Contradictory Signals: ChipMOS Technologies' 2025 Q1 Earnings Call Reveals Mixed Messages on DDIC Demand and Memory Momentum

DDIC demand and momentum, memory momentum and growth expectations, DDIC high-end tester utilization rate, memory product momentum in 2024, and DDIC product demand and outlook are the key contradictions discussed in ChipMOS TECHNOLOGIES INC.'s latest 2025Q1 earnings call.



Memory Product Performance:
- ChipMOS's memory product revenue represented 38.8% of total Q1 revenue, with a 2.4% increase compared to Q4 2024 but a slight 0.6% decrease year-over-year.
- The increase was driven by both pricing and volume benefits, while the year-over-year decline was due to seasonality and market conditions.

DDIC and Driver IC Revenue:
- The company's DDIC and driver IC revenue accounted for about 51% of total Q1 revenue, increasing 2.9% compared to Q4 2024 and 0.7% on a year-over-year basis.
- The growth was supported by restocking and short-term rush orders, which offset the impact of reduced working days during the Lunar New Year holiday.

Automotive and Industrial Revenue Growth:
- Total revenue from Automotive and Industrial markets represented 27% of Q1 revenue, growing 13% compared to Q4 2024.
- The increase was attributed to stronger demand and new applications in these sectors, despite some market softness.

Capital Expenditure and Cash Flow Management:
- ChipMOS invested NT$570 million in CapEx in Q1, allocated across different segments with the largest portion (43.1%) for testing.
- The company managed to maintain a strong cash position, with a Net free cash inflow of NT$831 million, reflecting effective capital allocation and cost management strategies.

Dividend and Share Repurchase:
- The company's Board approved a dividend of NT$1.2 per common share and a new share repurchase program to buy back up to 15 million shares.
- These decisions indicate the company's confidence in its financial position and commitment to returning value to shareholders amidst market volatility.