IMOS earnings call summary

Prepared Highlights

• Q2 2025 revenue increased 3.7% QoQ to TWD 5,736 million (prepared).
• Q2 gross margin was 6.6%, down 280 bps QoQ from 9.4% (CFO).
• Q2 net loss was TWD 0.75 per basic common share (TWD 533 million net loss), driven by a foreign exchange loss of ~TWD 0.97 per share (CEO, CFO).
• Overall utilization rate was 65% in Q2: assembly 64%, test 67%, DDIC 66%, bumping 63% (CEO).
• Memory product revenue (45.3% of Q2 revenue) increased 21.2% QoQ and 17.6% YoY; DRAM up 19.8% QoQ, NAND Flash up 27.6% QoQ, NOR Flash up 25.3% QoQ (CEO).
• DDIC & Gold Bump revenue (44.7% of Q2 revenue) declined 9.4% QoQ and 17.9% YoY; DDIC down 10.9% QoQ, Gold Bump down 7.6% QoQ (CEO).
• Q2 EBITDA was TWD 1,302 million; operating profit margin was 0.4% (CFO).
• Q2 CapEx was TWD 589 million; depreciation was TWD 1,281 million (CFO).
• Free cash inflow for first half 2025 was TWD 1,667 million (CFO).
• Cash and cash equivalents at June 30, 2025: TWD 13,662 million (CFO).
• Official guidance: No explicit numeric revenue or EPS guidance provided for Q3 or full year 2025 (prepared).
• 2025 CapEx: Conservative approach, targeted investments in higher-growth, higher-margin areas (CEO).

Mgmt Quotes

• "Second quarter results came in as expected with strong memory product demand offsetting macro softness in auto and industrial and the higher NTD headwind." (CEO)
• "We expect memory momentum will be better than DDIC in Q3." (CEO)
• "We expect memory products OSAT price increases could help offset material cost increases and improve profitability." (CEO)
• "We are taking a conservative approach with our CapEx budget in 2025, similar to prior years." (CEO)
• "Our balance sheet remains strong and is a competitive advantage for us." (CEO)

Prepared Metrics

Q&A Batch (1-1 of 1)

Q1 — Michael Hsu

• Topic: H2 2025 outlook by product (memory vs DDIC vs logic)
• Key points:
  • Q3 memory momentum expected to be better than DDIC, driven by DDR4 supply/demand imbalance (DDR4 EOL) and strong DDR5 demand.
  • Memory OSAT prices increased in Q3 by 5%–18% to offset material and gold cost increases.
  • DDIC: OLED products expected to benefit from seasonal restocking; automotive panel demand relatively stable.
  • Logic and mixed-signal product line expected to remain stable.
• Mgmt stance: Bullish on near-term memory tailwinds and Q3 sequential improvement, citing confirmed July revenue and on-track August revenue despite uncertainty.

Q2 — Michael Hsu

• Topic: Q2 gross margin drivers and their persistence into Q3
• Key points:
  • Q2 gross margin hit by: lower DDIC test ASP, NTD appreciation (–1.5 ppts), higher electricity charges (–1.6 ppts, TWD 102 million increase), and >30% YoY gold price increase.
  • EPS further impacted by TWD 690 million foreign exchange loss.
• Mgmt stance: Neutral on Q3 – expects memory price hikes (5%–18%) and more favorable FX to partially offset headwinds; profitability improvement expected but uncertainty remains.

Q3 — G.S. Shen (reads question for foreign institutional investor)

• Topic: Dividend policy change for 2026
• Key points:
  • Latest dividend paid in July; part of overall capital allocation strategy (including share repurchases, CapEx, other levers).
  • Accumulated unappropriated retained earnings sufficient to support stable dividend payout.
  • No expected change to policy; management and Board review regularly, remain cautious on CapEx spending based on market conditions.
• Mgmt stance: Bullish on dividend stability – affirms capacity to maintain current payout given retained earnings, but with caveat of ongoing review.