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What changed in CHIPMOS TECHNOLOGIES INC's 20-F — 2023 vs 2024

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Paragraph-level year-over-year comparison of CHIPMOS TECHNOLOGIES INC's 2023 and 2024 20-F annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+341 added−382 removedSource: 20-F (2025-04-15) vs 20-F (2024-04-11)

Top changes in CHIPMOS TECHNOLOGIES INC's 2024 20-F

341 paragraphs added · 382 removed · 295 edited across 5 sections

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

60 edited+13 added−37 removed141 unchanged
Biggest changeConsequently, if the regulations in Taiwan relating to the employment of foreign workers were to become significantly more restrictive or if we are otherwise unable to attract or retain these workers at reasonable cost, we may be unable to maintain or increase our level of services and may suffer reduced revenue and earnings.
Biggest changeConsequently, if the regulations in Taiwan relating to the employment of foreign workers were to become significantly more restrictive or if we are otherwise unable to attract or retain these workers at reasonable cost, we may be unable to maintain or increase our level of services and may suffer reduced revenue and earnings. 10 If our information technology systems or those of our service providers with whom we share our confidential information succumb to cyberattacks by third parties worldwide, our business and operations may be severely interrupted or even shut down, and our results of operations, financial condition, prospects and reputation may also be materially and adversely affected.
In addition, a substantial portion of our capital expenditures, primarily for the purchase of LCD, OLED, automotive panel and other display panel driver semiconductor, assembly and testing equipment, has been, and is expected to continue to be, denominated in Japanese yen with much of the remainder in US dollars.
In addition, a substantial portion of our capital expenditures, primarily for the purchase of LCD, OLED, automotive panel and other display panel driver semiconductor, assembly and testing equipment, has been, and is expected to continue to be, denominated in US dollars with much of the remainder in Japanese yen.
We cannot assure you that any approval will be obtained in a timely manner, or at all. Under the ROC Foreign Exchange Control Law, the Executive Yuan of the ROC government may, without prior notice but subject to subsequent legislative approval, impose foreign exchange controls in the event of, among other things, a material change in international economic conditions.
We cannot assure you that any approval will be obtained in a timely manner, or at all. 15 Under the ROC Foreign Exchange Control Law, the Executive Yuan of the ROC government may, without prior notice but subject to subsequent legislative approval, impose foreign exchange controls in the event of, among other things, a material change in international economic conditions.
In 2024, the pro-independence Democratic Progressive Party (“DPP”) won Taiwan’s Presidential Election. The President-Elect, Lai Ching-te, stressed that he would maintain the status quo with the PRC. However, the PRC continues to ramp up pressures through various means on the DPP administration for their refusal to accept the “One China” principle.
In 2024, the pro-independence Democratic Progressive Party (“DPP”) won Taiwan’s Presidential Election. The President, Lai Ching-te, stressed that he would maintain the status quo with the PRC. However, the PRC continues to ramp up pressures through various means on the DPP administration for their refusal to accept the “One China” principle.
New regulations could require us to acquire costly equipment or to incur other significant expenses. Any failure on our part to control the use of, or adequately restrict the discharge of, hazardous substances could subject us to future liabilities that may materially reduce our earnings. Fluctuations in exchange rates could result in foreign exchange losses.
New regulations could require us to acquire costly equipment or to incur other significant expenses. Any failure on our part to control the use of, or adequately restrict the discharge of, hazardous substances could subject us to future liabilities that may materially reduce our earnings. 9 Fluctuations in exchange rates could result in foreign exchange losses.
For instance, during periods of decreased demand for assembled semiconductors, some of our customers may simplify, delay or forego final testing of certain types of semiconductors, such as dynamic random access memory or DRAM and NAND Flash, which in turn may result in reduced demand for our services, adversely affecting our results of operations.
For instance, during periods of decreased demand for assembled semiconductors, some of our customers may simplify, delay or forego final testing of certain types of semiconductors, such as dynamic random access memory or DRAM, NOR Flash and NAND Flash, which in turn may result in reduced demand for our services, adversely affecting our results of operations.
Despite selective hedging and other techniques implemented by us, fluctuations in exchange rates have affected, and may continue to affect, our financial condition and results of operations. 9 We may not be successful in our acquisitions, investments, joint ventures and dispositions, and may therefore be unable to implement fully our business strategy.
Despite selective hedging and other techniques implemented by us, fluctuations in exchange rates have affected, and may continue to affect, our financial condition and results of operations. We may not be successful in our acquisitions, investments, joint ventures and dispositions, and may therefore be unable to implement fully our business strategy.
Any renewed or continued erosion in the prices or demand for our assembly and testing services as a result of increased competition could adversely affect our profits. We are highly dependent on the market for memory products. A downturn in market prices for these products could significantly reduce our revenue and profit.
Any renewed or continued erosion in the prices or demand for our assembly and testing services as a result of increased competition could adversely affect our profits. 4 We are highly dependent on the market for memory products. A downturn in market prices for these products could significantly reduce our revenue and profit.
Any significant defect in our testing or conversion software, malfunction in our test equipment or human error could reduce our production yields and damage our customer relationships. 6 The assembly process involves a number of steps, each of which must be completed with precision.
Any significant defect in our testing or conversion software, malfunction in our test equipment or human error could reduce our production yields and damage our customer relationships. The assembly process involves a number of steps, each of which must be completed with precision.
These agreements may increase the cost of a party seeking to effect a change in control of our company. 14 Future sales, pledge or issuance of common shares or ADSs by us or our current shareholders could depress our share price or ADSs price and you may suffer dilution.
These agreements may increase the cost of a party seeking to effect a change in control of our company. Future sales, pledge or issuance of common shares or ADSs by us or our current shareholders could depress our share price or ADSs price and you may suffer dilution.
A significant portion of our revenue is derived from testing and assembling memory semiconductors. In the past, our service fees for testing and assembling memory semiconductors were sharply reduced in tandem with the decrease in the average selling price of DRAM and NAND Flash in the semiconductor industry.
A significant portion of our revenue is derived from testing and assembling memory semiconductors. In the past, our service fees for testing and assembling memory semiconductors were sharply reduced in tandem with the decrease in the average selling price of DRAM, NOR Flash and NAND Flash in the semiconductor industry.
Oversupply of DRAM or NAND Flash products and weak demand in the DRAM or NAND Flash market may result in significant reductions in the price of DRAM or NAND Flash products, which in turn may drive down the average prices for our assembly and testing services for DRAM and NAND Flash products and further reduce our revenue and profit.
Oversupply of DRAM, NOR Flash or NAND Flash products and weak demand in the DRAM, NOR Flash or NAND Flash market may result in significant reductions in the price of DRAM, NOR Flash or NAND Flash products, which in turn may drive down the average prices for our assembly and testing services for DRAM, NOR Flash and NAND Flash products and further reduce our revenue and profit.
We cannot assure you that there will not be further downturns in DRAM or NAND Flash prices in the future. 4 A decrease in market demand for LCD, OLED, automotive panel and other display panel driver semiconductors may adversely affect our capacity utilization rates and thereby negatively affect our profitability.
We cannot assure you that there will not be further downturns in DRAM, NOR Flash or NAND Flash prices in the future. A decrease in market demand for LCD, OLED, automotive panel and other display panel driver semiconductors may adversely affect our capacity utilization rates and thereby negatively affect our profitability.
The LCD driver market often aligns with broader economic trend, we cannot give any assurances that there will not be any downturn in the future or that any future downturn will not affect our results of operations. Any significant decrease in demand for end-user applications of semiconductors will negatively affect our revenue and earnings.
The Display driver market often aligns with broader economic trend, we cannot give any assurances that there will not be any downturn in the future or that any future downturn will not affect our results of operations. Any significant decrease in demand for end-user applications of semiconductors will negatively affect our revenue and earnings.
We cannot assure you that foreign exchange controls or other restrictions will not be introduced in the future. 16
We cannot assure you that foreign exchange controls or other restrictions will not be introduced in the future.
Currently, we are nearly 60% of revenue denominated in US dollars. Our cost of revenue and operating expenses, on the other hand, are incurred in several currencies, including NT dollars, Japanese yen and US dollars.
Currently, we are nearly 58% of revenue denominated in US dollars. Our cost of revenue and operating expenses, on the other hand, are incurred in several currencies, including NT dollars, Japanese yen and US dollars.
Under the current ROC law, no person or entity, including you and the Company, may deposit our shares into our ADR facility without specific approval of the Financial Supervisory Commission of the ROC, or the FSC, unless: (1) the Company pays stock dividends on our shares; (2) the Company makes a free distribution of our shares; (3) holders of our ADSs exercise preemptive rights in the event of capital increases; or (4) to the extent permitted under the Deposit Agreement and the relevant custody agreement and within the amount of depositary receipts which have been withdrawn, investors purchase our shares, directly or through the depositary, on the TWSE, and deliver our shares to the custodian for deposit into our ADR facility, or our existing shareholders deliver our shares to the custodian for deposit into our ADR facility.
Under the current ROC law, no person or entity, including you and the Company, may deposit our shares into our ADR facility without specific approval of the Financial Supervisory Commission of the ROC, or the FSC, unless: (1) we pay stock dividends on our shares; (2) we make a free distribution of our shares; (3) holders of our ADSs exercise preemptive rights in the event of capital increases; or (4) to the extent permitted under the Deposit Agreement and the relevant custody agreement and within the amount of depositary receipts which have been withdrawn and canceled, investors purchase our shares, directly or through the depositary, on the TWSE, and deliver our shares to the custodian for deposit into our ADR facility, or our existing shareholders deliver our shares to the custodian for deposit into our ADR facility.
We carried out an evaluation, under the supervision and with the participation of management, including our President, the principal executive officer and Vice President of the Finance and Accounting Management Center, the principal financial officer of the effectiveness of the design and operation of our internal controls over financial reporting as of December 31, 2023, and concluded those internal controls over financial reporting were effective as of that date.
We carried out an evaluation, under the supervision and with the participation of management, including our President, the principal executive officer and Vice President of the Finance and Accounting Management Center, the principal financial officer of the effectiveness of our internal controls over financial reporting as of December 31, 2024, and concluded those internal controls over financial reporting were effective as of that date.
In addition, we may need to increase employee compensation levels in order to retain our existing officers and employees and to attract additional personnel. As of February 29, 2024, 22% of the workforce at our facilities are foreign workers employed by us under work permits that are subject to government regulations on renewal and other terms.
In addition, we may need to increase employee compensation levels in order to retain our existing officers and employees and to attract additional personnel. As of February 28, 2025, 28% of the workforce at our facilities are foreign workers employed by us under work permits that are subject to government regulations on renewal and other terms.
We rely on a small group of customers for a substantial portion of our business. In 2023, our top five customers collectively accounted for 61% of our revenue. As part of our strategy, we have been focusing on sales to key customers through long-term service agreements.
We rely on a small group of customers for a substantial portion of our business. In 2024, our top five customers collectively accounted for 60% of our revenue. As part of our strategy, we have been focusing on sales to key customers through long-term service agreements.
Among the more important factors affecting our quarterly and annual results of operations are the following: • our ability to accurately predict customer demand, as we must commit significant capital expenditures in anticipation of future orders; • our ability to quickly adjust to unanticipated declines or shortfalls in demand and market prices for our assembly and testing services, due to our high percentage of fixed costs; • changes in prices for our assembly and testing services; • volume of orders relative to our assembly and testing capacity; • capital expenditures and production uncertainties relating to the roll-out of new assembly and testing services; • our ability to obtain adequate assembly and testing equipment on a timely basis; • changes in costs and availability of raw materials, equipment and labor; • changes in our product mix; and • earthquakes, global new virus epidemic, climate change and other natural disasters, as well as industrial accidents. 5 Because of the factors listed above, our future results of operations or growth rates may be below the expectations of research analysts and investors.
Among the more important factors affecting our quarterly and annual results of operations are the following: • our ability to accurately predict customer demand, as we must commit significant capital expenditures in anticipation of future orders; • our ability to quickly adjust to unanticipated declines or shortfalls in demand and market prices for our assembly and testing services, due to our high percentage of fixed costs; • changes in prices for our assembly and testing services; 5 • volume of orders relative to our assembly and testing capacity; • capital expenditures and production uncertainties relating to the roll-out of new assembly and testing services; • our ability to obtain adequate assembly and testing equipment on a timely basis; • changes in costs and availability of raw materials, equipment and labor; • changes in our product mix; and • earthquakes, global new virus epidemic, climate change and other natural disasters, as well as industrial accidents.
We face competition from a number of IDMs with in-house assembly and testing capabilities and other independent semiconductor assembly and testing companies. Our competitors may have access to more advanced technologies and greater financial and other resources than we do.
The semiconductor assembly and testing markets are very competitive. We face competition from a number of IDMs with in-house assembly and testing capabilities and other independent semiconductor assembly and testing companies. Our competitors may have access to more advanced technologies and greater financial and other resources than we do.
For Display panel driver semiconductor assembly and testing services, our fixed costs represented 59%, 61% and 59% of our total cost of revenue in 2021, 2022 and 2023, respectively. For bumping services, our fixed costs represented 19%, 21% and 19% of our total cost of revenue in 2021, 2022 and 2023, respectively.
For Display panel driver semiconductor assembly and testing services, our fixed costs represented 61%, 59% and 58% of our total cost of revenue in 2022, 2023 and 2024, respectively. For bumping services, our fixed costs represented 21%, 19% and 17% of our total cost of revenue in 2022, 2023 and 2024, respectively.
We invested NT$2,749 million, NT$2,677 million and NT$1,757 million (US$57 million) in 2021, 2022 and 2023, respectively, on equipment for chip-on-film, or COF and chip-on-glass, or COG, technologies, which are used in assembly and testing services for LCD, OLED, automotive panel and other display panel driver semiconductors.
We invested NT$2,677 million, NT$1,757 million and NT$2,258 million (US$69 million) in 2022, 2023 and 2024, respectively, on equipment for chip-on-film, or COF and chip-on-glass, or COG, technologies, which are used in assembly and testing services for LCD, OLED, automotive panel and other display panel driver semiconductors.
If any third party succeeds in its intellectual property infringement claims against us or our customers, we could be required to: • discontinue using the disputed process technologies, which would prevent us from offering some of our assembly and testing services; • pay substantial monetary damages; • develop non-infringing technologies, which may not be feasible; or • acquire licenses to the infringed technologies, which may not be available on commercially reasonable terms, if at all. 7 Any one of these developments could impose substantial financial and administrative burdens on us and hinder our business.
If any third party succeeds in its intellectual property infringement claims against us or our customers, we could be required to: • discontinue using the disputed process technologies, which would prevent us from offering some of our assembly and testing services; • pay substantial monetary damages; • develop non-infringing technologies, which may not be feasible; or • acquire licenses to the infringed technologies, which may not be available on commercially reasonable terms, if at all.
This would occur if the containment system partially or fully fails. The particles that are released with the gases due to the meltdown would be the spewed particles of iodine-131, strontium-90 and cesium-137. These might enter into a human by being swallowed, absorbed through the skin, or inhaled.
The particles that are released with the gases due to the meltdown would be the spewed particles of iodine-131, strontium-90 and cesium-137. These might enter into a human by being swallowed, absorbed through the skin, or inhaled.
For memory and logic/mixed-signal semiconductor testing services, our fixed costs represented 49%, 52% and 50% of our total cost of revenue in 2021, 2022 and 2023, respectively. For memory and logic/mixed-signal semiconductor assembly services, our fixed costs represented 19%, 22% and 26% of our total cost of revenue in 2021, 2022 and 2023, respectively.
For memory and logic/mixed-signal semiconductor testing services, our fixed costs represented 52%, 50% and 47% of our total cost of revenue in 2022, 2023 and 2024, respectively. For memory and logic/mixed-signal semiconductor assembly services, our fixed costs represented 22%, 26% and 25% of our total cost of revenue in 2022, 2023 and 2024, respectively.
Therefore, our shareholders may be less able under the ROC law than they would be under the laws of the United States or other jurisdictions to protect their interests in connection with actions by our management, members of our Board of Directors or our controlling shareholder. 8 It may be difficult to bring and enforce lawsuits against us in the United States.
Therefore, our shareholders may be less able under the ROC law than they would be under the laws of the United States or other jurisdictions to protect their interests in connection with actions by our management, members of our Board of Directors or our controlling shareholder.
If the aggregate amount of our shares held by any QDII or shares received by any QDII upon a single withdrawal accounts for 10.0% of our total issued and outstanding shares, such QDII must obtain the prior approval from the MOEA.
If the aggregate amount of our shares held by any QDII or shares received by any QDII upon a single withdrawal accounts for 10.0% of our total issued and outstanding shares, such QDII must obtain the prior approval from the MOEA. We cannot assure you that such approval would be granted.
Pursuant to Mainland investors regulations, only qualified domestic institutional investors (the “QDIIs”, each a “QDII”) or persons that have otherwise obtained the approval from the Ministry of Economic Affairs, ROC (the “MOEA”) and registered with the TWSE are permitted to withdraw and hold our shares from a depositary receipt facility.
Appointment of an agent or a tax guarantor might also incur additional costs. 14 Pursuant to Mainland investors regulations, only qualified domestic institutional investors (the “QDIIs”, each a “QDII”) or persons that have otherwise obtained the approval from the Ministry of Economic Affairs, ROC (the “MOEA”) and registered with the TWSE are permitted to withdraw and hold our shares from a depositary receipt facility.
Our assembly and testing services for Display panel driver semiconductors generated revenue of NT$8,211 million, NT$7,289 million and NT$7,822 million (US$255 million) in 2021, 2022 and 2023, respectively.
Our assembly and testing services for Display panel driver semiconductors generated revenue of NT$7,289 million, NT$7,822 million and NT$7,319 million (US$223 million) in 2022, 2023 and 2024, respectively.
The ROC has a unique international political status. The PRC government regards Taiwan as a province and does not recognize the legitimacy of the ROC as an independent country. Although significant economic and cultural relations have been positively strengthened in recent years between the ROC and the PRC, relations have often been strained.
The ROC has a unique international political status. The PRC government regards Taiwan as a province and does not recognize the legitimacy of the ROC as an independent country. Relations between the ROC and the PRC have often been strained.
The decrease in segment revenue was principally due to the weakness of macro-economic environment, softness in market demand and customer adjustment of inventory levels, all of which led to the decreased utilization rate of our production lines since the second half of 2022 till the first half of 2023.
The decrease in segment revenue of display panel driver semiconductor assembly and testing services was principally due to the weakness of macro-economic environment, softness in market demand and customer adjustment of inventory levels, all of which led to the decreased utilization rate of our production lines since the second half of 2024.
Certain provisions in our constitutive documents and in our severance agreements with our executive officers make the acquisition of us by another company more difficult and costly and therefore may delay, defer or prevent a change of control.
Litigation of this kind against the Company could result in substantial costs and a diversion of our management’s attention and resources. 13 Certain provisions in our constitutive documents and in our severance agreements with our executive officers make the acquisition of us by another company more difficult and costly and therefore may delay, defer or prevent a change of control.
We are incorporated in the ROC and a majority of our directors and most of our officers are not residents of the United States. A substantial portion of our assets is located outside the United States.
It may be difficult to bring and enforce lawsuits against us in the United States. We are incorporated in the ROC and a majority of our directors and most of our officers are not residents of the United States. A substantial portion of our assets is located outside the United States.
Any significant decrease in demand for these products and our related services would significantly impact our capacity utilization rates. That may result in our inability to generate sufficient revenue to cover the depreciation expenses for the equipment used in testing and assembling LCD, OLED, automotive panel and other display panel driver semiconductors, thereby negatively affecting our profitability.
That may result in our inability to generate sufficient revenue to cover the depreciation expenses for the equipment used in testing and assembling LCD, OLED, automotive panel and other display panel driver semiconductors, thereby negatively affecting our profitability.
Without satisfying these requirements, non-ROC withdrawing holders of our ADSs would not be able to hold or otherwise subsequently sell our shares on TWSE or otherwise. Appointment of an agent or a tax guarantor might also incur additional costs.
Without satisfying these requirements, non-ROC withdrawing holders of our ADSs would not be able to hold or otherwise subsequently sell our shares on TWSE or otherwise.
We cannot assure you that such approval would be granted. 15 Restriction on the ability to deposit our shares into our ADR facility may adversely affect the liquidity and price of our ADSs. The ability to deposit our shares into our ADR facility is restricted by the ROC law.
Restriction on the ability to deposit our shares into our ADR facility may adversely affect the liquidity and price of our ADSs. The ability to deposit our shares into our ADR facility is restricted by the ROC law.
Shareholders of public companies such as the Company frequently institute securities class action litigations against companies following periods of volatility in the market price of public company securities including common shares and ADSs. Litigation of this kind against the Company could result in substantial costs and a diversion of our management’s attention and resources.
Shareholders of public companies such as the Company frequently institute securities class action litigations against companies following periods of volatility in the market price of public company securities including common shares and ADSs.
We are, from time to time, involved in litigation in respect of intellectual property rights. Any litigation, whether as plaintiff or defendant, is costly and diverts our resources.
Any one of these developments could impose substantial financial and administrative burdens on us and hinder our business. We are, from time to time, involved in litigation in respect of intellectual property rights. Any litigation, whether as plaintiff or defendant, is costly and diverts our resources.
Under the proposed agreement, ChipMOS BVI will sell its entire remaining 45.0242% equity interests in Unimos Shanghai to Suzhou Oriza PuHua ZhiXin Equity Investment Partnership (L.P.) and other local Chinese investment management companies. The equity interest transfer is expected to be completed in the first half of 2024. Please see “Item 5.
Under the agreement, ChipMOS BVI sold its entire remaining 45.0242% equity interests in Unimos Shanghai to Suzhou Oriza PuHua ZhiXin Equity Investment Partnership (L.P.) and other local Chinese investment management companies. In May 2024, the equity transfer of Unimos Shanghai had completed. Please see “Item 5. Operating and Financial Review and Prospects—Recent Acquisition” for additional information.
The rights of our shareholders to bring shareholders’ suits against us or our Board of Directors under the ROC law are more limited than those of the shareholders of U.S. corporations.
Our corporate affairs are governed by our Articles of Incorporation and laws governing corporations incorporated in the Republic of China (“ROC”). The rights of our shareholders to bring shareholders’ suits against us or our Board of Directors under the ROC law are more limited than those of the shareholders of U.S. corporations.
The potential health effects due to exposure to harmful radiation may be temporary or permanent harmful effects in nature. Multiple radioactive gases could possibly be emitted in a situation where uranium attains a “meltdown” state, which is a severe overheating of the core of a nuclear reactor, in which the core melts and radiation and heat are caused to escape.
Multiple radioactive gases could possibly be emitted in a situation where uranium attains a “meltdown” state, which is a severe overheating of the core of a nuclear reactor, in which the core melts and radiation and heat are caused to escape. This would occur if the containment system partially or fully fails.
We cannot assure you that we will be able to independently develop, or secure from any third party, the technologies required for our assembly and testing services. Our failure to successfully obtain these technologies may seriously harm our competitive position and render us unable to provide some of our services.
We cannot assure you that we will be able to independently develop, or secure from any third party, the technologies required for our assembly and testing services.
As of December 31, 2023, we had approximately NT$14,912 million (US$487 million) outstanding long-term indebtedness. Our long-term indebtedness as of December 31, 2023, represented bank loans with an interest rate from 1.2% to 1.75%. As of December 31, 2023, NT$11,271 million (US$368 million) of our indebtedness was secured by collateral comprised of our assets.
As of December 31, 2024, we had approximately NT$13,759 million (US$420 million) outstanding long-term indebtedness. Our long-term indebtedness as of December 31, 2024, represented bank loans with an interest rate from 1.325% to 1.875%. As of December 31, 2024, NT$10,213 million (US$311 million) of our indebtedness was secured by collateral comprised of our assets.
Consequently, our businesses, financial condition and results of operations may be materially and adversely affected. 13 Any future outbreak of radiation-related disease as a result of nuclear power plant reactors damage caused by the Great East Japan Earthquake of 2011 may materially adversely affect our operations and business.
Any future outbreak of radiation-related disease as a result of nuclear power plant reactors damage caused by the Great East Japan Earthquake of 2011 may materially adversely affect our operations and business. The Great East Japan Earthquake of 2011 raises tremendous concerns about the possible effects of radiation emission from the damaged nuclear power plants.
In addition, the testing process is subject to human error by our employees who operate our test equipment and related software.
Similar to most software programs, these software programs are complex and may contain programming errors or bugs. In addition, the testing process is subject to human error by our employees who operate our test equipment and related software.
Risks Relating to Our Business If we are unable to compete effectively in the highly competitive semiconductor assembly and testing markets, we may lose customers and our income may decline. The semiconductor assembly and testing markets are very competitive.
Furthermore, the end-customers maybe seek the opportunity for semiconductor supply chain absorbing the extra-tariffs to maintain their competition, that will reduce our revenue and gross profit. Risks Relating to Our Business If we are unable to compete effectively in the highly competitive semiconductor assembly and testing markets, we may lose customers and our income may decline.
If we are unable to achieve high capacity utilization rates for the equipment purchased pursuant to these agreements, our gross margins may be materially and adversely affected.
If we are unable to achieve high capacity utilization rates for the equipment purchased pursuant to these agreements, our gross margins may be materially and adversely affected. 6 The assembly and testing process is complex and our production yields and customer relationships may suffer as a result of defects or malfunctions in our testing and assembly equipment and the introduction of new packages.
If so, the market price of our common shares or of our ADSs, and the market value of your investment, may fall.
Because of the factors listed above, our future results of operations or growth rates may be below the expectations of research analysts and investors. If so, the market price of our common shares or of our ADSs, and the market value of your investment, may fall.
Our ability to compete successfully also depends on our ability to operate without infringing upon the proprietary rights of others. The semiconductor assembly and testing industry is characterized by frequent litigation regarding patent and other intellectual property rights. We may incur legal liabilities if we infringe upon the intellectual property or other proprietary rights of others.
The semiconductor assembly and testing industry is characterized by frequent litigation regarding patent and other intellectual property rights. We may incur legal liabilities if we infringe upon the intellectual property or other proprietary rights of others. We are not able to ascertain what patent applications have been filed in the United States or elsewhere, however, until they are granted.
We develop computer software to test our customers’ semiconductors. We also develop conversion software programs that enable us to test semiconductors on different types of testers. Similar to most software programs, these software programs are complex and may contain programming errors or bugs.
Semiconductor testing and assembly are complex processes that require significant technological and process expertise. Semiconductor testing involves sophisticated test equipment and computer software. We develop computer software to test our customers’ semiconductors. We also develop conversion software programs that enable us to test semiconductors on different types of testers.
Since semiconductor companies generally rely on service providers with whom they have established relationships to meet their assembly and testing needs for their applications and new customers usually require us to pass a lengthy and rigorous qualification process, if we lose any of our key customers, we may not be able to replace them in a timely manner.
Any adverse development in our key customers’ operations, competitive position or customer base could materially reduce our revenue and materially adversely affect our business and profitability. Semiconductor companies generally rely on service providers with whom they have established relationships to meet assembly and testing needs. New customers usually require us to pass a lengthy and rigorous qualification process.
As a result of our expansion, we will need to implement additional operational and financial controls and hire and train additional personnel. We cannot assure you that we will be able to do so effectively in the future, and our failure to do so could jeopardize our expansion plans and seriously harm our operations.
As a result of our expansion, we will need to implement additional operational and financial controls and hire and train additional personnel.
Any future outbreak of health epidemics and outbreaks of contagious diseases may materially affect our operations and business.
Please see “Item 16K. Cybersecurity” for additional information. Risks Relating to Countries in Which We Conduct Operations Any future outbreak of health epidemics and outbreaks of contagious diseases may materially affect our operations and business.
Then demand went down in second half of 2022 due to customer inventory adjustment for market weakness. However, we observed some rebound sign for OLED, TDDI, and large panel driver IC demand since Lunar New Year holiday 2023 but it is still fluctuation except OLED and automotive panel in 2023.
However, we observed some rebound sign for OLED and automotive panel driver IC demand since Lunar New Year holiday 2024 but it is still fluctuation since the second half of 2024. Any significant decrease in demand for these products and our related services would significantly impact our capacity utilization rates.
The Great East Japan Earthquake of 2011 raises tremendous concerns about the possible effects of radiation emission from the damaged nuclear power plants. Japanese official authorities are working with experts in assessing the risk and determining the best courses of actions to implement to escape harmful radiation.
Japanese official authorities are working with experts in assessing the risk and determining the best courses of actions to implement to escape harmful radiation. The potential health effects due to exposure to harmful radiation may be temporary or permanent harmful effects in nature.
Most of this equipment may not be used for technologies other than COF or COG. The market demand for LCD, OLED, automotive panel and other display panel driver semiconductors increased in 2018 particularly the wafer test for TDDI in the second half of 2020.
Most of this equipment may not be used for technologies other than COF or COG. The demand went down in second half of 2022 due to customer inventory adjustment for market weakness.
Such shortages or interruptions in electricity supply could further be exacerbated by changes in the energy policy of the government which intends to make Taiwan a nuclear-free country. If we are unable to secure reliable and uninterrupted supply of electricity to power our manufacturing fabs within Taiwan, our ability to fill customers’ orders would be severely jeopardized.
If we are unable to secure reliable and uninterrupted supply of electricity to power our manufacturing fabs within Taiwan, our ability to fill customers’ orders would be severely jeopardized. We maintain a comprehensive risk management system dedicated to the safety of people, the conservation of natural resources, and the protection of property.
Laws of the Republic of China may be less protective of shareholder rights than laws of the United States or other jurisdictions. Our corporate affairs are governed by our Articles of Incorporation and laws governing corporations incorporated in the Republic of China (“ROC”).
We cannot assure you that we will be able to do so effectively in the future, and our failure to do so could jeopardize our expansion plans and seriously harm our operations. 8 Laws of the Republic of China may be less protective of shareholder rights than laws of the United States or other jurisdictions.
Removed
Any adverse development in our key customers’ operations, competitive position or customer base could materially reduce our revenue and materially adversely affect our business and profitability.
Added
Extra-tariffs in semiconductor content coming out of Taiwan could impact our business and reduce our profitability. In February 2025, President Trump announced a plan to impose extra-tariffs on semiconductors.
Removed
The assembly and testing process is complex and our production yields and customer relationships may suffer as a result of defects or malfunctions in our testing and assembly equipment and the introduction of new packages. Semiconductor testing and assembly are complex processes that require significant technological and process expertise. Semiconductor testing involves sophisticated test equipment and computer software.
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Despite the extra-tariffs in semiconductor content coming out of Taiwan would not directly impact our business nor gross profit based on currently business model, the end-users may restructure the supply chain to areas or countries that are not imposed extra-tariffs to reduce their cost, which could impact our further business.
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We are not able to ascertain what patent applications have been filed in the United States or elsewhere, however, until they are granted.
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Accordingly, if we lose any of our key customers, we may not be able to replace them in a timely manner.
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Operating and Financial Review and Prospects—Recent Acquisition” for additional information.
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Our failure to successfully obtain these technologies may seriously harm our competitive position and render us unable to provide some of our services. 7 Our ability to compete successfully also depends on our ability to operate without infringing upon the proprietary rights of others.
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If our security measures are breached and unauthorized access is obtained to our information technology systems, we may lose proprietary data.
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Even though we have established a comprehensive internet and computing security network, we cannot guarantee that our computing systems which control or maintain vital corporate functions, such as our manufacturing operations and enterprise accounting, would be completely immune to crippling cyberattacks.
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Our security measures could be compromised by various factors, including computer hackers, employee errors, and unfavorable actions by suppliers, resulting in unauthorized access to our or our customers’ data, including our intellectual property, other confidential business information, or information technology systems.
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In the event of a cyberattack, our systems may lose important corporate data or our production lines may be shut down pending the resolution of such cyberattack. Cyberattacks could also lead to loss or divulgence of trade secrets and other sensitive information, such as proprietary information of our customers and other stakeholders and personal information of our employees.
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Due to the frequent evolution of information technology and hacker techniques, we may be unable to anticipate these methods or implement adequate preventive measures. Any security vulnerability could lead to the disclosure of our trade secrets, confidential customer, supplier, or employee data.
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While we seek to continuously review and assess our cybersecurity policies and procedures to ensure their confidentiality, integrity and availability, we cannot guarantee that we will not be susceptible to new and emerging risks and attacks in the evolving landscape of cybersecurity threats.
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This could result in legal liability, damage to our reputation, and other harm to our business. 10 If our information technology systems succumb to cyberattacks by third parties, our business and operations may be severely interrupted or even shut down, and our results of operations, financial condition, prospects and reputation may also be materially and adversely affected.
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Malicious hackers may also try to introduce computer viruses, malicious software or ransomware into our network systems to disrupt our operations, blackmail us to regain control of our computing systems, or spy on us for sensitive information.
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Regarding the defense and strengthening of internal and external cybersecurity, we outline as follows: Internal cybersecurity reinforcement: We've established an Information Security Management Committee dedicated to maintaining and promoting information security.
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These attacks may result in us having to pay damages for our delayed or disrupted orders or incur significant expenses in implementing remedial and improvement measures to further enhance our cybersecurity network, and may also expose us to significant legal liabilities arising from or related to legal proceedings or regulatory investigations associated with such breaches.
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Annual management review meetings are held regularly to review yearly tasks, including project execution, risk assessment, document compliance, education and training, significant information security incidents, key performance indicators in information security, information security attack prevention, internal and external concerns, disaster recovery drills, and the effectiveness report of company-wide phishing drills.
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We employ certain third-party service providers for us and our affiliates worldwide with whom we need to share highly sensitive and confidential information to enable them to provide the relevant services.

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Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

107 edited+10 added−22 removed149 unchanged
Biggest changeIn assembly and bumping areas, our research and development efforts were directed to: • Au height reduction, as part of cost reduction drive, 10um bump height COF package and 8um bump height COG package was released for production; • Wafer-level chip scale packaging and 3P2M Cu RDL processes; • Fine-pitch Cu RDL process for WLCSP and RDL products; • Flip-chip CSP for DRAM and mixed-signal application; • 3P/3M Cu pillar bumping for 300mm wafers high pin count products; • Fine pitch copper pillar process for micro bump structure; • Thicker Cu/Ni/Au RDL and 100im tall Cu pillar for PMIC application; • Developing fine pitch Cu RDL line width and space with 4um/4um for advanced re-distribution layer device design requirement; • Shrink ball size with ball mount technology and combine thinner wafer grind thickness to achieve thin WLCSP requirement; • Dual/Multi-chip assembly and module of flash products for SSD and eMMC applications; • Hybrid package by integration of wire binding & flip-chip process with passive components to offer total solution for UFS device; • DBG/SDBG implementation to enhance the capability of ultra-thin wafer lapping and dicing capabilities for stacked-die chip scale package; • Advanced thin core/core-free, flex substrate solutions for thin and flip chip packages; • 2-metal layers COF assembly and COF SMT capabilities; 34 • Qualified thermally enhanced COF and MCB COF and released for manufacturing; • Double-sided Heat Sink/ High conductivity material development is applied in thermal packaging services for high-resolution panels; • Source & Gate ICs integrated technology development is used in product applications with narrow border panels; • Develop new 2P2M RDL structure to use pure Cu RDL for fine pitch complex circuit and Improved Cu RDL undercut instead of Cu-Ni-Au composite structure; • Develop Ultra Fine Pitch (UFP) COF assembly and testing technology; • Implement new thermal conductive resin with higher conductivity for COF package; • Enhance Pb free ball level capability (temperature cycle > 1000 cycles); and • High Frequency & Low loss Product Substrate design for FCCSP.
Biggest changeIn assembly and bumping areas, our research and development efforts were directed to: • Au height reduction, as part of cost reduction drive, 10um bump height COF package and 8um bump height COG package was released for production; • Wafer-level chip scale packaging and 3P2M Cu RDL processes; 33 • Fine-pitch Cu RDL process for WLCSP and RDL products; • Flip-chip CSP for DRAM and mixed-signal application; • 3P/3M Cu pillar bumping for 300mm wafers high pin count products; • Fine pitch copper pillar process for micro bump structure; • Thicker Cu/Ni/Au RDL and 100im tall Cu pillar for PMIC application; • Developing fine pitch Cu RDL line width and space with 4um/4um for advanced re-distribution layer device design requirement; • Shrink ball size with ball mount technology and combine thinner wafer grind thickness to achieve thin WLCSP requirement; • Dual/Multi-chip assembly and module of flash products for SSD and eMMC applications; • Hybrid package by integration of wire binding & flip-chip process with passive components to offer total solution for UFS device; • DBG/SDBG implementation to enhance the capability of ultra-thin wafer lapping and dicing capabilities for stacked-die chip scale package; • Advanced thin core/core-free, flex substrate solutions for thin and flip chip packages; • 2-metal layers COF assembly and COF SMT capabilities; • Qualified thermally enhanced COF and MCB COF and released for manufacturing; • Double-sided Heat Sink/ High conductivity material development is applied in thermal packaging services for high-resolution panels; • Source & Gate ICs integrated technology development is used in product applications with narrow border panels; • Develop new 2P2M RDL structure to use pure Cu RDL for fine pitch complex circuit and Improved Cu RDL undercut instead of Cu-Ni-Au composite structure; • Develop Ultra Fine Pitch (UFP) COF assembly and testing technology; • Implement new thermal conductive resin with higher conductivity for COF package; • Enhance Pb free ball level capability (temperature cycle > 1000 cycles); and • High Frequency & Low loss Product Substrate design for FCCSP. • Develop 2P2M with thick Cu RDL and taller Cu Pillar bump height technology for power management chip product. • Develop 12 inch stand-alone thinner technology for WLCSP. • Develop extremely narrow IC width ( • Technical services for COF packaging and applying for non-display product. • DDR5 DRAM assembly technology development. • Thermal enhanced Flip-chip BGA with Heat sink assembly technology development . 34 For new product and product enhancement work in 2017, our work concentrates on three key development programs: 3D WLCSP, biometric sensor package solutions, and flip chip technology.
As the costs of semiconductor manufacturing facilities increase, semiconductor companies are expected to further outsource their wafer fabrication, assembly and testing requirements to focus their resources on core competencies, such as semiconductor design and marketing. Time-to-Market Pressure.
As the costs of semiconductor manufacturing facilities increase, semiconductor companies are expected to further outsource wafer fabrication, assembly and testing requirements to focus their resources on core competencies, such as semiconductor design and marketing. Time-to-Market Pressure.
Die Saw Wafers are cut into individual dies, or chips, in preparation for the die-attach process. Die Attach Each individual die is attached to the leadframe or organic substrate. Wire Bonding Using gold or silver wires, to connect the I/O pads on the die to the inner lead of leadframe or substrate.
Die Saw Wafers are cut into individual dies, or chips, in preparation for the die-attach process. Die Attach Each individual die is attached on the leadframe or organic substrate. Wire Bonding Using gold or silver wires, to connect the I/O pads on the die to the inner lead of leadframe or substrate.
Inspection and Packing Each individual die with tape is visually or auto inspected for defects. The dies are packed within a reel into an aluminum bag after completion of the inspection process. 30 Chip-on-Glass (COG) Technology COG technology is an electronic assembly technology that is used in assembling display driver semiconductors including TV/monitor, mobile and wearable products.
Inspection and Packing Each individual die with tape is visually or auto inspected for defects. The dies are packed within a reel into an aluminum bag after completion of the inspection process. Chip-on-Glass (COG) Technology COG technology is an electronic assembly technology that is used in assembling display driver semiconductors including TV/monitor, mobile and wearable products.
This is because of its structural design, including an adhesive-free two-layer tape that is highly flexible, bending strength and its capacity to receive finer patterning pitch. COF package has been using for large-size and high-resolution panel display, especially on TFT-LCD and OLED TV set and NB as well.
This is because of its structural design, including an adhesive-free two-layer tape that is highly flexible, bending strength and its capacity to receive finer patterning pitch. 29 COF package has been using for large-size and high-resolution panel display, especially on TFT-LCD and OLED TV set and NB as well.
Key Information—Risk Factors—Risks Relating to Our Business—Disputes over intellectual property rights could be costly, deprive us of technologies necessary for us to stay competitive, render us unable to provide some of our services and reduce our opportunities to generate revenue”. Government Regulations As discussed above under “—Intellectual Property”, governmental regulation of our intellectual property may materially affect our business.
Key Information—Risk Factors—Risks Relating to Our Business—Disputes over intellectual property rights could be costly, deprive us of technologies necessary for us to stay competitive, render us unable to provide some of our services and reduce our opportunities to generate revenue”. 37 Government Regulations As discussed above under “—Intellectual Property”, governmental regulation of our intellectual property may materially affect our business.
Many of these IDMs are continuously significantly reducing their investments in new semiconductor assembly and testing facilities. 20 The availability of technologically advanced independent semiconductor manufacturing services has also enabled the growth of “fabless” semiconductor companies that focus exclusively on semiconductor design and marketing and outsource their fabrication, assembly and testing requirements to independent companies.
Many of these IDMs are continuously significantly reducing their investments in new semiconductor assembly and testing facilities. The availability of technologically advanced independent semiconductor manufacturing services has also enabled the growth of “fabless” semiconductor companies that focus exclusively on semiconductor design and marketing and outsource fabrication, assembly and testing requirements to independent companies.
For example, with the exception of aluminum bags and inner and outer boxes, which we acquire from local sources, the raw materials used in our COF process and for modules are obtained from a limited number of Japanese suppliers. Competition The independent assembly and testing markets are very competitive.
For example, with the exception of aluminum bags and inner and outer boxes, which we acquire from local sources, the raw materials used in our COF process and for modules are obtained from a limited number of Japanese suppliers. 36 Competition The independent assembly and testing markets are very competitive.
Long-Term Customer Partnerships ChipMOS promises that products and services delivered to customers can meet their needs, are competitive, and are served on a timely basis. Upholding the principle of customer service, we provide comprehensive products and services from a customer oriented perspective with the aim of becoming their trusted, long-term partners.
Long-Term Customer Partnerships ChipMOS promises that products and services delivered to customers can meet their needs, are competitive, and are served on a timely basis. Upholding the principle of customer service, we provide comprehensive products and services from a customer oriented perspective with the aim of becoming customers’ trusted, long-term partners.
Tape and reel pack involves transferring semiconductors from a tray or tube onto an anti-static embossed tape and rolling the tape onto a reel for shipment to customers. Assembly Our assembly services generally involve the following steps: Wafer Lapping The wafers are ground to their required thickness.
Tape and reel pack involves transferring semiconductors from a tray or tube onto an anti-static embossed tape and rolling the tape onto a reel for shipment to customers. 23 Assembly Our assembly services generally involve the following steps: Wafer Lapping The wafers are ground to their required thickness.
Package Connections Description End-User Applications WLCSP 4-96 Very small package size (identical to die size), suitable for the low pin count and require the small package size application Memory, ASICs, PMIC, MEMS devices, controllers, for mobile phones, tablets, ultra book computers and wearable products 28 FC CSP FC Chip Scale Package (FC CSP) construction utilizes the flip chip bumping (with solder bump or Cu pillar bump) interconnection technology to replace the standard wire-bond interconnect.
Package Connections Description End-User Applications WLCSP 4-219 Very small package size (identical to die size), suitable for the low pin count and require the small package size application Memory, ASICs, PMIC, MEMS devices, controllers, for mobile phones, tablets, ultra book computers and wearable products FC CSP 28 FC Chip Scale Package (FC CSP) construction utilizes the flip chip bumping (with solder bump or Cu pillar bump) interconnection technology to replace the standard wire-bond interconnect.
As part of our emphasis on customer service, these teams: • actively participate in the design process at the customers’ facilities; 33 • resolve customer assembly and testing issues; and • promote timely and individualized resolutions to customers’ issues.
As part of our emphasis on customer service, these teams: • actively participate in the design process at the customers’ facilities; • resolve customer assembly and testing issues; and • promote timely and individualized resolutions to customers’ issues.
In addition, auto inspection machines and manual work are used in the COG process, which is more labor-intensive than the COF processes. Item 4A. Unresolved Staff Comments Not applicable.
In addition, auto inspection machines and manual work are used in the COG process, which is more labor-intensive than the COF processes. 41 Item 4A. Unresolved Staff Comments Not applicable.
Through reducing consumption and carbon emissions, we hope to reduce the impacts on the environment. At the same time, we also continue to educate employees to enhance their awareness for environmental protection. These efforts have also been extended to our suppliers and stakeholders as we hope to work collectively to become a low-carbon, energy-saving, and green enterprise.
Through reducing consumption and carbon emissions, we hope to reduce the impacts on the environment. At the same time, we also continue to educate employees to enhance their awareness of environmental protection. These efforts have also been extended to our suppliers and stakeholders as we hope to work collectively to become a low-carbon, energy-saving, and green enterprise.
Small package suitable to apply on hand-held 3C electronic products Electronic Compass, audio converter, nor flash product, power control, sensor magnetometer, MEMS magnetometer, CMOS Image Sensor controller, Laser diode driver, power manager IC (PMIC) Wafer Level CSP Wafer-level CSP (WLCSP) is the technology of packaging an integrated circuit at wafer level.
Small package suitable to apply on hand-held 3C electronic products Electronic Compass, audio converter, nor flash product, power control, sensor magnetometer, CMOS Image Sensor controller, Laser diode driver, power manager IC (PMIC) 27 Wafer Level CSP Wafer-level CSP (WLCSP) is the technology of packaging an integrated circuit at wafer level.
ChipMOS is committed to building solar power generation system up to 10% of the contracted power generation in 2024, planning various energy saving goals and achieve a company-wide energy saving rate more than 1%, and implementing products’ Carbon and Water Footprint and Material Flow Cost Accounting and more.
ChipMOS is committed to building solar power generation system up to 10% of the contracted power generation in 2025, planning various energy saving goals and achieve a company-wide energy saving rate more than 1%, and implementing products’ Carbon and Water Footprint and Material Flow Cost Accounting and more.
In recent years, there has been an observable trend with which the average inner lead pitch of COF package went down to 23um with more than 80% of market demand. High thermal dissipation packaging technology is available for mass production.
In recent years, there has been an observable trend with which the average inner lead pitch of COF package went down to 23um with more than 90% of market demand. High thermal dissipation packaging technology is available for mass production.
We intend to continue our focus on developing and providing advanced assembly and testing services for potential growth segments of the semiconductor industry, such as memory, logic/mixed-signal, MEMS, LCD, OLED, automotive panel and other display panel driver semiconductors and bumping services.
We intend to continue our focus on developing and providing advanced assembly and testing services for potential growth segments of the semiconductor industry, such as memory, logic/mixed-signal, OLED, automotive panel and other display panel driver semiconductors and bumping services.
Our facilities at Hsinchu Science Park, Chupei, Hukou, Hsinchu Industrial Park and Southern Taiwan Science Park have won numerous awards including “Green Factory Label” from 2013 to 2023, “Enterprises Environmental Protection Gold Grade Award” in 2018 and 2019, “Occupational Safety and Health Excellent Award” in 2016, 2017, 2021, 2022 and 2023, “Green Building Label” in 2014 and 2017 up to now.
Our facilities at Hsinchu Science Park, Chupei, Hukou, Hsinchu Industrial Park and Southern Taiwan Science Park have won numerous awards including “Green Factory Label” from 2013 to 2024, “Enterprises Environmental Protection Gold Grade Award” in 2018 and 2019, “Occupational Safety and Health Excellent Award” in 2016, 2017, 2021 to 2024, “Green Building Label” in 2014 and 2017 up to now.
As the number of leads surrounding a traditional leadframe-based package increases, the leads must be placed closer together to reduce the size of the package. The close proximity of one lead to another can create electrical shorting problems and requires the development of increasingly sophisticated and expensive techniques to accommodate the high number of leads on the circuit boards.
As the number of leads surrounding a traditional leadframe-based package increases, the leads must be placed closer together to reduce the size of the package. The close proximity of one lead to another can create electrical shorting problems and requires the development of continuously more sophisticated and expensive techniques to accommodate the high number of leads on the circuit boards.
In addition, we regularly collect data from different segments of the semiconductor industry and, when possible, we work closely with our customers to design and develop assembly and testing services for their new products. Sale will cowork with internal technology expert to work closely with our customers as project kick off.
In addition, we regularly collect data from different segments of the semiconductor industry and, when possible, we work closely with our customers to design and develop assembly and testing services for new products. Sale will cooperate with internal technology expert to work closely with our customers as project kick off.
Operating and Financial Review and Prospects—Taxation” for certain information regarding the effect of ROC tax regulations on our operations. 40 Facilities We provide testing services through our facilities in Taiwan at following locations: Chupei, the Hsinchu Industrial Park, the Hsinchu Science Park, and the Southern Taiwan Science Park.
Operating and Financial Review and Prospects—Taxation” for certain information regarding the effect of ROC tax regulations on our operations. Facilities We provide testing services through our facilities in Taiwan at following locations: Chupei, the Hsinchu Industrial Park, the Hsinchu Science Park, and the Southern Taiwan Science Park. We provide assembly services through our facility at the Southern Taiwan Science Park.
The failure to protect our property rights would deprive us of our ability to stay competitive in the semiconductor industry. Our intellectual property rights are protected by the relevant patent and intellectual property agencies of the European Community, the United Kingdom, the United States, Mainland China, Singapore, Hong Kong, Korea, Japan and Taiwan.
The failure to protect our property rights would deprive us of our ability to stay competitive in the semiconductor industry. Our intellectual property rights are protected by the relevant patent and intellectual property agencies of the European Community, the United Kingdom, the United States, Mainland China, Korea, Japan and Taiwan.
As time-to-market and cost increasingly become sources of competitive advantage for our customers, they increasingly value our ability to provide them with comprehensive back-end services. 22 We are able to offer vertically integrated services for a broad range of products, including memory, logic/mixed-signal and LCD, OLED, automotive panel and other display panel driver semiconductors.
Time-to-market and cost are sources of competitive advantage for our customers. As a result, our customers increasingly value our ability to provide them with comprehensive back-end services. We are able to offer vertically integrated services for a broad range of products, including memory, logic/mixed-signal and LCD, OLED, automotive panel and other display panel driver semiconductors.
Potential growth in the DRAM and NAND Flash market is expected to be driven by continued growth in both the commodity and niche DRAM market, as well as growth opportunities in mobile DRAM as memory requirements significantly increase for mobile applications and storage requirement for data center application.
The memory market is dominated by two segments-DRAM and flash memory. Potential growth in the DRAM and NAND Flash market is expected to be driven by continued growth in both the commodity and niche DRAM market, as well as growth opportunities in mobile DRAM as memory requirements significantly increase for mobile applications and storage requirement for data center application.
Corporate Governance ChipMOS has established the corporate governance structure and formulated good governance system, abides by legal regulations and ethical management to ensure the Company’s robust operations and growth in line with its Articles of Incorporation, Corporate Governance Best Practice Principles and applicable laws and regulations.
Corporate Governance ChipMOS has established the corporate governance structure and formulated good governance system, abides by legal regulations and ethical management to ensure the Company’s robust operations and growth in line with its Articles of Incorporation, “Corporate Governance Best Practice Principles” and applicable laws and regulations.
And dual IC with high thermal dissipation COF packaging technology is ready for 8K TV market. 18um/16um inner lead pitch 2-metal layer COF package is in development for coming AR/VR gear requirement. And we can test display driver semiconductors with frequency up to 6.5Gbps to fulfill high speed data rate requirement.
And dual IC with high thermal dissipation COF packaging technology is ready for 8K TV market. 18um/16um inner lead pitch 2-metal layer COF package is ready for production of coming AR/VR gear requirement. And we can test display driver semiconductors with frequency up to 6.5Gbps to fulfill high speed data rate requirement.
More semiconductor chips and display panel are consumed with the trend of popularization of automotive panels and Electric Vehicle (EV) could benefit our margin and increase our earnings. Semiconductor Industry Trends Growth in the semiconductor industry is largely driven by end-user demand for consumer electronics, communications equipment and computers, for which semiconductors are critical components.
More semiconductor chips and display panel are consumed with the trend of popularization of automotive panels and Electric Vehicle (EV) could benefit our margin and increase our earnings. Semiconductor Industry Trends Growth in the semiconductor industry is largely driven by end-user demand for consumer electronics, communications equipment and computers. Semiconductors are critical components of these products and applications.
In recent years, there has been a trend in the industry to outsource various segments of stages in the manufacturing process to reduce the high fixed costs resulting from the increasingly complex manufacturing process. Virtually every significant stage of the manufacturing process can be outsourced.
In recent years, there has been a trend in the industry to outsource various segments of stages in the manufacturing process to reduce the high fixed costs resulting from the continuously more complex manufacturing process. Virtually every significant stage of the manufacturing process can be outsourced.
Year ended December 31, 2021 2022 2023 Taiwan 79% 79% 81% Japan 6% 9% 6% PRC 7% 8% 8% Singapore 6% 2% 3% Others 2% 2% 2% Total 100% 100% 100% Qualification and Correlation by Customers Our customers generally require that our facilities undergo a stringent “qualification” process during which the customer evaluates our operations, production processes and product reliability, including engineering, delivery control and testing capabilities.
Year ended December 31, 2022 2023 2024 Taiwan 79% 81% 80% Japan 9% 6% 6% PRC 8% 8% 7% Singapore 2% 3% 4% Others 2% 2% 3% Total 100% 100% 100% 32 Qualification and Correlation by Customers Our customers generally require that our facilities undergo a stringent “qualification” process during which the customer evaluates our operations, production processes and product reliability, including engineering, delivery control and testing capabilities.
Wafer Level Chip Scale Package (WLCSP) 6-125 WLCSP package size is almost the same as die size. Simple assembly process flow, low cost.
Wafer Level Chip Scale Package (WLCSP) 4-125 WLCSP package size is almost the same as die size. Simple assembly process flow, low cost.
Package Connections Description End-User Applications FC CSP 8-1288 Superior electrical performance, smaller form factor Power devices, RF, High speed Logic devices, wireless, memory or portable applications 29 Display Driver Semiconductors and Gold MCB Bumping We also offer assembly and testing services for display driver semiconductors. We employ COF and COG technologies for testing and assembling display driver semiconductors.
Package Connections Description End-User Applications FC CSP 24-484 Superior electrical performance, smaller form factor Power devices, RF, High speed Logic devices, wireless, memory or portable applications Display Driver Semiconductors and Gold MCB Bumping We also offer assembly and testing services for display driver semiconductors. We employ COF and COG technologies for testing and assembling display driver semiconductors.
Environmental Sustainability Various plans are conducted based on the two major aspects, “environmental friendliness” and “community feedback”. For the implementation strategy, we start from the Company internally and work with the community. Other than taking care of the surrounding 39 environment, we also use our social influence to work with the employees to love the Earth with diverse approaches.
Environmental Sustainability Various plans are conducted based on the two major aspects, “environmental friendliness” and “community feedback”. For the implementation strategy, we start from the Company internally and work with the community. Other than taking care of the surrounding environment, we also work together with our employees to love the Earth with diverse approaches.
The Company listed and commenced trading on the main board of TWSE on April 11, 2014. According to the merger agreement, entered between the Company and ChipMOS Bermuda dated January 21, 2016 (the “Merger Agreement”), ChipMOS Bermuda merged with and into the Company, with the Company being the surviving company after the Merger.
The Company listed and commenced trading on the main board of TWSE on April 11, 2014. According to the merger agreement, entered between the Company and ChipMOS TECHNOLOGIES (Bermuda) LTD. (“ChipMOS Bermuda”) dated January 21, 2016 (the “Merger Agreement”), ChipMOS Bermuda merged with and into the Company, with the Company being the surviving company after the Merger.
Benefits of ball grid array assembly over leadframe-based assembly include: • smaller size; • smaller footprint on a printed circuit board; • better electrical signal integrity; and • easier attachment to a printed circuit board. 26 The following diagram presents the basic component parts of a fine-pitch BGA package: The following table presents the ball-count, description and end-user applications of organic substrate-based packages we currently assemble: Package Connections Description End-User Applications Mini BGA 24-400 Low-cost and space-saving assembly designed for low input/output count, suitable for semiconductors that require a smaller package size than standard BGA Memory, analog, flash memory, ASICs, radio frequency devices, personal digital assistants, cellular handsets, communication products, notebooks, wireless systems Fine-Pitch BGA 54-126 Our patented design for DRAM products that require high performance and chip scale package (CSP) Notebooks, cellular handsets, global positioning systems, personal digital assistants, wireless systems Very Thin Fine-Pitch BGA 48-176 Similar structure of Mini BGA package with thinner and finer ball pitch that is designed for use in a wide variety of applications requiring small size, high reliability and low unit cost Handheld devices, notebooks, disk drives, wireless and mobile communication products Land Grid Array (LGA) 8-52 Thinner and lighter assembly designed essential to standard BGA without solder balls, suitable for applications that require high electrical performance Disk drives, memory controllers, wireless, mobile communication products Multi-Chip BGA 48-153 Designed for assembly of two or more memory chips (to increase memory density) or combinations of memory and logic chips in one BGA package Notebooks, digital cameras, personal digital assistants, global positioning systems, sub-notebooks, board processors, wireless systems Stacked-Chip BGA 24-345 Designed for assembly of two or more memory chips or logic and memory chips in one CSP, reducing the space required for memory chips Cellular handsets, digital cameras, personal digital assistants, wireless systems, notebooks, global positioning systems FC Chip-scale Package (FC CSP) 16-872 Better IC protection and solder joint reliability compared to direct chip attach (DCA) and chip on board (COB) Memory, logic, microprocessor, application processor (AP), baseband (BB), solid state device, radio frequency (RF) Multi-Chip Hybrid Package (FC+WB) 153-345 Designed for assembly of two or more memory chips or combinations of memory and logic chips in one BGA package with both of flip chip and wire bonding Embedded Multi Media Card (eMMC), Universal Flash Storage (UFS), and BGA SSD 27 Package Connections Description End-User Applications Chip on Wafer (CoW) 5-30 Integrated two different functional chips to a closer form into a compact package.
The following diagram presents the basic component parts of a fine-pitch BGA package: 26 The following table presents the ball-count, description and end-user applications of organic substrate-based packages we currently assemble: Package Connections Description End-User Applications Mini BGA 24-400 Low-cost and space-saving assembly designed for low input/output count, suitable for semiconductors that require a smaller package size than standard BGA Memory, analog, flash memory, ASICs, radio frequency devices, personal digital assistants, cellular handsets, communication products, notebooks, wireless systems Fine-Pitch BGA 54-126 Our patented design for DRAM products that require high performance and chip scale package (CSP) Notebooks, cellular handsets, global positioning systems, personal digital assistants, wireless systems Very Thin Fine-Pitch BGA 24-176 Similar structure of Mini BGA package with thinner and finer ball pitch that is designed for use in a wide variety of applications requiring small size, high reliability and low unit cost Handheld devices, notebooks, disk drives, wireless and mobile communication products Land Grid Array (LGA) 11-149 Thinner and lighter assembly designed essential to standard BGA without solder balls, suitable for applications that require high electrical performance Disk drives, memory controllers, wireless, mobile communication products Multi-Chip BGA 24-308 Designed for assembly of two or more memory chips (to increase memory density) or combinations of memory and logic chips in one BGA package Notebooks, digital cameras, personal digital assistants, global positioning systems, sub-notebooks, board processors, wireless systems Stacked-Chip BGA 24-345 Designed for assembly of two or more memory chips or logic and memory chips in one CSP, reducing the space required for memory chips Cellular handsets, digital cameras, personal digital assistants, wireless systems, notebooks, global positioning systems FC Chip-scale Package (FC CSP) 16-872 Better IC protection and solder joint reliability compared to direct chip attach (DCA) and chip on board (COB) Memory, logic, microprocessor, application processor (AP), baseband (BB), solid state device, radio frequency (RF) Multi-Chip Hybrid Package (FC+WB) 153-345 Designed for assembly of two or more memory chips or combinations of memory and logic chips in one BGA package with both of flip chip and wire bonding Universal Flash Storage (UFS), and BGA SSD Chip on Wafer (CoW) 5-30 Integrated two different functional chips to a closer form into a compact package.
The following table presents our principal leadframe-based packages, including the number of leads in each package, commonly known as lead-count, a description of each package and the end-user applications of each package. 25 Package Lead- count Description End-User Applications Thin Small Outline Package I (TSOP I) 48-56 Designed for high volume production of low lead-count memory devices, including flash memory, SRAM and MROM Notebooks, personal computers, still and video cameras and standard connections for peripherals for computers Thin Small Outline Package II (TSOP II) 44-86 Designed for memory devices, including flash memory, SRAM, SDRAM and DDR DRAM Disk drives, recordable optical disk drives, audio and video products, consumer electronics, communication products Quad Flat No Lead (QFN) 8-132 Thermal enhanced quad flat no lead package providing small footprint (chip scale), light weight with good thermal and electrical performance Wireless communication products, notebooks, PDAs, consumer electronics Low-Profile Quad Flat Package (LQFP) 48 Low-profile and light weight package designed for ASICs, digital signal processors, microprocessors/ controllers, graphics processors, gate arrays, SSRAM, SDRAM, personal computer chipsets and mixed-signal devices Wireless communication products, notebooks, digital cameras, cordless/radio frequency devices Small Outline Package (SOP) 8 Designed for low lead-count memory and logic semiconductors, including SRAM and micro-controller units Personal computers, consumer electronics, audio and video products, communication products Multi-Chip Package (TSOP) 44-86 Our patented design for memory devices, including flash memory, SRAM, DRAM, SDRAM and DDR DRAM Notebooks, personal computers, disk drives, audio and video products, consumer products, communication products Flip Chip Quad Flat No Lead (FCQFN) 6-35 Thermal enhanced quad flat no lead package providing small footprint (chip scale), light weight with good thermal and electrical performance Flip chip process is designed for better electrical performance compared to wire bonding process Wireless communication products, notebooks, PDAs, consumer electronics Organic Substrate-based Packages.
Package Lead- count Description End-User Applications Thin Small Outline Package I (TSOP I) 48-56 Designed for high volume production of low lead-count memory devices, including flash memory, SRAM and MROM Notebooks, personal computers, still and video cameras and standard connections for peripherals for computers Thin Small Outline Package II (TSOP II) 44-86 Designed for memory devices, including flash memory, SRAM, SDRAM and DDR DRAM Disk drives, recordable optical disk drives, audio and video products, consumer electronics, communication products Quad Flat No Lead (QFN) 8-132 Thermal enhanced quad flat no lead package providing small footprint (chip scale), light weight with good thermal and electrical performance Wireless communication products, notebooks, audio and video products and consumer electronics Low-Profile Quad Flat Package (LQFP) 48 Low-profile and light weight package designed for ASICs, digital signal processors, microprocessors/ controllers, graphics processors, gate arrays, SSRAM, SDRAM, personal computer chipsets and mixed-signal devices Wireless communication products, notebooks, digital cameras, cordless/radio frequency devices Small Outline Package (SOP) 8 Designed for low lead-count memory and logic semiconductors, including SRAM and micro-controller units Personal computers, consumer electronics, audio and video products, communication products Multi-Chip Package (TSOP) 44-86 Our patented design for memory devices, including flash memory, SRAM, DRAM, SDRAM and DDR DRAM Notebooks, personal computers, disk drives, audio and video products, consumer products, communication products 25 Package Lead- count Description End-User Applications Flip Chip Quad Flat No Lead (FCQFN) 6-35 Thermal enhanced quad flat no lead package providing small footprint (chip scale), light weight with good thermal and electrical performance Flip chip process is designed for better electrical performance compared to wire bonding process Wireless communication products, notebooks, audio/video products and consumer electronics Organic Substrate-based Packages.
Research and Development To maintain our competitive edge for continued business growth, we continue our focus of our investment in new technology research and development. In 2021, 2022 and 2023, we spent approximately NT$1,139 million, or 4.2%, NT$1,159 million, or 4.9% and NT$1,093 million (US$36 million), or 5.1%, respectively, of our revenue on research and development.
Research and Development To maintain our competitive edge for continued business growth, we continue our focus of our investment in new technology research and development. In 2022, 2023 and 2024, we spent approximately NT$1,159 million, or 4.9%, NT$1,093 million, or 5.1% and NT$1,163 million (US$36 million), or 5.1%, respectively, of our revenue on research and development.
Upon the acquisition of new test equipment, we install, configure, calibrate and perform burn-in diagnostic tests on the equipment. We also establish parameters for the test equipment based on anticipated requirements of existing and potential customers and considerations relating to market trends. As of February 29, 2024, we operated 631 testers for testing memory and logic/mixed-signal semiconductors.
Upon the acquisition of new test equipment, we install, configure, calibrate and perform burn-in diagnostic tests on the equipment. We also establish parameters for the test equipment based on anticipated requirements of existing and potential customers and considerations relating to market trends. As of February 28, 2025, we operated 646 testers for testing memory and logic/mixed-signal semiconductors.
As of February 29, 2024, we operated 948 wire bonders. In addition to wire bonders, we maintain a variety of other types of assembly equipment, such as wafer grinders, wafer mounters, wafer saws, stealth dicing, die separator, die bonders, automated molding machines, laser markers, solder platers, pad printers, dejunkers, trimmers, formers, substrate saws and lead scanners.
As of February 28, 2025, we operated 790 wire bonders. In addition to wire bonders, we maintain a variety of other types of assembly equipment, such as wafer grinders, wafer mounters, wafer saws, stealth dicing, die separator, die bonders, automated molding machines, laser markers, solder platers, pad printers, dejunkers, trimmers, formers, substrate saws and lead scanners.
In addition, we offer gold bumping and metal composite bump services to our customers. Note: Copper pillar service only for Max size: 9.8mmx8.2mm & pillar Account: 3401 Chip-on-Film (COF) Technology COF technology provides several additional advantages. For example, COF is able to meet the size, weight and higher resolution requirements in electronic products, such as display panels.
In addition, we offer gold bumping and metal composite bump services to our customers. Note: Copper pillar service only for Max size: 9.9mmx9.4mm & pillar Account: 3,410 Chip-on-Film (COF) Technology COF technology provides several additional advantages. For example, COF is able to meet the size, weight and higher resolution requirements in electronic products, such as display panels.
We are committed to delivering semiconductors that meet or exceed our customers’ specifications on time and at a competitive cost. We maintain quality control staff at each of our facilities. 35 As of February 29, 2024, we employed 51 personnel for our quality control activities.
We are committed to delivering semiconductors that meet or exceed our customers’ specifications on time and at a competitive cost. We maintain quality control staff at each of our facilities. As of February 28, 2025, we employed 51 personnel for our quality control activities.
For automotive application, low temperature COF package testing technology is developed. The following diagram presents the basic components of 1-metal layer COF and 2-metal layer COF: The COF process involves the following steps: Chip Probing Screen out the defect chips which fail to meet the device spec.
Minus temperature COF package testing technology is in production for automotive application requirement. The following diagram presents the basic components of 1-metal layer COF and 2-metal layer COF: The COF process involves the following steps: Chip Probing Screen out the defect chips which fail to meet the device spec.
In 2023, we spent approximately 5.1% of our revenue on research and development. We will continue to invest our resources to recruit and retain experienced research and development personnel. As of February 29, 2024, our research and development team comprised 698 employees. Build on Our Strong Presence in Taiwan and Strong Industrial Position Outside Taiwan.
In 2024, we spent approximately 5.1% of our revenue on research and development. We will continue to invest our resources to recruit and retain experienced research and development personnel. As of February 28, 2025, our research and development team comprised 680 employees. Build on Our Strong Presence in Taiwan and Strong Industrial Position Outside Taiwan.
As a result of our ongoing focus on quality, in 2023, we achieved monthly assembly yields of an average of 99.93% for our memory and logic/mixed-signal assembly packages, 99.98% for our COF packages, 99.96% for our COG packages and 99.96% for our bumping products (including gold bump, RDL and WLCSP).
As a result of our ongoing focus on quality, in 2024, we achieved monthly assembly yields of an average of 99.92% for our memory and logic/mixed-signal assembly packages, 99.99% for our COF packages, 99.97% for our COG packages and 99.96% for our bumping products (including gold bump, RDL and WLCSP).
As of February 29, 2024, our sales and marketing efforts were primarily carried out by teams of sales professionals, application engineers and technicians, totaling 32 staff members. Each of these teams focuses on specific customers and/or geographic regions.
As of February 28, 2025, our sales and marketing efforts were primarily carried out by teams of sales professionals, application engineers and technicians, totaling 31 staff members. Each of these teams focuses on specific customers and/or geographic regions.
Operating and Financial Review and Prospects—Recent Acquisition”. Our Principal Consolidated Subsidiaries Below is a description of our principal consolidated subsidiaries: ChipMOS TECHNOLOGIES (BVI) LTD., or formerly known as MODERN MIND TECHNOLOGY LIMITED ChipMOS BVI was incorporated in the British Virgin Islands in January 2002. ChipMOS SEMICONDUCTORS (Shanghai) LTD.
For additional information on the transaction, see “Item 5. Operating and Financial Review and Prospects—Recent Acquisition”. Our Principal Consolidated Subsidiaries Below is a description of our principal consolidated subsidiaries: ChipMOS TECHNOLOGIES (BVI) LTD., or formerly known as MODERN MIND TECHNOLOGY LIMITED ChipMOS BVI was incorporated in the British Virgin Islands in January 2002. ChipMOS SEMICONDUCTORS (Shanghai) LTD.
In 2019, we launched SDBG technology to implement multi-chip assembly and module of flash products for NAND Flash applications for SSD and eMMC applications. As of February 29, 2024 we employed 698 employees in our research and development activities.
In 2019, we launched SDBG technology to implement multi-chip assembly and module of flash products for NAND Flash applications for SSD and eMMC applications. As of February 28, 2025 we employed 680 employees in our research and development activities.
Intellectual Property As of February 29, 2024, we held 296 patents in Taiwan,94 patents in the United States, 160 patents in Mainland China, 1 patent in the United Kingdom and 2 patents in Korea and Japan, respectively, relating to various semiconductor assembly and testing technologies. These patents will expire at various dates through to 2042.
Intellectual Property As of February 28, 2025, we held 296 patents in Taiwan, 85 patents in the United States, 160 patents in Mainland China, 1 patent in the United Kingdom and 2 patents in Korea and Japan, respectively, relating to various semiconductor assembly and testing technologies. These patents will expire at various dates through to 2044.
Also, as more and more displays are installed in cars and EV, more driver IC grew for automotive application in 2023. Logic/Mixed-Signal Semiconductor Market The communications market is one of the main drivers of potential growth in the semiconductor industry.
OLED and automotive panel DDIC growth in the second half of 2022. Also, as more and more displays are installed in cars and EV, more driver IC grew for automotive application in 2023 and 2024. Logic/Mixed-Signal Semiconductor Market The communications market is one of the main drivers of potential growth in the semiconductor industry.
These insurance policies cover property damages due to all risks, including but not limited to, fire, lightning and earthquakes. The maximum coverage of property insurance for the Company is approximately NT$128,389 million.
These insurance policies cover property damages due to all risks, including but not limited to, fire, lightning and earthquakes. The maximum coverage of property insurance for the Company is approximately NT$130.51 billion.
Marking Each individual package is marked to provide product identification. 24 Dejunking and Trimming Mold flash is removed from between the lead shoulders through dejunking, and the dambar is cut during the trimming process. Electrical Plating A solderable coating is added to the package leads to prevent oxidization and to keep solder wettability of the package leads.
Dejunking and Trimming Mold flash is removed from between the lead shoulders through dejunking, and the dambar is cut during the trimming process. Electrical Plating A solderable coating is added to the package leads to prevent oxidization and to keep solder wettability of the package leads.
Year ended December 31, 2021 2022 2023 Testing 21.5% 22.3% 20.6% Assembly 29.1% 28.5% 21.7% Display panel driver semiconductor assembly and testing 30.0% 31.0% 36.6% Bumping 19.4% 18.2% 21.1% Total revenue 100.0% 100.0% 100.0% Memory and Logic/Mixed-Signal Semiconductors Testing We provide testing services for memory and logic/mixed-signal semiconductors: Memory.
Year ended December 31, 2022 2023 2024 Testing 22.3% 20.6% 21.9% Assembly 28.5% 21.7% 23.8% Display panel driver semiconductor assembly and testing 31.0% 36.6% 32.2% Bumping 18.2% 21.1% 22.1% Total revenue 100.0% 100.0% 100.0% 22 Memory and Logic/Mixed-Signal Semiconductors Testing We provide testing services for memory and logic/mixed-signal semiconductors: Memory.
As of February 29, 2024, we operated 10 steppers and 19 sputters for gold bumping, 113 inner-lead bonders for assembly and 691 testers for LCD, OLED, automotive 41 panel and other display panel driver semiconductors. We are currently in the process of purchasing additional test equipment.
As of February 28, 2025, we operated 10 steppers and 19 sputters for gold bumping, 109 inner-lead bonders for assembly and 726 testers for LCD, OLED, automotive panel and other display panel driver semiconductors. We are currently in the process of purchasing additional test equipment.
Flip Chip Bonding Using solder bumps or Cu pillar bumps on die, to connect the leadframe or substrate pad via soldering reflow. Molding The die and wires are encapsulated to provide physical support and protection.
Flip Chip Bonding Using solder bumps or Cu pillar bumps on die, to connect the leadframe or substrate pad via soldering reflow. Molding The die and wires are encapsulated to provide physical support and protection. Marking Each individual package is marked to provide product identification.
We may need to enforce our patents or other intellectual property rights or to defend ourselves against claimed infringement of the rights of others through litigation, which could result in substantial costs and a diversion of our resources. See “Item 3.
We expect to continue to file patent applications where appropriate to protect our proprietary technologies. We may need to enforce our patents or other intellectual property rights or to defend ourselves against claimed infringement of the rights of others through litigation, which could result in substantial costs and a diversion of our resources. See “Item 3.
Customers We believe that the following factors have been, and will continue to be, important factors in attracting and retaining customers: • our advanced assembly and testing technologies; • our strong capabilities in testing and assembling DDIC/TDDI and other display panel driver semiconductors; • our focus on high-density memory products and logic/mixed-signal communications products; and • our reputation for high quality and reliable customer-focused services. 32 The number of our customers as of February 28 of 2022, 2023 and February 29, 2024, respectively, was 72, 73 and 67.
Customers We believe that the following factors have been, and will continue to be, important factors in attracting and retaining customers: • our advanced assembly and testing technologies; • our strong capabilities in testing and assembling DDIC/TDDI and other display panel driver semiconductors; • our focus on high-density memory products and logic/mixed-signal communications products; and • our reputation for high quality and reliable customer-focused services.
Cost of raw materials represented 20%, 19% and 19% of our revenue in 2021, 2022 and 2023, respectively. 36 We do not maintain large inventories of leadframes, organic substrates, gold wire or molding compound, but generally maintain sufficient stock of each principal raw material for approximately two to three month’s production based on blanket orders and rolling forecasts of near-term requirements received from customers.
We do not maintain large inventories of leadframes, organic substrates, gold wire or molding compound, but generally maintain sufficient stock of each principal raw material for approximately two to three month’s production based on blanket orders and rolling forecasts of near-term requirements received from customers.
In 2023, 20.6% of our revenue was derived from testing services for memory and logic/mixed-signal semiconductors, 21.7% from assembly services for memory and logic/mixed-signal semiconductors, 36.6% from Display panel driver semiconductor assembly and testing services and 21.1% from bumping services for semiconductors, respectively. In additional, stable long-term demand and high margin are basic characters of automotive application.
In 2024, 21.9% of our revenue was derived from testing services for memory and logic/mixed-signal semiconductors, 23.8% from assembly services for memory and logic/mixed-signal semiconductors, 32.2% from Display panel driver semiconductor assembly and testing services and 22.1% from bumping services for semiconductors, respectively. In additional, stable long-term demand and high margin are basic characters of automotive application.
Fulfillment of public welfare ChipMOS insists to the philosophy of “taking from the society and using it for the society”, by connecting various internal and external resources, the prioritized focus are “cares for the disadvantaged” and “cultivation of young talents” for the public welfare practice, with active collaborations with local communities, schools and social welfare organizations.
It is expected to take practical actions for fighting against climate change and global warming together. 39 Fulfillment of public welfare ChipMOS insists to the philosophy of “taking from the society and using it for the society”, by connecting various internal and external resources, the prioritized focus are “cares for the disadvantaged” and “cultivation of young talents” for the public welfare practice, with active collaborations with local communities, schools and social welfare organizations.
The following diagram presents the basic components of a standard leadframe-based package for memory semiconductors: To address the market for miniaturization of portable electronic products, we are currently developing and will continue to develop increasingly smaller versions of leadframe-based packages to keep pace with continually shrinking semiconductor device sizes.
This design has evolved from a design plugging the leads into holes on the circuit board to a design soldering the leads to the surface of the circuit board. 24 The following diagram presents the basic components of a standard leadframe-based package for memory semiconductors: To address the market for miniaturization of portable electronic products, we are currently developing and will continue to develop increasingly smaller versions of leadframe-based packages to keep pace with continually shrinking semiconductor device sizes.
Raw materials used in the LCD, OLED, automotive panel and other display panel driver semiconductor assembly and testing process include gold, carrier tape, resin, spacer tape, plastic reel, aluminum bags, and inner and outer boxes.
Raw materials used in the LCD, OLED, automotive panel and other display panel driver semiconductor assembly and testing process include gold, carrier tape, resin, spacer tape, plastic reel, aluminum bags, and inner and outer boxes. Cost of raw materials represented 19%, 19% and 20% of our revenue in 2022, 2023 and 2024, respectively.
For the market trend of thinner smartphone, 150um in IC thickness is released for mass production and much thinner IC thickness is in development. The COG assembly process involves the following steps: Chip Probing To screen out the defect chips which fail to meet the device spec. Wafer Lapping/Polish Wafers are ground or with polished to their required thickness.
For the market trend of thinner smartphone, 120um in IC thickness is released for mass production and much thinner IC thickness is in development. The COG assembly process involves the following steps: Chip Probing To screen out the defect chips which fail to meet the device spec.
Auto Optical Inspection Process of wafer inspection is detecting defect to separate chips at pick and place station. Pick and Place Each individual die is picked and placed into a chip tray. Inspection and Packing Each individual die in a tray is visually or auto-inspected for defects.
Die Saw Wafers are cut into individual dies, or chips, in preparation for the pick and place process. Auto Optical Inspection Process of wafer inspection is detecting defect to separate chips at pick and place station. Pick and Place Each individual die is picked and placed into a chip tray.
In WLCSP backend, we take efforts to non-backside coating requirement for customer to cost reduction. Other Services Drop Shipment We offer drop shipment of semiconductors directly to end-users designated by our customers. We provide drop shipment services, including assembly in customer-approved and branded boxes, to a majority of our assembly and testing customers.
Other Services Drop Shipment We offer drop shipment of semiconductors directly to end-users designated by our customers. We provide drop shipment services, including assembly in customer-approved and branded boxes, to a majority of our assembly and testing customers.
In 2023, our top three customers accounted for approximately 25%, 13% and 9% of our revenue, respectively. The majorities of our customers purchase our services through purchase orders and provide us three-month non-binding rolling forecasts on a monthly basis. The price for our services is typically agreed upon at the time when a purchase order is placed.
In 2023, our top three customers accounted for approximately 25%, 13% and 9% of our revenue, respectively. In 2024, our top three customers accounted for approximately 24%, 11% and 11% of our revenue, respectively. The majorities of our customers purchase our services through purchase orders and provide us three-month non-binding rolling forecasts on a monthly basis.
The manufacturing process may be broadly divided into the following stages: Process Description Circuit Design The design of a semiconductor is developed by laying out circuit patterns and interconnections.
Overview of the Semiconductor Manufacturing Process The manufacturing of semiconductors is a complex process that requires increasingly sophisticated engineering and manufacturing expertise. The manufacturing process may be broadly divided into the following stages: 19 Process Description Circuit Design The design of a semiconductor is developed by laying out circuit patterns and interconnections.
Memory Semiconductor Market The potential for memory market growth is linked to anticipated memory content increases in consumer electronics, data center, wireless base-station, PC and smartphone applications due to updated system requirements (such as 5G & wifi 6), increasing use of storage, graphics in gaming and other applications. The memory market is dominated by two segments-DRAM and flash memory.
Ongoing fluctuations in our markets related to these factors potentially affect our results of operations. 18 Memory Semiconductor Market The potential for memory market growth is linked to anticipated memory content increases in consumer electronics, data center, wireless base-station, PC and smartphone applications due to updated system requirements (such as 5G & wifi 6), increasing use of storage, graphics in gaming and other applications.
IATF 16949 certification system seeks to integrate quality management standards into the operation of a company and emphasizes the supervision and measurement of process and performance. An ISO 9001 certification is required by many countries for sales of industrial products.
In addition, our facilities in Hsinchu and Tainan have been recertified with ISO 9001 for substantial revision since 2015. 35 IATF 16949 certification system seeks to integrate quality management standards into the operation of a company and emphasizes the supervision and measurement of process and performance. An ISO 9001 certification is required by many countries for sales of industrial products.
The following table sets forth, for the periods indicated, the percentage breakdown of our revenue, categorized by geographic region based on the jurisdiction in which each customer is headquartered.
The price for our services is typically agreed upon at the time when a purchase order is placed. The following table sets forth, for the periods indicated, the percentage breakdown of our revenue, categorized by geographic region based on the jurisdiction in which each customer is headquartered.
Our Strategy Our goal is to reinforce our position as a leading independent provider of semiconductor assembly and testing services, concentrating principally on memory, logic/mixed-signal and LCD, OLED, automotive panel and other display panel driver semiconductors.
Our Strategy Our goal is to reinforce our position as a leading independent provider of semiconductor assembly and testing services, concentrating principally on memory, logic/mixed-signal and OLED, automotive panel and other display panel driver semiconductors. The principal components of our business strategy are set forth below. Focus on Providing Our Services to Potential Growth Segments of the Semiconductor Industry.
Location of Facility Primary Use Floor Area (m2) Principal Equipment Chupei, Hsinchu Testing/Gold Bumping 38,166 10 steppers 19 sputters 331 testers Hsinchu Industrial Park Testing 25,864 112 testers 27 burn-in ovens Hsinchu Science Park Testing 31,168 188 testers 53 burn-in ovens Southern Taiwan Science Park Assembly/Testing 173,129 948 wire bonders 113 inner-lead bonders 691 testers Equipment Testing of Memory and Logic/Mixed-Signal Semiconductors Test equipment is the most capital-intensive component of the memory and logic/mixed-signal semiconductors test business.
Location of Facility Primary Use Floor Area (m2) Principal Equipment Chupei, Hsinchu Testing/Gold Bumping 40,526 10 steppers 19 sputters 326 testers Hsinchu Industrial Park Testing 25,864 127 testers 18 burn-in ovens Hsinchu Science Park Testing 31,169 193 testers 53 burn-in ovens Southern Taiwan Science Park Assembly/Testing 184,325 790 wire bonders 109 inner-lead bonders 726 testers Equipment Testing of Memory and Logic/Mixed-Signal Semiconductors Test equipment is the most capital-intensive component of the memory and logic/mixed-signal semiconductors test business.
The following chart illustrates our corporate structure and our equity interest in each of our principal subsidiaries as of the date of this Annual Report on Form 20-F. 17 Note: (1) Under IFRS 10, “Consolidated Financial Statements”, we are required to consolidate the financial results of any subsidiaries in which we hold a controlling interest or voting interest in excess of 50% or we have the power to direct or cause the direction of the management and policies, notwithstanding the lack of majority ownership.
Note: (1) Under IFRS 10, “Consolidated Financial Statements”, we are required to consolidate the financial results of any subsidiaries in which we hold a controlling interest or voting interest in excess of 50% or we have the power to direct or cause the direction of the management and policies, notwithstanding the lack of majority ownership.
Agreements with Suzhou Oriza PuHua ZhiXin Equity Investment Partnership (L.P.) On December 21, 2023, the Company’s Board of Directors approved its wholly-owned subsidiary, ChipMOS BVI to sell its entire 45.0242% equity interests in Unimos Shanghai for a total sale price of RMB 979.3 million in cash.
On July 24, 2023, Yangtze Memory sold and transferred all equity interests of Unimos Shanghai to Yangtze Memory Technologies Holding Co., Ltd., (“Yangtze Memory Holding”), which holds 50.94% equity interests of Unimos Shanghai after completed transaction. 17 Agreements with Suzhou Oriza PuHua ZhiXin Equity Investment Partnership (L.P.) On December 21, 2023, the Company’s Board of Directors approved its wholly-owned subsidiary, ChipMOS BVI to sell its entire 45.0242% equity interests in Unimos Shanghai for a total sale price of RMB 979.3 million in cash.
The semiconductor industry supply chain in Taiwan has developed such that the various stages of the semiconductor manufacturing process have been disaggregated, thus allowing for specialization.
The Semiconductor Industry and Conditions of Outsourcing in Taiwan and Mainland China Taiwan is one of the world’s leading locations for outsourced semiconductor manufacturing. The semiconductor industry supply chain in Taiwan has developed such that the various stages of the semiconductor manufacturing process have been disaggregated, thus allowing for specialization.
These are generally considered the most widely used package category. Each package consists of a semiconductor chip encapsulated in a plastic molding compound with metal leads on the perimeter. This design has evolved from a design plugging the leads into holes on the circuit board to a design soldering the leads to the surface of the circuit board.
These are generally considered the most widely used package category. Each package consists of a semiconductor chip encapsulated in a plastic molding compound with metal leads on the perimeter.
For example, we conducted new product introductions and on an on-going basis continue to expand our capabilities in fine-pitch wafer bumping, multi-chip package (“MCP”) and flip chip packaging. We have also introduced low cost metal composite bump (“MCB”) products based on our proprietary Copper plating technology to service display panel market and expand offerings to other business regions.
For example, we conducted new product introductions and on an on-going basis continue to expand our capabilities in fine-pitch wafer bumping, multi-chip package (“MCP”) and flip chip packaging. We are also introducing a low cost silver alloy bump products based on our intellectual property to service display panel market.
The dies are packed within a tray into an aluminum bag after completion of the inspection process. Bumping We also offer bumping services to our customers.
Inspection and Packing Each individual die in a tray is visually or auto-inspected for defects. The dies are packed within a tray into an aluminum bag after completion of the inspection process. Bumping We also offer bumping services to our customers.
The soft demand of TVs impacted our utilization level of COF assembly. Regarding the small panel application, an integrated driver IC solution, TDDI, which became main stream of smart phone panel since 2021. OLED and automotive panel DDIC growth in the second half of 2022.
The end-user demand for LCD, OLED, automotive panel and other display panel driver semiconductors tends to very over time. The soft demand of TVs impacted our utilization level of COF assembly. Regarding the small panel application, an integrated driver IC solution, TDDI, which became main stream of smart phone panel since 2021.
Customer feedback on the test results enables us to adjust the conversion test programs prior to actual testing. We also typically assist our customers in collecting and analyzing the test results and recommends engineering solutions to improve their design and production process.
Once a conversion test program has been developed, we perform correlation and trial tests on the semiconductors. Customer feedback on the test results enables us to adjust the conversion test programs prior to actual testing. We also typically assist our customers in collecting and analyzing the test results and recommend engineering solutions to improve customers’ design and production processes.
Increasingly short product life cycles have amplified time-to-market pressure for semiconductor companies, leading them to rely increasingly on independent companies as a key source for effective wafer fabrication, assembly and testing services.
Increasingly short product life cycles have amplified time-to-market pressure for semiconductor companies, leading them to rely more and more on independent companies as a key source for effective wafer fabrication, assembly and testing services. 20 Semiconductor Assembly and Testing Services Industry Growth in the semiconductor assembly and testing services industry is driven by increased outsourcing of the various stages of the semiconductor manufacturing process by IDMs and fabless semiconductor companies.

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Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

89 edited+14 added−16 removed47 unchanged
Biggest changeYear ended December 31, 2021 2022 2023 2023 NT$ NT$ NT$ US$ (in millions) Interest income $ 10.0 $ 57.2 $ 193.2 $ 6.3 Other income 34.5 67.0 77.6 2.6 Other gains and losses (65.8 ) 386.6 135.5 4.4 Financial costs (131.2 ) (153.3 ) (266.4 ) (8.7 ) Share of profit of associates and joint ventures accounted for using equity method 625.7 453.7 219.9 7.2 Total non-operating income (expenses), net $ 473.2 $ 811.2 $ 359.8 $ 11.8 Non-Operating Income (Expenses), Net Non-operating income, net decreased by NT$451 million, or 56%, to NT$360 million (US$12 million) in 2023 from NT$811 million in 2022, primarily due to the decrease of the foreign exchange gains of NT$370 million (US$12 million) and share of profit of associates and joint ventures accounted for using equity method of NT$234 million (US$8 million) which is primarily due to the investment in Unimos Shanghai and partially offset by the increase of interest income of NT$136 million (US$4 million) due to the increase of the time deposits.
Biggest changeYear ended December 31, 2022 2023 2024 2024 NT$ NT$ NT$ US$ (in millions) Interest income $ 57.2 $ 193.2 $ 197.7 $ 6.0 Other income 67.0 77.6 58.1 1.7 Other gains and losses 386.6 135.5 393.6 12.0 Financial costs (153.3 ) (266.4 ) (279.0 ) (8.5 ) Share of profit of associates and joint ventures accounted for using equity method 453.7 219.9 2.7 0.1 Total non-operating income (expenses), net $ 811.2 $ 359.8 $ 373.1 $ 11.3 Non-Operating Income (Expenses), Net.
We offer assembly and testing services for memory and logic/mixed-signal semiconductors, assembly and testing services for LCD, OLED, automotive panel and other display panel driver semiconductors and bumping services. Most of our customers do not place purchase orders far in advance and our contracts with customers generally do not require minimum purchases of our products or services.
We offer assembly and testing services for memory and logic/mixed-signal semiconductors, assembly and testing services for LCD, OLED, automotive panel and other display panel driver semiconductors and bumping services. Most of our customers do not place purchase orders far in advance. Our contracts with customers generally do not require minimum purchases of our products or services.
However, we also incur costs of revenues and operating expenses associated with assembly and testing services in several other currencies, including Japanese yen, US dollars and RMB.
However, we also incur costs of revenues and operating expenses associated with assembly and testing services in several other currencies, including US dollars, Japanese yen and RMB.
In addition, a substantial portion of our capital expenditures, primarily for the purchase of assembly and testing equipment, has been, and is expected to continue to be, denominated in Japanese yen with much of the remainder denominated in US dollars.
In addition, a substantial portion of our capital expenditures, primarily for the purchase of assembly and testing equipment, has been, and is expected to continue to be, denominated in US dollars with much of the remainder denominated in Japanese yen.
The worldwide semiconductor industry has experienced peaks and troughs over the last decade. Due to COVID-19, work-from-home and study-from-home demand had explosive growth, semiconductor face a strong demand for two years. However, the semiconductor supply chain inventory level increases and end-demand rapidly decrease influenced by geopolitics and global inflationary pressures. Demand soft caused customers’ inventory adjustments and macro weakness.
The worldwide semiconductor industry has experienced peaks and troughs over the last decade. Due to COVID-19, work-from-home and study-from-home demand had explosive growth, semiconductor face a strong demand for two years. However, the semiconductor supply chain inventory level increases and end-user demand rapidly decrease influenced by geopolitics and global inflationary pressures. Demand soft caused customers’ inventory adjustments and macro weakness.
Our financial condition and results of operations have also been, and are likely to continue to be, affected by price pressures on our service fees, which tend to decline in tandem with the declining average selling prices of the products we test and assemble over the course of their product and technology life cycles.
Our financial condition and results of operations have also been, and are likely to continue to be, affected by price pressures on our service fees, which tend to decline in tandem with the declining average selling prices of the products we test and assemble over the course of product and technology life cycles.
Market conditions in the semiconductor industry, to a large degree, track those for their end-user applications. Any deterioration in the market conditions for the end-user applications of semiconductors that we test and assemble may reduce demand for our services and, in turn, materially adversely affect our financial condition and results of operations.
Market conditions in the semiconductor industry, to a large degree, track those for end-user applications. Any deterioration in the market conditions for the end-user applications of semiconductors that we test and assemble may reduce demand for our services and, in turn, materially adversely affect our financial condition and results of operations.
The semiconductor industry is characterized by a general decrease in prices for products and services over the course of their product and technology life cycles. The rate of decline is particularly steep during periods of intense competition and adverse market conditions.
The semiconductor industry is characterized by a general decrease in prices for products and services over the course of product and technology life cycles. The rate of decline is particularly steep during periods of intense competition and adverse market conditions.
As we generate most of our revenue from Taiwanese customers using our Taiwanese operations, and since most of our labor and overhead costs are denominated in NT dollars, we consider the NT dollar to be our functional currency. See Note 41 to our consolidated financial statements contained in this Annual Report on Form 20-F and “Item 11.
As we generate most of our revenue from Taiwanese customers using our Taiwanese operations, and since most of our labor and overhead costs are denominated in NT dollars, we consider the NT dollar to be our functional currency. See Note 40 to our consolidated financial statements contained in this Annual Report on Form 20-F and “Item 11.
As part of our strategy, we intend to continue entre into additional long-term capacity agreements as well as focus on our business with smaller customers or customers who do not place orders on a regular basis.
As part of our strategy, we intend to continue to enter into additional long-term capacity agreements as well as focus on our business with smaller customers or customers who do not place orders on a regular basis.
Periods with significant increases in the average selling prices for our services reduce the negative impact on our gross revenue from any decreases in our capacity utilization rates. Similarly, periods with significant decreases in the average selling prices for our services reduce the positive impact on our gross revenue from any increases in our capacity utilization rates.
Periods with significant increases in the average selling prices for our services reduce the negative impact on our gross revenue from any decreases in our capacity utilization rates.
In 2021, 2022 and 2023, AMT Act had no effects on the tax expenses of the Company since the income tax payable is above the minimum amount prescribed under the AMT Act.
In 2022, 2023 and 2024, AMT Act had no effects on the tax expenses of the Company since the income tax payable is above the minimum amount prescribed under the AMT Act.
Year Ended December 31, 2022 Compared to Year Ended December 31, 2021 For a detailed description of the comparison of our operating results for the year ended December 31, 2022 to the year ended December 31, 2021, please refer to “Item 5.
Year Ended December 31, 2023 Compared to Year Ended December 31, 2022 For a detailed description of the comparison of our operating results for the year ended December 31, 2023 to the year ended December 31, 2022, please refer to “Item 5.
For a detailed description of the comparison of our cash flows for the year ended December 31, 2022 to the year ended December 31, 2021, please refer to “Item 5. Operating and Financial Review and Prospects —Liquidity and Capital Resources” of our annual report on Form 20-F filed with the Securities and Exchange Commission on April 13, 2023.
For a detailed description of the comparison of our cash flows for the year ended December 31, 2023 to the year ended December 31, 2022, please refer to “Item 5. Operating and Financial Review and Prospects —Liquidity and Capital Resources” of our annual report on Form 20-F filed with the Securities and Exchange Commission on April 11, 2024.
Geography and Currency The majority of our revenue is generated from customers headquartered in Taiwan, which represented 79%, 79% and 81% of our revenue in 2021, 2022 and 2023, respectively. We also generate revenue from customers in Singapore, Japan and other countries.
Geography and Currency The majority of our revenue is generated from customers headquartered in Taiwan, which represented 79%, 81% and 80% of our revenue in 2022, 2023 and 2024, respectively. We also generate revenue from customers in Singapore, Japan and other countries.
Quantitative and Qualitative Disclosure about Market Risk—Market Risks—Foreign Currency Exchange Rate Risks” for certain information on our exchange rate risks. Cost of Revenue and Gross Profit Our cost of revenue consists primarily of the following: depreciation expenses, raw material costs, and labor and overhead expenses, which primarily include expendable equipment, utilities expenses and inventory supplies.
Quantitative and Qualitative Disclosure about Market Risk—Market Risks—Foreign Currency Exchange Rate Risks” for certain information on our exchange rate risks. Cost of Revenue and Gross Profit Our cost of revenue consists primarily of the following: depreciation expenses, raw material costs, and labor and overhead expenses, which primarily include utilities expenses, inventory supplies, maintenance and repair expense and expandable equipment.
Under the proposed agreement, ChipMOS BVI will sell its entire remaining 45.0242% equity interests in Unimos Shanghai to Suzhou Oriza PuHua ZhiXin Equity Investment Partnership (L.P.) and other local Chinese investment management companies.
Under the agreement, ChipMOS BVI sold its entire remaining 45.0242% equity interests in Unimos Shanghai to Suzhou Oriza PuHua ZhiXin Equity Investment Partnership (L.P.) and other local Chinese investment management companies.
Recent Acquisition On February 23, 2023, the Board of Directors of the Company adopted a resolution to acquire 1,000 thousand shares of Daypower Energy Co., Ltd. (“Daypower Energy”) in the amount of NT$12.5 million, representing 10% of shareholding.
Recent Acquisition On February 23, 2023, the Board of Directors of the Company adopted a resolution to acquire 1,000 thousand shares of Daypower Energy Co., Ltd. (“Daypower Energy”) in the amount of NT$12.5 million, representing 10% of shareholding. In August 2023, the Company holds one seat in Daypower Energy’s Board of Directors.
General and Administrative General and administrative expenses consist of salaries and related expenses for executive, finance and accounting, and management information systems personnel, professional service fees, depreciation expenses, tax and duty fee, property insurance fees and other corporate expenses.
General and Administrative General and administrative expenses consist of salaries and related expenses for executive, finance and accounting, and management information systems personnel, professional service fees, depreciation expenses, tax and duty fee, maintenance and repair and other corporate expenses.
Trend Information Other than as disclosed elsewhere in this annual report, we are not aware of any trends, uncertainties, demands, commitments or events for the period from January 1, 2023 to December 31, 2023 that are reasonably likely to have a material effect on our operating revenues, income, profitability, liquidity or capital resources, or that caused the disclosed financial information to be not necessarily indicative of future operating results or financial conditions. 52 Off-Balance Sheet Arrangements As of December 31, 2023, we had no off-balance sheet arrangements.
Trend Information Other than as disclosed elsewhere in this annual report, we are not aware of any trends, uncertainties, demands, commitments or events for the period from January 1, 2024 to December 31, 2024 that are reasonably likely to have a material effect on our operating revenues, income, profitability, liquidity or capital resources, or that caused the disclosed financial information to be not necessarily indicative of future operating results or financial conditions.
Companies are encouraged to use their earnings to make substantial investment or upgrade production technology or the quality of products or services, if companies use a certain amount of their undistributed earnings to construct or purchase buildings, software or hardware equipment, or technology for use in production or operation as needed for operation of its business or ancillary business within three years from the year after such earnings are derived, such investment amounts may be deducted from the undistributed earnings in calculation of the current year’s undistributed earnings.
If companies use a certain amount of undistributed earnings to construct or purchase buildings, software or hardware equipment, or technology for use in production or operation as needed for operation of its business or ancillary business within three years from the year after such earnings are derived, such investment amounts may be deducted from the undistributed earnings in calculation of the current year’s undistributed earnings.
However, the deduction may not exceed 30% of the income tax payable for that fiscal year. In 2021, 2022 and 2023, tax credits resulted in tax savings for the Company of approximately NT$9 million, NT$12 million and NT$12 million (US$392 thousand), respectively.
However, the deduction may not exceed 30% of the income tax payable for that fiscal year. In 2022, 2023 and 2024, tax credits resulted in tax savings for the Company of approximately NT$12 million, NT$12 million and NT$18 million (US$549 thousand), respectively.
The Company holds one seat in Daypower Energy’s Board of Directors. 43 On December 21, 2023, the Board of Directors of the Company has approved the proposed RMB 979.3 million sale of the equity interests in Unimos Shanghai by the Company’s wholly-owned subsidiary, ChipMOS BVI, which is included as Exhibit 4.24.
On December 21, 2023, the Board of Directors of the Company has approved the proposed RMB 979.3 million sale of the equity interests in Unimos Shanghai by the Company’s wholly-owned subsidiary, ChipMOS BVI, which is included as Exhibit 4.22.
Profit for the Year Attributable to Equity Holders of the Company Our profit for the year attributable to equity holders of the Company were NT$4,937 million, NT$3,440 million and NT$1,968 million (US$64 million) in 2021, 2022 and 2023, respectively.
Profit for the Year Attributable to Equity Holders of the Company Our profit for the year attributable to equity holders of the Company were NT$3,440 million, NT$1,968 million and NT$1,440 million (US$44 million) in 2022, 2023 and 2024, respectively.
In addition, our average capacity utilization rate for bumping was 63% in 2022 and 58% in 2023. See “— Cost of Revenue and Gross Profit” for more information concerning our assembly and testing capacity utilization rates and the impact on our revenue, gross profit and profitability from any increases or decreases in our capacity utilization rate.
See “— Cost of Revenue and Gross Profit” for more information concerning our assembly and testing capacity utilization rates and the impact on our revenue, gross profit and profitability from any increases or decreases in our capacity utilization rate.
The progress towards completion on testing services is measured by the actual incurred testing volume. We provide assembly and testing services based on customer’s specification, thus, the input costs incurred to assembly and testing volume completed in testing services are not linear over the duration of these services.
We provide assembly and testing services based on customer’s specification, thus, the input costs incurred to assembly and testing volume completed in testing services are not linear over the duration of these services.
Our copper bumping technology supports non-driver type of products, such as RDL, copper pillar, WLCSP etc. In 2023, our consolidated revenue was NT$21,356 million (US$698 million) and our profit for the year attributable to equity holders of the Company was NT$1,968 million (US$64 million). The Company listed and commenced trading on the main board of TWSE on April 11, 2014.
Our copper bumping technology supports non-driver type of products, such as RDL, copper pillar, WLCSP etc. In 2024, our consolidated revenue was NT$22,696 million (US$692 million) and our profit for the year attributable to equity holders of the Company was NT$1,440 million (US$44 million). The Company listed and commenced trading on the main board of TWSE on April 11, 2014.
The Company has significant fixed costs in operating our assembly and testing facilities. For this reason, decreases in our cost of goods sold during a period generally occur at a slower rate than decreases, during the same period, in our gross revenue due to lower capacity utilization rates, lower average selling prices for our services, or both.
For this reason, decreases in our cost of goods sold during a period generally occur at a slower rate than decreases, during the same period, in our gross revenue due to lower capacity utilization rates, lower average selling prices for our services, or both.
As of December 31, 2023, we had no short-term loans outstanding. We believe our current cash and cash equivalents, cash flows from operations and available credit facilities will be sufficient to meet our capital spending, commitments and other capital needs through the one year after the issuance date of financial statements.
We believe our current cash and cash equivalents, cash flows from operations and available credit facilities will be sufficient to meet our capital spending, commitments and other capital needs through the one year after the issuance date of financial statements.
As of February 29, 2024, we had 1,322 testers, 80 burn-in ovens, 948 wire bonders, 113 inner-lead bonders, 10 steppers and 19 sputters. We use inner-lead bonders for the assembly of LCD, OLED, automotive panel and other display panel driver semiconductors using COF technology, and wire bonders for TSOP, BGA, and some other package assembly technologies.
As of February 28, 2025, we had 1,372 testers, 71 burn-in ovens, 790 wire bonders, 109 inner-lead bonders, 10 steppers and 19 sputters. We use inner-lead bonders for the assembly of LCD, OLED, automotive panel and other display panel driver semiconductors using COF technology, and wire bonders for TSOP, BGA, and some other package assembly technologies.
The Company has obtained the qualification from the MOEA, and signed loan agreements with financial institutions during January 2020 to September 2022 with the line of credit amounted to NT$23.73 billion (US$775 million) and terms from seven to ten years.
The Company has obtained the qualification from the MOEA, and signed loan agreements with financial institutions during January 2020 to December 2024 with the line of credit amounted to NT$25.44 billion (US$776 million) and terms from seven to ten years.
These macro headwinds impacted the worldwide semiconductor demand and lifted the inventory level, causing memory and panel demand soft and marketing price down since the second half of 2022 till the first half of 2023. It was getting stable by the end of 2023. Declining Average Selling Prices of Our Assembly and Testing Services.
These macro headwinds impacted the worldwide semiconductor demand and lifted the inventory level, causing memory and panel demand soft and marketing price down since the second half of 2024. Declining Average Selling Prices of Our Assembly and Testing Services.
Key Information—Risks Factors—Risks Relating to Countries in Which We Conduct Operations. Liquidity and Capital Resources Since our inception, we have funded our operations and growth primarily through the issuance of equity, a mixture of short- and long-term bank loans and cash flow from operations.
Liquidity and Capital Resources Since our inception, we have funded our operations and growth primarily through the issuance of equity, a mixture of short- and long-term bank loans and cash flow from operations.
Year ended December 31, 2021 2022 2023 2023 NT$ NT$ NT$ US$ (in millions) Gross profit (loss): Testing $ 2,188.0 $ 1,637.2 $ 873.3 $ 28.5 Assembly 1,370.1 467.4 (671.5 ) (21.9 ) Display panel driver semiconductor assembly and testing 2,725.9 2,136.9 2,446.4 79.9 Bumping 970.0 670.6 901.2 29.4 Total $ 7,254.0 $ 4,912.1 $ 3,549.4 $ 115.9 Gross profit (loss) margin: Testing 37.1 % 31.2 % 19.9 % 19.9 % Assembly 17.2 % 7.0 % -14.5 % -14.5 % Display panel driver semiconductor assembly and testing 33.2 % 29.3 % 31.3 % 31.3 % Bumping 18.2 % 15.7 % 20.0 % 20.0 % Overall 26.5 % 20.9 % 16.6 % 16.6 % Operating Expenses Sales and Marketing Sales and marketing expenses consist primarily of shipping and handling expenses incurred in delivering products to our customers’ designated locations and other marketing expenses, salaries and related expenses for sales and marketing personnel, depreciation expenses and entertainment fees.
Year ended December 31, 2022 2023 2024 2024 NT$ NT$ NT$ US$ (in millions) Gross profit (loss): Testing $ 1,637.2 $ 873.3 $ 951.9 $ 29.1 Assembly 467.4 (671.5 ) (605.8 ) (18.5 ) Display panel driver semiconductor assembly and testing 2,136.9 2,446.4 1,646.5 50.2 Bumping 670.6 901.2 951.5 29.0 Total $ 4,912.1 $ 3,549.4 $ 2,944.1 $ 89.8 Gross profit (loss) margin: Testing 31.2 % 19.9 % 19.2 % 19.2 % Assembly 7.0 % -14.5 % -11.2 % -11.2 % Display panel driver semiconductor assembly and testing 29.3 % 31.3 % 22.5 % 22.5 % Bumping 15.7 % 20.0 % 19.0 % 19.0 % Overall 20.9 % 16.6 % 13.0 % 13.0 % Operating Expenses Sales and Marketing Sales and marketing expenses consist primarily of shipping and handling expenses incurred in delivering products to our customers’ designated locations and other marketing expenses, salaries and related expenses for sales and marketing personnel, entertainment fees and traveling expenses.
Year ended December 31, 2021 2022 2023 2023 NT$ NT$ NT$ US$ (in millions) Testing $ 5,899.6 $ 5,244.0 $ 4,394.7 $ 143.5 Assembly 7,963.7 6,705.9 4,629.4 151.2 Display panel driver semiconductor assembly and testing 8,211.1 7,288.7 7,821.7 255.5 Bumping 5,325.6 4,278.5 4,510.4 147.3 Total $ 27,400.0 $ 23,517.1 $ 21,356.2 $ 697.5 Our revenue consists primarily of service fees for testing and assembling semiconductors, and to a lesser extent, fees from equipment rentals to semiconductor manufacturers for engineering testing, less allowances for product returns.
Year ended December 31, 2022 2023 2024 2024 NT$ NT$ NT$ US$ (in millions) Testing $ 5,244.0 $ 4,394.7 $ 4,967.9 $ 151.5 Assembly 6,705.9 4,629.4 5,390.4 164.4 Display panel driver semiconductor assembly and testing 7,288.7 7,821.7 7,319.0 223.2 Bumping 4,278.5 4,510.4 5,018.6 153.1 Total $ 23,517.1 $ 21,356.2 $ 22,695.9 $ 692.2 Our revenue consists primarily of service fees for testing and assembling semiconductors, and to a lesser extent, fees from equipment rentals to semiconductor manufacturers for engineering testing, less allowances for product returns.
Revenue from Display panel driver semiconductor assembly and testing services increased by NT$533 million, or 7%, to NT$7,822 million (US$256 million) in 2023 from NT$7,289 million in 2022. This increase was principally as a result of an increase in customer demand. The sales quantity increased around 6% compared to 2022.
Revenue from display panel driver semiconductor assembly and testing services decreased by NT$503 million, or 6%, to NT$7,319 million (US$223 million) in 2024 from NT$7,822 million in 2023. This decrease was principally as a result of a lower customer demand. The sales quantity decreased around 11% compared to 2023.
This amount comprises net proceeds from short-term, long-term bank loans and lease liabilities in the amount of NT$3,544 million and the distribution of cash dividends in the amount of NT$3,127 million.
This amount comprises net proceeds from long-term bank loans and payment on lease liabilities in the amount of NT$614 million and the distribution of cash dividends in the amount of NT$1,673 million.
Our average capacity utilization rate for testing of memory and logic/mixed-signal semiconductors was 66% in 2022 and 58% in 2023. Our average capacity utilization rate for assembly of memory and logic/mixed-signal semiconductors was 62% in 2022 and 46% in 2023. Our average capacity utilization rate for DDIC assembly and testing was 67% in 2022 and 69% in 2023.
Our average capacity utilization rate for assembly of memory and logic/mixed-signal semiconductors was 62% in 2022, 46% in 2023 and 59% in 2024. Our average capacity utilization rate for Display panel driver semiconductor assembly and testing was 67% in 2022, 69% in 2023 and 70% in 2024.
Other operating income, net decreased by NT$44 million, or 34%, to NT$86 million (US$3 million) in 2023 from NT$130 million in 2022, primarily due to the decrease of gain on disposal of property, plant and equipment and partially offset by the increase of gain on disposal of scrapped material in 2023.
Other operating income, net increased by NT$14 million, or 16%, to NT$100 million (US$3 million) in 2024 from NT$86 million in 2023, primarily due to the increase of insurance compensation income due to earthquake damage and gain on disposal of property, plant and equipment, net and partially offset by the decrease of gain on disposal of scrapped material in 2024.
Year ended December 31, 2021 2022 2023 2023 NT$ NT$ NT$ US$ Earnings per share—basic $ 6.79 $ 4.73 $ 2.71 $ 0.09 Earnings per share—diluted 6.65 4.63 2.68 0.09 Earnings per equivalent ADS—basic 135.78 94.60 54.11 1.77 Earnings per equivalent ADS—diluted 132.93 92.63 53.54 1.75 Weighted average number of shares outstanding (in million shares): Basic 727.2 727.2 727.2 727.2 Diluted 742.9 742.6 734.9 734.9 Year Ended December 31, 2023 Compared to Year Ended December 31, 2022 Revenue .
Year ended December 31, 2022 2023 2024 2024 NT$ NT$ NT$ US$ Earnings per share—basic $ 4.73 $ 2.71 $ 1.98 $ 0.06 Earnings per share—diluted 4.63 2.68 1.96 0.06 Earnings per equivalent ADS—basic 94.60 54.11 39.59 1.21 Earnings per equivalent ADS—diluted 92.63 53.54 39.22 1.20 Weighted average number of shares outstanding (in million shares): Basic 727.2 727.2 727.2 727.2 Diluted 742.6 734.9 734.0 734.0 47 Year Ended December 31, 2024 Compared to Year Ended December 31, 2023 Revenue .
The Company has obtained the qualification from the MOEA, and signed loan agreements with financial institutions during January 2020 to September 2022 with the line of credit amounted to NT$23.73 billion (US$775 million) and terms from seven to ten years. As of the issue date of this report, the Company has used NT$16,495 million (US$539 million) of the credit line.
The Company has obtained the qualification from the MOEA, and signed loan agreements with financial institutions during January 2020 to December 2024 with the line of credit amounted to NT$25.44 billion (US$776 million) and terms from seven to ten years. As of the issue date of this report, the Company has used NT$18.08 billion (US$551 million) of the credit line.
Other Income Our other income principally consists of rental income, grant income and dividend income. Other Gains and Losses Our other gains principally consist of foreign exchange gains, gain on valuation of financial assets at fair value through profit or loss, reimbursement of ADSs service charge and compensation income.
Other Gains and Losses Our other gains principally consist of foreign exchange gains, gain on valuation of financial assets at fair value through profit or loss, gain on disposal of non-current assets held for sale and reimbursement of ADSs service charge.
Year ended December 31, 2021 2022 2023 NT$ Percentage NT$ Percentage NT$ US$ Percentage (in millions, except percentage) Revenue $ 27,400.0 100.0 % $ 23,517.1 100.0 % $ 21,356.2 $ 697.5 100.0 % Cost of revenue (20,146.0 ) (73.5 )% (18,605.0 ) (79.1 )% (17,806.8 ) (581.6 ) (83.4 )% Gross profit 7,254.0 26.5 % 4,912.1 20.9 % 3,549.4 115.9 16.6 % Operating expenses (1,817.2 ) (6.7 )% (1,825.3 ) (7.8 )% (1,726.9 ) (56.4 ) (8.1 )% Other income (expenses), net 125.6 0.5 % 129.9 0.6 % 85.9 2.8 0.4 % Operating profit 5,562.4 20.3 % 3,216.7 13.7 % 1,908.4 62.3 8.9 % Non-operating income (expenses), net 473.2 1.7 % 811.2 3.4 % 359.8 11.8 1.7 % Profit before income tax 6,035.6 22.0 % 4,027.9 17.1 % 2,268.2 74.1 10.6 % Income tax expense (1,098.3 ) (4.0 )% (588.2 ) (2.5 )% (300.6 ) (9.8 ) (1.4 )% Profit for the year $ 4,937.3 18.0 % $ 3,439.7 14.6 % $ 1,967.6 $ 64.3 9.2 % Total comprehensive income for the year $ 5,021.5 18.3 % $ 3,624.0 15.4 % $ 1,796.6 $ 58.7 8.4 % 47 The following table sets forth, for the periods indicated, earnings per common share and ADS.
Year ended December 31, 2022 2023 2024 NT$ Percentage NT$ Percentage NT$ US$ Percentage (in millions, except percentage) Revenue $ 23,517.1 100.0 % $ 21,356.2 100.0 % $ 22,695.9 $ 692.2 100.0 % Cost of revenue (18,605.0 ) (79.1 )% (17,806.8 ) (83.4 )% (19,751.8 ) (602.4 ) (87.0 )% Gross profit 4,912.1 20.9 % 3,549.4 16.6 % 2,944.1 89.8 13.0 % Operating expenses (1,825.3 ) (7.8 )% (1,726.9 ) (8.1 )% (1,770.1 ) (54.0 ) (7.8 )% Other income (expenses), net 129.9 0.6 % 85.9 0.4 % 99.9 3.1 0.4 % Operating profit 3,216.7 13.7 % 1,908.4 8.9 % 1,273.9 38.9 5.6 % Non-operating income (expenses), net 811.2 3.4 % 359.8 1.7 % 373.1 11.3 1.6 % Profit before income tax 4,027.9 17.1 % 2,268.2 10.6 % 1,647.0 50.2 7.2 % Income tax expense (588.2 ) (2.5 )% (300.6 ) (1.4 )% (207.5 ) (6.3 ) (0.9 )% Profit for the year $ 3,439.7 14.6 % $ 1,967.6 9.2 % $ 1,439.5 $ 43.9 6.3 % Total comprehensive income for the year $ 3,624.0 15.4 % $ 1,796.6 8.4 % $ 1,549.2 $ 47.2 6.8 % The following table sets forth, for the periods indicated, earnings per common share and ADS.
Year ended December 31, 2021 2022 2023 2023 NT$ NT$ NT$ US$ (in millions) Sales and marketing expenses $ 73.9 $ 128.0 $ 135.7 $ 4.4 General and administrative expenses 604.1 538.7 497.7 16.3 Research and development expenses 1,139.2 1,158.6 1,093.5 35.7 Total operating expenses $ 1,817.2 $ 1,825.3 $ 1,726.9 $ 56.4 Sales and Marketing Expenses .
Year ended December 31, 2022 2023 2024 2024 NT$ NT$ NT$ US$ (in millions) Sales and marketing expenses $ 128.0 $ 135.7 $ 128.7 $ 3.9 General and administrative expenses 538.7 497.7 478.6 14.6 Research and development expenses 1,158.6 1,093.5 1,162.8 35.5 Total operating expenses $ 1,825.3 $ 1,726.9 $ 1,770.1 $ 54.0 48 Sales and Marketing Expenses .
The assembly capacity utilization rate generally increases in correlation to increases in the total volume of our customer orders, and generally decreases in correlation to decreases in the total volume of our customer orders. 45 Our gross revenue is generally the product of the progress towards completion multiplied by the average selling price per deliverable unit from our assembly or testing services, as the case may be.
Our gross revenue is generally the product of the progress towards completion multiplied by the average selling price per deliverable unit from our assembly or testing services, as the case may be.
The syndicated loan was fully repaid in advance in March 2022. On January 1, 2019, MOEA implemented the Action Plan for Welcoming Overseas Taiwanese Businesses to Return to Invest in Taiwan and companies are subsidized with preferential interest loans for qualified investment projects.
We had entered into the following long-term loans facilities: • On January 1, 2019, MOEA implemented the Action Plan for Welcoming Overseas Taiwanese Businesses to Return to Invest in Taiwan and companies are subsidized with preferential interest loans for qualified investment projects.
We conduct testing operations in our facilities at the Hsinchu Science Park, the Hsinchu Industrial Park and Chupei, gold bumping and wafer testing in our facility at Chupei, and assembly and testing operations in our facility at the Southern Taiwan Science Park.
We conduct testing operations in our facilities at the Hsinchu Science Park, the Hsinchu Industrial Park and Chupei, gold bumping and wafer testing in our facility at Chupei, and assembly and testing operations in our facility at the Southern Taiwan Science Park. The following key trends are important to understand our business: Capital Intensive Nature of Our Business.
Year ended December 31, 2021 2022 2023 2023 NT$ NT$ NT$ US$ (in millions) Capital expenditures $ 6,552.7 $ 4,918.5 $ 3,228.5 $ 105.4 Depreciation and amortization 4,634.1 4,751.9 4,779.3 156.1 Net cash generated from (used in): Operating activities $ 7,319.7 $ 8,616.4 $ 6,607.5 $ 215.8 Investing activities (6,015.4 ) (5,061.9 ) (3,090.2 ) (100.9 ) Financing activities 494.4 416.9 (1,059.1 ) (34.6 ) Effect of exchange rate changes (6.2 ) 19.0 (0.8 ) — Net increase in cash and cash equivalents $ 1,792.5 $ 3,990.4 $ 2,457.4 $ 80.3 Net Cash Generated from Operating Activities Net cash generated from operating activities amounted to NT$6,607 million (US$216 million) in 2023, primarily as a result of (i) profit before income tax of NT$2,268 million (US$74 million), (ii) our non-cash depreciation in the amount of NT$4,779 million (US$156 million), and (iii) the changes in accounts and notes receivable and inventories of NT$303 million (US$10 million).
Year ended December 31, 2022 2023 2024 2024 NT$ NT$ NT$ US$ (in millions) Capital expenditures $ 4,918.5 $ 3,228.5 $ 5,451.4 $ 166.3 Depreciation and amortization 4,751.9 4,779.3 4,856.2 148.1 Net cash generated from (used in): Operating activities $ 8,616.4 $ 6,607.5 $ 5,940.6 $ 181.2 Investing activities (5,061.9 ) (3,090.2 ) (615.1 ) (18.8 ) Financing activities 416.9 (1,059.1 ) (2,475.4 ) (75.5 ) Effect of exchange rate changes 19.0 (0.8 ) 14.9 0.5 Net increase in cash and cash equivalents $ 3,990.4 $ 2,457.4 $ 2,865.0 $ 87.4 50 Net Cash Generated from Operating Activities Net cash generated from operating activities amounted to NT$5,941 million (US$181 million) in 2024, primarily as a result of (i) profit before income tax of NT$1,647 million (US$50 million), (ii) our non-cash depreciation in the amount of NT$4,856 million (US$148 million), and (iii) income tax paid of NT$609 million (US$19 million).
As of December 31, 2023, our primary sources of liquidity were cash and cash equivalents of NT$12,354 million (US$403 million), short-term bank loans of NT$6,424 million (US$210 million) available to us in undrawn facilities, which have expired or will expire from March 2024 to December 2024, and long-term bank loans of NT$7,233 million (US$236 million) available to us in undrawn facilities, which will expire in July 2025.
As of December 31, 2024, our primary sources of liquidity were cash and cash equivalents of NT$15,219 million (US$464 million), short-term bank loans of NT$6,264 million (US$191 million) available to us in undrawn facilities, which we plan to renew when facilities expired or will expire from March 2025 to December 2025, and long-term bank loans of NT$7,863 million (US$240 million) available to us in undrawn facilities, which will expire in December 2026.
In addition, TDDI as a multi-functional product which is DDIC with touch function, its testing process required longer testing time than traditional DDIC, thus the testing cost also will be higher than DDIC product. 44 We price our assembly services on a per unit basis, taking into account the complexity of the package, our costs, including the costs of the required material and components, the depreciation expenses relating to the equipment involved and our overhead expenses, prevailing market conditions, the order size, the strength and history of our relationship with the customer and our capacity utilization.
We price our assembly services on a per unit basis, taking into account the complexity of the package, our costs, including the costs of the required material and components, the depreciation expenses relating to the equipment involved and our overhead expenses, prevailing market conditions, the order size, the strength and history of our relationship with the customer and our capacity utilization.
Our gross profit margin for testing services decreased to 19.9% in 2023 from 31.2% in 2022, primarily due to the decrease in revenue resulted from the decreased customer demand. Our gross profit margin for assembly services decreased to -14.5% in 2023 from 7.0% in 2022, primarily due to the decrease in revenue resulted from the decreased customer demand.
Our gross profit margin for assembly services increased to -11.2% in 2024 from -14.5% in 2023, primarily due to the increase in revenue resulted from the increased customer demand.
This amount comprises net proceeds from long-term bank loans and lease liabilities in the amount of NT$614 million (US$20 million) and the distribution of cash dividends in the amount of NT$1,673 million (US$55 million). Net cash generated from financing activities amounted to NT$417 million in 2022.
This amount comprises net payments on long-term bank loans and lease liabilities and net proceeds from short-term bank loans in the amount of NT$1,166 million (US$36 million) and the distribution of cash dividends in the amount of NT$1,309 million (US$40 million). Net cash used in financing activities amounted to NT$1,059 million in 2023.
We price our assembly and testing services for DDIC/TDDI and other display panel driver semiconductors and bumping services on the basis of our costs, including the costs of the required material and components, the depreciation expenses relating to the equipment involved and our overhead expenses, and the price for comparable services.
We price our assembly and testing services for DDIC/TDDI and other display panel driver semiconductors and bumping services on the basis of our costs, including the costs of the required material and components, the depreciation expenses relating to the equipment involved and our overhead expenses, and the price for comparable services. 44 Revenue Recognition We generally recognize our revenue from services for assembly and testing services based on the progress towards completion of performance obligation during the service period, and the sales discount is accrued based on historical experience.
Revenue from bumping services increased by NT$232 million, or 5%, to NT$4,510 million (US$147 million) in 2023 from NT$4,278 million in 2022. This increase was principally due to the increased average selling price.
Revenue from bumping services increased by NT$509 million, or 11%, to NT$5,019 million (US$153 million) in 2024 from NT$4,510 million in 2023. This increase was principally due to the increased average selling price and customer demand. The sales quantity increased around 5% compared to 2023.
Revenue We conduct our business according to the following main business segments: (1) testing services for memory and logic/mixed-signal semiconductors; (2) assembly services for memory and logic/mixed-signal semiconductors; (3) LCD, OLED, automotive panel and other display panel driver semiconductor assembly and testing services; and (4) bumping services for memory, logic/mixed-signal and LCD, OLED, automotive panel and other display panel driver semiconductors.
In May 2024, the equity transfer was completed and the total consideration under the all-cash sale of RMB 979.3 million has fully received in December 2024. 43 Revenue We conduct our business according to the following main business segments: (1) testing services for memory and logic/mixed-signal semiconductors; (2) assembly services for memory and logic/mixed-signal semiconductors; (3) LCD, OLED, automotive panel and other display panel driver semiconductor assembly and testing services; and (4) bumping services for memory, logic/mixed-signal and LCD, OLED, automotive panel and other display panel driver semiconductors.
General and Administrative Expenses . General and administrative expenses decreased by NT$41 million, or 8%, to NT$498 million (US$16 million) in 2023 from NT$539 million in 2022, primarily due to the decrease of employee benefit expenses, facilities expenses and partially offset by the increase of the maintenance and repair expenses and professional service expenses. Research and Development Expenses .
General and administrative expenses decreased by NT$20 million, or 4%, to NT$478 million (US$15 million) in 2024 from NT$498 million in 2023, primarily due to the decrease of professional service expense, maintenance and repair expense. Research and Development Expenses .
Research and development expenses are recognized as they are incurred. We currently expect that research and development expenses will increase in the future as we continue to explore new technologies and service offerings. We also expect to hire additional employees in our research and development department.
We currently expect that research and development expenses will increase in the future as we continue to explore new technologies and service offerings. We also expect to hire additional employees in our research and development department. Other Income (Expenses), Net Our other income principally consists of gain on disposal of property, plant and equipment and insurance compensation income.
The decrease in income tax paid compared to prior year was due to lower net profit in 2022. Net Cash Used in Investing Activities Net cash used in investing activities amounted to NT$3,090 million (US$101 million) in 2023, primarily due to net payment for property, plant and equipment of NT$2,990 million (US$98 million).
Net cash used in investing activities amounted to NT$3,090 million in 2023, primarily due to net payment for property, plant and equipment of NT$2,990 million. Net Cash Used in Financing Activities Net cash used in financing activities amounted to NT$2,475 million (US$75 million) in 2024.
The decrease in cost of revenue was primary due to softness in market demand and decreased sales volume, which impacted our related costs. Our gross profit decreased to NT$3,549 million (US$116 million) in 2023 from NT$4,912 million in 2022. Our gross margin was 16.6% in 2023, compared to 20.9% in 2022.
The increase in cost of revenue was also due to increased sales volume, which impacted our related costs. Our gross profit decreased to NT$2,944 million (US$90 million) in 2024 from NT$3,549 million in 2023. Our gross margin was 13.0% in 2024, compared to 16.6% in 2023.
We expect to continue to incur substantial depreciation and other expenses as a result of our previous acquisitions of assembly and testing equipment and facilities. Our profitability depends on part not only on absolute pricing levels for our services, but also on capacity utilization rates for our assembly and testing equipment.
Our profitability depends on part not only on absolute pricing levels for our services, but also on capacity utilization rates for our assembly and testing equipment.
Loans As of December 31, 2023, we had long-term bank loans of NT$14,912 million (US$487 million) (including current portions of such long-term bank loans of NT$2,264 million (US$74 million)). As of December 31, 2023, NT$11,271 million (US$368 million) of our long-term bank loans were collateralized by land, buildings and equipment.
Loans As of December 31, 2024, we had long-term bank loans of NT$13,759 million (US$420 million) (including current portions of such long-term bank loans of NT$3,326 million (US$101 million)). As of December 31, 2024, NT$10,213 million (US$311 million) of our long-term bank loans were collateralized by land, buildings and equipment.
The following table summarizes our contractual obligations and commitments as of December 31, 2023, or the periods indicated: Payments Due by Period Contractual Obligations Total Within 1 year 1 to 3 years 3 to 5 years Over 5 years NT$ NT$ NT$ NT$ NT$ (in millions) Long-term bank loans (1) $ 15,581 $ 2,470 $ 7,507 $ 4,273 $ 1,331 Lease liabilities (1) 1,258 268 250 58 682 Capital commitments 21 — — — 21 Total contractual cash obligations $ 16,860 $ 2,738 $ 7,757 $ 4,331 $ 2,034 Note: (1) Includes interest payments.
The following table summarizes our contractual obligations and commitments as of December 31, 2024, or the periods indicated: Payments Due by Period Contractual Obligations Total Within 1 year 1 to 3 years 3 to 5 years Over 5 years NT$ NT$ NT$ NT$ NT$ (in millions) Short-term bank loans (1) $ 341 $ 341 $ — $ — $ — Long-term bank loans (1) 14,316 3,525 6,679 3,062 1,050 Lease liabilities (1) 1,300 254 149 72 825 Capital commitments 21 — — — 21 Total contractual cash obligations $ 15,978 $ 4,120 $ 6,828 $ 3,134 $ 1,896 Note: (1) Includes interest payments.
Our long-term bank loans were floating rate loans with a rate between 1.2% to 1.75% as of December 31, 2023.
Our long-term bank loans were floating rate loans with a rate between 1.325% to 1.875% as of December 31, 2024. Government granted bank loan is repayable monthly from March 2023 to July 2033.
In particular, increases or decreases in our capacity utilization rates could significantly affect our gross margins since the unit cost of assembly and testing services generally decreases as fixed costs are allocated over a larger number of units.
In particular, increases or decreases in our capacity utilization rates could significantly affect our gross margins since the unit cost of assembly and testing services generally decreases as fixed costs are allocated over a larger number of units. 42 The current generation of advanced testers typically cost between US$0.7 million and US$1.1 million each, while die bonders used in assembly typically cost approximately US$270 thousand each wire bonders in assembly cost approximately US$82 thousand each and package saw in assembly cost approximately US$750 thousand each and WB plating cost approximately US$4.5 million each.
Other Income (Expenses), Net Our other income principally consists of gain on disposal of scrapped materials, gain on disposal of property, plant and equipment and gain on disposal of items purchased on behalf of others. Our other expenses principally consist of impairment loss on property, plant and equipment.
Our other expenses principally consist of impairment loss on property, plant and equipment. 46 Other Income Our other income principally consists of rental income, grant income and dividend income.
This loan facility is secured by existing land and buildings and equipment. This loan facility fully repaid in March 2022. • On January 1, 2019, MOEA implemented the Action Plan for Welcoming Overseas Taiwanese Businesses to Return to Invest in Taiwan and companies are subsidized with preferential interest loans for qualified investment projects.
We have taken the following steps to meet our liquidity, capital spending and other capital needs. On January 1, 2019, MOEA implemented the Action Plan for Welcoming Overseas Taiwanese Businesses to Return to Invest in Taiwan and companies are subsidized with preferential interest loans for qualified investment projects.
Revenue from assembly services decreased by NT$2,077 million, or 31%, to NT$4,629 million (US$151 million) in 2023 from NT$6,706 million in 2022, primarily as a result of the decreased customer demand. The sales quantity decreased around 30% compared to 2022.
Revenue from assembly services increased by NT$761 million, or 16%, to NT$5,390 million (US$164 million) in 2024 from NT$4,629 million in 2023, primarily as a result of the increased customer demand and partially offset by the difference in product mix. The sales quantity increased around 36% compared to 2023.
In addition to the commitments set forth in the contractual obligations table above, we have certain outstanding purchase orders relating to the procurement of raw materials for which there are no definite delivery dates or deadlines. 50 The following table sets forth capital expenditures, depreciation and amortization and our cash flows with respect to operating activities, investing activities, financing activities and the effect of exchange rate changes on cash for the periods indicated.
The following table sets forth capital expenditures, depreciation and amortization and our cash flows with respect to operating activities, investing activities, financing activities and the effect of exchange rate changes on cash for the periods indicated.
Net cash generated from operating activities amounted to NT$8,616 million in 2022, primarily as a result of (i) profit before income tax of NT$4,028 million, (ii) our non-cash depreciation in the amount of NT$4,752 million, partially offset by the non-cash share of profit of associates and joint ventures accounted for using equity method of NT$454 million, (iii) the changes in accounts and notes receivable and accounts and notes payable of NT$1,511 million and (iv) income tax paid of NT$1,355 million.
Net cash generated from operating activities amounted to NT$6,607 million in 2023, primarily as a result of (i) profit before income tax of NT$2,268 million, (ii) our non-cash depreciation in the amount of NT$4,779 million, and (iii) the changes in accounts and notes receivable and inventories of NT$303 million.
Revenue Recognition We generally recognize our revenue from services for assembly and testing services based on the progress towards completion of performance obligation during the service period. The progress towards completion on assembly services is measured by the actual input costs relative to estimate total expected input costs.
The progress towards completion on assembly services is measured by the actual input costs relative to estimate total expected input costs. The progress towards completion on testing services is measured by the actual incurred testing volume.
Set forth below are the maturities of our long-term bank loans outstanding as of December 31, 2023: As of December 31, 2023 NT$ US$ (in millions) During 2024 $ 2,264 $ 74 During 2025 3,314 108 During 2026 3,877 127 During 2027 2,417 79 During 2028 and onwards 3,040 99 $ 14,912 $ 487 As of December 31, 2023, certain of our property, plant and equipment and non-current financial assets at amortized cost with an aggregate net book value of NT$13,928 million (US$455 million) and NT$37 million (US$1 million), respectively, were pledged as collateral mainly for long-term bank loans and leases.
In addition, a substantial portion of our short-term and long-term borrowings may be subject to repayment upon a material deterioration of our financial condition, results of operations or our ability to perform under the loan agreements. 51 Set forth below are the maturities of our long-term bank loans outstanding as of December 31, 2024: As of December 31, 2024 NT$ US$ (in millions) During 2025 $ 3,326 $ 102 During 2026 3,894 119 During 2027 2,536 77 During 2028 1,966 60 During 2029 and onwards 2,037 62 $ 13,759 $ 420 As of December 31, 2024, certain of our property, plant and equipment and non-current financial assets at amortized cost with an aggregate net book value of NT$13,350 million (US$407 million) and NT$43 million (US$1 million), respectively, were pledged as collateral mainly for long-term bank loans and leases.
Operating and Financial Review and Prospects—Results of Operations—Year Ended December 31, 2022 Compared to Year Ended December 31, 2021” of our annual report on Form 20-F filed with the Securities and Exchange Commission on April 13, 2023.
Operating and Financial Review and Prospects—Results of Operations—Year Ended December 31, 2023 Compared to Year Ended December 31, 2022” of our annual report on Form 20-F filed with the Securities and Exchange Commission on April 11, 2024. 49 Impact of Foreign Currency Fluctuations and Governmental or Political Factors For a discussion of the impact of foreign currency fluctuations and governmental economics, fiscal, monetary or political policies or factors that may directly or indirect impact us, see “Item 3.
Our revenue decreased by NT$2,161 million, or 9%, to NT$21,356 million (US$698 million) in 2023 from NT$23,517 million in 2022. Revenue from testing services decreased by NT$849 million, or 16%, to NT$4,395 million (US$144 million) in 2023 from NT$5,244 million in 2022, principally due to the decreased customer demand. The sales quantity decreased around 7% compared to 2022.
Our revenue increased by NT$1,340 million, or 6%, to NT$22,696 million (US$692 million) in 2024 from NT$21,356 million in 2023. Revenue from testing services increased by NT$573 million, or 13%, to NT$4,968 million (US$152 million) in 2024 from NT$4,395 million in 2023, principally due to the increased customer demand. The sales quantity increased around 10% compared to 2023.
Net cash used in investing activities amounted to NT$5,062 million in 2022, primarily due to net payment for property, plant and equipment of NT$4,622 million and increase in other non-current assets of NT$401 million. Net Cash Generated from (Used in) Financing Activities Net cash used in financing activities amounted to NT$1,059 million (US$35 million) in 2023.
Net Cash Used in Investing Activities Net cash used in investing activities amounted to NT$615 million (US$19 million) in 2024, primarily due to net payment for property, plant and equipment of NT$5,006 million (US$153 million) and partially offset by the proceeds from disposal of non-current assets held for sale of NT$4,394 million (US$134 million).
Our gross profit margin for Display panel driver semiconductor assembly and testing services increased to 31.3% in 2023 from 29.3% in 2022, primarily due to the increase in revenue resulted from the increased customer demand.
Our gross profit margin for Display panel driver semiconductor assembly and testing services decreased to 22.5% in 2024 from 31.3% in 2023, primarily caused by the decrease of revenue and increase of cost of revenue. The increase of cost of revenue consists of the utilities expense, personnel related expenses and equipment rental expense.
Our average capacity utilization rate for testing of memory and logic/mixed-signal semiconductors was 83% in 2021, 66% in 2022 and 58% in 2023. Our average capacity utilization rate for assembly of memory and logic/mixed-signal semiconductors was 85% in 2021, 62% in 2022 and 46% in 2023.
Our profitability depends in part not only on absolute pricing levels for our services, but also on our capacity utilization rates. Our average capacity utilization rate for testing of memory and logic/mixed-signal semiconductors was 66% in 2022, 58% in 2023 and 63% in 2024.
As a result of the foregoing operations, the profit for the year attributable to the Company was NT$1,968 million (US$64 million) in 2023, compared to NT$3,440 million in 2022.
Net Profit. As a result of the foregoing operations, net profit decreased by NT$528 million, or 27% to NT$1,440 million (US$44 million) in 2024 from NT$1,968 million in 2023.
The decrease in net cash generated from operating activities in 2023 compared to 2022 was primarily due to the decrease in profit before income tax and the cash outflows from changes in accounts and notes receivables. The accounts and notes receivable were higher compared to prior year due to year-end revenue growth and customer payment schedule.
The decrease in net cash generated from operating activities in 2024 compared to 2023 was primarily due to the decrease in profit before income tax and the cash outflows from changes in inventories. Change in inventories was due to an increase in purchases of materials as a result of an increase in revenue.
We also conduct operations in Mainland China through Unimos Shanghai, operates an assembly and testing facility at the Qingpu Industrial Zone in Shanghai. On December 21, 2023, we entered into an agreement to sell the entire remaining 45.0242% equity interests in Unimos Shanghai to the local Chinese investment management companies.
On July 24, 2023, Yangtze Memory sold and transferred all equity interests of Unimos Shanghai to Yangtze Memory Holding, which holds 50.94% equity interests of Unimos Shanghai after completed transaction. On December 21, 2023, we entered into an agreement to sell the entire remaining 45.0242% equity interests in Unimos Shanghai to the local Chinese investment management companies.
The decrease in segment revenue of testing services and assembly service was principally due to the softness in broader market demand, including smart phones, TVs, PC/servers and other consumer products, and customer inventory level adjustments, led to the lower utilization rate of our production lines. However, in 2023, automotive panel and OLED demand is stable compared to other products.
The decrease in segment revenue of display panel driver semiconductor assembly and testing services was principally due to the softness TV and automotive panel demand and continued customer smart phone and OLED de-stocking, led to the lower utilization rate of our production lines since the second half of 2024. Cost of Revenue and Gross Profit .

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Item 6. [Reserved]

Selected Financial Data — reserved (removed by SEC in 2021)

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Biggest changeEmployees The following table sets forth, as of the dates indicated, the number of our full-time employees serving in the functions indicated: As of December 31, As of February 29, Function 2021 2022 2023 2024 General operations 2,995 2,761 2,801 2,819 Quality control 55 50 45 51 Engineering 1,436 1,425 1,480 1,488 Research and development 680 677 704 698 Sales, administration and finance 132 145 142 141 Others 230 232 224 223 Total 5,528 5,290 5,396 5,420 The following table sets forth, as of the dates indicated, a breakdown of the number of our full-time employees by geographic location: As of December 31, As of February 29, Location 2021 2022 2023 2024 Hsinchu Production Group 2,158 2,082 2,028 2,034 Southern Taiwan Production Group 3,363 3,201 3,361 3,379 Shanghai 3 3 3 3 United States 4 4 4 4 Total 5,528 5,290 5,396 5,420 Our employees are not covered by any collective bargaining agreements.
Biggest changeThe objectives of our nomination committee include: (i) to laying down the standards of independence and a diversified background covering the expertise, skills, experience, gender, etc. of members of the board, and finding, reviewing, and nominating candidates for directors based on such standards, (ii) to establishing and developing the organizational structure of the board and each functional committee, and (iii) to establishing and reviewing on the succession plans of directors. 56 Employees The following table sets forth, as of the dates indicated, the number of our full-time employees serving in the functions indicated: As of December 31, As of February 28, Function 2022 2023 2024 2025 General operations 2,761 2,801 3,175 3,114 Quality control 50 45 52 51 Engineering 1,425 1,480 1,608 1,585 Research and development 677 704 696 680 Sales, administration and finance 145 142 129 128 Others 232 224 238 237 Total 5,290 5,396 5,898 5,795 The following table sets forth, as of the dates indicated, a breakdown of the number of our full-time employees by geographic location: As of December 31, As of February 28, Location 2022 2023 2024 2025 Hsinchu Production Group 2,082 2,028 2,204 2,169 Southern Taiwan Production Group 3,201 3,361 3,686 3,618 Shanghai 3 3 3 3 United States 4 4 5 5 Total 5,290 5,396 5,898 5,795 Our employees are not covered by any collective bargaining agreements.
He has been a professor of the Department of Electrical Engineering and Institute of Microelectronics of National Cheng Kung University since August 1992, the chairman of Foundation of NCKU Tainan Alumni Association since January 2014, and the director of TSMC-NCKU Joint R&D Center since July 2020.
He has been a professor of the Department of Electrical Engineering and the Institute of Microelectronics of National Cheng Kung University since August 1992, the chairman of Foundation of NCKU Tainan Alumni Association since January 2014, and the director of TSMC-NCKU Joint R&D Center since July 2020.
He was the director of Alumni Association Center, associate dean of the College of Engineering and the chairman of the Department of Electrical Engineering of National Cheng Kung University from February 2005 to January 2007, October 1999 to July 2003 and August 1995 to July 1996, respectively.
He was the director of Alumni Association Center, the associate dean of the College of Engineering and the chairman of the Department of Electrical Engineering of National Cheng Kung University from February 2005 to January 2007, October 1999 to July 2003 and August 1995 to July 1996, respectively.
He also has been the independent director, audit committee member, risk management committee member, corporate governance and sustainable development committee member, merger and acquisition special committee member, and ESG execution committee member of Chailease Holding Company Limited, since May 2023, May 2023, May 2023, May 2023, June 2023 and July 2023, respectively.
He has been the independent director, audit committee member, risk management committee member, corporate governance and sustainable development committee member, merger and acquisition special committee member, and ESG execution committee member of Chailease Holding Company Limited, since May 2023, May 2023, May 2023, May 2023, June 2023 and July 2023, respectively.
He also serves as the chief administration officer and senior vice president of Siliconware Precision. He has been the director of Yann Yuan Investment Co., Ltd. since October 2019. He served as the deputy director of Dah Shan Electric Wire & Cable Corp. from April 1983 to June 1989. He graduated from Tunghai University with an EMBA.
He also serves as the chief administration officer and senior vice president of Siliconware Precision. He has been the director of Yann Yuan Investment Co., Ltd. since October 2019. He was the deputy director of Dah Shan Electric Wire & Cable Corp. from April 1983 to June 1989. He graduated from Tunghai University with an EMBA.
Tsai 53 Executive Vice President — Shih-Jye Cheng has served as a director and president of the Company since July 1997 and the chairman of the Company since June 2003. He is the sibling of president of ChipMOS USA. He also has been the director of ChipMOS USA since its inception.
Tsai 54 Executive Vice President — Shih-Jye Cheng has served as a director and president of the Company since July 1997 and the chairman of the Company since June 2003. He is the sibling of president of ChipMOS USA. He also has been the director of ChipMOS USA since its inception.
He served in Philips Electronic Building Elements (Taiwan) Ltd and National Cheng Kung University. He received a master’s degree in Electrical Engineering from National Sun Yat-sen University in Taiwan. 55 D.Y. Tsai has served as the executive vice president since July 2020. He has been our vice president of Q.R.A. center of the Company from June 2014 to June 2020.
He served in Philips Electronic Building Elements (Taiwan) Ltd and National Cheng Kung University. He holds a master’s degree in Electrical Engineering from National Sun Yat-sen University in Taiwan. D.Y. Tsai has served as the executive vice president since July 2020. He has been our vice president of Q.R.A. center of the Company from June 2014 to June 2020.
He served as the senior director of Europe & Asia district sales division of Siliconware Precision from April 2010 to June 2020 and the deputy director of global marketing division of United Microelectronics Corporation from June 2000 to April 2010. He graduated from National Chiao-Tung University with a master’s degree in Electronics.
He was the senior director of Europe & Asia district sales division of Siliconware Precision from April 2010 to June 2020 and the deputy director of global marketing division of United Microelectronics Corporation from June 2000 to April 2010. He graduated from National Chiao-Tung University with a master’s degree in Electronics.
He was a division head of the back-end operation of Mosel from 1992 to 1997. Mr. Cheng has a master’s degree in business administration from Saginaw Valley State University . Kun-Yi Chien has served as one of our directors since July 2021. He serves as the director of Siliconware Precision since April 2018.
He was a division head of the back-end operation of Mosel from 1992 to 1997. He holds a master’s degree in business administration from Saginaw Valley State University . Kun-Yi Chien has served as one of our directors since July 2021. He has served as the director of Siliconware Precision since April 2018.
He has been the independent director, audit committee member and compensation committee member of Unictron Technologies Corp. since October 2020. He served as the president of National Applied Research Laboratories from October 2016 to May 2020.
He has been the independent director, audit committee member and compensation committee member of Unictron Technologies Corp. since October 2020. He was the president of National Applied Research Laboratories from October 2016 to May 2020.
He was the chairman of ThaiLin from December 2002 to June 2013, the chairman of CHANTEK ELECTRONIC CO., LTD. from 2002 to November 2005, the chairman of ChipMOS Logic TECHNOLOGIES INC. from January 2004 to November 2005, the chairman of Unimos Shanghai from 2002 to June 2005, the vice chairman of Unimos Shanghai from February 2017 to November 2022 and the chairman of Advanced Micro Chip Technology Co., Ltd. from February 2003 to April 2004.
(“ThaiLin”) from December 2002 to June 2013, the chairman of CHANTEK ELECTRONIC CO., LTD. from 2002 to November 2005, the chairman of ChipMOS Logic TECHNOLOGIES INC. from January 2004 to November 2005, the chairman of Unimos Shanghai from 2002 to June 2005, the vice chairman of Unimos Shanghai from February 2017 to November 2022 and the chairman of Advanced Micro Chip Technology Co., Ltd. from February 2003 to April 2004.
He served as the independent director and audit committee member of the Company from June 2007 to June 2013. He was the independent director, audit committee member and nomination committee chairman of ChipMOS Bermuda, since July 2004, December 2004 and May 2004, respectively, until ChipMOS Bermuda was merged with and into the Company.
He was the independent director, audit committee member and nomination committee chairman of ChipMOS Bermuda, since July 2004, December 2004 and May 2004, respectively, until ChipMOS Bermuda was merged with and into the Company in October 2016. He was the independent director and audit committee member of the Company from June 2007 to June 2013.
Nomination Committee The Board of Directors established a nomination committee and the nomination committee charter was adopted on November 2, 2023. The nomination committee consists of Mr. Yeong-Her Wang, Ms. Hui-Fen Chan, and Mr. Hong-Tzer Yang all of whom are independent directors.
Nomination Committee The Board of Directors established a nomination committee and the nomination committee charter was adopted on November 2, 2023. The nomination committee consists of Mr. Yeong-Her Wang, Mr. Hong-Tzer Yang, and Ms. Fu-Chen Lin all of whom are independent directors.
Share Ownership The following table sets forth certain information as of April 1, 2024, our most recent record date, with respect to our common shares owned by our directors and executive officers.
Share Ownership The following table sets forth certain information as of March 29, 2025, our most recent record date, with respect to our common shares owned by our directors and executive officers.
He has been the representative and director of Hao Hsiang Investment Co., Ltd. and Hao Yen Investment Co., Ltd. since April 2018 and January 2020, respectively.
He has been the representative and director of Hao Hsiang Investment Co., Ltd. and Hao Yen Investment Co., Ltd. since April 2018 and January 2020, respectively. He was the chairman of ThaiLin Semiconductor Corp.
Since July 12, 2021, of our current nine directors, two directors are representatives of Siliconware Precision which is our largest shareholder. The following table sets out the names of our directors and executive officers, their positions with our company and their ages as of February 29, 2024.
Since May 30, 2024, of our current nine directors, two directors are representatives of Siliconware Precision which is our largest shareholder. 53 The following table sets out the names of our directors and executive officers, their positions with our company and their ages as of February 28, 2025.
Tsai 262,572 0.04 % Compensation Committee We do not provide our directors with any benefits upon termination of employment. Our compensation committee currently consists of Mr. Yeong-Her Wang, Mr. Chin-Shyh Ou and Ms. Kuei-Ann Wen, all of whom are independent directors. This committee reviews and recommends to our Board of Directors the compensation of all our directors and officers.
Tsai 262,572 0.04 % Compensation Committee We do not provide our directors with any benefits upon termination of employment. Our compensation committee currently consists of Mr. Yeong-Her Wang, Mr. Yuh-Fong Tang and Mr. Jyh-Chau Wang, all of whom are independent directors. This committee reviews and recommends to our Board of Directors the compensation of all our directors and officers.
Name Number of Common Shares Held Percentage of Shares Issued Shih-Jye Cheng 6,150,161 0.85 % Kun-Yi Chien (representative, Siliconware Precision) 78,910,390 10.85 % David Chang (representative, Siliconware Precision) 78,910,390 10.85 % Silvia Su 340,101 0.05 % Chin-Shyh Ou — — Kuei-Ann Wen — — Hui-Fen Chan — — Yeong-Her Wang — — Hong-Tzer Yang — — Vincent Hsu 220,130 0.03 % D.Y.
Name Number of Common Shares Held Percentage of Shares Issued Shih-Jye Cheng 6,150,161 0.85 % Kun-Yi Chien (representative, Siliconware Precision) 78,910,390 10.85 % David Chang (representative, Siliconware Precision) 78,910,390 10.85 % Silvia Su 340,101 0.05 % Yuh-Fong Tang — — Yeong-Her Wang — — Jyh-Chau Wang — — Hong-Tzer Yang — — Fu-Chen Lin — — Vincent Hsu 220,130 0.03 % D.Y.
He was the independent director, audit committee member and compensation committee member of Darfon Electronics Corp. and Giga Solution Tech Co. from May 2006 to June 2015 and September 2007 to November 2016, respectively. Mr. Wang holds Ph.D., master’s and bachelor’s degrees from National Cheng Kung University. Hong-Tzer Yang has served as one of our directors since July 2021.
He was the independent director, audit committee member and compensation committee member of Darfon Electronics Corp. and Giga Solution Tech. Co., Ltd. from May 2006 to June 2015 and September 2007 to November 2016, respectively. He holds a Ph.D. in Electrical Engineering from National Cheng Kung University. Jyh-Chau Wang has served as one of our directors since May 2024.
He has a Ph.D. degree from Electrical Engineering at National Tsing Hua University in Taiwan. Vincent Hsu has served as the executive vice president since July 2020. He has been our vice president of LCDD production group of the Company since March 2012. He has been the director of JMC since October 2014.
She holds a master’s degree in Finance from National Central University. Vincent Hsu has served as the executive vice president since July 2020. He has been our vice president of LCDD production group of the Company since March 2012. He has been the director of JMC from October 2014 to November 2024.
He has been the professor of the Department of Electrical Engineering, the deputy director of Research Center for Energy Technology and Strategy, and the director of Research Center for Energy Technology for Sustainability at National Cheng Kung University, since July 2007, February 2013, and August 2014, respectively.
He has been the director of Research Center for Energy Technology for Sustainability and the vice dean of College of Electrical Engineering and Computer Science at National Cheng Kung University since August 2014 and August 2024, respectively.
The compensation committee is required to meet at least twice a year. 56 Audit Committee The audit committee currently consists of Mr. Chin-Shyh Ou, Ms. Kuei-Ann Wen, Ms. Hui-Fen Chan, Mr. Yeong-Her Wang, and Mr. Hong-Tzer Yang, all of whom are independent directors. Mr. Chin-Shyh Ou serves as a financial expert to the audit committee.
The compensation committee is required to meet at least twice a year. Audit Committee The audit committee currently consists of Mr. Yuh-Fong Tang, Mr. Yeong-Her Wang, Mr. Jyh-Chau Wang, Mr. Hong-Tzer Yang and Ms. Fu-Chen Lin all of whom are independent directors. Mr. Yuh-Fong Tang and Mr. Jyh-Chau Wang serve as a financial expert to the audit committee.
She has been the director of ChipMOS BVI since February 2018 and the chairman and director of ChipMOS USA since August 2022 and July 2013. She also has been the supervisor of ChipMOS Shanghai since March 2020 and the supervisor of Unimos Shanghai since October 2017. Ms.
She has been the director of ChipMOS BVI since February 2018 and the chairman and director of ChipMOS USA since August 2022 and July 2013. She also has been the supervisor of ChipMOS Shanghai since March 2020. She has been the representative and director of Tsai Fu Investment Co., Ltd. since February 2020. She joined the Group from 2000.
He also has been the independent director, audit committee member, compensation committee member, and corporate governance committee member of Padauk Technology Co., Ltd., since July 2021, July 2021, June 2021, and November 2021, respectively. He has been the director of AeroVision Avionics Inc. since July 2021.
He has been the distinguished professor of the Department of Electrical Engineering at National Cheng Kung University since July 2007. He has been the independent director, audit committee member, compensation committee member, corporate governance committee member, and cyber security committee member of Padauk Technology Co., Ltd., since July 2021, July 2021, July 2021, November 2021, and November 2022, respectively.
He was the professor of the Department of Electrical Engineering at Chung Yuan Christian University from August 2000 to July 2007.
He was the professor of the Department of Electrical Engineering, and chair and director of Department and Institute of Electrical Engineering at Chung Yuan Christian University from August 2000 to July 2007, and August 2004 to July 2006, respectively. He holds a Ph.D. degree in Electrical Engineering from National Tsing Hua University.
He also was the independent director, audit committee member, and compensation committee member of Spirox Corporation from June 2002 to June 2012 and from June 2015 to August 2017, June 2015 to August 2017, and June 2015 to August 2017, respectively. He was the director of Taiwan Electric Research & Testing Center from March 2021 to December 2023.
He served as the independent director, audit committee member, and compensation committee member of Spirox Corporation from June 2015 to August 2017.
The business address for our directors and executive officers is No. 1, R&D Road 1, Hsinchu Science Park, Hsinchu, Taiwan, ROC. 53 Name Age Position Term Expires Shih-Jye Cheng 65 Chairman and Director / President 2024 Kun-Yi Chien 68 Director (representative, Siliconware Precision) 2024 David Chang 54 Director (representative, Siliconware Precision) 2024 Silvia Su 53 Director / Vice President, Finance and Accounting Management Center / Corporate Governance Officer 2024 Chin-Shyh Ou 66 Independent Director 2024 Kuei-Ann Wen 63 Independent Director 2024 Hui-Fen Chan 55 Independent Director 2024 Yeong-Her Wang 67 Independent Director 2024 Hong-Tzer Yang 63 Independent Director 2024 Vincent Hsu 55 Executive Vice President — D.Y.
Name Age Position Term Expires Shih-Jye Cheng 66 Chairman and Director / President 2027 Kun-Yi Chien 69 Director (representative, Siliconware Precision) 2027 David Chang 55 Director (representative, Siliconware Precision) 2027 Silvia Su 54 Director / Vice President, Finance and Accounting Management Center / Corporate Governance Officer 2027 Yuh-Fong Tang 69 Independent Director 2027 Yeong-Her Wang 68 Independent Director 2027 Jyh-Chau Wang 62 Independent Director 2027 Hong-Tzer Yang 64 Independent Director 2027 Fu-Chen Lin 54 Independent Director 2027 Vincent Hsu 56 Executive Vice President — D.Y.
He served in Gloria Material Technology Corp. and Philips Electronic Building Elements (Taiwan) Ltd. Mr. Tsai holds a master degree from the Resources Engineering of National Cheng Kung University in Taiwan. Board Diversity The table below provides certain information regarding the diversity of our Board of Directors.
He served in Gloria Material Technology Corp. and Philips Electronic Building Elements (Taiwan) Ltd. Mr. Tsai holds a master degree from the Resources Engineering of National Cheng Kung University in Taiwan. 55 Compensation The aggregate compensation paid in 2024 to our directors and our executive officers, including cash and accrued pension payable upon retirement, was approximately NT$100 million (US$3 million).
Chan has a LL.B. degree from National Taiwan University and a LL.M. degree from Boston University School of Law. She was admitted to practice law in Taiwan and New York, USA. Yeong-Her Wang has served as one of our directors since July 2021.
He holds a Ph.D. degree in Electrical Engineering from University of Illinois, USA. 54 Yeong-Her Wang has served as one of our directors since July 2021.
Hui-Fen Chan has served as one of our directors since July 2021. She has been the independent director, audit committee member and compensation committee member of ITEQ Corporation since June 2009. She has been the independent director of FORMOSA I WIND POWER CO., LTD. and the director of Uniconn Interconnections Technology Co., Ltd. since February 2020 and June 2023, respectively.
Yuh-Fong Tang has served as one of our directors since May 2024. He has served as the independent director and audit committee member, and compensation committee member of OPNET Technologies Co., Ltd. since June 2023 and June 2015, respectively. He was the chairman of Intelligent Silicon Solution Corporation from May 2022 to August 2024.
She was the general counsel of Altek Corporation from April 2010 to July 2018, the compensation committee member and M&A committee member of MAG.LAYERS Scientific-Technics Co., Ltd. from June 2015 to June 2018 and the independent director, audit committee member and compensation committee chairman of STARK Technology Inc. from June 2016 to May 2022, and the director of Raku Co., Ltd. from June 2020 to August 2022.
He was the consultant of Intelligent Silicon Solution Corporation from February 2018 to May 2022. He was the independent director, audit committee member and compensation committee member of the Company from June 2013 to July 2021.
Su has been the representative and director of Tsai Fu Investment Co., Ltd. since February 2020. She joined the Group from 2000. She was the director of finance division of ThaiLin from June 2013 till ThaiLin was merged with and into the Company in June 2015.
She was the supervisor of Unimos Shanghai from October 2017 to April 2024 and director of finance division of ThaiLin from June 2013 till ThaiLin was merged with and into the Company in June 2015. She holds a bachelor’s degree in Accounting from National Chengchi University and a master’s degree in Business Administration from the University of Leeds.
Removed
She holds a bachelor’s degree in Accounting from National Chengchi University and a master’s degree in Business Administration from the University of Leeds. Chin-Shyh Ou has served as one of our directors since June 2007. Mr. Ou has been the independent director, audit committee member and compensation committee member of Tsang Yow Industrial Co., Ltd. since June 2018.
Added
The business address for our directors and executive officers is No. 1, R&D Road 1, Hsinchu Science Park, Hsinchu, Taiwan, ROC.
Removed
In 1998, he joined National Chung Cheng University as a professor of the Department of Accounting and Information Technology. He has been an honorary professor of the Department of Accounting and Information Technology at National Chung Cheng University since February 2018. Mr. Ou earned a Ph.D. degree in Business Administration (Accounting) from the University of Minnesota, USA. Mr.
Added
He was the chairman and chief executive officer of Myson Century, Inc. from June 2012 to January 2018, the chairman of ZAVIO Inc. from December 2015 to January 2018 and the chairman of compensation committee of Carnival Industrial Corporation from February 2012 to June 2017.
Removed
Ou holds several professional licenses and qualifications, including U.S. Certified Public Accountant and Certified Internal Auditor and Taiwan Certified Public Accountant. 54 Kuei-Ann Wen has served as one of our directors since June 2015. Ms.
Added
He was the independent director of Yulon IT Solutions Inc. from 2007 to May 2013, the supervisor of TrueLight Corporation from January 2009 to November 2010 and vice chairman of Pack-Link Management Corp. from August 2000 to June 2007.
Removed
Wen has been the professor of Institute of Electronics, the chief executive officer of Social Responsibility Development Office, the professor of International College of Semiconductor Technology and the deputy director of Center for Healthy Longevity and Aging Sciences at National Yang Ming Chiao Tung University since February 2002, August 2012, August 2016 and February 2022, respectively.
Added
He has served as the director of Innolux Corporation and the chairman of Innolux Education Foundation since June 2020. He has served as the director of InnoCare Optoelectronics Corporation since November 2021 and chairman and chief executive officer of eLux Inc since November 2023.
Removed
She also has served as the independent director, audit committee member and compensation committee member of Xintec Inc. since June 2016. Ms.
Added
He was the chairman and chief executive officer, and president of Innolux Corporation from May 2016 to June 2018 and from May 2016 to March 2017, respectively. He joined Chi Mei Optoelectronics Corporation as a plant director in January 2003 and leaved as a president in February 2013.
Removed
Wen was the associate dean of Office of Research and Development at National Chiao Tung University from 2011 to 2016 and she also was the associate dean of College of Electrical and Computer Engineering at National Chiao Tung University. She holds a Ph.D. degree from Electrical Engineering at National Cheng Kung University.
Added
He was the vice president of Chi Lin Technology Co., Ltd. from March 2001 to January 2003 and the deputy plant director of Unipac Optoelectronics Corp. from April 1990 to January 2001. He holds a master’s degree in Materials Engineering from National Tsing-Hua University. Hong-Tzer Yang has served as one of our directors since July 2021.
Removed
She also has been the independent director, audit committee member and compensation committee member of Taiwan Mask Corp., since May 2022, May 2022 and August 2022, respectively. She has been the attorney of R&S Intel. Attorneys at Law since February 2024.
Added
He has been the director of AeroVision Avionics Inc. since July 2021.
Removed
She was the general counsel of Siliconware Precision from March 2006 to March 2010. She was the partner of Hong-Li Attorneys-at-Law from April 1994 to June 2004 and the associate attorney of Lee & Li Attorneys-at-Law from April 1992 to March 1994. Ms.
Added
He was the deputy director of Research Center for Energy Technology and Strategy, and the chair and director of Department and Institute of Electrical Engineering at National Cheng Kung University from February 2013 to July 2024 and August 2017 to July 2020, respectively. He was the director of Taiwan Electric Research and Testing Center from March 2021 to December 2023.
Removed
Board Diversity Matrix (As of February 29, 2024) Country of Principal Executive Offices Taiwan, R.O.C.
Added
Fu-Chen Lin has served as one of our directors since May 2024. She was the CIO/special assistant of CHANG WAH Electromaterials Inc. from January 2017 to January 2023, the head of investment of WAH LEE Industrial corp. from October 2014 to December 2016, and the director of Deloitte & Touche Financial Advisory Corporation from August 2009 to January 2014.
Removed
Foreign Private Issuer Yes Disclosure Prohibited under Home Country Law No Total Number of Directors 9 Female Male Non-Binary Did Not Disclose Gender Part I: Gender Identity Directors 3 6 0 0 Part II: Demographic Background Underrepresented Individual in Home Country Jurisdiction 0 LGBTQ+ 0 Did Not Disclose Demographic Background 0 Compensation The aggregate compensation paid in 2023 to our directors and our executive officers, including cash and accrued pension payable upon retirement, was approximately NT$101 million (US$3 million).
Removed
The objectives of our nomination committee include: (i) to laying down the standards of independence and a diversified background covering the expertise, skills, experience, gender, etc. of members of the board, and finding, reviewing, and nominating candidates for directors based on such standards, (ii) to establishing and developing the organizational structure of the board and each functional committee, and (iii) to establishing and reviewing on the succession plans of directors.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

7 edited+0 added−1 removed3 unchanged
Biggest changeAs of December 31, 2023, the equity transfer was not completed, and therefore, the assets and the equity related to Unimos Shanghai have been reclassified to non-current assets held for sale according to IFRS 5, “Non-current Assets Held for Sale and Discontinued Operations”. See Note 14 to our consolidated financial statements contained in this Annual Report on Form 20-F.
Biggest changeSee Note 14 to our consolidated financial statements contained in this Annual Report on Form 20-F.
Major Shareholders and Related Party Transactions Major Shareholders The following table and information set out certain information known to us concerning the record ownership of our shares as of March 28, 2022, April 1, 2023 and April 1, 2024 (our most recent record date) (1) beneficially owned five percent or more of our common shares as of such record date and (2) our directors and executive officers as a group.
Major Shareholders and Related Party Transactions Major Shareholders The following table and information set out certain information known to us concerning the record ownership of our shares as of April 1, 2023, April 1, 2024, and March 29, 2025 (our most recent record date) (1) beneficially owned five percent or more of our common shares as of such record date and (2) our directors and executive officers as a group.
March 28, 2022 April 1, 2023 April 1, 2024 (1) Name of Beneficial Owners Numbers of Shares Owned Percentage of Shares Owned Numbers of Shares Owned Percentage of Shares Owned Numbers of Shares Owned Percentage of Shares Owned Depositary (2) 88,642,054 12.19 % 87,425,054 12.02 % 87,129,434 11.98 % Siliconware Precision Industries Co., Ltd. 78,910,390 10.85 % 78,910,390 10.85 % 78,910,390 10.85 % Yann Yuan Investment Co., Ltd. 41,200,000 5.67 % 41,200,000 5.67 % 41,200,000 5.67 % Directors and executive officers, as a group (3) 85,883,354 (4) 11.82% (4) 85,883,354 11.82 % 85,883,354 11.82 % Notes: (1) Our most recent record date.
April 1, 2023 April 1, 2024 March 29, 2025 (1) Name of Beneficial Owners Numbers of Shares Owned Percentage of Shares Owned Numbers of Shares Owned Percentage of Shares Owned Numbers of Shares Owned Percentage of Shares Owned Siliconware Precision Industries Co., Ltd. 78,910,390 10.85 % 78,910,390 10.85 % 78,910,390 10.85 % Depositary (2) 87,425,054 12.02 % 87,129,434 11.98 % 72,526,594 9.97 % Yann Yuan Investment Co., Ltd. 41,200,000 5.67 % 41,200,000 5.67 % 41,200,000 5.67 % Directors and executive officers, as a group (3) 85,883,354 11.82 % 85,883,354 11.82 % 85,883,354 11.82 % Notes: (1) Our most recent record date.
Citibank, N.A., has advised us that, as of February 29, 2024, 4,292,670 ADSs, representing 85,853,414 common shares, were held of record by Cede & Co. and 29 other registered shareholders domiciled in and outside of the United States. We have no further information as to common shares held, or beneficially owned, by US persons.
Citibank, N.A., has advised us that, as of February 28, 2025, 3,686,038 ADSs, representing 73,720,774 common shares, were held of record by Cede & Co. and 28 other registered shareholders domiciled in and outside of the United States. We have no further information as to common shares held, or beneficially owned, by US persons.
Under the proposed agreement, ChipMOS BVI will sell its entire remaining 45.0242% equity interests in Unimos Shanghai to Suzhou Oriza PuHua ZhiXin Equity Investment Partnership (L.P.) and other local Chinese investment management companies.
Under the agreement, ChipMOS BVI sold its entire remaining 45.0242% equity interests in Unimos Shanghai to Suzhou Oriza PuHua ZhiXin Equity Investment Partnership (L.P.) and other local Chinese investment management companies. No longer a related party after the completion of the equity transfer in May 2024.
(4) As of March 31, 2022. Except for holders of our ADSs, none of our major shareholders have different voting rights from those of other shareholders. As of February 29, 2024, a total of 727,240,126 common shares were outstanding.
Except for holders of our ADSs, none of our major shareholders have different voting rights from those of other shareholders. As of February 28, 2025, a total of 720,882,126 common shares were outstanding. With certain limited exceptions, holders of common shares that are not ROC persons are required to hold their common shares through their custodians in the ROC.
With certain limited exceptions, holders of common shares that are not ROC persons are required to hold their common shares through their custodians in the ROC. As of February 29, 2024, 85,853,414 common shares were registered in the name of a nominee of Citibank, N.A., the Depositary under our ADSs Deposit Agreement.
As of February 28, 2025, 73,720,774 common shares were registered in the name of a nominee of Citibank, N.A., the Depositary under our ADSs Deposit Agreement.
Removed
Total consideration under the proposed all-cash sale of RMB 979.3 million will be paid to ChipMOS BVI in two installments, with the second installment to be paid six months after the first installment.

Other IMOS 10-K year-over-year comparisons