ChipMOS Technologies posted its first quarterly loss on record after currency fluctuations wiped out benefits from higher memory testing prices, underscoring the challenges facing Taiwan’s semiconductor assembly sector.
The company reported a net loss of NT$533.1 million ($18.3 million) for the second quarter, reversing from a profit in the prior period. ChipMOS had a loss of 51 cents per share, with revenue of $196.6 million in the period, according to its investor conference on Monday.
Currency headwinds proved particularly damaging, with a foreign exchange loss of NT$690 million undermining operational gains. Chief Financial Officer Su Yu-chiao said the Taiwan dollar’s strength created NT$6.9 billion in exchange losses during the first half, shaving roughly 1.5 percentage points off gross margin.
Chairman Cheng Shih-chieh attempted to project confidence, noting the company has raised prices 5% to 18% for memory-related testing services to offset rising costs for substrates, materials and electricity. Summer power expenses alone increased by approximately NT$100 million compared to the first quarter, reducing gross margin by an additional 1.6 percentage points.
Gross margin decreased to 6.6% from 9.4% in the previous quarter, reflecting both currency impacts and operational pressures. The company’s utilization rate improved modestly to 65% from 62%, though this remains well below optimal levels.
Despite the challenging quarter, ChipMOS maintained its dividend policy, having distributed NT$1.23 per share in cash in July. The company emphasized that accumulated retained earnings and capital reserves remain sufficient for future distributions.
Memory products showed relative strength compared to display driver integrated circuits, with DRAM, NAND and ROM segments leading growth expectations. The company noted it is benefitting from continued favorable pricing and volume trends for memory products.
For the first half, ChipMOS recorded a cumulative net loss of NT$357 million, marking a sharp deterioration from year-earlier results. The company said July revenue performance was encouraging, with August expected to show similar trends.
