ChipMOS Up After Handing Investors a Bright Outlook By Investing.com

By Dhirendra Tripathi

Investing – ChipMOS (NASDAQ:IMOS) shares rose more than 3% a day after providing a positive outlook at the 2021 Citi Regional Tech Conference.

The company pointed out that tightness in the semiconductor supply chain, a phenomenon that began in 2020, will continue this year too. It said it was seeing strong demand at customer-end and will increase capacity to make DRAM and Flash memory chips.

ChipMOS makes semiconductor assembly and testing services that eventually find a place in devices its clients make.

The company is well placed to continue to benefit from the supply-constrained industry. The lowest utilization rate at two of its four production lines in the last quarter was 81% each.

While large companies like Taiwan Semiconductor Manufacturing (SA:TSMC34) raise their capacities to meet demand from end-user industries like mobiles and automobiles, IMOS will get to service them with its testing and assembling services.

ChipMOS reported 23.1% year-on-year jump to 2.28 billion new Taiwan dollar ($81.84 million) in its revenue for the month of April.