One-glance verdict
Within fair range
$32.96 our estimate vs market $47.35
44% above our estimate
Fundamentals snapshot
ChipMOS TECHNOLOGIES INC.
IMOS · NMS · Technology · Semiconductors
Current price
$47.35
52-week range
$21.93 - $83.84
Market cap
$1.65B
Balance sheet
Stretched
3.80x Stretched
Net debt $104.11M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 5.5% last year.
- Reward Returns 9.3% on equity, ahead of 16% of its peers.
- Risk Stock trades 2541.4% above its 5-year average P/E.
- Risk Forward P/E (46.9x) is higher than trailing (22.4x) - earnings are expected to drop.
What this company does
ChipMOS TECHNOLOGIES INC.
ChipMOS TECHNOLOGIES INC. makes and tests the tiny computer chips that go into electronics like smartphones and TVs. Most of their money comes from these assembly and testing services, which is important because it shows how many companies rely on them to get their chips ready for use. This work is crucial for the whole technology supply chain (the steps involved in making and delivering a product).
How the company got here
ChipMOS TECHNOLOGIES INC. was founded in 1997 in Taiwan, a hub for semiconductor manufacturing. The company quickly established itself by providing essential back-end services for the booming electronics industry. Over the years, ChipMOS has grown by expanding its service offerings and investing in advanced technologies to meet the evolving needs of chip designers and manufacturers. This strategic growth has positioned them as a key player in the semiconductor supply chain.
What it actually does
ChipMOS TECHNOLOGIES INC. is a crucial part of the electronics industry, even though you might not see their name on the final products. They specialize in the "behind-the-scenes" work that makes computer chips and displays function. Think of them as the company that takes the raw silicon wafers, where the chip designs are etched, and prepares them for use in everything from your smartphone to your TV. This involves intricate assembly and testing processes to ensure each tiny chip works perfectly.
Testing
The Testing segment is where ChipMOS ensures that individual semiconductor chips function correctly before they are shipped out to be used in electronic devices. This involves various types of tests, from checking basic digital functions to more complex performance evaluations for memory and mixed-signal chips. This rigorous testing is vital because a single faulty chip can cause an entire electronic device to malfunction, so this service is essential for their clients, who are chip designers and manufacturers.
Assembly
In the Assembly segment, ChipMOS takes the tested silicon wafers and prepares the individual chips for integration into electronic products. This involves packaging the delicate silicon dies into protective casings, often with tiny metal pins or connections, that allow them to be soldered onto circuit boards. They offer different types of packaging, like leadframe-based and substrate-based, depending on the chip's requirements and the final product's needs, making this a fundamental step in chip production.
Display Panel Driver Semiconductor Assembly and Testing
This segment focuses specifically on the chips that control the pixels on displays, like those found in your TV, smartphone, or computer monitor. ChipMOS provides both the assembly and testing services for these specialized "driver" chips. Ensuring these chips work flawlessly is critical for clear and accurate images on screens, making this a vital niche within the broader semiconductor industry.
Bumping
Bumping is a specialized service where tiny metallic bumps are created on the surface of a semiconductor chip. These bumps act as connection points, allowing the chip to be attached to a circuit board or another chip. This process is essential for advanced packaging techniques and for creating more complex integrated circuits, enabling smaller and more powerful electronic devices.
Others
The 'Others' segment encompasses a variety of services that support the main operations, including intellectual property management and turnkey solutions. Turnkey services mean ChipMOS can manage the entire process from start to finish for certain types of chips, such as display driver and memory chips. This includes everything from wafer bumping and testing to final assembly and shipping, offering a comprehensive package to their clients.
What management is betting on now
ChipMOS's management is focused on staying at the forefront of semiconductor technology by investing in advanced assembly and testing capabilities. They are likely prioritizing services for high-growth areas like advanced display technologies and complex integrated circuits. By continuously upgrading their equipment and expertise, they aim to secure long-term partnerships with chip manufacturers who demand cutting-edge solutions. This strategy is crucial for maintaining their competitive edge in the rapidly evolving tech landscape.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $32.96 vs current price $47.35
Our most-likely fair value is $32.96 a share — about 30.4% away from today's price of $47.35, so the stock currently looks fairly priced.
Is it drowning in debt?
Stretched
Net debt $104.1M. Interest coverage 3.8x.
Net debt
$104.11M
Interest coverage
3.80x
ChipMOS TECHNOLOGIES INC.'s profit covers its interest bill about 3.8 times over. which is stronger than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Stretched
Worse cushion
Baseline
Better cushion
IMOS
BASELINE
ChipMOS TECHNOLOGIES INC.
Total debt $488.28M Interest coverage 3.80x This is the baseline the peer rows are being compared against.
Total debt $2.71B Interest coverage 6.20x +63% vs IMOS Carries about 1.6x more debt cushion than IMOS.
Total debt $335.89M Interest coverage -29.03x -100% vs IMOS This peer has almost no interest-payment cushion compared with IMOS.
Total debt $38.12M Interest coverage -293.99x -100% vs IMOS This peer has almost no interest-payment cushion compared with IMOS.
Total debt $27.76M Interest coverage 115.35x +2,937% vs IMOS Carries about 30.4x more debt cushion than IMOS.
Total debt $12.03B Interest coverage 6.89x +81% vs IMOS Carries about 1.8x more debt cushion than IMOS.
What you should know
The case for and against IMOS
3 Rewards
3 Risks
Rewards
-
Revenue grew 5.5% last year.
-
Returns 9.3% on equity, ahead of 16% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
-
Stock trades 2541.4% above its 5-year average P/E.
-
Forward P/E (46.9x) is higher than trailing (22.4x) - earnings are expected to drop.
-
Insider ownership is only 0.0% (peer median: 2.6%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
22.44x
Forward P/E
46.88x
P/B
2.16x
P/S
0.06x
EV/EBITDA
0.68x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
14.7%
Operating margin
12.8%
Net margin
8.3%
ROE
9.3%
ROA
3.4%
Health
Liquidity and balance-sheet strength
Debt / equity
0.64x
Current ratio
2.39x
Quick ratio
1.90x
Total debt
$488.28M
Total cash
$384.17M
Growth
How the business has been compounding
Revenue TTM
$822.99M
Revenue 5Y CAGR
0.6%
EPS TTM
2.11
EPS 5Y CAGR
-46.6%
Cash flow
How much cash the business throws off
Operating CF TTM
$121.89M
Free CF TTM
$4.43M
FCF margin
0.5%
Dividend
Shareholder payout
Yield
1.7%
Payout ratio
36.4%
Last ex-div date
2026-06-29