT$1,917.7 million (US$59.1 million), a 5.3% decrease from May 2024 but a 7.2% increase from June 2023.

Positive

• Second quarter 2024 revenue increased 6.7% YoY to NT$5,809.6 million (US$179.0 million).
• Revenue for June 2024 grew 7.2% YoY to NT$1,917.7 million (US$59.1 million).
• Revenue increased 7.2% from the first quarter of 2024.

Negative

• Revenue for June 2024 decreased 5.3% from May 2024.

Insights

Financial Analyst

The reported revenue increase for ChipMOS, which shows a 6.7% year-over-year growth for the second quarter of 2024, signals a positive trend for the company. This growth is particularly noteworthy given the competitive and cyclical nature of the semiconductor industry. The sequential quarterly growth of 7.2% further reinforces their strong market position and operational efficiency.

However, the 5.3% month-over-month decline in June's revenue compared to May may raise some concerns. This could be attributed to seasonal fluctuations, or it might indicate a short-term slowdown. Investors should closely monitor upcoming monthly revenues to see if this is a temporary dip or a more concerning trend.

ChipMOS's focus on increased driver IC demand and high utilization of their high-end test platforms suggests they are capitalizing on growing market segments. Driver ICs are critical components in display technologies, which are seeing robust demand due to rising screen usage in various devices from smartphones to automotive displays.

Overall, the financial performance presented shows solid growth, but the investor should be cautious about the monthly volatility. Long-term growth prospects appear strong, especially with their strategic focus on high-demand products.

Market Research Analyst

From a market perspective, ChipMOS's reported results indicate a healthy demand environment for their services. The outsourced semiconductor assembly and test (OSAT) market is growing, driven by increased semiconductor demand across industries including consumer electronics, automotive and industrial applications.

The firm's ability to maintain high utilization rates of its test platforms is particularly significant. High utilization correlates directly with operational efficiency and profitability. This trend also suggests that ChipMOS is effectively managing its supply chain and customer relationships, ensuring steady workflow and minimizing downtime.

Moreover, the increased demand for driver ICs (Display Driver Integrated Circuits) is a positive indicator. As these components are essential for display technology, rising demand reflects broader market trends such as the proliferation of high-definition displays and the expansion of digital viewing experiences across various sectors.

Investors should be aware that while the immediate revenue growth is promising, the longer-term sustainability will depend on ChipMOS's ability to continue capitalizing on these market trends and managing economic cycles and potential supply chain disruptions.

HSINCHU, July 10, 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 June 2024 and for the second quarter ended June 30, 2024. All U.S. dollar figures cited in this press release are based on the exchange rate of NT$32.45 to US$1.00 as of June 28, 2024.

Revenue for the second quarter of 2024 was NT$5,809.6 million or US$179.0 million, representing an increase of 7.2% from the first quarter of 2024, and an increase of 6.7% from the second quarter of 2023. The Company noted growth was led by increased DDIC demand, with its high-end test platforms remaining at a high utilization level.

Revenue for the month of June 2024 was NT$1,917.7 million or US$59.1 million, representing a decrease of 5.3% from May 2024, and an increase of 7.2% from June 2023.

Consolidated Monthly Revenues (Unaudited)
	June 2024	May 2024	June 2023	MoM Change	YoY Change
Revenues    (NT$ million)	1,917.7	2,024.3	1,788.1	-5.3 %	7.2 %
Revenues    (US$ million)	59.1	62.4	55.1	-5.3 %	7.2 %

 

Consolidated Quarterly Revenues (Unaudited)
	Second Quarter 2024	First Quarter 2024	Second Quarter 2023	QoQ Change	YoY Change
Revenues    (NT$ million)	5,809.6	5,418.7	5,444.1	7.2 %	6.7 %
Revenues    (US$ million)	179.0	167.0	167.8	7.2 %	6.7 %

 

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

 

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SOURCE ChipMOS TECHNOLOGIES INC.

FAQ

What was ChipMOS's revenue for the second quarter of 2024?

ChipMOS reported revenue of NT$5,809.6 million (US$179.0 million) for the second quarter of 2024.

How much did ChipMOS's revenue increase in June 2024 compared to June 2023?

ChipMOS's revenue for June 2024 increased by 7.2% compared to June 2023.

What was the month-over-month revenue change for ChipMOS in June 2024?

ChipMOS's revenue in June 2024 decreased by 5.3% compared to May 2024.

What is the stock symbol for ChipMOS?

ChipMOS is listed on the Nasdaq under the stock symbol 'IMOS'.

What led to the revenue growth for ChipMOS in the second quarter of 2024?

The revenue growth was driven by increased DDIC demand and high utilization of high-end test platforms.