One-glance verdict
Within fair range
$25.50 our estimate vs market $71.78
181% above our estimate
Fundamentals snapshot
ChipMOS TECHNOLOGIES INC.
IMOS · NMS · Technology · Semiconductors
Current price
$71.78
52-week range
$18.94 - $78.35
Market cap
$2.50B
Balance sheet
Stretched
3.80x Stretched
Net debt $107.70M. 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 4001.5% above its 5-year average P/E.
- Risk Forward P/E (71.1x) is higher than trailing (34.8x) - earnings are expected to drop.
What this company does
ChipMOS TECHNOLOGIES INC.
ChipMOS TECHNOLOGIES provides the essential final steps for making computer chips by packaging and testing them for other companies. It makes money by taking a raw silicon chip, putting it into a protective casing, and then testing it to make sure it works perfectly before it goes into a phone, car, or computer. This service makes the company a critical link in the global electronics supply chain (the entire journey of a product from raw materials to the customer), as nearly every electronic device depends on these finished chips.
How the company got here
ChipMOS was founded in Taiwan in 1997, starting as a part of another electronics company. [9] It specializes in the final steps of making a computer chip, a crucial but often overlooked part of the electronics supply chain (the network of companies that produce and distribute a product). The company became publicly traded in the U.S. on the Nasdaq stock exchange in 2001, giving more investors a chance to own a piece of the business. [9] Over the years, it has grown by acquiring other businesses and expanding its facilities to become a major independent provider of chip packaging and testing services. [2, 9]
What it actually does
Think of ChipMOS as a finishing school for computer chips. After a chip is manufactured, it needs to be tested to make sure it works and then packaged in a protective casing before it can be put into a device like your phone or car. ChipMOS doesn't design or make the chips themselves; instead, they provide these essential testing and packaging services for other semiconductor companies. [2, 8] Their work ensures the tiny, powerful chips that run our electronics are reliable and ready to be assembled into the final products we use every day. [2]
Testing
This part of the business is like a quality control department for chips. Before a chip can be used, it has to be checked for defects, and this segment runs a variety of tests on everything from simple chips to complex ones used for memory and high-speed calculations. [10] Chip companies pay ChipMOS to perform these checks on silicon wafers (the thin slices of silicon where chips are made) and on the final packaged chips. This is a significant part of the company's business, ensuring that faulty chips don't end up in our electronic devices. [1]
Assembly
Assembly, also known as packaging, is the process of putting a delicate silicon chip into a durable case that protects it and connects it to a circuit board. This segment creates these protective packages for all sorts of chips, from those in computers to those in cars. [1, 2] Different devices require different types of packages, and ChipMOS offers a wide variety to its customers. This service is one of the largest parts of their business by revenue (the total money a company brings in from sales). [12]
Display Panel Driver Semiconductor Assembly and Testing
This is a specialized business focused on the specific chips that control screens, like the one on your smartphone or TV. These 'driver' chips need their own unique kind of testing and packaging, and ChipMOS provides this as a dedicated service. [1, 4] Companies that make displays and the electronics that use them pay ChipMOS to ensure these critical components work perfectly. This is another major contributor to the company's overall revenue. [1]
Bumping
Bumping is a highly technical step in the chip assembly process. It involves placing tiny solder balls, or 'bumps', onto the chip's surface, which act as the connection points between the chip and its protective package. [2] This is a more advanced packaging technique required for many modern, high-performance chips. ChipMOS offers this service to chip designers and manufacturers who need these sophisticated connections for their products. [6]
What management is betting on now
The company is focusing its efforts on expanding its technology and capacity for high-demand areas like chips for cars, smartphones, and high-performance computing. [14] A major priority is growing their business related to artificial intelligence (AI), where they see strong, long-term customer demand. [13, 14] Management is also investing in making their operations more environmentally friendly, which they refer to as a 'green transformation', to meet global sustainability goals. [14]
Price history
How the share price has moved
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Loading price history…
Is it cheap or expensive?
Fair value $25.50 vs current price $71.78
Our most-likely fair value is $25.50 a share — about 64.5% away from today's price of $71.78, so the stock currently looks fairly priced.
Is it drowning in debt?
Stretched
Net debt $107.7M. Interest coverage 3.8x.
Net debt
$107.70M
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 $505.10M Interest coverage 3.80x This is the baseline the peer rows are being compared against.
Total debt $2.67B Interest coverage 6.20x +63% vs IMOS Carries about 1.6x more debt cushion than IMOS.
Total debt $331.24M 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 $29.91M Interest coverage 115.35x +2,937% vs IMOS Carries about 30.4x more debt cushion than IMOS.
Total debt $9.33B 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 4001.5% above its 5-year average P/E.
-
Forward P/E (71.1x) is higher than trailing (34.8x) - earnings are expected to drop.
-
Insider ownership is only 0.0% (peer median: 2.8%).
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)
34.84x
Forward P/E
71.07x
P/B
3.22x
P/S
0.09x
EV/EBITDA
0.82x
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
$505.10M
Total cash
$397.40M
Growth
How the business has been compounding
Revenue TTM
$851.35M
Revenue 5Y CAGR
0.6%
EPS TTM
2.06
EPS 5Y CAGR
-46.6%
Cash flow
How much cash the business throws off
Operating CF TTM
$126.09M
Free CF TTM
$4.58M
FCF margin
0.5%
Dividend
Shareholder payout
Yield
1.1%
Payout ratio
37.2%
Last ex-div date
2026-06-29