May, 2018
Industry Leading Provider of Outsourced Semiconductor Assembly, Test & Bumping Services
Safe Harbor Notice
� This presentation contains certain forward-looking statements. These forward-looking statements may be identified by words such as ‘believes,’ ‘expects,’ ‘anticipates,’ ‘projects,’ ‘intends,’ ‘should,’ ‘seeks,’ ‘estimates,’ ‘future’ or similar expressions or by discussion of, among other things, strategy, goals, plans or intentions. These statements include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, products and services, and statements regarding future performance. Actual results may differ materially in the future from those reflected in forward-looking statements contained in this document, due to various factors. Actual results may differ materially in the future from those reflected in forward-looking statements contained in this document, due to various factors. Further information regarding these risks, uncertainties and other factors are included in the Company’s most recent Annual Report on Form 20-F filed with the U.S. Securities and Exchange commission (the “SEC”) and in the Company’s other filings with the SEC.
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Group Snapshot
Manufacturing footprint in China & Taiwan
Shanghai, ChinaChipMOS Shanghai
(JV with Unigroup)
Hsinchu, TaiwanChipMOS Taiwan
Tainan, TaiwanChipMOS Taiwan
Overview
(1) As of April 30, 2018
Key milestones
20012000 2011 2014 20182015 2016
• Started TCP package for LCD driver IC and 12" wafer assembly and testing business
• ChipMOS Bermuda listed common shares on the Nasdaq exchange market
• Set up 12” Gold bumping, Cu RDL, MCP, Cu pillar, MCB bumping and WLCSP line
• Listed ChipMOS Taiwan on TWSE
• Announced the merger between ChipMOS Taiwan and ThaiLin
• Invested in JMC and Ryowa
• ChipMOS Taiwan merged ThaiLin
• Announced strategic partnership with Tsinghua Unigroup
• ChipMOS Taiwan merged ChipMOS Bermuda and issued ADS (Nasdaq Ticker: IMOS)
2017
• Completed whole investment tranche of Shanghai facility in Q1
� Founded : 1997
� Headquarters : Hsinchu, Taiwan
� Ticker Symbol : TWSE : 8150.TWNASDAQ : IMOS (ADS)
� Employees (1) : Taiwan : 5,785
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• ChipMOS Taiwan formed Shanghai JV with Tsinghua Unigroup
Corporate Holding Structure
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ChipMOS Taiwan
Shanghai employee and strategic
investors
7%
� Strategic investors led by Tsinghua Unigroup have invested RMB 498.43 million for a 54.98% stake in ChipMOS Shanghai-JV closed on March 24, 2017
� Capital injection already done in March 2018, ChipMOS Shanghai received a total RMB 1,074 million in funding
� ChipMOS is not consolidating ChipMOS Shanghai post the JV closure. ChipMOS Shanghai becomes a long-term investment of ChipMOS and recognized profit/loss generated pro rata.
ChipMOS Positioned to Expand Market Leadership
MemoryDDIC
Core
Technology
Mixed Signal
� Offer turn-key solutions for core technology product segments
� Dedicated OSAT capacity and strategically focused on collaboration-driven growth
� Leverage current partnerships to expand customer base
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Q1’18: 8%
Q1’18: 45% Q1’18: 47%
Turnkey, High-yield, OSAT Partner of Choice
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� Memory Supply Chain
DesignWafer probing
(ChipMOS)Ass’y/Test (ChipMOS) ModuleFoundry
Design FoundryWafer probing
(ChipMOS)COF/COG (ChipMOS)
Bumping (ChipMOS)
COF film Manufacture
Panel Module
� DDIC Supply Chain
�D D I C
Diversified Product Portfolio on Higher Growth Mark ets Q118
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DDIC
38%Smart Mobile
19%Consumer
12%Computing
22% 9%TV Auto/Industry
Smart phoneTabletWearable device
DSC, STBPen driverGameSmart speaker
PC/LaptopServer, SSDHard diskCrypto-mining
UHD/4K TV Industrial PCIn-car InfotainmentADAS
Memory & Mixed-signal
High ChipMOS Content in Smartphones
� DDIC:COG &12”COFTDDIOLED driver
� Power IC (Load switch)
� MEMS:E-compass, Gyro, …
� Niche DRAMLow power DRAM, mobile DRAM
� NOR (OLED panel, TDDI)
� Biometric sensor
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Growth in New Advanced Applications Market
Interconnection
Infotainment
NOR Flash NAND Flash
NOR FlashDDIC ADAS
Niche DRAM
Powertrain ECUEntertainment system
In-car Sensor
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Electronic Control Unit(ECU)
� Conversion of 12” fine pitch COF for full screen pan el and 18:9 panel
� TDDI/OLED & 3D sensing ramping up
Leverage DDIC Leadership Position
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YoY: 24%QoQ: ~2%
TDDI QoQ: 3.5%
More Intensive Process = Higher ASPs
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UHD TV
ASP ratio(vs. COG for DDIC )
Gro
wth
rat
e
OLED Driver,
TDDI, DDIC
Mobile phone
DDIC
8” COF
COG
12” COG
12” Fine Pitch COF
TDDI
� TDDI & OLED: longer testing time > x2 vs LCD DDIC
� More process procedures
� COG: Au bump – Wafer test (CP) – COG assembly (Lapping, dicing, P&P)
� COF: Au bump – Wafer test (CP) – COF assembly (Lapping, dicing, COF bonding,.. ) – Final test (FT)
New Smartphone Features Driving DDIC Revenue Growth
Source: WitsView Jul. & Aug., 2017
2015 - 2020 AMOLED & TDDI Penetration in Global Smar tphone
� Full-screen/18:9 switches COG to fine pitch COF and AMOLED require COF capacity� Integration of new smartphone features, including TDDI and fine pitch COF, driving need for
added test capacity
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UHD/4K TV Growth DDIC COF Capacity Demand
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2015 - 2020 UHD TV growth
Source: Futuresource consulting, Apr.’2016 & HIS ma rket Jan.’2017
� UHD(4K) TV & OLED propel significant memory/storage market growth in set top boxes, TV, home entertainment systems
� Market penetration of UHD TV accelerating, & drives DDIC COF demand increasing
New Applications Driving Increased NOR Demand
Source: HIS, Gartner, Synaptics, & summarized by Hai tong Securities, 2017
� New end-product & application drive NOR flash demand, and particularly wafer test capacity
� Margin benefit from fully utilized, fully depreciated wafer testers for NOR flash
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Q1’18 Financial Highlights
Q1’18 Revenue Breakdown (unaudited)
17.5%
11.3%
26.5%
27.1%
17.6%
Bumping(incl. RDL/MEMS/PM)
LCD Driver
Assembly
Wafer Sort
Package Test16.5%
7.0%
22.2%
0.8%8.0%
28.2%
17.3%
Au Bumping(incl. RDL)
Logic/Mixed SignalSRAM
Flash
Niche DRAM
Commodity DRAM
DDIC
By Manufacturing Segment By Product
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Q1’18 Capital Expenditures (unaudited)
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CapEx
( NT$ M)
Q1’18 CapEx Breakdown
3,123.3
4,702.7
1,264.1 1,134.6 1,264.1
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
2016 2017 Q1'18 Q1'17 Q1'18
Testing,
29.3%
Assembly,
8.1%LCD Driver,
55.0%
Bumping,
7.6%
Company Website
� http://www.chipmos.com
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