ChipMOS Technologies' Q2 2025: Navigating Contradictions in Memory Momentum, Pricing Pressures, and Dividend Strategies

Memory product momentum, DDIC ASP and price pressure, dividend policy and capital allocation, dividend policy and payout expectations are the key contradictions discussed in ChipMOS TECHNOLOGIES INC.'s latest 2025Q2 earnings call.



Memory Product Demand and Revenue Growth:
- ChipMOS reported a significant increase in its memory product revenue, reaching 45.3% of total Q2 revenue, with a 21.2% increase compared to Q1 and 17.6% on a year-over-year basis.
- The growth was driven by strong demand for DRAM, Flash, and NAND Flash, benefiting from pricing and volume increases.

DDIC and Gold Bump Revenue Decline:
- The company's DDIC and Gold Bump revenue represented 44.7% of Q2 revenue, but suffered a 9.4% decrease compared to Q1 and 17.9% decline on a year-over-year basis.
- The decline was attributed to ASP and foreign exchange headwinds, particularly in the automotive and industrial sectors, which accounted for 25.9% of Q2 revenue.

Gross Margin and Foreign Exchange Loss:
- ChipMOS' Q2 gross margin was 6.6%, down 280 basis points from Q1, with a net loss of TWD 0.75 per share due to a higher foreign exchange loss of approximately TWD 0.97 per share.
- The decline in gross margin was due to lower DDIC test ASP, USD depreciation, and higher electricity charges, while the foreign exchange loss was the result of NTD appreciation.

Financial Performance and Dividend Stability:
- ChipMOS reported net loss of TWD 533 million in Q2, compared to a profit of TWD 176 million in Q1, with a loss per share of TWD 0.75.
- Despite the challenging environment, the company maintained a stable dividend policy, distributing its latest dividend to shareholders in July, supported by strong operational strength and accumulated unappropriated retained earnings.