# EDGAR Filing Document

**Accession Number:** 0001123134
**File Stem:** 0001193125-26-153743
**Filing Date:** 2026-4
**Character Count:** 625211
**Document Hash:** fe9bdab389c536fd9c62e04cd62fbd5f
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-26-153743.hdr.sgml**: 20260414

**ACCESSION NUMBER**: 0001193125-26-153743

**CONFORMED SUBMISSION TYPE**: 20-F

**PUBLIC DOCUMENT COUNT**: 195

**CONFORMED PERIOD OF REPORT**: 20251231

**FILED AS OF DATE**: 20260414

**DATE AS OF CHANGE**: 20260414

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** CHIPMOS TECHNOLOGIES INC
- **CENTRAL INDEX KEY:** 0001123134
- **STANDARD INDUSTRIAL CLASSIFICATION:** SEMICONDUCTORS & RELATED DEVICES [3674]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 000000000
- **STATE OF INCORPORATION:** F5
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 20-F
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-37928
- **FILM NUMBER:** 26859098

**BUSINESS ADDRESS:**
- **STREET 1:** NO. 1, R & D ROAD 1
- **STREET 2:** HSINCHU SCIENCE PARK, HSINCHU
- **CITY:** TAIWAN
- **STATE:** F5
- **ZIP:** 00000
- **BUSINESS PHONE:** 866-3-5770055

**MAIL ADDRESS:**
- **STREET 1:** NO. 1, R & D ROAD 1
- **STREET 2:** HSINCHU SCIENCE PARK, HSINCHU
- **CITY:** TAIWAN
- **STATE:** F5
- **ZIP:** 00000

?xml version='1.0' encoding='ASCII'? 20-F

**As filed with the Securities and Exchange Commission on April 14, 2026**

**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION** 

**Washington, D.C. 20549** 

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**FORM** 20-F

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☐ **REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934** 

**OR** 

☒ **ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** 

**For the fiscal year ended** December 31**,** 2025

**OR** 

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**OR**

☐ **SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**Date of event requiring this shell company report** 

**Commission file number** 001–37928

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南茂科技股份有限公司

**(Exact Name of Registrant as Specified in Its Charter)** 

------

ChipMOS TECHNOLOGIES INC.

**(Translation of Registrant's Name into English)** 

Republic of China

**(Jurisdiction of Incorporation or Organization)** 

No. 1, R&D Road 1**,** Hsinchu Science Park

Hsinchu 300-092**,** Taiwan**, Republic of China** 

**(Address of Principal Executive Offices)** 

Silvia Su

**Vice President, Finance and Accounting Management Center** 

**ChipMOS TECHNOLOGIES INC.** 

No. 1, R&D Road 1**,** Hsinchu Science Park

Hsinchu 300-092**,** Taiwan**, Republic of China** 

**Telephone: +**886**-**3-577-0055

**Facsimile: +886-3-566-8970** 

**(Name, Telephone, E-mail and/or Facsimile Number and Address of Company Contact Person)** 

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**Securities registered or to be registered pursuant to Section 12(b) of the Act:** 

---

| | | |
|:---|:---|:---|
| **Title of Each Class**<br>| &nbsp;&nbsp;&nbsp;**Trading**<br>**Symbol(s)**<br>| &nbsp;&nbsp;&nbsp;**Name of Each Exchange**<br>**on Which Registered**<br>|
| Common Shares, par value NT$10 per share**\*** | IMOS**\*** | **The** NASDAQ **Global Select Market\*** |

---

**Securities registered or to be registered pursuant to Section 12(g) of the Act:** 

**None** 

**(Title of Class)** 

**Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act:** 

**None** 

**(Title of Class)** 

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Indicate the number of outstanding shares of each of the issuer's classes of capital or common stock as of the close of the period covered by the annual report.

As of December 31, 2025, 699,983,126 Common Shares, par value NT$10 each, were outstanding.

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. Yes ☐ No ☒

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or an emerging growth company. See definition of "large accelerated filer", "accelerated filer", and "emerging growth company" in Rule 12b-2 of the Exchange Act. :

Large Accelerated Filer ☒ Accelerated Filer ☐ Non-Accelerated Filer ☐ Emerging growth company ☐

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing.

U.S. GAAP ☐ International Financial Reporting Standards as issuedby the International Accounting Standards Board ☒ Other ☐

If "Other" has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow.

Item 17 ☐ Item 18 ☐

If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

\* Not for trading, but only in connection with the listing on the NASDAQ Global Select Market of American Depositary Receipts evidencing

American Depositary Shares (the "ADSs"), each representing 20 common shares of ChipMOS TECHNOLOGIES INC.

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**TABLE OF CONTENTS** 

**ChipMOS TECHNOLOGIES INC.** 

---

| | | |
|:---|:---|:---|
| [<u>CAUTIONARY STATEMENT FOR PURPOSES OF THE "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995</u>](#cautionary_statement_for_purposes_of_the) | [<u>CAUTIONARY STATEMENT FOR PURPOSES OF THE "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995</u>](#cautionary_statement_for_purposes_of_the) | 1 |
| [<u>PART I</u>](#part_i) | [<u>PART I</u>](#part_i) | 3 |
| Item 1. | [<u>Identity of Directors, Senior Management and Advisers</u>](#item_1_identity_of_directors_senior_mana) | 3 |
| Item 2. | [<u>Offer Statistics and Expected Timetable</u>](#item_2_offer_statistics_and_expected) | 3 |
| Item 3. | [<u>Key Information</u>](#item_3_key_information) | 3 |
| Item 4. | [<u>Information on the Company</u>](#item_4_information_on_the_company) | 16 |
| Item 4A. | [<u>Unresolved Staff Comments</u>](#item_4a_unresolved_staff_comments) | 42 |
| Item 5. | [<u>Operating and Financial Review and Prospects</u>](#item_5_operating_and_financial_review) | 42 |
| Item 6. | [<u>Directors, Senior Management and Employees</u>](#item_6_directors_senior_management) | 53 |
| Item 7. | [<u>Major Shareholders and Related Party Transactions</u>](#item_7_major_shareholders_and_related) | 58 |
| Item 8. | [<u>Financial Information</u>](#item_8_financial_information) | 58 |
| Item 9. | [<u>The Offer and Listing</u>](#item_9_the_offer_and_listing) | 59 |
| Item 10. | [<u>Additional Information</u>](#item_10_additional_information) | 59 |
| Item 11. | [<u>Quantitative and Qualitative Disclosure about Market Risk</u>](#item_11_quantitative_and_qualitative) | 72 |
| Item 12. | [<u>Description of Securities Other Than Equity Securities</u>](#item_12_description_of_securities_other) | 73 |
| [<u>PART II</u>](#part_ii) | [<u>PART II</u>](#part_ii) | 75 |
| Item 13. | [<u>Defaults, Dividend Arrearages and Delinquencies</u>](#item_13_defaults_dividend_arrearages) | 75 |
| Item 14. | [<u>Material Modifications to the Rights of Security Holders and Use of Proceeds</u>](#item_14_material_modifications_to_the) | 75 |
| Item 15. | [<u>Controls and Procedures</u>](#item_15_controls_and_procedures) | 75 |
| Item 16A. | [<u>Audit Committee Financial Expert</u>](#item_16a_audit_committee_financial) | 76 |
| Item 16B. | [<u>Code of Ethics</u>](#item_16b_code_of_ethics) | 76 |
| Item 16C. | [<u>Principal Accountant Fees and Services</u>](#item_16c_principal_accountant_fees) | 76 |
| Item 16D. | [<u>Exemptions from the Listing Standards for Audit Committees</u>](#item_16d_exemptions_from_the_listing) | 76 |
| Item 16E. | [<u>Purchases of Equity Securities by the Issuer and Affiliated Purchasers</u>](#item_16e_purchases_of_equity_securities) | 76 |
| Item 16F. | [<u>Change in Registrant's Certifying Accountant</u>](#item_16f_change_in_registrants) | 77 |
| Item 16G. | [<u>Corporate Governance</u>](#item_16g_corporate_governance) | 77 |
| Item 16H. | [<u>Mine Safety Disclosure</u>](#item_16h_mine_safety_disclosure) | 79 |
| Item 16I. | [<u>Disclosure Regarding Foreign Jurisdictions that Prevent Inspections</u>](#item_16i_disclosure_regarding_foreign) | 79 |
| Item 16J. | [<u>Insider Trading Policies</u>](#item_16j_insider_trading_policies) | 79 |
| Item 16K. | [<u>Cybersecurity</u>](#item_16k_cybersecurity) | 79 |
| [<u>PART III</u>](#part_iii) | [<u>PART III</u>](#part_iii) | 81 |
| Item 17. | [<u>Financial Statements</u>](#item_17_financial_statements) | 81 |
| Item 18. | [<u>Financial Statements</u>](#item_18_financial_statements) | 81 |
| Item 19. | [<u>Exhibits</u>](#item_19_exhibits) | 81 |

---

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**CAUTIONARY STATEMENT FOR PURPOSES OF THE "SAFE HARBOR" PROVISIONS OF** 

**THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995** 

Except for historical matters, the matters discussed in this Annual Report on Form 20-F are forward-looking statements that are subject to a number of significant risks and uncertainties and are based on information as of the date hereof. These statements are generally indicated by the use of forward-looking terminology such as the words "anticipate", "believe", "estimate", "expect", "intend", "may", "plan", "project", "will", "could", "might", "should" and other words and phrases of similar import that express an indication of actions or results of actions that may or are expected to occur in the future. These statements appear in a number of places throughout this Annual Report on Form 20-F and include statements regarding our intentions, beliefs or current expectations concerning, among other things, our results of operations, financial condition, liquidity, prospects, growth, strategies and the industries in which we operate.

By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking statements are not guarantees of future performance and our actual results of operations, financial condition and liquidity, and the development of the industries in which we operate may differ materially from those made in or suggested by the forward-looking statements contained in this Annual Report on Form 20-F. Important factors that could cause those differences include, but are not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the volatility of the semiconductor industry and the market for end-user applications for semiconductor products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•overcapacity in the semiconductor assembly and testing markets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the increased competition from other companies and our ability to retain and increase our market share;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to successfully develop new technologies and remain a technological leader;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to maintain control over capacity expansion and facility modifications;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to generate growth or profitable growth;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to hire and retain qualified personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to acquire required equipment and supplies to meet customer demand;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to raise debt or equity financing as required to meet certain existing obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our reliance on the business and financial condition of certain major customers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the success of any of our future acquisitions, investments or joint ventures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the outbreak of contagious disease and occurrence of earthquakes, typhoons and other natural disasters, as well as industrial accidents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the political stability of the regions in which we conduct operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•general local and global economic and financial conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the potential impact of the Coronavirus Disease 2019 ("COVID-19") pandemic on our operations or the operations of our supply chain or our customers; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•other factors set forth under the heading "Item 3. Key Information—Risk Factors" of this Annual Report on Form 20-F.

The factors identified above are believed to be important factors (but not necessarily all of the important factors) that could cause actual results to differ materially from those expressed in any forward-looking statement made by us. Other factors not discussed herein could also have material adverse effects on us. All forward-looking statements included in this Annual Report on Form 20-F are expressly qualified in their entirety by the foregoing cautionary statements. We undertake no obligation to update any forward-looking statement (or its associated cautionary language), whether as a result of new information or future events.

Forward-looking statements include, but are not limited to, statements regarding our strategy and future plans, future business condition and financial results, our capital expenditure plans, our capacity expansion plans, our investments in Mainland China, technological upgrades, investment in research and development, future market demand, future regulatory or other developments in our industry. Please see "Item 3. Key Information—Risk Factors" for a further discussion of certain factors that may cause actual results to differ materially from those indicated by our forward-looking statements.

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**EXCHANGE RATES** 

References to "US$" and "US dollars" are to United States dollars and references to "NT$" and "NT dollars" are to New Taiwan dollars. This Annual Report on Form 20-F contains translations of certain NT dollar amounts into US dollars at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from NT dollars to US dollars and from US dollars to NT dollars were made at the noon buying rate in the City of New York for cable transfers in NT dollars per US dollar as certified for customs purposes by the Federal Reserve Bank of New York as of December 31, 2025, which was NT$31.37 to US$1.00. We make no representation that the NT dollar or US dollar amounts referred to in this Annual Report on Form 20-F could have been or could be converted into US dollars or NT dollars, as the case may be, at any particular rate or at all.

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**PART I** 

**Item 1. Identity of Directors, Senior Management and Advisers** 

Not applicable.

**Item 2. Offer Statistics and Expected Timetable** 

Not applicable.

**Item 3. Key Information** 

**Capitalization and Indebtedness** 

Not applicable.

**Reasons for the Offer and Use of Proceeds** 

Not applicable.

**Risk Factors** 

**Risks Relating to Economic Conditions and the Financial Markets** 

***Global inflation and financial markets disruptions could materially and adversely affect our business and results of operations.*** 

Disruptions in tariff, interest rate rising, financial markets and trade tensions may occur that causes diminished liquidity and limited availability of credit, reduced consumer confidence, reduced economic growth, increased unemployment rates and uncertainty about economic stability. Limited availability of credit in financial markets may lead consumers and businesses to postpone spending. This in turn may cause our customers to cancel, decrease or delay their existing and future orders with us. Particularly, the economics uncertainty caused by trade tensions and inflation, which led the weakness of macro-economic environment, will impact the end product market demand. The softness in broader market demand including smart phones, TVs, PC/servers and other consumer products, directly affects the inventory elimination of our customers. 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.

Financial difficulties experienced by our customers or suppliers as a result of these conditions could lead to production delays and delays or defaults in payment of accounts receivable. We are not able to predict the occurrence, frequency, duration or extent of disruptions in global inflation and financial markets, or when the trade tensions could be settled down. These conditions increase the difficulty of accurately forecasting and planning our business activities. If these conditions and uncertainties occur or continue, or if credit and financial markets and confidence in economic conditions deteriorate, our business and results of operations could be materially and adversely affected.

Meanwhile, conflicts in the Middle East, including conflicts affecting key energy transit routes, could contribute to volatility in global energy prices. This conflict increases global inflation risks and may influence central bank interest rate decisions, adding further economic uncertainty. If these conditions and uncertainties occur or continue, our business and results of operations could be materially and adversely affected.

**Risks Relating to Our Industry** 

***Because we depend on the highly cyclical semiconductor industry, which is characterized by significant and sometimes prolonged downturns from time to time, our revenue and earnings may fluctuate significantly, which in turn could adversely affect our results of operations and could cause the market price of our common shares or of our ADSs to decline.*** 

Because our business is, and will continue to be, dependent on the requirements of semiconductor companies for independent assembly and testing services, any downturn in the highly cyclical semiconductor industry may reduce demand for our services and adversely affect our results of operations. All of our customers operate in this industry and variations in order levels and in service fee from our customers may result in volatility in our revenue and earnings. 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, which in turn may result in reduced demand for our services, adversely affecting our results of operations. From time to time, the semiconductor industry has experienced significant, and sometimes prolonged, downturns which have adversely affected our results of operations. We cannot give any assurances that there will not be any downturn in the future or that any future downturn will not materially and adversely affect our results of operations.

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***Any deterioration in the market for end-user applications for semiconductor products would reduce demand for our services and may result in a decrease in our earnings.*** 

Market conditions in the semiconductor industry track, to a large degree, those for their end-user applications. Any deterioration in the market conditions for the end-user applications of semiconductors we test and assemble could reduce demand for our services and, in turn, could materially adversely affect our financial condition and results of operations. Our revenue is largely attributable to fees derived from testing and assembling semiconductors for use in personal computers, communications equipment, consumer electronic products, automotive and display applications. A significant decrease in demand for products in these markets could put pricing pressure on our assembly and testing services and negatively affect our revenue and earnings. Any significant decrease in demand for end-user applications of semiconductors will negatively affect our revenue and earnings.

***A decline in average selling prices for our services could result in a decrease in our earnings.*** 

Historically, prices for our assembly and testing services in relation to any given semiconductor tend to decline over the course of its product and technology life cycle. See also "— 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". If we cannot reduce the cost of our assembly and testing services, or introduce higher-margin assembly and testing services for new package types, to offset the decrease in average selling prices for our services, our earnings could decrease.

***A reversal or slowdown in the outsourcing trend for semiconductor assembly and testing services could reduce our profitability.*** 

Integrated device manufacturers, or IDMs, continue to increasingly outsource stages of the semiconductor production process, including assembly and testing, to independent companies like us to shorten production cycles. In addition, the availability of advanced independent semiconductor manufacturing services has also enabled the growth of so-called "fabless" semiconductor companies that focus exclusively on design and marketing and outsource their manufacturing, assembly and testing requirements to independent companies. A substantial portion of our revenue is indirectly generated from providing semiconductor assembly and testing services to these IDMs and fabless companies. We cannot assure you that these companies will continue to outsource their assembly and testing requirements to independent companies like us. A reversal of, or a slowdown in, this outsourcing trend could result in reduced demand for our services, which in turn could reduce our profitability.

***Higher raw material costs and electricity charge rate increase would raise our cost and could reduce our profitability.*** 

Our semiconductor assembly and testing operations rely on a variety of materials. Substantially all of the raw materials used in our memory and logic/mixed-signal semiconductor assembly processes consist of interconnect materials such as leadframes, organic substrates, gold wire and molding compound. Raw materials used in the display panel driver semiconductor assembly and testing process include gold, carrier tape, resin, spacer tape, plastic reel, aluminum bags, and inner and outer boxes. These processes involve the use of gold, silver, copper and substrate, the costs of which are subject to market volatility. Fluctuations in raw metal and substrate costs have increased our material cost of assembly. Meanwhile, Taiwan's electricity charge rate increased over time also raised our assembly and test cost. If we are unable to increase our OSAT price nor pass through such cost increases due to industry condition or others reason, it would adversely impact our gross margin and reduce our profitability.

***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. 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, however 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. 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.

On March 11, 2026, the United States Trade Representatives announced the initiation of investigations regarding the acts, policies and practices of various economies, including Taiwan, under Section 301(b) of the Trade Act of 1974. This investigation, expected to conclude by July 2026, could lead to unilateral retaliatory measures, including higher tariffs, which would significantly impact Taiwan's export-oriented electronics and mechanical industries. Any retaliatory measures announced against Taiwan could negatively affect our revenue and earnings.

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**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. 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. Many of our competitors have shown a willingness to reduce prices quickly and sharply in the past to maintain capacity utilization in their facilities during periods of reduced demand. In addition, an increasing number of our competitors conduct their operations in lower cost centers in Asia such as Mainland China. Any renewed or continued erosion in the prices or demand for our assembly and testing services, particularly for display panel driver semiconductor 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.*** 

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, 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, 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.*** 

Our assembly and testing services for Display panel driver semiconductors generated revenue of NT$7,822 million, NT$7,319 million and NT$5,870 million (US$187 million) in 2023, 2024 and 2025, respectively. We invested NT$1,757 million, NT$2,258 million and NT$814 million (US$26 million) in 2023, 2024 and 2025, 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. Most of this equipment may not be used for technologies other than COF or COG. The demand went down since second half of 2025 due to customer inventory adjustment for market softness, and demand is expected to remain weak in 2026. 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. See also "—Because of our high fixed costs, if we are unable to achieve relatively high capacity utilization rates, our earnings and profitability may be adversely affected".

***Our significant amount of indebtedness and interest expense will limit our cash flow and could adversely affect our operations.*** 

We have a significant level of debt and interest expense. As of December 31, 2025, we had approximately NT$12,765 million (US$407 million) outstanding long-term indebtedness. Our long-term indebtedness as of December 31, 2025, represented bank loans with an interest rate from 1.525% to 1.975%. As of December 31, 2025, NT$8,658 million (US$276 million) of our indebtedness was secured by collateral comprised of our assets.

Our significant indebtedness poses risks to our business, including the risks that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•we may have to use a substantial portion of our consolidated cash flow from operations to pay principal and interest on our debt, thereby reducing the funds available for working capital, capital expenditures, acquisitions and other general corporate purposes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•insufficient cash flow from operations may force us to sell assets, or seek additional capital, which we may be unable to do at all or on terms favorable to us;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to sell assets or seek additional capital may be adversely affected by security interests in our assets granted to our lenders as collateral; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our level of indebtedness may make us more vulnerable to economic or industry downturns.

For additional information on our indebtedness, see "Item 5. Operating and Financial Review and Prospects—Liquidity and Capital Resources".

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***Our results of operations may fluctuate significantly and may cause the market price of our common shares or of our ADSs to be volatile.*** 

Our results of operations have varied significantly from period to period and may continue to vary in the future. Among the more important factors affecting our quarterly and annual results of operations are the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to accurately predict customer demand, as we must commit significant capital expenditures in anticipation of future orders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•changes in prices for our assembly and testing services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•volume of orders relative to our assembly and testing capacity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•capital expenditures and production uncertainties relating to the roll-out of new assembly and testing services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to obtain adequate assembly and testing equipment on a timely basis;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•changes in costs and availability of raw materials, equipment and labor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•changes in our product mix; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•earthquakes, global new virus epidemic, climate change and other natural disasters, as well as industrial accidents.

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.

***We rely on key customers for a substantial portion of our revenue and a loss of, or deterioration of the business from, or delayed payment by, any one of these customers could result in decreased revenue and materially adversely affect our results of operations and financial condition.*** 

We rely on a small group of customers for a substantial portion of our business. In 2025, 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 also focus on our business with smaller customers and customers who do not place orders on a regular basis. We expect that we will continue to rely on a relatively limited number of customers for a significant portion of our revenue. 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. Accordingly, if we lose any of our key customers, we may not be able to replace them in a timely manner. If any of our key customers reduces or cancels its orders or terminates existing contractual arrangements, and if we are unable to attract new customers and establish new contractual arrangements with existing or new customers, our revenue could be reduced and our business and results of operations may be materially adversely affected.

***Because of our high fixed costs, if we are unable to achieve relatively high capacity utilization rates, our earnings and profitability may be adversely affected.*** 

Our operations are characterized by a high proportion of fixed costs. For memory and logic/mixed-signal semiconductor testing services, our fixed costs represented 50%, 47% and 47% of our total cost of revenue in 2023, 2024 and 2025, respectively. For memory and logic/mixed-signal semiconductor assembly services, our fixed costs represented 26%, 25% and 23% of our total cost of revenue in 2023, 2024 and 2025, respectively. For Display panel driver semiconductor assembly and testing services, our fixed costs represented 59%, 58% and 61% of our total cost of revenue in 2023, 2024 and 2025, respectively. For bumping services, our fixed costs represented 19%, 17% and 14% of our total cost of revenue in 2023, 2024 and 2025, respectively. Our profitability depends in part not only on absolute pricing levels for our services, but also on the utilization rates for our assembly and testing equipment, commonly referred to as "capacity utilization rates". Increases or decreases in our capacity utilization rates can significantly affect our gross margins as unit costs generally decrease as the fixed costs are allocated over a larger number of units. In the past, our capacity utilization rates have fluctuated significantly as a result of the fluctuations in the market demand for semiconductors. If we fail to increase or maintain our capacity utilization rates, our earnings and profitability may be adversely affected. In addition, the long-term assembly and testing services agreements we entered with certain customers may require us to incur significant capital expenditures. 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.

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***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. 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. In addition, the testing process is subject to human error by our employees who operate our test equipment and related software. 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. Defective packages primarily result from:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•contaminants in the manufacturing environment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•human error;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•equipment malfunction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•defective raw materials; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•defective plating services.

These and other factors have, from time to time, contributed to lower production yields. They may do so in the future, particularly as we expand our capacity or change our processing steps. In addition, to be competitive, we must continue to expand our offering of packages. Our production yields on new packages typically are significantly lower than our production yields on our more established packages. Our failure to maintain high standards or acceptable production yields, if significant and prolonged, could result in a loss of customers, increased costs of production, delays, substantial amounts of returned goods and related claims by customers. Further, to the extent our customers have set target production yields, we may be required to compensate our customers in a pre-agreed manner. Any of these problems could materially adversely affect our business reputation and result in reduced revenue and profitability.

***Because of the highly cyclical nature of our industry, our capital requirements are difficult to plan. If we cannot obtain additional capital when we need it, we may not be able to maintain or increase our current growth rate and our profits will suffer.*** 

As our industry is highly cyclical and rapidly changing, our capital requirements are difficult to plan. To remain competitive, we may need capital to fund the expansion of our facilities as well as to fund our equipment purchases and research and development activities. To meet our liquidity, capital spending and other capital needs, we have taken and plan to take certain measures to generate additional working capital and to save cash. See "Item 5. Operating and Financial Review and Prospects—Liquidity and Capital Resources". We cannot assure you that these plans and measures will be implemented or will provide sufficient sources of capital.

In addition, future capacity expansions or market or other developments may require additional funding. Our ability to obtain external financing in the future depends on a number of factors, many of which are beyond our control. They include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our future financial condition, results of operations and cash flows;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•general market conditions for financing activities by semiconductor assembly and testing companies; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•economic, political and other conditions in Taiwan and elsewhere.

If we are unable to obtain funding in a timely manner or on acceptable terms, our growth prospects and potential future profitability will suffer.

***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.*** 

Our ability to compete successfully and achieve future growth will depend, in part, on our ability to protect our proprietary technologies and to secure, on commercially acceptable terms, critical technologies that we do not own. 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.

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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. We are not able to ascertain what patent applications have been filed in the United States or elsewhere, however, until they are granted. If any third party succeeds in its intellectual property infringement claims against us or our customers, we could be required to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•discontinue using the disputed process technologies, which would prevent us from offering some of our assembly and testing services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•pay substantial monetary damages;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•develop non-infringing technologies, which may not be feasible; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•acquire licenses to the infringed technologies, which may not be available on commercially reasonable terms, if at all.

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. If we fail to obtain necessary licenses on commercially reasonable terms or if litigation, regardless of the outcome, relating to patent infringement or other intellectual property matters occurs, our costs could be substantially increased to impact our margins. Any such litigation could also prevent us from testing and assembling particular products or using particular technologies, which could reduce our opportunities to generate revenue.

***If we are unable to obtain raw materials and other necessary inputs from our suppliers in a timely and cost-effective manner, our production schedules would be delayed and we may lose customers and growth opportunities and become less profitable.*** 

Our operations require us to obtain sufficient quantities of raw materials at acceptable prices in a timely and cost-effective manner. We source most of our raw materials, including critical materials like leadframes, organic substrates, epoxy, gold wire and molding compound for assembly, and tapes for COF, from a limited group of suppliers. We purchase all of our materials on a purchase order basis and have no long-term contracts with any of our suppliers. From time to time, suppliers have extended lead times, increased the price or limited the supply of required materials to us because of market shortages. Consequently, we may, from time to time, experience difficulty in obtaining sufficient quantities of raw materials on a timely basis. In addition, from time to time, we may reject materials that do not meet our specifications, resulting in declines in output or yield. Although we typically maintain at least two suppliers for each key raw material, we cannot assure you that we will be able to obtain sufficient quantities of raw materials and other supplies of an acceptable quality in the future. It usually takes from three to six months to switch from one supplier to another, depending on the complexity of the raw material. If we are unable to obtain raw materials and other necessary inputs in a timely and cost-effective manner, we may need to delay our production and delivery schedules, which may result in the loss of business and growth opportunities and could reduce our profitability.

***If we are unable to obtain additional assembly and testing equipment or facilities in a timely manner and at a reasonable cost, we may be unable to fulfill our customers' orders and may become less competitive and less profitable.*** 

The semiconductor testing and assembly business is capital intensive and requires significant investment in expensive equipment manufactured by a limited number of suppliers. The market for semiconductor assembly and testing equipment is characterized, from time to time, by intense demand, limited supply and long delivery cycles. Our operations and expansion plans depend on our ability to obtain equipment from a limited number of suppliers in a timely and cost-effective manner. We have no binding supply agreements with any of our suppliers and we acquire our assembly and testing equipment on a purchase order basis, which exposes us to changing market conditions and other significant risks. Semiconductor assembly and testing also requires us to operate sizable facilities. If we are unable to obtain equipment or facilities in a timely manner, we may be unable to fulfill our customers' orders, which could negatively impact our financial condition and results of operations as well as our growth prospects. Currently, we do not have any long-term service agreements that require our commitment to acquire additional assembly and testing equipment or facilities. We cannot assure you, however, that such commitment will not be made in the future. See "Item 4. Information on the Company—Customers".

***If we are unable to manage the expansion of our operations and resources effectively, our growth prospects may be limited and our future profitability may be reduced.*** 

We expect to continue to expand the operations and to increase the number of employees. Rapid expansion puts a strain on our managerial, technical, financial, operational and other resources. 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.

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***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"). 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. For example, the ROC Company Act requires that a shareholder that continuously holds at least 1% of our issued and outstanding shares for at least 6 months may request our audit committee to institute an action against a director on the Company's behalf. In addition, the controlling shareholders of U.S. corporations owe fiduciary duties to minority shareholders, while controlling shareholders in ROC corporations do not. 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.

***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. As a result, it may be difficult for our shareholders to serve notice of a lawsuit on us or our directors and officers within the United States. Because most of our assets are located outside the United States, it may be difficult for our shareholders to enforce in the United States judgments of United States courts. Any United States judgments obtained against us will not be enforced by ROC courts if any of the following situations shall apply to such final judgment:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the court rendering the judgment does not have jurisdiction over the subject matter under the ROC law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the judgment was rendered by default, except where the summons or order necessary for the commencement of the action was duly served on us within the jurisdiction of the court rendering the judgment within a reasonable period of time and in accordance with the laws and regulations of such jurisdiction, or with judicial assistance of the ROC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the judgment or the court procedures resulting in the judgment are contrary to the public order or good morals of the ROC; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the judgments of ROC courts are not recognized and enforceable in the jurisdiction of the court rendering the judgment on a reciprocal basis.

***Investor confidence and the market price of our common shares or ADSs may be adversely impacted if we are unable to maintain effective Internal Control over Financial Reporting in accordance with Section 404 of the Sarbanes-Oxley Act of 2002.*** 

We are required to comply with the ROC and US securities laws and regulations in connection with internal controls. As a public company in the United States, our management is required to assess the effectiveness of our internal control over financial reporting using the criteria established in Internal Control – Integrated Framework (2013) issued by Committee of Sponsoring Organization of the Treadway Commission (COSO), as required by Section 404 of the Sarbanes-Oxley Act of 2002. 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, 2025, and concluded those internal controls over financial reporting were effective as of that date. See "Item 15. Controls and Procedures" for more information. Moreover, even if our management concludes that our internal controls over our financial reporting are effective, our independent public registered accounting firm may disagree. If our independent public registered accounting firm is not satisfied with our internal controls over our financial reporting or the level at which our controls are documented, designed, operated or reviewed, or if the independent public registered accounting firm interprets the requirements, rules or regulations differently from us, it may decline to attest our effectiveness of internal controls over financial reporting or may issue an adverse opinion in the future. Any of these possible outcomes could result in an adverse reaction in the financial marketplace due to a loss of investor confidence in the reliability of our consolidated financial statements, which ultimately could negatively impact the market prices of our common shares or ADSs.

***Any environmental claims or failure to comply with any present or future environmental regulations, or any new environmental regulations, may require us to spend additional funds, may impose significant liability on us for present, past or future actions, and may dramatically increase the cost of providing our services to our customers.*** 

We are subject to various laws and regulations relating to the use, storage, discharge and disposal of chemical by-products of, and water used in, our assembly and gold bumping processes. Although we have not suffered material environmental claims in the past, a failure or a claim that we have failed to comply with any present or future regulations could result in the assessment of damages or imposition of fines against us, suspension of production or a cessation of our operations or negative publicity. 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.

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***Fluctuations in exchange rates could result in foreign exchange losses.*** 

Currently, we are nearly 52% 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. 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 also have debt denominated in NT dollars, Japanese yen, and US dollars. Fluctuations in exchange rates, primarily among the US dollar, the NT dollar and the Japanese yen, will affect our costs and operating margins in NT dollar terms. In addition, these fluctuations could result in exchange losses and increased costs in NT dollar terms. 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.*** 

To implement our business strategy requires us to enter into acquisition, investment, joint venture and disposition transactions. These transactions may not be successful to maintain or grow our business. On December 21, 2023, the Company's Board of Directors approved its wholly-owned subsidiary, ChipMOS TECHNOLOGIES (BVI) LTD., ("ChipMOS BVI") to sell its entire 45.0242% equity interests in Unimos Microelectronics (Shanghai) Co., Ltd. ("Unimos Shanghai") for a total sale price of RMB 979.3 million in cash. 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 success of our acquisitions, investments, joint ventures and dispositions depends on a number of factors, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to identify suitable investment, acquisition, joint venture or disposition opportunities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to reach an agreement for an acquisition, investment, joint venture or disposition opportunity on terms that are satisfactory to us or at all;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the extent to which we are able to exercise control over the acquired or joint venture company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to align the economic, business or other strategic objectives and goals of the acquired company with those of our company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to successfully integrate the acquired or joint venture company or business with our company.

If we are unsuccessful in our acquisitions, investments, joint ventures and dispositions, we may not be able to implement fully our business strategy to maintain or grow our business.

***We rely on key personnel, and our revenue could decrease and our costs could increase if we lose their services.*** 

We depend on the continued service of our executive officers and skilled engineering, technical and other personnel. We will also be required to hire a substantially greater number of skilled employees in connection with our expansion plans. In particular, we depend on a number of skilled employees in connection with our LCD, OLED, automotive panel and other display panel driver semiconductor assembly and testing services, and the competition for such employees in Taiwan is intense. We may not be able to either retain our present personnel or attract additional qualified personnel as and when needed. Moreover, we do not carry key person insurance for any of our executive officers nor do we have employment contracts with any of our executive officers. If we lose any of our key personnel, it could be very difficult to find and integrate replacement personnel, which could affect our ability to provide our services, resulting in reduced revenue and earnings. 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, 2026, 33% 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. Consequently, 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.

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***If our information technology systems, the information technology systems of our suppliers, and the information technology systems of service providers that share confidential information are subjected to cyberattacks by third parties around the world, our business and operations may be severely disrupted or even shut down, and our operating results, financial condition, prospects and reputation may also be materially and adversely affected.***

Even though we have established a comprehensive internet and computer security network, we cannot guarantee that the computer systems controlling or maintaining critical business functions will be completely protected from cyberattacks. Even if we have deployed tools to mitigate attacks, there is still a possibility that important corporate data could be lost in the event of a cyberattack, or that production lines could be forced to shut down until the problem is resolved. Cyberattacks can also lead to a loss or leakage of trade secrets and other sensitive information. While we continuously review and evaluate our cybersecurity policies and procedures, we cannot guarantee that we will not be affected by new risks and attacks in the ever-evolving cybersecurity threat environment.

Malicious hackers may also attempt to disrupt our operations, extort money from us, regain control of our computer systems, or obtain unauthorized access to our sensitive information using new attack methods. These attacks could result in us paying compensation or damages arising from system delays or outages, incurring substantial costs for implementing remedial and improvement measures to further enhance network security, and could expose us to significant legal liabilities arising from legal proceedings or regulatory investigations related to such violations.

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. While we require such third-party service providers to strictly fulfill the confidentiality and/or internet security requirements in our service agreements with them, there is no assurance that each of them will comply with such obligations. Moreover, such third-party service providers may also be susceptible to cyberattacks. If we or our service providers are not able to timely resolve the respective technical difficulties caused by such cyberattacks, or ensure the confidentiality, integrity and availability of our data (and data belonging to our customers and other third parties) or maintain control of our or our service providers' computing systems, our commitments to our customers and other stakeholders may be materially impaired and our results of operations, financial condition, prospects and reputation may also be materially and adversely affected. 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.*** 

Any future outbreak of contagious diseases, such as avian influenza virus subtypes H5N1, H9N2 and H7N9 and swine influenza virus subtypes H1N1 and H3N2, New Influenza A or more commonly known as the "bird flu" and "swine flu", Severe Acute Respiratory Syndrome ("SARS"), Middle East respiratory syndrome coronavirus ("MERS-CoV"), or COVID-19, for which there is inadequate treatment or no known cure or vaccine, may potentially result in a quarantine of infected employees and related persons, or even significant governmental measures being implemented to control the spread, including, among others, restrictions on travel, manufacturing and the movement of employees in many regions of the world. The occurrence could adversely affect our operations at one or more of our facilities or the operations of our customers or suppliers.

We cannot predict the impact that any further future outbreak of the aforementioned viruses or other diseases could have on our business and results of operations. If any of our employees is suspected of having contracted any contagious disease, we may, under certain circumstances, be required to quarantine such employees and the affected areas of our premises, or adhere to governmental measures to control the spread. As a result, we may have to suspend part or all of our operations temporarily, or may experience delays in product development, a decreased ability to support our customers, and overall lack of productivity. Our customers may also experience closures of their manufacturing facilities or inability to obtain other components, either of which could negatively impact demand for our solutions. In addition, any future outbreak may restrict the level of economic activity in affected regions, which may also adversely affect our businesses. As a result, there is no assurance that any future outbreak of contagious diseases would not have a material adverse effect on our business, financial condition and results of operations.

***We face substantial political risk associated with doing business in the ROC, particularly due to the strained relations between the ROC and the PRC, which could negatively affect our business and the market price of our common shares or ADSs.*** 

Our principal executive offices and our assembly and testing facilities are located in the ROC. As a result, our business, financial condition and results of operations and the market price of our common shares or ADSs may be affected by changes in the ROC governmental policies and the political relationship between the ROC and the PRC, as well as social instability and diplomatic and social developments in or affecting the ROC which are beyond our control. 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. In March 2005, the PRC government enacted the "Anti-Secession Law" codifying its policy of retaining the right to use military force to gain control over Taiwan, particularly under what it considers as highly provocative circumstances, such as a declaration of independence by Taiwan or the refusal by the ROC to accept the PRC's stated "One China" principle.

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The PRC continues to ramp up pressures through various means on the ROC to accept the "One China" principle. It is uncertain how these different measures may affect our financial condition and results of operations, and there is no assurance that any future measures imposed by the PRC or ROC would not adversely affect our financial condition or results of operations.

Past developments related to the interaction between the ROC and the PRC have on occasion depressed the market prices of the securities of Taiwanese or Taiwan-related companies, including our own. We cannot assure you any contentious situations between the ROC and the PRC will resolve in maintaining the current status quo or remain peaceful. Relations between the ROC and the PRC and other factors affecting military, political or economic stability in Taiwan could have a material adverse effect on our financial condition and results of operations, as well as the market price and the liquidity of our common shares or ADSs.

***The business and operations of our business associates and our own business operations are vulnerable to disruptions that may be caused by natural disasters and other events.*** 

The frequency and severity of catastrophic events, including natural disasters and severe weather has been increasing, in part due to climate change or systemic regional geological changes that manifest in damaging earthquakes. ChipMOS has manufacturing and other operations in locations susceptible to natural disasters, such as flooding, earthquakes, tsunamis, typhoons, and droughts that may cause interruptions or shortages in the supply of utilities, such as water and electricity that could disrupt operations. We currently provide most of our testing services through our facilities in the Hsinchu Science Park and the Hsinchu Industrial Park in Taiwan, and all of our assembly services through our facility in the Southern Taiwan Science Park, which are susceptible to earthquakes, tsunamis, flooding, typhoons, and droughts from time to time that may cause shortages in electricity and water or interruptions to our operations. Significant damage or other impediments to these facilities as a result of natural disasters, industrial strikes or industrial accidents could significantly increase our operating costs.

The production facilities of many of our suppliers, customers and providers of complementary semiconductor manufacturing services, including foundries, are also located in Taiwan. If our customers are adversely affected by natural disasters or other events occurring in or affecting these geographic areas, it could result in a decline in the demand for our assembly and testing services. If our suppliers and providers of complementary semiconductor manufacturing services are affected by such events, our production schedule could be halted or delayed. As a result, a major earthquake, other natural disaster, industrial strike, industrial accident or other disruptive event occurring in or affecting Taiwan could severely disrupt our normal operation of business and have a material adverse effect on our financial condition and results of operations.

ChipMOS has occasionally suffered power outages or surges in Taiwan caused by difficulties encountered by its electricity supplier, the Taiwan Power Company, or other power consumers on the same power grid, which have resulted in interruptions to our operations. 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. Earthquake and typhoon strikes have had a substantial impact on the semiconductor industry, such as Typhoon in July 2025, whose severe wind and heavy rain led to large-scale power outages and logistical disruptions across western Taiwan, testing the resilience of the supply chain. We maintain a comprehensive risk management system dedicated to the safety of people, the conservation of natural resources, and the protection of property. In order to effectively handle emergencies and natural disasters, at each facility management has developed comprehensive plans and procedures that focus on risk prevention, emergency response, crisis management and business continuity. All ChipMOS manufacturing factories have been ISO 14001 certified (environmental management system) and ISO 45001 certified (occupational health and safety management system).

ChipMOS pays special attention to preparedness of emergency response to disasters, such as typhoons, floods and droughts caused by climate change, earthquakes and disruptions to water, electricity and other public utilities. We have established a company-wide taskforce dedicated to managing the risk of a water or electricity shortage that might arise due to climate change. Despite our preparedness, there is no assurance that any such natural disaster would not severely disrupt our normal operation of business and have a material adverse effect on our financial condition and results of operations.

***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. 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.

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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. 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. Depending on the chemical characteristics of each of these and their predilection for certain body tissues, they could cause cancers of such organs as bones, soft tissues near bones, thyroid gland, and the bone marrow (typically known as leukemia).

Acute or very high level radiation exposure can cause a person to become very ill or to die quickly. Ionizing radiation, which is defined as high-energy particles or electromagnetic waves that can break chemical bonds, damage humans by disrupting cellular function, particularly in tissues with rapid growth and turnover of cells. Intense, high level and/or excessive radiation exposure may result in acute radiation syndrome whereby harmful effects to the human body may be evidenced by skin burns, internal organ deterioration, bleeding, vomiting, bone marrow distortion and deaths. If the radiation exposure is less intense and/or more prolonged at a lower level, then the central nervous system, kidneys, thyroid gland, and liver may be affected. Cancer is the most well-known effect, and may affect virtually any significantly exposed tissue.

Certain health effects due to exposure to harmful radiation does not have adequate treatment or known cure or vaccine, consequently, may potentially result in a quarantine of infected employees and related persons, and adversely affect our operations at one or more of our facilities or the operations of our customers or suppliers. We cannot predict the probability of any future outbreak of radiation related diseases as a possible result of nuclear power plants damage caused by the Great East Japan Earthquake of 2011 or the extent of the material adverse impact that this could have on our business and results of operations.

**Risks Relating to Our Common Shares or ADSs** 

***The Company's ability to maintain its listing and trading status of common shares on the Taiwan Stock Exchange or ADSs on the Nasdaq Stock Market is dependent on factors outside of the Company's control and satisfaction of stock exchange requirements. The Company may not be able to overcome such factors that disrupt its trading status of common shares on the Taiwan Stock Exchange or ADSs on the Nasdaq Stock Market or satisfy other eligibility requirements that may be required of it in the future.*** 

The Company became listed and commenced trading its common shares on the main board of Taiwan Stock Exchange ("TWSE") on April 11, 2014 and its ADSs on the Nasdaq on November 1, 2016. For a TWSE-listed and Nasdaq-listed company to continue trading on the main board of TWSE and Nasdaq depends in part on market conditions and other factors that may not within the control of the Company. For these reasons there can be no assurance that the Company's shares will continue to be listed or traded on the TWSE or ADSs will continue to be listed or traded on the Nasdaq.

***Volatility in the price of our common shares or ADSs may result in shareholder litigation that could in turn result in substantial costs and a diversion of our management's attention and resources.*** 

The financial markets in the United States and other countries have experienced significant price and volume fluctuations, and market prices of technology companies have been and continue to be extremely volatile. Volatility in the price of our common shares or ADSs may be caused by factors outside of our control and may be unrelated or disproportionate to our results of operations. 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.

***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 entered into change in control severance agreements with certain management pursuant to which we agreed to pay certain severance payments if a change in control event (as defined in the change in control severance agreements) occurs and the employment of such executive officer is terminated by our company other than for cause or by such executive officer for good reasons within two years following the occurrence of the change in control event. 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.*** 

Sales of substantial amounts of common shares or ADSs in the public market, the perception that future sales may occur, or the pledge of a substantial portion of our common shares or ADSs could depress the prevailing market price of our common shares or ADSs. See "Item 7. Major Shareholders and Related Party Transactions—Major Shareholders" for further information about our major shareholders.

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The Company was listed and commenced trading of common shares on the main board of TWSE on April 11, 2014. See "—Risks Relating to Our Common Shares or ADSs—The Company's ability to maintain its listing and trading status of common shares on the Taiwan Stock Exchange or ADSs on the Nasdaq is dependent on factors outside of the Company's control and satisfaction of stock exchange requirements. The Company may not be able to overcome such factors that disrupt its trading status of common shares on the Taiwan Stock Exchange or ADSs on the Nasdaq or satisfy other eligibility requirements that may be required of it in the future" for additional information on the Company's listing on the main board of TWSE. We plan to issue, from time to time, additional shares in connection with employee compensation and to finance possible future capital expenditures, investments or acquisitions. The issuance of additional shares may have a dilutive effect on other shareholders and may cause the price of our common shares or ADSs to decrease.

***Holders of Our ADSs do not have the same voting rights as holders of our common shares.*** 

Under the ROC Company Act, except under limited circumstances, shareholders have one vote for each common share held. See "Item 10. Additional Information—Voting Rights" for a discussion of voting rights of holders of our common shares. Holders of our ADSs do not have the same voting rights as holders of our common shares. Instead, the voting rights of a holder of our ADSs are governed by the Deposit Agreement and are able to exercise voting rights on an individual basis as follows: if a holder of our ADSs outstanding at the relevant record date instructs the depositary to vote in a particular manner for or against a resolution, including the election of directors, the depositary will cause all the shares represented by such holder's ADSs to be voted in that manner. If the depositary does not receive timely instructions from a holder of our ADSs outstanding at the relevant record date to vote in a particular manner for or against any resolution, including the election of directors, such holders of our ADSs will be deemed to have instructed the depositary or its nominee to give a discretionary proxy to a person designated by the Company to vote all the shares represented by such holder's ADSs at the discretion of such person, which may not be in the interest of holders of our ADSs.

***If a non-ROC holder of our ADSs withdraws and holds our shares, such holder of our ADSs will be required to appoint a tax guarantor, local agent and custodian in the ROC and register with the TWSE in order to buy and sell securities on the TWSE.*** 

When a non-ROC holder of our ADSs elects to withdraw and hold our shares represented by our ADSs, such holder of our ADSs will be required to appoint an agent for filing tax returns and making tax payments in the ROC. Such agent will be required to meet the qualifications set by the ROC Ministry of Finance and, upon appointment, will become the guarantor of the withdrawing holder's tax payment obligations. Evidence of the appointment of a tax guarantor, the approval of such appointment by the ROC tax authorities and tax clearance certificates or evidentiary documents issued by such tax guarantor may be required as conditions to such holder repatriating the profits derived from the sale of our shares. We cannot assure you that a withdrawing holder will be able to appoint, and obtain approval for, a tax guarantor in a timely manner.

In addition, under the current ROC law, such withdrawing holder is required to register with the TWSE and appoint a local agent in the ROC to, among other things, open a bank account and open a securities trading account with a local securities brokerage firm, pay taxes, remit funds and exercise such holder's rights as a shareholder. Furthermore, such withdrawing holder must appoint a local bank or local securities firm to act as custodian for confirmation and settlement of trades, safekeeping of securities and cash proceeds and reporting and declaration of information. 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.

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. In order to hold our shares, such QDIIs are required to appoint an agent and custodian as required by the Mainland investors regulations. 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.

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***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. 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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)we pay stock dividends on our shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)we make a free distribution of our shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)holders of our ADSs exercise preemptive rights in the event of capital increases; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

With respect to item (4) above, the depositary may issue our ADSs against the deposit of our shares only if the total number of our ADSs outstanding following the deposit will not exceed the number of our ADSs previously approved by the FSC, plus any our ADSs issued pursuant to the events described in items (1), (2) and (3) above.

In addition, in the case of a deposit of our shares requested under item (4) above, the depositary will refuse to accept deposit of such our shares if such deposit is not permitted under any legal, regulatory or other restrictions notified by the Company to the depositary from time to time, which restrictions may include blackout periods during which deposits may not be made, minimum and maximum amounts and frequency of deposits.

***The rights of holders of our ADSs to participate in our rights offerings are limited, which could cause dilution to your holdings.*** 

The Company may from time to time distribute rights to its shareholders, including rights to acquire its securities. Under the Deposit Agreement, the depositary will not offer holders of our ADSs those rights unless both the distribution of the rights and the underlying securities to all our ADS holders are either registered under the Securities Act or exempt from the registration under the Securities Act. Although the Company may be eligible to take advantage of certain exemptions under the Securities Act available to certain foreign issuers for rights offering, the Company can give no assurances that it will be able to establish an exemption from registration under the Securities Act, and it is under no obligation to file a registration statement for any of these rights. Accordingly, holders of our ADSs may be unable to participate in our rights offerings and may experience dilution of their holdings.

If the depositary is unable to sell rights that are not exercised or not distributed or if the sale is not lawful or reasonably practicable, it will allow the rights to lapse, in which case holders of our ADSs will receive no value for these rights.

***Changes in exchanges controls which restrict your ability to convert proceeds received from your ownership of our ADSs may have an adverse effect on the value of your investment.*** 

Under the current ROC law, the depositary may, even without obtaining approvals from the Central Bank of the Republic of China (Taiwan) or any other governmental authority or agency of the ROC, convert NT dollars into other currencies, including US dollars, for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the proceeds of the sale of common shares represented by ADSs or received as stock dividends from our shares and deposited into the depositary receipt facility; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•any cash dividends or cash distributions received.

In addition, the depositary may also convert into NT dollars incoming payments for purchase of common shares for deposit in ADR facility against the creation of additional ADSs. However, the depositary may be required to obtain foreign exchange approval from the Central Bank of the Republic of China (Taiwan) on a payment-by-payment basis for conversion from NT dollars into foreign currencies of the proceeds from the sale of subscription rights for new common shares. 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 foreign exchange controls or other restrictions will not be introduced in the future.

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**Item 4. Information on the Company** 

**Overview of the Company** 

We are one of the leading independent providers of semiconductor assembly and testing services. Specifically, we are one of the leading independent providers of testing and assembly services for LCD, OLED, automotive panel and other display panel driver semiconductors and advanced memory and logic/mixed-signal products in Taiwan. The depth of our engineering expertise and the breadth of our assembly and testing technologies enable us to provide our customers with advanced and comprehensive assembly and testing services. In addition, our geographic presence in Taiwan is attractive to customers wishing to take advantage of the logistical and cost efficiencies stemming from our close proximity to foundries and producers of consumer electronic products in Taiwan. Our production facilities are located in Hsinchu and Tainan, Taiwan.

**Our Structure and History** 

We are a company limited by shares, incorporated on July 28, 1997, under the ROC Company Act, under the name "ChipMOS TECHNOLOGIES INC." ("ChipMOS Taiwan"), as a joint venture company between Mosel Vitelic Inc. ("Mosel") and Siliconware Precision Industries Co., Ltd. ("Siliconware Precision") and with the participation of other investors. Our operations consist of the assembly and testing of semiconductors as well as gold bumping and memory module manufacturing. Our principal place of business is located at No. 1, R&D Road 1, Hsinchu Science Park, Hsinchu, Taiwan, ROC and its phone number is +886-3-577-0055 and our internet website address is "www.chipmos.com". 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. The transaction was accounted as capital reorganization within the Company and its subsidiaries (the "Group"), please see "Item 5. Operating and Financial Review and Prospects—Recent Acquisitions". Any common shares of ChipMOS Bermuda issued and outstanding immediately prior to the effective time of the Merger was cancelled and, in exchange, each former holder of such cancelled common shares of ChipMOS Bermuda was entitled to receive, with respect to each such share (i) US$3.71 in cash, without interest, and (ii) 0.9355 ADSs representing 18.71 shares of the Company (each ADS representing 20 new common shares, par value of NT$10 each, to be issued by the Company) in exchange for each of ChipMOS Bermuda's common share held (the US$3.71 in cash and together with the ADSs, the "Merger Consideration"). The Merger was completed and effective on October 31, 2016. The Company issued 512,405,340 common shares represented by the ADSs and the ADSs were listed on the Nasdaq on November 1, 2016.

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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.

![img260866648_0.jpg](img260866648_0.jpg)

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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. Since 2020, we have consolidated the financial results of ChipMOS U.S.A., Inc. ("ChipMOS USA"), ChipMOS BVI, and ChipMOS SEMICONDUCTORS (Shanghai) LTD. ("ChipMOS Shanghai"), a wholly-owned subsidiary of ChipMOS BVI.

***Agreements with Tsinghua Unigroup Ltd.*** 

On November 30, 2016, the Equity Interest Transfer Agreements among ChipMOS BVI, a wholly-owned subsidiary of the Company, and some strategic investors which including Unigroup Guowei, a subsidiary of Tsinghua Unigroup, were executed. Pursuant to the Equity Interest Transfer Agreements, ChipMOS BVI would sell 54.98% equity interests of its wholly-owned subsidiary, Unimos Shanghai, to the strategic investors, and Unigroup Guowei would hold 48% equity interests of Unimos Shanghai, and the other strategic investors, including a limited partnership owned by Unimos Shanghai's employees, would own approximately 6.98% equity interest of Unimos Shanghai. The transaction was completed in March 2017. Unimos Shanghai is no longer the subsidiary of the Company following the completion of equity interest transfer. Also pursuant to the agreement, ChipMOS BVI and the strategic investors agreed to further invest RMB 1,074 million into Unimos Shanghai. The further investment was completed in two tranches, one in July 2017 at RMB 687 million and one in February 2018 at RMB 387 million. On December 16, 2019, Unigroup Guowei and one of the strategic investor sold and transferred all equity interests of Unimos Shanghai to Yangtze Memory, which holds 50% equity interests of Unimos Shanghai after completed transaction. On May 11, 2020, one of the strategic investor sold and transferred all equity interests of Unimos Shanghai to Yangtze Memory Technologies Co., Ltd. ("Yangtze Memory"), which holds 50.94% equity interests of Unimos Shanghai after completed transaction. 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.

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***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. 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. ChipMOS BVI completed the equity interest transfer of Unimos Shanghai in May 2024, and fully received the consideration amounted in December 2024. 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.*** ChipMOS Shanghai was incorporated in Mainland China in March 2020, which is a wholly-owned subsidiary of ChipMOS BVI. It primarily engaged in providing marketing of semiconductors and electronic related produces, for its parent company and affiliates, throughout Mainland China.

***ChipMOS U.S.A., Inc.*** ChipMOS USA was incorporated in the United States of America in October 1999. It is primarily engaged in providing marketing of semiconductors and electronic related produces, for its parent company and affiliates, throughout the United States of America. ChipMOS USA began generating revenue in 2001.

**Industry Background** 

We provide a broad range of back-end assembly and testing services. Testing services include engineering test, wafer probing and final test of memory and logic/mixed-signal semiconductors. We also offer a broad selection of leadframe- and organic substrate-based package assembly services for memory and logic/mixed-signal semiconductors. In addition, we provide gold bumping, reel to reel assembly and testing services for LCD, OLED, automotive panel and other display panel driver semiconductors by employing COF and COG technologies.

Semiconductors tested and assembled by us are used in personal computers, graphics applications such as game consoles, communications equipment, mobile products, such as cellular handsets, tablets, consumer electronic products, automotive/industry and display applications such as display panels. In 2025, 23.7% of our revenue was derived from testing services for memory and logic/mixed-signal semiconductors, 28.6% from assembly services for memory and logic/mixed-signal semiconductors, 24.5% from Display panel driver semiconductor assembly and testing services and 23.2% from bumping services for semiconductors, respectively.

In additional, stable long-term demand and high margin are basic characters of automotive application. 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. Geopolitics and tariff pressures are contributing factors to overall semiconductor industry supply chain inventory level increases and decreases in end-user demand, except AI. Ongoing fluctuations in our markets related to these factors potentially affect our results of operations.

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*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. 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. Flash memory market potential growth is expected to be driven by increasing memory requirements for cellular handsets, digital cameras, digital audio/video, server, wireless base-station and other mobile applications, and new application demand of NOR flash for automotive/industry, OLED panel and touch with display driver integration (TDDI). However, driven by improving demand for high-value memory solutions, particularly in data center and AI-related applications and EOL of DDR4 led memory in super cycle since second half of 2025.

*LCD, OLED, automotive panel and Other Display panel Driver Semiconductor Market*

Display panels are used in applications such as desktop monitors, notebooks, tables, television sets, cellular handsets and digital cameras. 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. Also, as more and more displays are installed in cars and EV, more driver IC grew for automotive application in 2025.

*Logic/Mixed-Signal Semiconductor Market* 

The communications market is one of the main drivers of potential growth in the semiconductor industry. Logic/mixed-signal semiconductors, which are chips with analog functionality covering more than half of the chip area, are largely used in the communications market. The increasing use of digital technology in communications equipment requires chips with both digital and analog functionality for applications such as modems, network routers, switches, cable set-top boxes and cellular handsets. As the size and cost of cellular handsets and other communications-related devices have decreased, components have increased in complexity. Logic/mixed-signal semiconductors, such as LCD controller, power devices, fingerprint sensors and MEMS products, TV scaler and DVD controllers, are also used in consumer electronic products. We plan to expand our logic and mixed-signal product portfolio from MEMS and TV SOC products to include PMIC of DDR5 modules, logic product for smart devices serving high-tech and healthcare. We also plan to support ASIC for AI related application products to enhance the long-term growth momentum of our logic and mixed-signal product line. This represents a significant new market expansion opportunity. We view these as high return, multi-year opportunities with the potential to meaningfully drive growth and create shareholder value.

*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:

![img260866648_1.jpg](img260866648_1.jpg)

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| | |
|:---|:---|
| **Process**<br>| &nbsp;&nbsp;**Description**<br>|
| Circuit Design | &nbsp;&nbsp;The design of a semiconductor is developed by laying out circuit patterns and interconnections. |
| Wafer Fabrication | &nbsp;&nbsp;Wafer fabrication begins with the generation of a photomask, a photographic negative onto which a circuit design pattern is etched or transferred by an electron beam or laser beam writer. Each completed wafer contains many fabricated chips, each known as a die. |
| Wafer Probe | &nbsp;&nbsp;Each individual die is then electrically tested, or probed, for defects. Dies that fail this test are discarded, or, in some cases, salvaged using laser repair. |
| Assembly | &nbsp;&nbsp;The assembly of semiconductors serves to protect the die, facilitates its integration into electronic systems and enables the dissipation of heat. The process begins with the dicing of the wafers into chips. Each die is affixed to a leadframe-based or organic substrate-based substrate. Then, electrical connections are formed, in many cases by connecting the terminals on the die to the inner leads of the package using fine metal wires. Finally, each chip is encapsulated for protection, usually in a molded epoxy enclosure. |
| Final Test | &nbsp;&nbsp;Assembled semiconductors are tested to ensure that the device meets performance specifications. Testing takes place on specialized equipment using software customized for each application. For memory semiconductors, this process also includes "burn-in" testing to screen out defective devices by applying very high temperatures and voltages onto the memory device. |

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*Outsourcing Trends in Semiconductor Manufacturing* 

Historically, integrated device manufacturers ("IDMs"), designed, manufactured, tested and assembled semiconductors primarily at their own facilities. 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. The independent semiconductor manufacturing services market currently consists of wafer fabrication and probing services and semiconductor assembly and testing services. Most of the world's major IDMs now use some independent semiconductor manufacturing services to maintain a strategic mix of internal and external manufacturing capacity. 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.

We believe the outsourcing of semiconductor manufacturing services, and in particular of assembly and testing services, will increase for many reasons, including the following:

*Significant Capital Expenditure Requirements.* Driven by increasingly sophisticated technological requirements, wafer fabrication, assembly and testing processes have become highly complex, requiring substantial investment in specialized equipment and facilities and sophisticated engineering and manufacturing expertise. In addition, product life cycles have been shortened magnifying the need to continuously upgrade or replace manufacturing, assembly and testing equipment to accommodate new products. As a result, new investments in in-house fabrication, assembly and testing facilities are becoming less desirable for IDMs because of the high investment costs, as well as difficulties in achieving sufficient economies of scale and utilization rates to be competitive with the independent service providers. On the contrary, independent foundry, assembly and testing companies are able to realize the benefits of specialization and achieve economies of scale by providing services to a large customer base across a wide range of products. This enables them to reduce costs and shorten production cycles through high capacity utilization and process expertise.

*Increasing Focus on Core Competencies.* 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.* 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.

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*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.

*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. The disaggregation of the semiconductor manufacturing process in Taiwan permits these semiconductor manufacturing service providers to focus on particular parts of the production process, develop economies of scale, maintain higher capacity utilization rates and remain flexible in responding to customer needs by lowering time-to-market pressure faced by semiconductor companies. There are several leading service providers in Taiwan, each of which offers substantial capacity, high-quality manufacturing, leading semiconductor wafer fabrication, test, assembly and process technologies, and a full range of services. These service providers have access to an educated labor pool and a large number of engineers suitable for sophisticated manufacturing industries. As a result, many of the world's leading semiconductor companies outsource some or all of their semiconductor manufacturing needs to Taiwan's semiconductor manufacturing service providers and take advantage of the close proximity among facilities in the supply chain. In addition, companies located in Taiwan are very active in the design and manufacture of electronic systems, which has created significant local demand for semiconductor devices.

A few years ago, Mainland China had emerged as an attractive location for outsourced semiconductor manufacturing. Companies could take advantage of strongly supports by Mainland China government to accelerate the development of the semiconductor industry and a large domestic market. These factors had driven increased relocation of much of the electronics industry manufacturing and supply chain to Mainland China. But according to the economics uncertainty caused by the trade tensions and US semiconductor restrictions, the related investment risk in China is increasing. An increasing number of global electronic systems manufacturers and contract manufacturers are relocating or have relocated production facilities away from Mainland China. However, following the supply chain reshuffle after COVID-19, along with government subsidies and local production requirements, the competition pressure from DDIC supplier in Mainland China has gradually increased.

**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.*** 

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. We believe that our investments in equipment and research and development in some of these areas allow us to offer a service differentiated from that of our competition. In order to benefit from the expected resumption of growth in these segments, we intend to continue to invest in capacity to meet the assembly and testing requirements of these key semiconductor market segments.

***Continue to Invest in the Research and Development of Advanced Assembly and Testing Technologies.*** 

Critical to our business growth is the continuation to expand our capabilities in testing and assembly and integrate wafer bumping and assembly core technologies to provide turn-key total solution service to our customers. We typically focus on advanced technologies that consist of greater potentials to generate higher margins. 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. We continue to maintain close working relationships with local and overseas research institutions and universities to keep abreast with leading edge technologies and broaden the scope of applications.

In 2026, we focus our research and development efforts in the following areas:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Develop Eco-friendly with low curing-temperature PI materials for RDL redistribution products.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Develop a fluxless reflow process for Cu pillar products.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Development of ultra-fine pitch (IL pitch : 14 um) COF inner-lead flip-chip packaging technology.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Development of enhancement the 3PB face-down die strength packaging technology for LASER product.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Develop multi-chip flash memory stacked BGA packaging technology.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Develop next-generation game card memory packaging technology.

In 2025, we spent approximately 4.5% 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, 2026, our research and development team comprised 651 employees.

***Build on Our Strong Presence in Taiwan and Strong Industrial Position Outside Taiwan.*** 

We intend to build on our strong presence in key centers of semiconductor and electronics manufacturing to grow our business. Currently, most of our operations are in Taiwan, one of the world's leading locations for outsourced semiconductor manufacturing. This presence provides us with several advantages. Firstly, our proximity to other semiconductor companies is attractive to customers who wish to outsource various stages of the semiconductor manufacturing process. Secondly, our proximity to many of our suppliers, customers and the end-users of our customers' products enables us to be involved in the early stages of the semiconductor design process, enhances our ability to quickly respond to our customers' changing requirements and shortens our customers' time-to-market. Thirdly, we have access to an educated labor pool and a large number of engineers who are able to work closely with our customers and other providers of semiconductor manufacturing services.

Depending on customer's demands, market conditions and other relevant considerations, we may from time to time look into other opportunities to expand our operations outside of Taiwan.

***Expand Our Offering of Vertically Integrated Services.*** 

We believe that one of our competitive strengths is our ability to provide vertically integrated services to our customers. Vertically integrated services consist of the integrated testing, assembly and direct shipment of semiconductors to end-users designated by our customers. Providing vertically integrated services enables us to shorten lead times for our customers. 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. These services offerings include complementary technologies, products and services as well as additional capacity. We believe that these will continue to enhance our own development and expansion efforts into new and potential growth markets. We intend to establish new alliances with leading companies and, if suitable opportunities arise, engage in merger and acquisition activities that will further expand the services we can provide.

***Focus on Increasing Sales through Long-Term Agreements with Key Customers as well as Business with Smaller Customers.*** 

From time to time, we strategically agree to commit a portion of our assembly and testing capacity to certain of our customers. We intend to continue focus on increasing sales to key customers through long-term capacity agreements. The customers with which we entered long-term agreements include a reputable memory customer based in the U.S. See "—Customers" below for a more detailed discussion of these long-term agreements.

Global market and economic conditions have been unprecedented and challenging with tight credit conditions and recession in most major economies since 2008. In the fourth quarter of 2021, a long term 3-year capacity secure agreement with our customer about high end wafer test for OLED and other display panel driver demand was settled to reduce our investment risk. Meanwhile, driven by the strong rebound in memory market since the second half of 2025, we finalized a long term 3-year memory wafer test capacity take-or-pay contract in the beginning of 2026. We also resumed our focus on our business with smaller customers or customers who do not place orders on a regular basis. We believe that the dual focused strategy will assist us to be better prepared for the current economic volatility and ensure maximum utilization rate of our capacity and help us to develop closer relationships with all types of our customers.

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***Principal Products and Services*** 

The following table presents, for the periods shown, revenue by service segment as a percentage of our revenue.

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| | | | |
|:---|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2023** | **2024** | **2025** |
| Testing | 20.6% | 21.9% | 23.7% |
| Assembly | 21.7% | 23.8% | 28.6% |
| Display panel driver semiconductor assembly and testing | 36.6% | 32.2% | 24.5% |
| Bumping | 21.1% | 22.1% | 23.2% |
| Total revenue | 100.0% | 100.0% | 100.0% |

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**Memory and Logic/Mixed-Signal Semiconductors** 

***Testing*** 

We provide testing services for memory and logic/mixed-signal semiconductors:

*Memory.* We provide testing services for huge amount of varieties of memory semiconductors, such as SRAM, DRAM and Flash memory. To speed up the time-consuming process of memory product testing, we provide parallel test, which includes the completion of a tested wafer in one touchdown (up to 3,000 plus DUTs testing simultaneously). Wafer type includes Aluminum PAD, RDL PAD, Cu Pillar, WLCSP and prober test temperature between -55°~150° and provide 143MHz to 600 MHz test speed for DRAM product, 50MHz ~ 400 MHz test speed for FLASH product. Component type (FT) includes TSOP, BGA, LGA, WSON, SOP packages, the maximum parallel test is 512Dut per handler with a handler test temperature range between -55°~125° and support for test speed from 70MHz to 400 MHz for FLASH products, and 250MHz to 4.5GHz for DRAM products. The memory semiconductors we tested were applying primarily in desktop computers, laptop, tablet computers, handheld consumer electronic, devices and wireless communication devices.

*Logic/Mixed-Signal.* We conduct tests on a wide variety of logic/mixed-signal semiconductors, with lead counts ranging from the single digits to over 1536 and data rate of up to 16Gbps. The semiconductors we test include high-end audio/video codec, networking/communications, MCU, LCD related, MEMS related, DDR related and automotive electronics used for home entertainment/media center, wearable devices, personal computer applications, network/communication, mobile smart devices and cars. We also test a variety of application specific integrated circuits ("ASICs"), for applications such as FHD/UHD/8K LCD TVs with AI functions, Smartphone, Tablet PC and Cars and other applications/end markets.

The following is a description of our pre-assembly testing services:

*Wafer Probing.* Wafer probing is a processing stage proceeding to the assembly of semiconductors and which involves visual inspection and electrical testing to ensure the processed wafers meets our customers' specifications. Tests are conducted using specialized equipment with software customized for each application in different temperature conditions ranging from -55 degrees Celsius to 150 degrees Celsius. Wafer probing employs sophisticated design and manufacturing technologies to connect the terminals of each chip for testing. Defect chips are marked on the surface or memorized in an electronic file, known as a mapping file, to the following facilitate subsequent process.

*Laser Repairing.* This is a unique process in testing operation for special SOC memory products. In laser repairing, specific poly or metal fuses are blown after wafer probing to enable a spare row or column of a memory unit in SOC the replacement of the defective memory cell.

After assembly, we perform the following testing services:

*Burn-In Testing.* This process screens out unreliable products using high temperature, high voltage and prolonged stresses environment to ensure that finished products will survive a long period of end-user service. This process is used only for memory products. This process needs customized Burn-In board.

*Top Marking.* By using laser marker, the marking content were according to our customers' specification, including the logo, part number, date code and lot number.

*Final Testing.* Assembled semiconductors are tested to ensure that the devices meet performance specifications. Tests are conducted using specialized equipment with software customized for each application in different temperature conditions ranging from -55 degrees Celsius to 125 degrees Celsius.

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*Final Inspection and Packing.* Final inspection involves visual or auto-inspection of the devices to check any bent leads, ball damage, inaccurate markings or other package defects. Packing involves dry packing, package-in-tray, package-in-tube and tape and reel. According to package level, Dry packing involves heating semiconductors in a tray at 125 degrees Celsius for about four to six hours to remove the moisture before the semiconductors are vacuum-sealed in an aluminum bag. Package-in-tube involves packing the semiconductors in anti-static tubes for shipment. 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:

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| | |
|:---|:---|
| *Wafer Lapping* | The wafers are ground to their required thickness. |
| *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. |
| *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. |
| *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. |
| *Ball Mount and Reflow* | Each electrode pad of the substrate is first printed with flux, after which solder balls are mounted, heated and attached to the electrode pad of the substrate through a reflow oven. |
| *Forming/Singulation* | Forming involves the proper configuration of the device packages leads, and singulation separates the packages from each other. |

---

We offer a broad range of package formats designed to provide our customers with a broad array of assembly services. The assembly services we offer customers are leadframe-based packages, which include thin small outline packages, and organic substrate-based packages, including fine-pitch BGA.

The differentiating characteristics of these packages include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the size of the package;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the number of electrical connections which the package can support;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the electrical performance and requirements of the package; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the heat dissipation requirements of the package.

As new applications for semiconductor devices require smaller components, the size of packages has also decreased. In leading-edge packages, the size of the package is reduced to just slightly larger than the size of the individual chip itself in a process known as chip scale packaging.

As semiconductor devices increase in complexity, the number of electrical connections required also increases. Leadframe-based products have electrical connections from the semiconductor device to the electronic product through leads on the perimeter of the package. Organic substrate-based products have solder balls on the bottom of the package, which create the electrical connections with the product and can support large numbers of electrical connections.

*Leadframe-Based Packages.* 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.

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The following diagram presents the basic components of a standard leadframe-based package for memory semiconductors:

![img260866648_2.jpg](img260866648_2.jpg)

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. Our advanced leadframe-based packages generally are thinner and smaller, have more leads and have advanced thermal and electrical characteristics when compared to traditional packages. As a result of our continual product development, we offer leadframe-based packages with a wide range of lead counts and sizes to satisfy our customers' requirements.

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.

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| | | | |
|:---|:---|:---|:---|
| **Package**<br>| &nbsp;&nbsp;**Lead-<br>count** <br>| &nbsp;&nbsp;**Description**<br>| &nbsp;&nbsp;**End-User Applications**<br>|
| Thin Small Outline Package I (TSOP I) | &nbsp;&nbsp;48-56 | &nbsp;&nbsp;Designed for high volume production of low lead-count memory devices, including flash memory, SRAM and MROM | &nbsp;&nbsp;Notebooks, personal computers, still and video cameras and standard connections for peripherals for computers |
| Thin Small Outline Package II (TSOP II) | &nbsp;&nbsp;44-86 | &nbsp;&nbsp;Designed for memory devices, including flash memory, SRAM, SDRAM and DDR DRAM | &nbsp;&nbsp;Disk drives, recordable optical disk drives, audio and video products, consumer electronics, communication products |
| Quad Flat No Lead (QFN) | &nbsp;&nbsp;8-132 | &nbsp;&nbsp;Thermal enhanced quad flat no lead package providing small footprint (chip scale), light weight with good thermal and electrical performance | &nbsp;&nbsp;Wireless communication products, notebooks, audio and video products and consumer electronics |
| Low-Profile Quad Flat Package (LQFP) | &nbsp;&nbsp;48 | &nbsp;&nbsp;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 | &nbsp;&nbsp;Wireless communication products, notebooks, digital cameras, cordless/radio frequency devices |
| Small Outline Package (SOP) | &nbsp;&nbsp;8 | &nbsp;&nbsp;Designed for low lead-count memory and logic semiconductors, including SRAM and micro-controller units | &nbsp;&nbsp;Personal computers, consumer electronics, audio and video products, communication products |
| Multi-Chip Package (TSOP) | &nbsp;&nbsp;44-86 | &nbsp;&nbsp;Our patented design for memory devices, including flash memory, SRAM, DRAM, SDRAM and DDR DRAM | &nbsp;&nbsp;Notebooks, personal computers, disk drives, audio and video products, consumer products, communication products |

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| | | | |
|:---|:---|:---|:---|
| **Package**<br>| &nbsp;&nbsp;**Lead-<br>count** <br>| &nbsp;&nbsp;**Description**<br>| &nbsp;&nbsp;**End-User Applications**<br>|
| Flip Chip Quad Flat No Lead (FCQFN) | &nbsp;&nbsp;6-35 | &nbsp;&nbsp;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 | &nbsp;&nbsp;Wireless communication products, notebooks, audio/video products and consumer electronics |

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*Organic Substrate-based Packages.* 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.

The BGA format solves this problem by effectively creating external terminals on the bottom of the package in the form of small bumps or balls. These balls are evenly distributed across the entire bottom surface of the package, allowing greater pitch between the individual terminals. The ball grid array configuration enables high-pin count devices to be manufactured less expensively with less delicate handling at installation.

Our organic substrate-based packages employ a fine-pitch BGA design, which uses a plastic or tape laminate rather than a leadframe and places the electrical connections, or leads, on the bottom of the package rather than around the perimeter. The fine-pitch BGA format was developed to address the need for the smaller footprints required by advanced memory devices. Benefits of ball grid array assembly over leadframe-based assembly include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•smaller size;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•smaller footprint on a printed circuit board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•better electrical signal integrity; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•easier attachment to a printed circuit board.

The following diagram presents the basic component parts of a fine-pitch BGA package:

![img260866648_3.jpg](img260866648_3.jpg)

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The following table presents the ball-count, description and end-user applications of organic substrate-based packages we currently assemble:

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| | | | |
|:---|:---|:---|:---|
| **Package**<br>| &nbsp;&nbsp;**Connections** <br>| &nbsp;&nbsp;**Description**<br>| &nbsp;&nbsp;**End-User Applications**<br>|
| Mini BGA | &nbsp;&nbsp;24-400 | &nbsp;&nbsp;Low-cost and space-saving assembly designed for low input/output count, suitable for semiconductors that require a smaller package size than standard BGA | &nbsp;&nbsp;Memory, analog, flash memory, ASICs, radio frequency devices, personal digital assistants, cellular handsets, communication products, notebooks, wireless systems |
| Fine-Pitch BGA | &nbsp;&nbsp;54-126 | &nbsp;&nbsp;Our patented design for DRAM products that require high performance and chip scale package (CSP) | &nbsp;&nbsp;Notebooks, cellular handsets, global positioning systems, personal digital assistants, wireless systems |
| Very Thin Fine-Pitch BGA | &nbsp;&nbsp;24-200 | &nbsp;&nbsp;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 | &nbsp;&nbsp;Handheld devices, notebooks, disk drives, wireless and mobile communication products |
| Land Grid Array (LGA) | &nbsp;&nbsp;11-204 | &nbsp;&nbsp;Thinner and lighter assembly designed essential to standard BGA without solder balls, suitable for applications that require high electrical performance | &nbsp;&nbsp;Disk drives, memory controllers, wireless, mobile communication products, game card, micro secure digital card |
| Multi-Chip BGA | &nbsp;&nbsp;24-345 | &nbsp;&nbsp;Designed for assembly of two or more memory chips (to increase memory density) or combinations of memory and logic chips in one BGA package | &nbsp;&nbsp;Notebooks, digital cameras, personal digital assistants, global positioning systems, sub-notebooks, board processors, wireless systems |
| Stacked-Chip BGA | &nbsp;&nbsp;24-349 | &nbsp;&nbsp;Designed for assembly of two or more memory chips or logic and memory chips in one CSP, reducing the space required for memory chips | &nbsp;&nbsp;Cellular handsets, digital cameras, personal digital assistants, wireless systems, notebooks, global positioning systems |
| FC Chip-scale Package (FC CSP) | &nbsp;&nbsp;24-676 | &nbsp;&nbsp;Better IC protection and solder joint reliability compared to direct chip attach (DCA) and chip on board (COB) | &nbsp;&nbsp;Memory, logic, microprocessor, application processor (AP), baseband (BB), solid state device, radio frequency (RF) |
| Multi-Chip Hybrid Package (FC+WB) | &nbsp;&nbsp;153-345 | &nbsp;&nbsp;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 | &nbsp;&nbsp;Universal Flash Storage (UFS), and BGA SSD |
| Chip on Wafer (CoW) | &nbsp;&nbsp;5-30 | &nbsp;&nbsp;Integrated two different functional chips to a closer form into a compact package. Low-cost solution compared to through-silicon via (TSV) | &nbsp;&nbsp;Integrated MEMS |
| Land Grid Array (LGA) for FPS<br>(Finger Print Sensor) | &nbsp;&nbsp;20-52 | &nbsp;&nbsp;Very thin clearance (50um) between chip & compound hard color coating with scratch resistance for protection and appearance matching of mobile devices | &nbsp;&nbsp;Security protection for mobile devices, home, notebooks, etc. |
| Wafer Level Chip Scale Package (WLCSP) | &nbsp;&nbsp;4-125 | &nbsp;&nbsp;WLCSP package size is almost the same as die size. Simple assembly process flow, low cost. Small package suitable to apply on hand-held 3C electronic products | &nbsp;&nbsp;Electronic Compass, audio converter, nor flash product, power control, sensor magnetometer, CMOS Image Sensor controller, Laser diode driver, power manager IC (PMIC) |

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**Wafer Level CSP**![img260866648_4.jpg](img260866648_4.jpg)

Wafer-level CSP (WLCSP) is the technology of packaging an integrated circuit at wafer level. WLCSP is essentially a true chip scale package (CSP) technology, since the resulting package is practically of the same size as the die. WLCSP has the ability to enable true integration of wafer fab, packaging, test, and burn-in at wafer level in order to streamline the manufacturing process undergone by a device start from silicon wafer to customer shipment.

Most other kinds of packaging do wafer dicing first, and then puts the individual die in a plastic package and attaches the solder bumps. WLCSP involves the RDL, wafer solder bumping, while still in the wafer, and then wafer dicing. Benefits of WLCSP compare to general CSP package assembly include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•ultimate smaller package size;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•smaller footprint on a printed circuit board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•very short circuit connection; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•cost effective packaging solution for small ICs.

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| | | | |
|:---|:---|:---|:---|
| **Package**<br>| &nbsp;&nbsp;**Connections** <br>| &nbsp;&nbsp;**Description**<br>| &nbsp;&nbsp;**End-User Applications**<br>|
| WLCSP | &nbsp;&nbsp;4-219 | &nbsp;&nbsp;Very small package size (identical to die size), suitable for the low pin count and require the small package size application | &nbsp;&nbsp;Memory, ASICs, PMIC, MEMS devices, controllers, for mobile phones, tablets, ultra book computers and wearable products |

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**FC CSP**![img260866648_5.jpg](img260866648_5.jpg)

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![img260866648_6.jpg](img260866648_6.jpg)

![img260866648_7.jpg](img260866648_7.jpg)

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. It allows for a smaller form factor due to wire loop reduction and area array bumping. FC CSP includes the substrate or leadframe type solution making an attractive option for advanced CSP application when electrical performance is a critical factor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Excellent electrical performance, very low interconnect parasitics and inductance compare to wirebond type.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•High electrical current endurance (Cu pillar bump), ideal for high power and high speed logic solution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•High electrical performance (Cu pillar bump), ideal for lower return loss and higher insertion loss.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Reduce Bump Pitch and die size (Cu pillar bump vs. solder bump), ideal for increasing gross die/wafer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Smaller package form factor by reducing the wire loop height and wire span compared to conventional wirebond package.

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| | | | |
|:---|:---|:---|:---|
| **Package**<br>| &nbsp;&nbsp;**Connections**<br>| &nbsp;&nbsp;**Description**<br>| &nbsp;&nbsp;**End-User Applications**<br>|
| FC CSP | &nbsp;&nbsp;&nbsp;24-484 | &nbsp;&nbsp;Superior electrical performance, smaller form factor | &nbsp;&nbsp;Power devices, RF, High speed Logic devices, wireless, memory or portable applications |

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***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. 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. 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.

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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. 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. 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. 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:

![img260866648_8.jpg](img260866648_8.jpg)

The COF process involves the following steps:

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| | |
|:---|:---|
| *Chip Probing* | Screen out the defect chips which fail to meet the device spec. |
| *Wafer Lapping/Polish*<br>*Laser Marking*<br>*Laser Grooving* | Wafers are grounded or with polish to their required thickness.<br>A laser mark is applied on IC backside in wafer form to provide product traceability.<br>Application in wafer within Low-K material to reduce chipping of chips during dicing process. |
| *Die Saw* | Wafers are cut into individual dies, or chips, in preparation for inner lead bonding process. |
| *Inner Lead Bonding* | An inner lead bonding machine connects the chip to the printed circuit tape. |
| *Potting* | An underfill process to fill resin to protect the inner lead and chip. |
| *Potting Cure* | The potting cure process matures the resin used during the potting oven with high temperatures. |
| *Marking* | A laser marker is used to provide product identification. |
| *Final Testing* | To verify device spec. within electrical testing after assembly process. |
| *Taping* | To attach heat sink/spreader or stiffener material onto COF package. |
| *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. |

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***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. Compared to the traditional bonding process for COF, the new COG technology requires lower bonding temperature. In addition, the COG technology reduces assembly cost as it does not use tapes for interconnection between the LCD, OLED panel and the printed circuit board. The major application of COG products is on TFT-LCD and AMOLED display of smart phone and automotive market, it integrates source, gate driver of display driver IC (DDIC) and touch or timing Controller IC into one chip, so the output channel is higher than COF products. 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:

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| | |
|:---|:---|
| *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. |

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| | |
|:---|:---|
| *Laser Marking* | A laser mark is applied on IC backside in wafer form to provide product traceability. |
| *Laser Grooving* | Application in wafer within Low-K material to reduce chipping of chips during dicing process. |
| *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. |
| *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. |

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***Bumping*** 

We also offer bumping services to our customers.

Based on the major product portfolio (judged by internal metal composition), we provide:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Gold Family (Au bump, Au metal composite bump and Au RDL)

Gold bumping technology, which is in high demand for LCD driver ICs. In 2023 and 2024, gold bumping development momentum will be emphasized on new products from OLED display penetration rate of smartphone, another focused business is that automotive category products continue to expand. In 2025, Display driver ICs business is challenged during geopolitical factor and major cost among of gold price is relative high cost and no sign to downward trend. We are well positioned to introduce our next-generation Silver-Alloy bump technology, which has successfully passed panel-level package reliability assurance (RA) verification. The objective is to complete mass-production qualification by the second quarter of 2026. The goal is to achieve performance and reliability comparable to gold bump solutions, enabling broader adoption in branded markets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•RDL technology

As high speed, high performance and high accuracy requirement, many electronic devices need the capability of transferring higher current. By using Re-distribution layer (RDL) technology which can relocate to the PKG wire bonding position where necessary. ChipMOS can provide several electroplating metal thickness based on customer design request, including 2P1M, 2P2M and 3P2M structures. The min. Line/space of RDL could be 5/5um that makes integration of MCP and SIP achievable. To meet higher electrical performance requirements, we have developed and mass-production-qualified thicker RDL structures with total metal thickness up to 23.5 µm, which have been widely adopted in power and automotive applications in 2025. In parallel, our RDL platform has been expanded with flexible stack-up options, including 1M1P, 1P1M, and 1P2M, enabling optimized routing density, electrical performance, and cost efficiency across diversified product designs. We also continue to strengthen our capabilities in high-speed memory applications through close collaboration with leading customers, supporting increasingly stringent signal integrity and electrical performance requirements for next-generation memory devices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Cu/Solder Family (WLCSP, Lead free solder plating and Cu Pillar)

We believe that consumer electronics are driving the application growth of these processes. From small wearable gadgets, NOR flash in TWS (True Wireless Stereo) applications, power management devices to emerging AIoT/AI development are all included. We developed 12" WLCSP process for NOR flash to provide a thinner and smallest chip size for product trend. In 2025, Copper pillar and flip-chip assembly remain key packaging solutions for high-performance memory and power-related devices, with typical bump heights of 50–70 µm. Higher Copper pillar bump heights up to 100 µm are available for power management applications, while engineering development of fine-pitch micro bump technology with bump pitch down to 40 µm is ongoing for next-generation high-density interconnections. In addition, a new 12-inch WLCSP application for Mini LED TV driver ICs has been qualified and entered mass production in 2025, with stable shipment momentum. Overall, our WLCSP and Cu pillar process portfolio support diversified applications, including PMIC, wearable, storage, E-compass, CPS (smartphone), MCU, ALS, Mini LED TV drivers, and AI-related devices.

***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. Since drop shipment eliminates the additional step of inspection by the customer prior to shipment to end-users, quality of service is a key to successful drop shipment service. We believe that our ability to successfully execute our full range of services, including drop shipment services, is an important factor in maintaining existing customers as well as attracting new customers.

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***Software Conversion Program*** 

We work closely with our customers to provide sophisticated software engineering services, including test program conversion and related hardware design. Generally, testing requires customized testing software and related hardware to be developed for each particular product. Software is often initially provided by the customer and then converted by us at our facilities for use on one or more of our testing machines and contains varying functionality depending on the specified testing procedures. 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.

***Customers*** 

We believe that the following factors have been, and will continue to be, important factors in attracting and retaining customers:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our advanced assembly and testing technologies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our strong capabilities in testing and assembling DDIC/TDDI and other display panel driver semiconductors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our focus on high-density memory products and logic/mixed-signal communications products; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our reputation for high quality and reliable customer-focused services.

The number of our customers as of February 29, 2024, February 28, 2025 and February 28, 2026, respectively, was 67, 68 and 70. Our top 15 customers in terms of revenue in 2025 were (in alphabetical order):

Asahi Kasei Microdevices Corporation

Chipone Technology (Beijing) Co., Ltd.

Elite Semiconductor Microelectronics Technology Inc.

GigaDevice Semiconductor (HK) Limited

Himax Technologies, Inc.

ILI Technology Corporation

Integrated Circuit Solution Inc.

Macronix International Co., Ltd.

MediaTek Inc.

Micron Technology, Inc.

Nanya Technology Corporation

Novatek Microelectronics Corp.

Phison Electronics Corp.

Raydium Semiconductor Corporation

Winbond Electronics Corporation

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. In 2025, our top three customers accounted for approximately 23%, 15% 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.

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.

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| | | | |
|:---|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2023** | **2024** | **2025** |
| Taiwan | 81% | 80% | 87% |
| Japan | 6% | 6% | 5% |
| PRC | 8% | 7% | 6% |
| Singapore | 3% | 4% | 0% |
| Others | 2% | 3% | 2% |
| &nbsp;&nbsp;&nbsp;Total | 100% | 100% | 100% |

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*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. The qualification process typically takes up to eight weeks, or longer, depending on the requirements of the customer. For test qualification, after we have been qualified by a customer and before the customer delivers semiconductors to us for testing in volume, a process known as "correlation" is undertaken. During the correlation process, the customer provides us with test criteria; information regarding process flow and sample semiconductors to be tested and either provides us with the test program or requests that we develop a new or conversion program. In some cases, the customer also provides us with a data log of results of any testing of the semiconductor that the customer may have conducted previously. The correlation process typically takes up to two weeks, but can take longer depending on the requirements of the customer.

**Sales and Marketing** 

We maintain sales and marketing offices in Taiwan, the United States and Mainland China. Our sales and marketing strategy is to focus on memory semiconductors in Taiwan, Japan, Singapore, Korea and the United States, logic/mixed-signal semiconductors in Taiwan, Japan and the United States, LCD, OLED, automotive panel and other display panel driver semiconductors in Japan, Korea, Taiwan, Hong Kong and Mainland China. As of February 28, 2026, our sales and marketing efforts were primarily carried out by teams of sales professionals, application engineers and technicians, totaling 30 staff members. Each of these teams focuses on specific customers and/or geographic regions. As part of our emphasis on customer service, these teams:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•actively participate in the design process at the customers' facilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•resolve customer assembly and testing issues; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•promote timely and individualized resolutions to customers' issues.

We conduct marketing research through our in-house customer service personnel and through our relationships with our customers and suppliers to keep abreast of market trends and developments. Furthermore, we do product and system bench marking analysis to understand the application and assembly technology evolution, such as analysis on mobile handsets and Tablet, PC, wearable products. 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. We provide full turnkey service (from design-in stage/design for bumping and assembly/design for testing services) to achieve design for mass production for new products. These "co-development" or "sponsorship" projects can be critical when customers seek large-scale, early market entry with a significant new product.

**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 2023, 2024 and 2025, we spent approximately NT$1,093 million, or 5.1%, NT$1,163 million, or 5.1% and NT$1,077 million (US$34 million), or 4.5%, respectively, of our revenue on research and development.

Our research and development efforts have been focused primarily on new technology instruction, improving efficiency and production yields of our testing, assembly and bumping services. From time to time, we jointly develop new technologies with local and international equipment and material manufacturing company to enhance the competitiveness. In testing area, our research and development efforts focused particularly on high speed probing, fine pitch probing capability and wafer level burn-in technology. Our projects include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Ramped up high frequency testing capability of LCD, OLED, automotive panel and other display panel driver semiconductors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Developing full temperature range (-40ºC~125ºC) of FT testing for automotive products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Built up 12" fine pitch COF assembly capability for less than 18um inner lead pitch products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Developing more flexible COF tape assembly for full-screen display application;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Developing "wafer level probing on copper pillar bump for 300mm wafers"; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Developing centralized server test control system.

In assembly and bumping areas, our research and development efforts were directed to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Au height reduction, as part of cost reduction drive, 10um bump height COF package and 8um bump height COG package was released for production;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Wafer-level chip scale packaging and 3P2M Cu RDL processes;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Fine-pitch Cu RDL process for WLCSP and RDL products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Flip-chip CSP for DRAM and mixed-signal application;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•3P/3M Cu pillar bumping for 300mm wafers high pin count products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Fine pitch copper pillar process for micro bump structure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Thicker Cu/Ni/Au RDL and 100im tall Cu pillar for PMIC application;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Developing fine pitch Cu RDL line width and space with 4um/4um for advanced re-distribution layer device design requirement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Shrink ball size with ball mount technology and combine thinner wafer grind thickness to achieve thin WLCSP requirement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Dual/Multi-chip assembly and module of flash products for SSD and eMMC applications;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Hybrid package by integration of wire binding & flip-chip process with passive components to offer total solution for UFS device;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•DBG/SDBG implementation to enhance the capability of ultra-thin wafer lapping and dicing capabilities for stacked-die chip scale package;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Advanced thin core/core-free, flex substrate solutions for thin and flip chip packages;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•2-metal layers COF assembly and COF SMT capabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Qualified thermally enhanced COF and MCB COF and released for manufacturing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Double-sided Heat Sink/ High conductivity material development is applied in thermal packaging services for high-resolution panels;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Source & Gate ICs integrated technology development is used in product applications with narrow border panels;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Develop Ultra Fine Pitch (UFP) COF assembly and testing technology;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Implement new thermal conductive resin with higher conductivity for COF package;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Enhance Pb free ball level capability (temperature cycle > 1000 cycles); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•High Frequency & Low loss Product Substrate design for FCCSP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Develop 2P2M with thick Cu RDL and taller Cu Pillar bump height technology for power management chip product.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Develop 12 inch stand-alone thinner technology for WLCSP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Develop extremely narrow IC width (<0.42mm) of display driver COF packaging technology services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Technical services for COF packaging and applying for non-display product.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•DDR5 DRAM assembly technology development.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Thermal enhanced Flip-chip BGA with Heat sink assembly technology development.

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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. In the bumping area, we completed customer qualification of 300mm wafer Au bumping process in 2012 and started volume production in the fourth quarter of 2012. Development of Cu plating enables the entry of WLCSP, RDL and flip chip market and Cu RDL applied on DRAM wafer for SiP product is qualified in 2016. Turnkey services of WLCSP and flip chip QFN have been implemented for mass production in 2013 based on the successful technology developments. In 2012, we also initiated both 200mm and 300mm Cu pillar bumping engineering work and, related packaging technologies are being developed for mixed-signal and memory products in 2013. It is also qualified on power management IC product in 2016. According wearable device trend, we miniature fine-pitch Cu RDL process for WLCSP and RDL products, we shrink ball size with ball mount technology and combine thinner wafer grinded thickness to achieve thin WLCSP structure in 2020 which used in Auto Focus, OIS (Optical Image Stabilization) system and Hall motor sensor. By integrating WLCSP bumping, copper pillar bumping and flip chip assembly capability, an integrated WLCSP (CoW or 3D WLCSP) is developing in 2015, and qualified the structure and process verification in 2016. We adopt FC Chip Scale Package to implement in USB4/DP2.0 Re-Driver, PCIe 5.0 Re-Driver Product in 2021. Meanwhile, fingerprint sensor (FPS) packaging solution by LGA was also developed for smartphone demand in 2015. More and more integrated function of DDIC, TDDI and FPS, is requested for smartphone application, therefore 2-metal layers COF solution and COF SMT are developed to provide the package solution since 2019. Moreover, the improved OLED panel yield rate has also increased its adoption in smartphones, leading to diverse applications such as in-display fingerprint sensors.

Since 2013, in-process engineering advancement allowed us to extend our wirebond technology to service MEMS products. To further achieve cost reduction, alloy wire and 0.6 mil Au wirebond processes were also developed. In 2018, we continued to work on the expansion of multi-chip NAND packages offerings, and 12" fine pitch COF assembly capability. Capability of handling miniature molded packages has been extended to 1x1 mm size and various improvements will also be made in production equipment to enhance throughput and efficiency. 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, 2026 we employed 651 employees in our research and development activities. In addition, other management and operational personnel are also involved in research and development activities but are not separately identified as research and development professionals.

We maintain laboratory facilities capable for materials and electrical characterizations to support production and new product development. Computer simulation is used to validate both mechanical and electrical models in comparison to measurement results. Enhancement of Shadow Moiré and Micro Moiré equipment was carried out to support MCP and flip chip package warpage and residue stress characterization. We also setup up mold flow simulation capability to predict assembly risk. In Advanced Packaging Lab, rheology measurement capability and high frequency electric simulation capability were established, aimed at expanding capability for material selection and inspection to support flip chip introduction and various resin characterizations. For customer application request, we enhance our thermal simulation capability in 2022. An analytical laboratory has been built out in our bumping line providing timely support to manufacturing operations.

**Quality Control** 

We believe that our reputation for high quality and reliable services have been an important factor in attracting and retaining leading international semiconductor companies as customers for our assembly and testing services. 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.

Our quality control staff typically includes engineers, technicians and other employees who monitor assembly and test processes in order to ensure high quality. We employ quality control procedures in the following critical areas:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•sales quality assurance: following market trends to anticipate customers' future needs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•design quality assurance: when developing new testing and assembly processes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•supplier quality assurance: consulting with our long-term suppliers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•manufacturing quality assurance: through a comprehensive monitoring program during mass production; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•service quality assurance: quickly and effectively responding to customers' claims after completion of sale.

All of our facilities have obtained ISO 26262 road vehicles-functional safety system certification in December 2019 and obtained IATF 16949 quality system certification in December 2017. In addition, our facilities in Hsinchu and Tainan have been recertified with ISO 9001 for substantial revision since 2015.

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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 to the quality management system, we also earned the 1998 QC Group Award from The Chinese Society of Quality, which is equivalent to the similar award from the American Society of Quality and certified ISO17025 in 2000. In 2003, ChipMOS passed SONY Green Partner (Tier 2) certification through its ProMOS channel, and in 2009, ChipMOS obtained SONY Green Partner (Tier 1) certification due to its direct business relationship with SONY. The Sony certificates will continue to be maintained uninterrupted until now. Our laboratories have also been awarded Chinese National Laboratory accreditation under the categories of reliability test, electricity and temperature calibration.

Our assembly and testing operations are carried out in clean rooms where air purity, temperature and humidity are controlled. To ensure the stability and integrity of our operations, we maintain clean rooms at our facilities that meet U.S. federal 209E class 100, 1,000, 10,000 and 100,000 standards. A class 1,000 clean room means a room containing less than 1,000 particles of contaminants per cubic foot.

We have established manufacturing quality control systems which are designed to maintain reliability and high production yields at our facilities. We employ the most advanced equipment for manufacturing quality and reliability control, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Temperature cycling tester (TCT), thermal shock tester (TST) and pressure cook tester (PCT), and highly accelerated temperature/humidity stress tester (HAST) for reliability analyses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Scanning acoustic tomography (SAT) and scanning electronic microscope (SEM) for physical failure analysis;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Semi-Auto prober, curve tracer and DC tester station for electrical failure analysis;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Atomic absorption spectrometer (AA), inductively coupled plasma optical emission spectrometer (ICP-OES) and automatic potentiometric titrator (AP), UV-Visible Spectrophotometer (UV-VIS), Cyclic Voltammetric Stripping (CVS) and Ultra Performance Liquid Chromatography (UPLC) for chemical analysis

In addition, to enhance our performance and our research and development capabilities, we also installed a series of high-cost equipment, such as temperature humidity bias testers, low temperature storage-life testers and highly accelerated stress testers. We believe that many of our competitors do not own this equipment.

As a result of our ongoing focus on quality, in 2025, 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). The assembly yield, which is the industry standard for measuring production yield, is equal to the number of integrated circuit packages that are shipped back to customers divided by the number of individual integrated circuits that are attached to lead frames or organic substrate.

**Raw Materials** 

Semiconductor testing requires minimal raw materials. Substantially all of the raw materials used in our memory and logic/mixed-signal semiconductor assembly processes are interconnect materials such as leadframes, organic substrates, gold wire and molding compound. 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%, 20% and 25% of our revenue in 2023, 2024 and 2025, respectively.

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. Shortages in the supply of materials experienced by the semiconductor industry have in the past resulted in price adjustments. See "Item 3. Key Information—Risk Factors—Risks Relating to Our Business—If we are unable to obtain raw materials and other necessary inputs from our suppliers in a timely and cost-effective manner, our production schedules would be delayed and we may lose customers and growth opportunities and become less profitable" for a discussion of the risks associated with our raw materials purchasing methods. 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.

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**Competition** 

The independent assembly and testing markets are very competitive. Our competitors include large IDMs with in-house testing and assembly capabilities and other independent semiconductor assembly and testing companies, especially those offering vertically integrated assembly and testing services, such as Advanced Semiconductor Engineering Inc., Amkor Technology, Inc., Chipbond Technology Corporation, King Yuan Electronics Co., Ltd., Powertech Technology Inc., Jiangsu Changjiang Electronics Technology Co., Ltd. and United Test and Assembly Center Ltd. We believe that the principal measures of competitiveness in the independent semiconductor testing industry are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•engineering capability of software development;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•quality of service;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•flexibility;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•capacity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•production cycle time; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•price.

In assembly services, we compete primarily on the basis of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•production yield;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•production cycle time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•process technology, including our COF technology for LCD, OLED, automotive panel and other display panel driver semiconductor assembly services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•quality of service;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•capacity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•location; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•price.

IDMs that use our services continually evaluate our performance against their own in-house assembly and testing capabilities. These IDMs may have access to more advanced technologies and greater financial and other resources than we do. We believe, however, that we can offer greater efficiency and lower costs while maintaining an equivalent or higher level of quality for three reasons:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•firstly, we offer a broader and more complex range of services as compared to the IDMs, which tend to focus their resources on improving their front-end operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•secondly, we generally have lower unit costs because of our higher utilization rates and thus enabling us to operate at a more cost-effective structure compared to the IDMs; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•finally, we offer a wider range of services in terms of complexity and technology.

**Intellectual Property** 

As of February 28, 2026, we held 273 patents in Taiwan, 76 patents in the United States, 149 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. As of February 28, 2026, we also had a total of 11 pending patent applications in Taiwan, and 68 in Mainland China. In addition, we have registered "ChipMOS" and its logo as trademarks in Taiwan, the United States, Mainland China, Singapore, Hong Kong, Korea, Japan, the United Kingdom and the European Community.

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. 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".

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**Government Regulations** 

As discussed above under "—Intellectual Property", governmental regulation of our intellectual property may materially affect our business. 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.

**Environmental and Climate Change Matters** 

Semiconductor testing does not generate significant pollutants. The semiconductor assembly and gold bumping process generate stationary acid, alkali and VOC pollutions, principally at the plating and etching stages. Water waste is produced when silicon wafers are ground thinner, diced into chips with the aid of diamond saws and cleaned with running water. In addition, excess materials, either on leadframes or molding process, are removed from assembled semiconductors in the trimming and de-junking processes, respectively. We have various treatment equipment for wastewater and air pollutants at our assembly and bumping facilities. Since 2001, we have adopted certain environmental friendly production management systems, and have implemented certain measures intended to bring our all processes in compliance with the Restriction of Hazardous Substances Directive/EC issued by the European Union and our customers. We believe that we have adequate and effective environmental protection measures that are consistent with semiconductor industry practices in Taiwan. In addition, we believe we are in compliance in all material respects with current environmental laws and regulations applicable to our operations and facilities.

All of our facilities in Taiwan have been certified as meeting the ISO 14001 environmental standards of the International Organization for Standardization, and all of our facilities in Taiwan have been certified as meeting the ISO 45001 standards of the International Organization for Standardization. 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 2025, "Enterprises Environmental Protection Gold Grade Award" in 2018 and 2019, "Occupational Safety and Health Excellent Award" in 2016, 2017, 2021 to 2025, "Green Building Label" in 2014 and 2017 up to now. We are also certified the "Health Promotion Awards" from 2012 to 2025. We continue to encourage our employees to participate in community environmental campaigns and better environmental friendly practices.

We will continue to enhance related management to reduce industrial waste, save energy and control pollution. For products in conformity with Green Product Requirement, the Company obtained Green Partner certification from Sony Corporation of Japan. Furthermore, we passed QC 080000 certification and "Greenhouse Gas Verification Statement" ("ISO 14064-1") from 2013 until now. We further confirmed many products' CFP "Carbon Footprint Verification Statement" ("ISO 14067") and WFN "Water Footprint Verification Statement" ("ISO 14046"). At the same time, Tainan, Hsinchu, Chupei and Hukou plants passed the certification of energy management system ("ISO 50001") in 2014, 2017 and 2025 up to now. For materials management, we passed the "Material Flow Cost Accounting (MFCA, ISO 14051)" to reduce the loss. Our policy is to pay attention to the environment issues by standardizing on green, environmental friendly products, cleaner process and enhance supplier chain management to meet ChipMOS' Corporate Social Responsibilities.

As an enterprise, ChipMOS understands the importance of carrying out environmental protection in action. By referencing the Task Force on Climate-related Financial Disclosures ("TCFD") framework developed by the Financial Stability Board ("FSB") and began in 2021, we have identified the management needed over risks and opportunities associated with climate change, and further attained a comprehensive overview on the effects of climate change.

Besides depleting the Earth of her resources, energy consumption also generates carbon dioxide, leading to greenhouse effects. Hence, effective energy use will help to mitigate impacts on the environment. Due to the nature of the technology industry, ChipMOS is classified as one of the major electricity consumers per regulations from the Energy Administration, MOEA. Upholding our principle of treasuring energy consumption, we began to systematically initiate energy conservation actions in 2012. We continue to introduce various energy efficient technologies and facilities, and on top of Tainan fab's voluntary introduction of ISO 50001 Energy Management System in 2014, Hsinchu fab, Chupei and Hukou plants also achieved the ISO 50001 Energy Management System certification in 2017 and 2025. We actively promoted the use of renewable energy sources in 2020 and built solar power generation facilities to continuously increase the consumption ratio of renewable energies.

**Environmental, Social and Governance ("ESG") Initiatives and Sustainable Development Goals ("SDGs") Linkings** 

ChipMOS adheres to the mission of "Acting with Integrity, Strengthening Environmental Protection, and Care for the Disadvantaged" and has formulated the "Sustainable Development Principles" and "Corporate Sustainability Policy", which are adopted by the Board of Directors as the highest principle for the Company to promote sustainable development.

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ChipMOS ESG Committee is the highest decision-making sustainability management organization within the Company. The Chairman & President acted as the Chairperson and be the top of management executives of ESG Committee, the Executive Vice Presidents holds the highest management position for the south and north fabs; the key members are senior executives of each business unit, who work together to set sustainable development goals in line with the Company's business strategy and implement sustainability plans in daily operations. The ESG Committee reports quarterly to the Board of Directors on the status and results of sustainability projects, including issues such as promotion of net-zero emission for sustainability (including GHG inventories and verification), annual sustainability results (including stakeholder communication), mid- and long-term ESG goals, and results of risk management.

ChipMOS formulates sustainability vision by integrating sustainability policy, organizational vision, and core missions, and inspects the vision's link to the United Nations' SDGs. In accordance with the Company's ESG development direction and ChipMOS Material Topics, ChipMOS focuses on 10 major SDGs (SDG 3, SDG 4, SDG 6, SDG 7, SDG 8, SDG 11, SDG 12, SDG 13, SDG 16, SDG 17) to respond and set measurable and timely internal management objectives.

We have launched sustainable actions for all aspects during our business management, including: continuing to enhance corporate governance, complying with ethical management and being committed to the R&D and innovation of core technologies to realize our commitment and responsibilities to employees; and actively invest in green production to reduce harmful effects on the environment during production processes and continuing to enhance resource utilization efficiency to protect the environment. Internally, we persist in the protection and care for employees' health and welfare while striving in employee development and assisting in their career development. Externally, we are deeply engaged in environmental sustainability and social welfare.

***Green Production and Green Manufacturing*** 

Global warming and climate change have become phenomenon that enterprises around the world need to address. ChipMOS continues to follow the Paris Agreement and strives to increase the use of renewable energy and improve the efficiency of energy use on the basis of strengthening adaptation to climate change, so as to reducing greenhouse gases and controlling global temperature rise, on top of enhancing adaptability to climate change. 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. 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.

***Employee Value and Talent Developing*** 

We are committed to equality and strive to provide equal employment opportunities. We protect the rights of our workers and respect every employee, and we have created a positive and friendly workplace environment. ChipMOS has set up comprehensive talent development framework and system and invested sufficient resources toward the training for Leadership, Technology, General Management, Quality, and for Newcomer Orientation. At the same time, talent development strategies have also been formulated to achieve talent development goals.

***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.

***Social Inclusion and Local Community Partnership*** 

With the two major visions, namely "Environmental Sustainability" and "Public Welfare Practice", ChipMOS has developed four major development aspects, including "Environment-Friendly", "Community Feedback", "Care for the disadvantaged" and "Talent Cultivation", linking the 17 UN SDGs, while focusing on three SDGs (SDG 3, SDG 4 and SDG 11).

*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. It is expected to take practical actions for fighting against climate change and global warming together.

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*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 hoped to exert the full forces as a corporate, and invite ChipMOS employees to jointly support the public welfare activities, and extend the influence of public welfare to all corners of Taiwanese society through more diverse methods, for achieving common prosperity of the society, and implementing the spirit of corporate social citizen.

***Corporate Governance*** 

ChipMOS follows the "Articles of Incorporation" and "Corporate Governance Best Practice Principles" and relevant laws and regulations, formulates the Corporate Governance structure, establishes a good Corporate Governance system, abides by laws and regulations, and operates in good faith to ensure the steady operation and growth of the Company. ChipMOS strengthens the supervision and management of the Company's operation through the Board of Directors, strives to protect the rights and interests of shareholders and other stakeholders, actively communicates and interacts with stakeholders, continuously improves information transparency and implements sustainable corporate development, which are the main priorities for development promoted by Corporate Governance.

ChipMOS continues strengthening Corporate Governance management, including safeguarding shareholders' rights and interests, enhancing the operation of the Board of Directors, strengthening internal control Risk management, improving information transparency, and implementing sustainable development, so as to actively improve the level of Corporate Governance and allow stakeholders to understand the effectiveness of the implementation of various policies.

For further information on our ESG initiatives and SDGs linking, please see our annual Sustainability Reports, which are available on our website at https://www.chipmos.com/english/csr/report.aspx. The information contained on our website is not incorporated herein by reference and does not constitute part of this annual report.

**Insurance** 

We maintain insurance policies on our buildings, equipment and inventories. 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$133.35 billion.

Insurance coverage on facilities under construction is maintained by us and our contractors, who are obligated to procure necessary insurance policies and bear the relevant expenses of which we are the beneficiary. We also maintain insurance on the wafers delivered to us while these wafers are in our possession and during transportation from suppliers to us and from us to our customers.

**Employees** 

See "Item 6. Directors, Senior Management and Employees—Employees" for certain information relating to our employees.

**Taxation** 

See "Item 5. 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. We own the land for our Hsinchu Industrial Park testing facility and Chupei facility and we lease two parcels of land for our Hsinchu Science Park testing facility with lease expiration in year 2027 and 2034, respectively, and two parcels of land for our Southern Taiwan Science Park facility with lease expiration in year 2032 and 2044.

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The following table shows the location, primary use and size of each of our facilities, and the principal equipment installed at each facility, as of February 28, 2026.

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| | | | |
|:---|:---|:---|:---|
| **Location of Facility** | **Primary Use** | **Floor Area (m2)** | **Principal Equipment** |
| Chupei, Hsinchu | Testing/Gold Bumping | 40526 | 10 steppers<br>17 sputters<br>336 testers |
| Hsinchu Industrial Park | Testing | 25864 | 165 testers<br>18 burn-in ovens |
| Hsinchu Science Park | Testing | 31169 | 201 testers<br>53 burn-in ovens |
| Southern Taiwan Science Park | Assembly/Testing | 184325 | 955 wire bonders<br>105 inner-lead bonders<br>731 testers |

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**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. 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, 2026, we operated 702 testers for testing memory and logic/mixed-signal semiconductors. We generally seek to purchase testers with similar functionality that are able to test a variety of different semiconductors. We purchase testers from international manufacturers Advantest Corporation.

In general, particular semiconductors can be tested using a limited number of specially designed testers. As part of the qualification process, customers will specify the machines on which their semiconductors may be tested. We often develop test program conversion tools that enable us to test semiconductors on multiple equipment platforms. This portability among testers enables us to allocate semiconductor testing across our available testing capacity and thereby improve capacity utilization rates. If a customer requires the testing of a semiconductor that is not yet fully developed, the customer consigns its testing software programs to us to test specific functions. If a customer specifies test equipment that is not widely applicable to other semiconductors we test, we require the customer to furnish the equipment on a consignment basis.

We will continue to acquire additional test equipment in the future to the extent market conditions, cash generated from operations, the availability of financing and other factors make it desirable to do so. Some of the equipment and related spare parts that we require have been in short supply in recent years. Moreover, the equipment is only available from a limited number of vendors or is manufactured in relatively limited quantities and may have lead time from order to delivery in excess of six months.

***Assembly of Memory and Logic/Mixed-Signal Semiconductors*** 

The number of wire bonders at a given facility is commonly used as a measure of the assembly capacity of the facility. Typically, wire bonders may be used, with minor modifications, for the assembly of different products. We purchase wire bonders principally from Shinkawa Co., Ltd. and Kulicke & Soffa Industries Inc. As of February 28, 2026, we operated 955 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.

***Gold Bumping, Assembly and Testing of LCD, OLED, automotive panel and Other Display Panel Driver Semiconductors*** 

We acquired TCP-related equipment from Sharp to begin our TCP-related services. We subsequently purchased additional TCP-related testers from Advantest Corporation and assembly equipment from Shibaura Mechatronics Corp. As of February 28, 2026, we operated 10 steppers and 17 sputters for gold bumping, 105 inner-lead bonders for assembly and 731 testers for LCD, OLED, automotive panel and other display panel driver semiconductors. We are currently in the process of purchasing additional test equipment. The test equipment can be used for the COF and COG processes, while the inner-lead bonders are only used in the COF processes. The same types of wafer grinding, auto wafer mount and die saw equipment is used for the COF and COG processes. In addition, auto inspection machines and manual work are used in the COG process, which is more labor-intensive than the COF processes.

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**Item 4A. Unresolved Staff Comments** 

Not applicable.

**Item 5. Operating and Financial Review and Prospects** 

This discussion and analysis should be read in conjunction with our consolidated financial statements and related notes contained in this Annual Report on Form 20-F.

**Overview** 

We are a company limited by shares, incorporated in ROC on July 28, 1997. We provide a broad range of back-end assembly and testing services. Testing services include wafer probing and final testing of memory and logic/mixed-signal semiconductors. We also offer a broad selection of leadframe and organic substrate-based package assembly services for memory and logic/mixed-signal semiconductors. Our advanced leadframe-based packages include thin small outline packages, or TSOPs, and our advanced organic substrate-based packages include fine-pitch ball grid array, or fine-pitch BGA, packages. We also offer WLCSP products and turn-key flip chip assembly and testing services using variety of leadframe and organic substrate carries. In addition, we provide gold bumping, reel to reel assembly and testing services for LCD, OLED, automotive panel and other display panel driver semiconductors by employing COF and COG technologies. Our copper bumping technology supports non-driver type of products, such as RDL, copper pillar, WLCSP etc. In 2025, our consolidated revenue was NT$23,933 million (US$763 million) and our profit for the year attributable to equity holders of the Company was NT$551 million (US$18 million).

The Company listed and commenced trading on the main board of TWSE on April 11, 2014. See "Item 3. Key Information—Risk Factors—Risks Relating to Our Common Shares or ADSs—The Company's ability to maintain its listing and trading status of common shares on the Taiwan Stock Exchange or ADSs on the Nasdaq is dependent on factors outside of the Company's control and satisfaction of stock exchange requirements. The Company may not be able to overcome such factors that disrupt its trading status of common shares on the Taiwan Stock Exchange or ADSs on the Nasdaq or satisfy other eligibility requirements that may be required of it in the future" for additional information.

On January 21, 2016, ChipMOS Bermuda and the Company entered into the Merger Agreement, pursuant to which ChipMOS Bermuda merged with and into the Company, with the latter being the surviving company after the Merger. Upon completion of the Merger, the Company and its subsidiaries owned continued to conduct the business that they conducted in substantially the same manner. For additional information regarding the Merger see "Item 4. Information on the Company".

On November 30, 2016, the Company and Unigroup Guowei executed the Equity Interest Transfer Agreement. Under the agreement, ChipMOS BVI, a wholly-owned subsidiary of the Company, would sell 54.98% of the equity interests of its wholly-owned subsidiary, Unimos Shanghai, to strategic investors, including Unigroup Guowei, a subsidiary of Tsinghua Unigroup, which will hold 48% equity interests of Unimos Shanghai, and the other strategic investors, including a limited partnership owned by Unimos Shanghai's employees, will own 6.98% equity interest of Unimos Shanghai. In March 2017, ChipMOS BVI completed the sale of 54.98% equity interests of Unimos Shanghai to Unigroup Guowei and other strategic investors. Unimos Shanghai was no longer the subsidiary of ChipMOS BVI. On June 30, 2017, we completed the first stage capital injection of Unimos Shanghai, and on January 19, 2018, completed the second stage capital injection of Unimos Shanghai. On December 16, 2019, Unigroup Guowei and one of the strategic investor sold and transferred all equity interests of Unimos Shanghai to Yangtze Memory, which holds 50% equity interests of Unimos Shanghai after the transaction completed. On May 11, 2020, one of the strategic investor sold and transferred all equity interests of Unimos Shanghai to Yangtze Memory, which holds 50.94% equity interests of Unimos Shanghai after completed transaction. 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 equity interest transfer had been completed in May 2024. See "Item 4. Information on the Company—Our Structure and History" for more details.

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.* Our operations, in particular our testing operations, are characterized by relatively high fixed costs. 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. 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.

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The current generation of advanced testers typically cost between US$0.7 million and US$5.5 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. We begin depreciating our equipment when it is placed into commercial operation. There may be a time lag between the time when our equipment is placed into commercial operation and when it achieves high levels of utilization. In periods of depressed semiconductor industry conditions, we may experience lower than expected demand from our customers and a sharp decline in the average selling prices of our assembly and testing services, resulting in an increase in depreciation expenses relative to revenue. In particular, the capacity utilization rates for our Display panel driver semiconductors assembly and testing equipment may be severely adversely affected during a semiconductor industry downturn as a result of the decrease in outsourcing demand from integrated device manufacturers, or IDMs, which typically maintain larger in-house testing capacity than in-house assembly capacity.

*Highly Cyclical Nature of the Semiconductor Industry*. The worldwide semiconductor industry has experienced peaks and troughs over the last decade. The semiconductor supply chain inventory level increases and end-user demand decrease influenced by geopolitics and tariff pressures. Demand soft caused customers' inventory adjustments and macro weakness. These macro headwinds impacted the worldwide semiconductor demand, causing consumer end market demand soft and marketing price down since the second half of 2024. However, driven by improving demand for high-value memory solutions, particularly in data center and AI-related applications, this sustained strong memory demand more than offset continued softness in certain consumer end markets since the second half of 2025.

*Declining Average Selling Prices of Our Assembly and Testing Services.* 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.

To enhance the competitiveness and increase the revenue, we will continue to seek to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•improve production efficiency and attain high capacity utilization rates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•concentrate on testing of potentially high-demand, high-growth semiconductors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•develop new assembly technologies; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•implement new technologies and platforms to shift into potentially higher margin services.

*Market Conditions for the End-User Applications for Semiconductors.* 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. Our revenue is largely attributable to fees from testing and assembling semiconductors including DDIC and non-DDIC electronic components, for use in smart mobile devices, automotive and industrial market. Continuous pricing pressure on our assembly and testing services would negatively affect our earnings.

*Change in Product Mix*. We intend to continue focusing on testing and assembling more semiconductors that have the potential to provide higher margins, which includes OLED, automotive application, and developing and offering new technologies in testing and assembly services for ASIC product, including flip chip packaging solution, in order to mitigate the effects of declining average selling prices for our services on our ability to attain profitability.

**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. In August 2024, the Company participated in the cash capital increase of Daypower Energy according to its shareholding ratio, with a payment amount of NT$12.5 million.

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. 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 was completed and the total consideration under the all-cash sale of RMB 979.3 million has fully received in December 2024.

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**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. The following table sets forth, for the periods indicated, our consolidated revenue for each segment.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2023** | **2024** | **2025** | **2025** |
|  | **NT$** | **NT$** | **NT$** | **US$** |
|  | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| Testing | $4394.7 | $4967.9 | $5677.9 | $181.0 |
| Assembly | 4629.4 | 5390.4 | 6827.4 | 217.6 |
| Display panel driver semiconductor assembly and testing | 7821.7 | 7319.0 | 5869.9 | 187.1 |
| Bumping | 4510.4 | 5018.6 | 5557.7 | 177.2 |
| Total | $21356.2 | $22695.9 | $23932.9 | $762.9 |

---

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. 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. Our customers' purchase orders have varied significantly from period to period because demand for their products is often volatile. We have strategically entered into long-term capacity agreements with some of our customers. Under certain of those long-term agreements, we have agreed to reserve capacity for our customers and our customers have agreed to place orders in the amount of the reserved capacity (which is subject in certain cases to reduction by the customers). 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. We believe that the dual focused strategy would assist us to be better prepared for the current economic volatility and ensure maximum utilization rate of our capacity and help us to develop closer relationships with all types of our customers. Depending on customer demands, market conditions and other considerations, we remain to be focused on expansion of our operations with possible future long-term capacity agreements.

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. In order to maintain our margins, it is necessary to offset the fee erosion by continually improving our production efficiency and maintaining high capacity utilization rates. We also plan to continue to develop and implement new technologies and expand our services into potentially higher-margin segments. These efforts require significant upfront investment in advance of incremental revenue, which could impact our margins.

**Pricing** 

We price our testing fees primarily based on the cost of testing the products to our customers' specifications, including the costs of the required material and components, the depreciation expenses relating to the equipment involved and our overhead expenses, and with reference to prevailing market prices. Accordingly, the testing fee for a particular product would principally depend on the time taken to perform the tests, the complexity of the product and the testing process, and the cost of the equipment used to perform the test. For example, testing fees for memory semiconductors are significantly higher than those for other products because of the longer time required and the need for burn-in testing. By the way, we raised up the memory OSAT price to reflect the higher raw material cost in August 2025. 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.

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 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.

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*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. 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. 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.

*Geography and Currency* 

The majority of our revenue is generated from customers headquartered in Taiwan, which represented 81%, 80% and 87% of our revenue in 2023, 2024 and 2025, respectively. We also generate revenue from customers in Mainland China, Japan, Singapore and other countries. 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. 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. Our operations, in particular our testing, are characterized by relatively high fixed costs. We expect to continue to incur substantial depreciation and other expenses as a result of our previous and future acquisitions of assembly and testing equipment and facilities. As of February 28, 2026, we had 1,433 testers, 71 burn-in ovens, 955 wire bonders, 105 inner-lead bonders, 10 steppers and 17 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.

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 58% in 2023, 63% in 2024 and 66% in 2025. Our average capacity utilization rate for assembly of memory and logic/mixed-signal semiconductors was 46% in 2023, 59% in 2024 and 67% in 2025. Our average capacity utilization rate for Display panel driver semiconductor assembly and testing was 69% in 2023, 70% in 2024 and 65% in 2025. In addition, our average capacity utilization rate for bumping was 58% in 2023, 62% in 2024 and 59% in 2025.

For each period of time selected, we derived the capacity utilization rate for our testing operations by dividing the total number of hours of actual use of our facilities' testing equipment units by the maximum number of hours that these equipment units were capable of being used. The testing 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.

For each period of time selected, we derived the capacity utilization rate for our assembly operations by dividing the total number of units actually produced by our assembly facilities by the maximum number of units that these facilities are capable of producing. 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.

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. As a result, in a period where the average selling prices for our services do not fluctuate significantly, increases or decreases in our capacity utilization rates generally correlate to increases or decreases in our gross revenue. 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.

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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. Also, as a result, our gross margin and profitability generally decrease in correlation to decreases in our capacity utilization rates, decreases in our average selling prices for our services, or both. Similarly, our gross margin and profitability generally increase in correlation to increases in our capacity utilization rates, increases in our average selling prices for our services, or both. Due to the cyclical nature of the semiconductor industry, customer orders may change significantly, causing fluctuation in our capacity utilization rate and average selling prices for our service.

Most of our labor and overhead costs are denominated in NT dollars. 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 US dollars with much of the remainder denominated in Japanese yen.

The following table sets forth, for the periods indicated, our gross profit and our gross profit margin as a percentage of revenue.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2023** | **2024** | **2025** | **2025** |
|  | **NT$** | **NT$** | **NT$** | **US$** |
|  | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| **Gross profit (loss):** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Testing | $873.3 | $951.9 | $1255.6 | $40.0 |
| &nbsp;&nbsp;&nbsp;Assembly | (671.5) | (605.8) | (107.6) | (3.4) |
| &nbsp;&nbsp;&nbsp;Display panel driver semiconductor assembly and testing | 2446.4 | 1646.5 | 441.6 | 14.1 |
| &nbsp;&nbsp;&nbsp;Bumping | 901.2 | 951.5 | 1002.8 | 31.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $3549.4 | $2944.1 | $2592.4 | $82.6 |
| **Gross profit (loss) margin:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Testing | 19.9% | 19.2% | 22.1% | 22.1% |
| &nbsp;&nbsp;&nbsp;Assembly | -14.5% | -11.2% | -1.6% | -1.6% |
| &nbsp;&nbsp;&nbsp;Display panel driver semiconductor assembly and testing | 31.3% | 22.5% | 7.5% | 7.5% |
| &nbsp;&nbsp;&nbsp;Bumping | 20.0% | 19.0% | 18.0% | 18.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Overall | 16.6% | 13.0% | 10.8% | 10.8% |

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**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, entertainment fees and traveling 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.

*Research and Development* 

Research and development expenses consist primarily of personnel expenses, depreciation expenses, maintenance and repair expenses, facilities expenses, utilities expenses and license fees paid to third parties. 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.

**Other Income (Expenses), Net** 

Our other income principally consists of gain on disposal of property, plant and equipment and insurance compensation income.

Our other expenses principally consist of impairment loss on property, plant and equipment.

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**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, gain on disposal of investments accounted for using equity method and reimbursement of ADSs service charge.

Our other losses principally consist of foreign exchange losses, impairment loss on financial assets and loss on valuation of financial assets at fair value through profit or loss.

**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$1,968 million, NT$1,440 million and NT$551 million (US$18 million) in 2023, 2024 and 2025, respectively. We believe our future results will be dependent upon the overall economic conditions in the markets we serve, the competitive environment in which we operate, and our ability to successfully implement our strategy, among other things. For additional information on factors that will affect our future performance, see "Item 3. Key Information—Risk Factors".

**Results of Operations** 

The following table sets forth, for the periods indicated, financial data from our consolidated statements of comprehensive income.

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2023** | **2023** | **2024** | **2024** | **2025** | **2025** | **2025** |
|  | **NT$** | **Percentage** | **NT$** | **Percentage** | **NT$** | **US$** | **Percentage** |
|  | **(in millions, except percentage)** | **(in millions, except percentage)** | **(in millions, except percentage)** | **(in millions, except percentage)** | **(in millions, except percentage)** | **(in millions, except percentage)** | **(in millions, except percentage)** |
| Revenue | $21356.2 | 100.0% | $22695.9 | 100.0% | $23932.9 | $762.9 | 100.0% |
| Cost of revenue | (17806.8) | (83.4)% | (19751.8) | (87.0)% | (21340.5) | (680.3) | (89.2)% |
| Gross profit | 3549.4 | 16.6% | 2944.1 | 13.0% | 2592.4 | 82.6 | 10.8% |
| Operating expenses | (1726.9) | (8.1)% | (1770.1) | (7.8)% | (1688.5) | (53.8) | (7.0)% |
| Other income (expenses), <br> net | 85.9 | 0.4% | 99.9 | 0.4% | 238.8 | 7.6 | 1.0% |
| Operating profit | 1908.4 | 8.9% | 1273.9 | 5.6% | 1142.7 | 36.4 | 4.8% |
| Non-operating income<br> (expenses), net | 359.8 | 1.7% | 373.1 | 1.6% | (552.0) | (17.6) | (2.3)% |
| Profit before income tax | 2268.2 | 10.6% | 1647.0 | 7.2% | 590.7 | 18.8 | 2.5% |
| Income tax expense | (300.6) | (1.4)% | (207.5) | (0.9)% | (40.1) | (1.2) | (0.2)% |
| Profit for the year | $1967.6 | 9.2% | $1439.5 | 6.3% | $550.6 | $17.6 | 2.3% |
| Total comprehensive<br>&nbsp;&nbsp;&nbsp;&nbsp;income for the year | $1796.6 | 8.4% | $1549.2 | 6.8% | $634.6 | $20.2 | 2.7% |

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The following table sets forth, for the periods indicated, earnings per common share and ADS.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2023** | **2024** | **2025** | **2025** |
|  | **NT$** | **NT$** | **NT$** | **US$** |
| Earnings per share—basic | $2.71 | $1.98 | $0.78 | $0.02 |
| Earnings per share—diluted | 2.68 | 1.96 | 0.77 | 0.02 |
| Earnings per equivalent ADS—basic | 54.11 | 39.59 | 15.50 | 0.49 |
| Earnings per equivalent ADS—diluted | 53.54 | 39.22 | 15.45 | 0.49 |
| Weighted average number of shares outstanding (in million<br> shares): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic | 727.2 | 727.2 | 710.4 | 710.4 |
| &nbsp;&nbsp;&nbsp;Diluted | 734.9 | 734.0 | 712.6 | 712.6 |

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**Year Ended December 31, 2025 Compared to Year Ended December 31, 2024** 

**Revenue**. Our revenue increased by NT$1,237 million, or 5%, to NT$23,933 million (US$763 million) in 2025 from NT$22,696 million in 2024.

Revenue from testing services increased by NT$710 million, or 14%, to NT$5,678 million (US$181 million) in 2025 from NT$4,968 million in 2024, principally due to the increased average selling price and customer demand. The sales quantity increased around 1% compared to 2024.

Revenue from assembly services increased by NT$1,437 million, or 27%, to NT$6,827 million (US$218 million) in 2025 from NT$5,390 million in 2024, primarily as a result of the increase of average selling price, and the volume driven by memory products rebounded since the second half of 2025.

Revenue from display panel driver semiconductor assembly and testing services decreased by NT$1,449 million, or 20%, to NT$5,870 million (US$187 million) in 2025 from NT$7,319 million in 2024. This decrease was principally as a result of a weaker customer demand due to inventory adjustments for market softness and the price competition among DDIC suppliers in Mainland China. The sales quantity decreased around 23% compared to 2024.

Revenue from bumping services increased by NT$539 million, or 11%, to NT$5,558 million (US$177 million) in 2025 from NT$5,019 million in 2024. This increase was principally due to the increased average selling price resulting from a substantial rise in gold prices and favorable product mix.

**Cost of Revenue and Gross Profit**. Cost of revenue increased by NT$1,589 million, or 8%, to NT$21,341 million (US$680 million) in 2025 from NT$19,752 million in 2024, primarily due to the increase of direct material expense of NT1,359 million (US$43 million) and depreciation expenses of NT$243 million (US$8 million).

Our gross profit decreased to NT$2,592 million (US$83 million) in 2025 from NT$2,944 million in 2024. Our gross margin was 10.8% in 2025, compared to 13.0% in 2024, due to higher material costs, electricity charge rate and higher allocation of fixed costs resulting from the lower utilization level of display panel driver semiconductor assembly and testing services and bumping services.

Our gross profit margin for testing services increased to 22.1% in 2025 from 19.2% in 2024, primarily due to the increase in revenue resulted from the increased average selling price and customer demand.

Our gross profit margin for assembly services increased to -1.6% in 2025 from -11.2% in 2024, primarily due to the increase in revenue resulted from the increased average selling price and the customer demand benefiting from memory products rebounded since the second half of 2025.

Our gross profit margin for display panel driver semiconductor assembly and testing services decreased to 7.5% in 2025 from 22.5% in 2024, primarily caused by the decline of average selling price.

Our gross profit margin for bumping services decreased to 18.0% in 2025 from 19.0% in 2024, primarily due to the increase in direct material expense, such as rising gold prices, which dilutes our gross profit margin for bumping services because both the revenue and cost increased with higher gold price.

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.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2023** | **2024** | **2025** | **2025** |
|  | **NT$** | **NT$** | **NT$** | **US$** |
|  | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| Sales and marketing expenses | $135.7 | $128.7 | $119.8 | $3.8 |
| General and administrative expenses | 497.7 | 478.6 | 491.7 | 15.7 |
| Research and development expenses | 1093.5 | 1162.8 | 1077.0 | 34.3 |
| Total operating expenses | $1726.9 | $1770.1 | $1688.5 | $53.8 |

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**Sales and Marketing Expenses**. Sales and marketing expenses decreased by NT$9 million, or 7%, to NT$120 million (US$4 million) in 2025 from NT$129 million in 2024, primarily due to the decrease of personnel related expenses, which was primarily attributable to the lower employee bonus and compensation, and the shipping expenses.

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**General and Administrative Expenses**. General and administrative expenses increased by NT$13 million, or 3%, to NT$491 million (US$16 million) in 2025 from NT$478 million in 2024, primarily due to the increase of maintenance and repair expense resulting from the system conversion and depreciation expenses and partially offset by the decrease of personnel related expenses.

**Research and Development Expenses**. Research and development expenses decreased by NT$86 million, or 7%, to NT$1,077 million (US$34 million) in 2025 from NT$1,163 million in 2024, primarily due to the decrease of personnel related expenses, which was primarily attributable to the lower employee bonus and compensation, licenses fees paid to third parties and depreciation expenses.

**Other Income (Expenses), Net.** Other operating income, net increased by NT$139 million, or 139%, to NT$239 million (US$8 million) in 2025 from NT$100 million in 2024, primarily due to the increase of gain on disposal of property, plant and equipment, net and insurance compensation income due to earthquake damage.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2023** | **2024** | **2025** | **2025** |
|  | **NT$** | **NT$** | **NT$** | **US$** |
|  | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| Interest income | $193.2 | $197.7 | $243.3 | $7.8 |
| Other income | 77.6 | 58.1 | 76.1 | 2.4 |
| Other gains and losses | 135.5 | 393.6 | (427.2) | (13.6) |
| Financial costs | (266.4) | (279.0) | (301.3) | (9.6) |
| Share of profit (loss) of associates and joint ventures accounted <br> for using equity method | 219.9 | 2.7 | (142.9) | (4.6) |
| Total non-operating income (expenses), net | $359.8 | $373.1 | $(552.0) | $(17.6) |

---

**Non-Operating Income (Expenses), Net.** Non-operating expenses, net increased by NT$925 million, or 248%, to NT$552 million (US$18 million) in 2025 from non-operating income, net NT$373 million in 2024, primarily due to the adverse impact on the foreign exchange of NT$702 million (US$22 million) from the foreign exchange gains of NT$243 million in 2024 to the foreign exchange losses of NT$459 million (US$15 million) in 2025, the adverse impact on share of associates accounted for using equity method of NT$146 million (US$5 million) from the share of profit of associates accounted for using equity method of NT$3 million in 2024 to the share of loss of associates accounted for using equity method NT$143 million (US$5 million) in 2025 and the gain on disposal of non-current assets held for sale of NT$72 million in 2024.

**Net Profit.** As a result of the foregoing operations, net profit decreased by NT$889 million, or 62% to NT$551 million (US$18 million) in 2025 from NT$1,440 million in 2024. Our income tax expense of NT$40 million (US$1 million) in 2025 compared to NT$208 million for 2024, primarily due to the decrease in taxable income and the lower additional income tax imposed on unappropriated earnings in the R.O.C. in 2025.

**Year Ended December 31, 2024 Compared to Year Ended December 31, 2023** 

For a detailed description of the comparison of our operating results for the year ended December 31, 2024 to the year ended December 31, 2023, please refer to "Item 5. Operating and Financial Review and Prospects—Results of Operations—Year Ended December 31, 2024 Compared to Year Ended December 31, 2023" of our annual report on Form 20-F filed with the Securities and Exchange Commission on April 15, 2025.

**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. Key Information—Risks Factors—Risks Relating to Our Business—Fluctuations in exchange rates could result in foreign exchange losses" and "Item 3. Key Information—Risks Factors—Risks Relating to Countries in Which We Conduct Operations.

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**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. As of December 31, 2025, our primary sources of liquidity were cash and cash equivalents of NT$14,859 million (US$474 million), short-term bank loans of NT$5,091 million (US$162 million) available to us in undrawn facilities, which we plan to renew when facilities expired or will expire from March 2026 to December 2026, and long-term bank loans of NT$4,350 million (US$139 million) available to us in undrawn facilities, which will expire in December 2026. 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. 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$811 million) and terms from seven to ten years. As of the issue date of this report, the Company has used NT$21.09 billion (US$672 million) of the credit line. See "Item 3. Key Information—Risk Factors—Risks Relating to Our Business—Our significant amount of indebtedness and interest expense will limit our cash flow and could adversely affect our operations" for additional information.

The following table summarizes our contractual obligations and commitments as of December 31, 2025, or the periods indicated:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Payments Due by Period** | **Payments Due by Period** | **Payments Due by Period** | **Payments Due by Period** | **Payments Due by Period** |
| **Contractual Obligations** | **Total** | **Within<br>1 year** | **1 to 3 years** | **3 to 5 years** | **Over<br>5 years** |
|  | **NT$** | **NT$** | **NT$** | **NT$** | **NT$** |
|  | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| Short-term bank loans<sup>(1)</sup> | $2734 | $2734 | $— | $— | $— |
| Long-term bank loans<sup>(1)</sup> | 13392 | 3090 | 5244 | 3193 | 1865 |
| Lease liabilities<sup>(1)</sup> | 1080 | 131 | 95 | 72 | 782 |
| Capital commitments | 21 |  |  |  | 21 |
| &nbsp;&nbsp;&nbsp;Total contractual cash obligations | $17227 | $5955 | $5339 | $3265 | $2668 |

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Note:

(1)Includes interest payments. Assumes level of relevant interest rates remains at December 31, 2025, level throughout all relevant periods.

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.

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.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2023** | **2024** | **2025** | **2025** |
|  | **NT$** | **NT$** | **NT$** | **US$** |
|  | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| Capital expenditures | $3228.5 | $5451.4 | $3666.1 | $116.9 |
| Depreciation and amortization | 4779.3 | 4856.2 | 5100.7 | 162.6 |
| Net cash generated from (used in): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Operating activities | $6607.5 | $5940.6 | $3996.4 | $127.4 |
| &nbsp;&nbsp;&nbsp;Investing activities | (3090.2) | (615.1) | (3739.4) | (119.2) |
| &nbsp;&nbsp;&nbsp;Financing activities | (1059.1) | (2475.4) | (607.2) | (19.4) |
| &nbsp;&nbsp;&nbsp;Effect of exchange rate changes | (0.8) | 14.9 | (9.9) | (0.3) |
| Net increase in cash and cash equivalents | $2457.4 | $2865.0 | $(360.1) | $(11.5) |

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***Net Cash Generated from Operating Activities*** 

Net cash generated from operating activities amounted to NT$3,996 million (US$127 million) in 2025, primarily as a result of (i) profit before income tax of NT$591 million (US$19 million), (ii) our non-cash depreciation in the amount of NT$5,101 million (US$163 million), and (iii) the changes in accounts receivable and inventories of NT$1,695 million (US$54 million). Net cash generated from operating activities amounted to NT$5,941 million in 2024, primarily as a result of (i) profit before income tax of NT$1,647 million, (ii) our non-cash depreciation in the amount of NT$4,856 million, and (iii) income tax paid of NT$609 million. The decrease in net cash generated from operating activities in 2025 compared to 2024 was primarily due to the decrease in profit before income tax and the cash outflows from changes in accounts receivables. Change in accounts receivable were due to year-end revenue increased and customer payment schedule. The decrease in income tax paid compared to prior year was due to lower net profit in 2024. In addition, there is no provisional income tax payment required in 2025 as the Company met certain criteria for an exemption from filing provisional tax in compliance with Taiwan's Income Tax Act, compared with the provisional income tax payment of NT$224 million in 2024.

***Net Cash Used in Investing Activities*** 

Net cash used in investing activities amounted to NT$3,739 million (US$119 million) in 2025, primarily due to net payment for property, plant and equipment of NT$3,851 million (US$123 million). Net cash used in investing activities amounted to NT$615 million in 2024, primarily due to net payment for property, plant and equipment of NT$5,006 million and partially offset by the proceeds from disposal of non-current assets held for sale of NT$4,394 million.

***Net Cash Used in Financing Activities*** 

Net cash used in financing activities amounted to NT$607 million (US$19 million) in 2025. This amount comprises net proceeds from short-term bank loans and net payments on long-term bank loans and lease liabilities in the amount of NT$1,082 million (US$34 million), the distribution of cash dividends and payments to acquire treasury shares in the amount of NT$1,817 million (US$58 million). Net cash used in financing activities amounted to NT$2,475 million in 2024. 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 and the distribution of cash dividends in the amount of NT$1,309 million.

For a detailed description of the comparison of our cash flows for the year ended December 31, 2024 to the year ended December 31, 2023, 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 15, 2025.

***Loans*** 

As of December 31, 2025, we had long-term bank loans of NT$12,765 million (US$407 million) (including current portions of such long-term bank loans of NT$2,897 million (US$92 million)). As of December 31, 2025, NT$8,658 million (US$276 million) of our long-term bank loans were collateralized by land, buildings and equipment. Our long-term bank loans were floating rate loans with a rate between 1.525% to 1.975% as of December 31, 2025. Government granted bank loan is repayable monthly from March 2023 to February 2035.

We had entered into the following long-term loans facilities:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•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. 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$811 million) and terms from seven to ten years. As of the issue date of this report, the Company has used the credit line of the aforementioned project loans for amount of NT$21.09 billion (US$672 million).

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.

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Set forth below are the maturities of our long-term bank loans outstanding as of December 31, 2025:

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| | | |
|:---|:---|:---|
|  | **As of<br>December 31, 2025** | **As of<br>December 31, 2025** |
|  | **NT$** | **US$** |
|  | **(in millions)** | **(in millions)** |
| During 2026 | $2897 | $92 |
| During 2027 | 2452 | 78 |
| During 2028 | 2520 | 80 |
| During 2029 | 1810 | 58 |
| During 2030 and onwards | 3086 | 99 |
|  | $12765 | $407 |

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As of December 31, 2025, certain of our property, plant and equipment and non-current financial assets at amortized cost with an aggregate net book value of NT$12,578 million (US$401 million) and NT$43 million (US$1 million), respectively, were pledged as collateral mainly for long-term bank loans and leases.

As of December 31, 2025, we had unsecured short-term bank loans in the total amount of NT$2,706 million (US$86 million), which was paid or will expire from January 2026 to June 2026.

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. There can be no assurance regarding these matters, however, considering prevailing global economic conditions which continue to have a negative impact on our ability to accurately forecast our revenues, results of operations and cash position. See "Item 3. Key Information—Risk Factors—Risks Relating to Our Business—Our significant amount of indebtedness and interest expense will limit our cash flow and could adversely affect our operations".

**Research and development, patents and licenses** 

See the discussion under "Item 4. Information on the Company—Research and Development".

**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, 2025 to December 31, 2025 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.

**Taxation** 

The Company is entitled to tax incentives generally available to Taiwan companies under the ROC Statute for Industrial Innovation, a profit-seeking enterprise may deduct up to (i) 15% of its research and development expenditures from its income tax payable for the fiscal year in which these expenditures are incurred; or (ii) 10% of its research and development expenditures from its income tax payable for the fiscal year in which these expenditures are incurred or the following two years. However, the deduction may not exceed 30% of the income tax payable for that fiscal year. In 2023, 2024 and 2025, tax credits resulted in tax savings for the Company of approximately NT$12 million, NT$18 million and NT$12 million (US$383 thousand), respectively.

For the purpose of optimizing industrial structure, the Executive Yuan of the ROC government encourages domestic companies to make multiple innovations along with the applications of the smart technology. Companies may deduct to the income tax payable for the current year up to 5% of the annual spending or the income tax payable for the three years from current year up to 3% of the annual spending. However, the deduction may not exceed 30% of the income tax payable for that fiscal year. Companies are eligible for the investment credit under the preceding paragraph and other types of investment credit in a year, the total amount creditable in that year shall not exceed 50% of the income tax payable for the current year, unless the current year is the final year for using such credit and no cap is imposed on the creditable amount for that year according to other laws. In 2025, tax credits resulted in tax savings for the Company of approximately NT$45 million (US$1 million).

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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 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.

The ROC government enacted the alternative minimum tax ("AMT") Act that became effective on January 1, 2006. The AMT imposed under the AMT Act is a supplemental tax which is payable if the income tax payable pursuant to the ROC Income Tax Act is below the minimum amount prescribed under the AMT Act. The taxable income for calculating the AMT includes most income that is exempted from income tax under various legislations, such as tax holidays and investment tax credits. The AMT rate for business entities is 12%. However, the AMT Act grandfathered certain tax exemptions and tax credits granted prior to the enactment of the AMT. In 2023, 2024 and 2025, 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.

**Item 6. Directors, Senior Management and Employees** 

**Directors and Senior Management** 

According to our Articles of Incorporation, the number of directors must not be less than nine and must not be greater than eleven. Among these directors, there shall be three to five independent directors with the number of independent directors constituting at least one-third of the total number of directors. Furthermore, if the offices of our chairman and president are held concurrently by the same individual, the number of independent directors shall be no fewer than four. Our Board of Directors currently comprises of nine directors who were elected by our shareholders. Of our current nine directors, five are independent directors. The chairman of our board is appointed among the members of our board. The term of office for directors is three years.

Pursuant to ROC Securities and Exchange Act, we are required to establish an audit committee and a compensation committee. The audit committee should be composed of all of our independent directors but not less than three, of which at least one member should have accounting or related financial management expertise. The compensation committee must be composed of qualified independent members as defined under local law. The Company has established its audit committee, compensation committee and nomination committee.

Pursuant to the ROC Company Act, a person may serve as our director in his or her personal capacity or as the representative of another legal entity. A director who serves as the representative of a legal entity may be removed or replaced at any time at the discretion of that legal entity, and the replacement director may serve the remainder of the term of office of the replaced director. Since May 30, 2024, 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 28, 2026. The business address for our directors and executive officers is No. 1, R&D Road 1, Hsinchu Science Park, Hsinchu, Taiwan, ROC.

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| | | | |
|:---|:---|:---|:---|
| **Name**<br>| &nbsp;&nbsp;&nbsp;**Age** <br>| &nbsp;&nbsp;&nbsp;**Position**<br>| &nbsp;&nbsp;&nbsp;**Term Expires** <br>|
| &nbsp;&nbsp;&nbsp;&nbsp;Shih-Jye Cheng | &nbsp;&nbsp;67 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Chairman and Director / President | &nbsp;&nbsp;2027 |
| &nbsp;&nbsp;&nbsp;&nbsp;Kun-Yi Chien | &nbsp;&nbsp;70 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Director (representative, Siliconware Precision) | &nbsp;&nbsp;2027 |
| &nbsp;&nbsp;&nbsp;&nbsp;David Chang  | &nbsp;&nbsp;56 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Director (representative, Siliconware Precision) | &nbsp;&nbsp;2027 |
| &nbsp;&nbsp;&nbsp;&nbsp;Silvia Su | &nbsp;&nbsp;55<br>| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Director / Vice President, Finance and Accounting Management Center / Corporate Governance Officer | &nbsp;&nbsp;2027<br>|
| &nbsp;&nbsp;&nbsp;&nbsp;Yuh-Fong Tang | &nbsp;&nbsp;70 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Independent Director | &nbsp;&nbsp;2027 |
| &nbsp;&nbsp;&nbsp;&nbsp;Yeong-Her Wang | &nbsp;&nbsp;69 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Independent Director | &nbsp;&nbsp;2027 |
| Jyh-Chau Wang | &nbsp;&nbsp;63 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Independent Director | &nbsp;&nbsp;2027 |
| &nbsp;&nbsp;&nbsp;&nbsp;Hong-Tzer Yang | &nbsp;&nbsp;65 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Independent Director | &nbsp;&nbsp;2027 |
| &nbsp;&nbsp;&nbsp;&nbsp;Fu-Chen Lin | &nbsp;&nbsp;55 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Independent Director | &nbsp;&nbsp;2027 |
| &nbsp;&nbsp;&nbsp;&nbsp;Vincent Hsu | &nbsp;&nbsp;57 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Executive Vice President | &nbsp;&nbsp;—  |
| &nbsp;&nbsp;&nbsp;&nbsp;D.Y. Tsai | &nbsp;&nbsp;55 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Executive Vice President | &nbsp;&nbsp;—  |

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*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 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. ("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 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 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 has served as the independent director and compensation committee member of AceGreen Eco-Material Technology Co., Ltd. since January 2026. 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.

*David Chang* has served as one of our directors since October 2022. He has served as a vice president in Siliconware Precision since June 2020. 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.

*Silvia Su* has served as one of our directors since July 2021. She has served as the vice president of finance and accounting management center of the Company since July 2018 and as the corporate governance officer since March 2021. 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. 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.

*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. 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. 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. 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. He holds a Ph.D. degree in Electrical Engineering from University of Illinois, USA.

*Yeong-Her Wang* has served as one of our directors since July 2021. 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 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 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. 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 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.

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*Jyh-Chau Wang* has served as one of our directors since May 2024. He has served as the chairman of Innolux Education Foundation and Advanced Micro Lux Holding Limited since June 2020 and February 2025, respectively. He has served as the director of InnoCare Optoelectronics Corporation and Epileds Technologies, Inc. since November 2021 and May 2025, respectively. He has served as the chairman and chief executive officer of eLux Inc since November 2023. He was the director and chairman of Innolux Corporation from June 2020 to May 2025, chief executive officer, from May 2016 to June 2018 and president from May 2016 to March 2017. He joined Chi Mei Optoelectronics Corporation as a plant director in January 2003 and leaved as a president in February 2013. 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 served at Industrial Technology Research Institute. 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. He has been the distinguished professor of the Department of Electrical Engineering since July 2007 and Vice Dean of College of Electrical Engineering and Computer Science since August, 2024 at National Cheng Kung University. 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 has been the director of AeroVision Avionics Inc. since July 2021. 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 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. He has been the director of Taiwan Power Company since June 2025. 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. He served as the independent director, audit committee member, and compensation committee member of Spirox Corporation from June 2015 to August 2017. 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.

*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. 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 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 head of Q.R.A. center of the Company since 2009. He has been the chairman and president of ChipMOS Shanghai since March 2020 and the chairman of ChipMOS BVI since August 2022. He also has served as the representative and director of Yung Hsiang Investment Co., Ltd. since February 2020. 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.

**Compensation** 

The aggregate compensation paid in 2025 to our directors and our executive officers, including cash and accrued pension payable upon retirement, was approximately NT$91 million (US$3 million).

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**Share Ownership** 

The following table sets forth certain information as of March 28, 2026, our most recent record date, with respect to our common shares owned by our directors and executive officers.

---

| | | |
|:---|:---|:---|
| **Name** | **Number of<br>Common<br>Shares Held** | **Percentage<br>of Shares<br>Issued** |
| Shih-Jye Cheng | 5160161 | 0.73% |
| Kun-Yi Chien (representative, Siliconware Precision) | 78910390 | 11.20% |
| David Chang (representative, Siliconware Precision) | 78910390 | 11.20% |
| Silvia Su | 346101 | 0.05% |
| Yuh-Fong Tang |  |  |
| Yeong-Her Wang |  |  |
| Jyh-Chau Wang |  |  |
| Hong-Tzer Yang |  |  |
| Fu-Chen Lin |  |  |
| Vincent Hsu | 230130 | 0.03% |
| D.Y. Tsai | 272572 | 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. 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. Our audit committee charter was adopted on June 28, 2007. The audit committee is required to meet at least once quarterly. Our audit committee charter grants the audit committee the authority to conduct any investigation which it deems appropriate to fulfill its responsibilities. It has direct access to all our book, records, facilities, and personnel, as well as our registered public accountants. It has the authority to, among other things, appoint, terminate and approve all fees to be paid to our registered public accountants. The audit committee also has the authority to engage special legal, accounting, or other consultants it deems necessary in the performance of its duties. Beginning on January 1, 2007, the audit committee also assumed the responsibilities of supervisors pursuant to the ROC Securities and Exchange Act.

**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. 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.

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**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 December 31,** | **As of December 31,** | **As of<br>February 28,** |
| **Function** | **2023** | **2024** | **2025** | **2026** |
| General operations | 2846 | 3227 | 3142 | 3173 |
| Engineering | 1480 | 1608 | 1605 | 1647 |
| Research and development | 704 | 696 | 646 | 651 |
| Sales, administration and finance | 142 | 129 | 124 | 124 |
| Others | 224 | 238 | 230 | 228 |
| &nbsp;&nbsp;&nbsp;**Total** | 5396 | 5898 | 5747 | 5823 |

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The following table sets forth, as of the dates indicated, a breakdown of the number of our full-time employees by geographic location:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** | **As of<br>February 28,** |
| **Location** | **2023** | **2024** | **2025** | **2026** |
| Hsinchu Production Group | 2028 | 2204 | 2213 | 2237 |
| Southern Taiwan Production Group | 3361 | 3686 | 3527 | 3580 |
| Shanghai | 3 | 3 | 3 | 2 |
| United States | 4 | 5 | 4 | 4 |
| &nbsp;&nbsp;&nbsp;**Total** | 5396 | 5898 | 5747 | 5823 |

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Our employees are not covered by any collective bargaining agreements. We have not experienced any strikes or work stoppages by our employees and believe that our relationship with our employees is good.

**Disclosure of a Registrant's Action to Recover Erroneously Awarded Compensation** 

Not applicable. At no time during or after the last completed fiscal year were we required to prepare an accounting restatement that required recovery of erroneously awarded compensation pursuant to our Incentive-Based Compensation Recovery Policy.

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**Item 7. 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, 2024, March 29, 2025, and March 28, 2026 (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.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **April 1, 2024** | **April 1, 2024** | **March 29, 2025** | **March 29, 2025** | **March 28, 2026**<sup>(1)</sup> | **March 28, 2026**<sup>(1)</sup> |
| **Name of Beneficial Owners** | **Numbers of<br>Shares<br>Owned** | **Percentage <br>of Shares<br>Owned** | **Numbers of<br>Shares<br>Owned** | **Percentage <br>of Shares<br>Owned** | **Numbers of<br>Shares<br>Owned** | **Percentage <br>of Shares<br>Owned** |
| Siliconware Precision Industries Co., Ltd. | 78910390 | 10.85% | 78910390 | 10.85% | 78910390 | 11.20% |
| Depositary<sup>(2)</sup> | 87129434 | 11.98% | 72526594 | 9.97% | 71333454 | 10.13% |
| Yann Yuan Investment Co., Ltd. | 41200000 | 5.67% | 41200000 | 5.67% | 41200000 | 5.85% |
| Directors and executive officers, as a <br>&nbsp;&nbsp;&nbsp;&nbsp;group<sup>(3)</sup> | 85883354 | 11.82% | 85883354 | 11.82% | 84919354 | 12.05% |

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Notes:

(1)Our most recent record date.

(2)As record owner of our ADSs. With effect from October 31, 2016, Citibank, N.A. acts as the Depositary.

(3)Calculated as the sum of: (a) with respect to directors and executive officers who are serving in their personal capacity, the number of shares held by such directors and executive officers and (b) with respect to directors who are serving in the capacity as legal representatives, the number of shares owned by such institutional or corporate shareholder for which director is a legal representative.

Except for holders of our ADSs, none of our major shareholders have different voting rights from those of other shareholders.

As of February 28, 2026, a total of 699,983,126 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. As of February 28, 2026, 69,902,454 common shares were registered in the name of a nominee of Citibank, N.A., the Depositary under our ADSs Deposit Agreement. Citibank, N.A., has advised us that, as of February 28, 2026, 3,495,122 ADSs, representing 69,902,454 common shares, were held of record by Cede & Co. and 27 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.

**Related Party Transactions** 

*Unimos Microelectronics (Shanghai) Co., Ltd.*

We conducted our PRC operations through Unimos Shanghai, the 45.0242%-owned affiliate of ChipMOS BVI, our controlled subsidiary. 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 ChipMOS BVI. 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. See Note 14 to our consolidated financial statements contained in this Annual Report on Form 20-F.

**Item 8. Financial Information** 

**Consolidated Financial Statements and Other Financial Information** 

Please see "Item 18. Financial Statements" and pages F-1 through F-58.

**Legal Proceedings** 

We were not involved in any material litigation in 2025 and are not currently involved in any material litigation.

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**Dividends and Dividend Policy** 

The following table sets forth the distribution per share paid during each of the years indicated in respect of common shares outstanding on the record date eligible to the payment of those distributions. During 2023, 2024 and 2025, we paid cash distributions in the amounts of NT$2.30, NT$1.80 and NT$1.22996261 (US$0.04), respectively.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Cash Distributions<br>per Share** | **Stock Dividends<br>per Share** | **Total Shares Issued<br>as Stock Dividends** | **Outstanding Common<br>Shares at Year End** |
|  | **(NT$)** | **(NT$)** |  |  |
| 2023 | 2.30 |  |  | 727240126 |
| 2024 | 1.80 |  |  | 727240126 |
| 2025 | 1.22996261 |  |  | 699983126 |

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Under the Company's Articles of Incorporation, a proposal on the distribution of dividends shall be submitted by the Board of Directors annually to the shareholders' meeting, and be based on factors such as past years' profit, the current and future investment environment, the Company's capital needs, competition in the domestic and foreign markets, and budgets, with an aim to pursuing shareholders' interests and balancing the dividend distribution and the long-term financial plan of the Company. The distribution of profits of the Company can be made in the form of cash dividends or stock dividends, provided that the cash dividend shall account for at least 10% of the total profit distributed as dividends in the given year.

**Item 9. The Offer and Listing**

**Listing** 

The principal trading market for our common shares is the TWSE. Our common shares have been listed on the TWSE under the symbol "8150" since April 11, 2014, and the ADSs have been listed on the Nasdaq under the symbol "IMOS" since November 1, 2016. The outstanding ADSs are identified by the CUSIP number 16965P202.

**Item 10. Additional Information** 

The following information relates to our shares, including summaries of certain provisions of the Company's Articles of Incorporation, the ROC Company Act, and Securities and Exchange Act.

**General** 

The authorized share capital of the Company will be as provided in its Articles of Incorporation, of which such number of shares as to be determined will be issued.

**Dividends** 

Except under limited circumstances, the Company will not permitted to distribute dividends or make other distributions to shareholders in any given year in which it did not record net income or retained earnings (excluding reserves). The ROC Company Act also requires that 10% of annual net income (less prior years' losses, if any, and applicable income taxes) be set aside as a legal reserve until the accumulated legal reserve equals the paid-in capital of the Company. In addition, the Articles of Incorporation of the Company provides that before a dividend is paid out of the Company's annual net income:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•up to 0.5% of the Company's annual profits (less prior years' accumulated losses, if any) should be paid to the directors of the Company as compensation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•10% of the annual profits (less prior years' accumulated losses, if any) should be paid to the employees of the Company, with no less than 3% of the profits allocated specifically to non-executive employees. The employee compensation may be paid in shares or in cash as determined by a majority of directors in attendance at a meeting attended by over two-thirds of the Board of Directors and such resolution shall be reported to the shareholders' meeting. Such employees include those of the Company's subsidiaries.

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At the annual shareholders' meeting, the board of the Company will submit to the shareholders for their approval any proposal for the distribution of dividends or the making of any other distribution to shareholders from the Company's net income (less prior years' losses and legal and special reserves plus the accumulated undistributed profit at the beginning of the preceding fiscal year and the adjusted undistributed profit of the given fiscal year) for the preceding fiscal year. All the outstanding and fully paid shares of the Company as of the relevant record date are entitled to share equally in any dividend or other distribution so approved. Dividends may be distributed in cash, in the form of common shares or a combination of the two, as determined by the shareholders at the meeting. The Articles of Incorporation of the Company provides that cash dividend distribution should not be lower than 10% of the total dividend amount.

The Company will also be permitted to make distributions to its shareholders in cash or in the form of common shares from reserves if it has no accumulated loss. However, the distribution payable out of the Company's legal reserve can only come from the amount exceeding 25% of the total paid-in capital.

**Changes in Share Capital** 

Under the ROC Company Act, any change in the authorized share capital of a company limited by shares requires an amendment to its Articles of Incorporation, which in turn requires approvals each at the meeting of the Board of Directors and shareholders' meeting. In the case of a public company such as the Company, it must also make an effective registration with the FSC and an amendment to the corporate registration with the Hsinchu Science Park Bureau of the National Science and Technology Council. Authorized but unissued common shares may be issued, subject to the applicable ROC law, upon terms as the board of the Company may determine. See "Item 5. Operating and Financial Review and Prospects—Liquidity and Capital Resources" for additional information.

**Preemptive Rights** 

Under the ROC Company Act, when an ROC company issues new shares for cash, existing shareholders who are listed on the shareholders' register as of the record date have preemptive rights to subscribe for the new issue in proportion to their existing shareholdings, while a company's employees, whether or not they are shareholders of the Company, have rights to subscribe for 10% to 15% of the new issue. Any new shares that remain unsubscribed at the expiration of the subscription period may be freely offered, subject to compliance with the applicable ROC law.

In addition, in accordance with the ROC Securities and Exchange Act, a public company that intends to offer new shares for cash must offer to the public at least 10% of the shares to be sold, except under certain circumstances or when exempted by the FSC. This percentage can be increased by a resolution passed at a shareholders' meeting, which would diminish the number of new shares subject to the preemptive rights of existing shareholders.

These preemptive rights provisions do not apply to offerings of new shares through a private placement approved at a shareholders' meeting.

**Shareholders' Meeting** 

The Company will be required to hold an annual shareholders' meeting within six months following the end of each fiscal year. These meetings are generally held in Hsinchu, Taiwan. Any shareholder who holds 1% or more of the Company's issued and outstanding shares may submit one proposal, in writing or by electronic means designated by the Company, for discussion at the annual shareholders' meeting. Extraordinary shareholders' meetings may be convened by resolution of the Board of Directors or by the Board of Directors upon the written request of any shareholder or shareholders who have held 3% or more of the issued and outstanding shares for a period of one year or longer. Any one or more shareholders who have held in aggregate more than half of the issued and outstanding shares for at least three consecutive months may convene an extraordinary shareholders' meeting. Shareholders' meetings may also be convened by the audit committee under certain circumstances. Notice in writing of shareholders' meetings, stating the place, time and purpose, must be dispatched to each shareholder at least 30 days, in the case of annual shareholders' meetings, and 15 days, in the case of extraordinary meetings, before the date set for each meeting. A majority of the holders of all issued and outstanding common shares present at a shareholders' meeting constitutes a quorum for meetings of shareholders. If a company adopts a nomination procedure for election of directors in its Articles of Incorporation, shareholders representing 1% or more of the total issued shares of such company may submit a candidate list in writing to the Company along with relevant information and supporting documents in accordance with the requirements under the ROC Company Act. Under the Company's Articles of Incorporation, the Company adopted such nomination procedures for election of all directors.

**Voting Rights** 

Under the ROC Company Act, except under limited circumstances, shareholders have one vote for each common share held. Under the ROC Company Act, the directors are elected at a shareholders' meeting through cumulative voting.

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In general, a resolution can be approved by the holders of at least a majority of our shares represented at a shareholders' meeting at which the holders of a majority of all issued and outstanding common shares are present. Under the ROC Company Act, the approval by at least a majority of our shares represented at a shareholders' meeting in which a quorum of at least two-thirds of all issued and outstanding common shares are represented is required for major corporate actions, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•amendment to the Articles of Incorporation, including increase of authorized share capital and any changes of the rights of different classes of shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•execution, amendment or termination of any contract through which the Company leases its entire business to others, or the Company appoints others to operate its business or the Company operates its business with others on a continuous basis;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•transfer of entire business or assets or a substantial part of its business or assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•acquisition of the entire business or assets of any other company, which would have a significant impact on the Company's operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•distribution of any stock dividend;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•dissolution, merger or spin-off of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•issuance of restricted shares to employees; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•removal of the directors.

However, in the case of a public company such as the Company, there is one exception if the total number of shares represented by the shareholders present at a shareholders' meeting is not sufficient to meet the above criteria (referred to the holders of at least two-thirds of all issued and outstanding common shares presented at the meeting), the resolution may be adopted by the holders of at least two-thirds of the shares represented at a shareholders' meeting at which the holders of at least a majority of all issued and outstanding common shares are present.

A shareholder may be represented at an annual general or extraordinary meeting by proxy if a valid proxy form is delivered to the Company five days before the commencement of the annual general or extraordinary shareholders' meeting. Shareholders may exercise their voting rights by way of a written ballot or by way of electronic transmission if the voting decision is delivered to us two days before the commencement of the annual general or extraordinary shareholders' meeting.

Any shareholder who has a personal interest in a matter to be discussed at shareholders' meeting of the Company, the outcome of which may impair interests of the Company, shall not vote or exercise voting rights on behalf of another shareholder on such matter.

Holders of the Company's ADSs do not have the same voting rights as holders of our common shares. Instead, the voting rights of holders of the Company's ADSs are governed by and described in the Deposit Agreement.

**Other Rights of Shareholders** 

Under the ROC Company Act and the Business Mergers and Acquisitions Act, dissenting shareholders are entitled to appraisal rights in certain major corporate actions such as a proposed amalgamation by the Company. If agreement with the Company cannot be reached, dissenting shareholders may seek a court order for the Company to redeem all of their shares. In addition to appraisal rights, shareholders have the right to sue for the annulment of any resolution approved at a shareholders' meeting where the procedures were legally defective within 30 days after the date of the shareholders' meeting. One or more shareholders who have held 1% or more of the issued and outstanding shares of a company for a period of six months or longer may require the audit committee to bring a derivative action on behalf of the Company against a director as a result of the director's unlawful actions or failure to act.

One or more shareholders who have held 3% or more of the issued and outstanding shares may institute an action with a court to remove a director who has materially violated the applicable laws or the Articles of Incorporation of the Company or has materially damaged the interests of the Company if a resolution for removal on such grounds has first been voted on and rejected by the shareholders and such suit is filed within thirty days of such shareholders' vote.

One or more shareholders who have held 1% or more of the issued and outstanding shares for six months or longer may request a court to appoint an inspector to examine the books, accounts and financial conditions of the Company. The court may, if it deems necessary based on the inspector's report, order the independent director to convene the shareholders' meeting.

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**Rights of Holders of Deposited Securities** 

The voting rights of a holder of the Company ADSs as to the Company shares represented by those the Company ADSs are governed by the Deposit Agreement. Holders of ADSs will be able to exercise voting rights on an individual basis as follows: if a holder of the Company ADSs outstanding at the relevant record date instructs the depositary to vote in a particular manner for or against a resolution, including the election of directors, the depositary will cause all the Company shares represented by such holder's ADSs to be voted in that manner. If the depositary does not receive timely instructions from a holder of the Company ADSs outstanding at the relevant record date to vote in a particular manner for or against any resolution, including the election of directors, such holders of the Company ADSs will be deemed to have instructed the depositary or its nominee to give a discretionary proxy to a person designated by the Company to vote all the Company shares represented by such holder's ADSs at the discretion of such person, which may not be in the interest of holders of the Company ADSs.

**Register of Shareholders and Record Dates** 

The Company's share registrar, KGI Securities Co., Ltd., maintains the Company's register of shareholders. Under the ROC Company Act and the Articles of Incorporation of the Company, the Company may, by giving advance public notice, set a record date and close the register of shareholders for a specified period in order for it to determine the shareholders or pledgees that are entitled to rights pertaining to the Company shares. The specified period required is as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•annual general meeting—60 days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•extraordinary shareholders' meeting—30 days; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•relevant record date for distribution of dividends, bonuses or other interests —5 days.

**Annual Financial Statements** 

At least ten days before the annual general meeting, the Company's annual financial statements, which are prepared in conformity with Taiwan IFRS, must be available at the Company's principal executive office in Hsinchu, Taiwan for inspection by the shareholders. According to the regulations of the FSC, we are required to publish our annual and quarterly financial statements on a consolidated basis. In addition, the ROC Securities and Exchange Act requests a public company, such as us, publicly announces its audited annual financial report within three months after the close of each fiscal year.

**Transfer of the Shares** 

The transfer of the shares in registered form is effected by endorsement and delivery of the related share certificates but, in order to assert shareholders' rights against the Company, the transferee must have his name and address registered on the Company's register of shareholders. Shareholders are required to file their respective specimen seals, also known as chops, with the Company. Chops are official stamps widely used in Taiwan by individuals and other entities to authenticate the execution of official and commercial documents. The settlement of trading in the shares is normally carried out on the book-entry system maintained by the Taiwan Depository & Clearing Corporation.

**Acquisition of the Shares by us** 

Under the ROC Securities and Exchange Act, the Company may purchase the shares as treasury stock under limited circumstances, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•to transfer shares to the Company's employees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•to deliver shares upon the conversion or exercise of bonds with warrants, preferred shares with warrants, convertible bonds, convertible preferred shares or warrants issued by the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•to maintain the Company's credit and its shareholders' equity, provided that the shares so purchased shall be cancelled.

The Company may purchase the shares on the TWSE or by means of a public tender offer. These transactions require the approval of a majority of the board of the Company at a meeting in which at least two-thirds of the directors are in attendance. The total amount of the Company shares purchased for treasury stock may not exceed 10% of the total issued shares. In addition, the total cost of the purchased shares shall not exceed the aggregate amount of the retained earnings, any premium from share issuances and the realized portion of the Company's capital reserve. The shares purchased by the Company pursuant to the first two items above will be transferred to the intended transferees within five years of the purchase; otherwise the shares will be cancelled. For the shares to be cancelled under the third item above, the Company is required to complete an amendment registration for the cancellation within six months of the purchase.

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The Company may not pledge or hypothecate any of its shares purchased by it. In addition, it may not exercise any shareholders' right attaching to such shares. In the event that the Company purchases its shares on the TWSE, its affiliates, directors, managers, shareholders holding more than 10% of the total issued shares and their respective spouses and minor children and/or nominees are prohibited from selling any shares of the Company during the period in which the Company is purchasing its shares.

Pursuant to the ROC Company Act, an entity in which the Company directly or indirectly owns more than 50% of the voting shares or paid-in capital, which is referred to as a controlled entity, may not purchase the shares of the Company. Also, if the Company and a controlled entity jointly own, directly or indirectly, more than 50% of the voting shares or paid-in capital of another entity, which is referred to as a third entity, the third entity may not purchase shares in either the Company or a controlled entity.

**Liquidation Rights**

In the event of the liquidation of the Company, the assets remaining after payment of all debts, liquidation expenses and taxes will be distributed pro rata to the shareholders in accordance with the relevant provisions of the ROC Company Act.

**Transfer Restriction** 

***Substantial Shareholders*** 

The ROC Securities and Exchange Act currently requires:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•each director, manager, or substantial shareholder (that is, a shareholder who holds more than 10% of shares of a company), and their respective spouses, minor children or nominees, to report any change in that person's shareholding to the issuer of the shares and the FSC; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•each director, manager, or substantial shareholder, and their respective spouses, minor children or nominees, after acquiring the status of director, manager, or substantial shareholder for a period of six months, to report his or her intent to transfer any shares on the TWSE to the FSC at least three days before the intended transfer, unless the number of shares to be transferred does not exceed 10,000 shares.

In addition, the number of shares that can be sold or transferred on the TWSE by any person subject to the restrictions described above on any given day may not exceed the greater of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•0.2% of the outstanding shares of the Company in the case of a company with no more than 30 million outstanding shares; or 0.2% of 30 million shares plus 0.1% of the outstanding shares exceeding 30 million shares in the case of a company with more than 30 million outstanding shares; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•5% of the average trading volume (number of shares) on the TWSE for the ten consecutive trading days preceding the reporting day on which the director, manager or substantial shareholder reports the intended share transfer to the FSC.

These restrictions do not apply to sales or transfers of the Company's ADSs.

**Material Contracts** 

We have entered into the following contracts that are effective or within the two years preceding the date of this Annual Report on Form 20-F that are or may be material:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•On November 30, 2016, ChipMOS BVI, Unigroup Guowei and the Company entered into the Equity Interest Transfer Agreement, pursuant to which Unigroup Guowei will purchase 48% equity interests of Unimos Shanghai.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•On November 30, 2016, ChipMOS BVI and Gongqingcheng Changhou Investment Management Ltd. ("Gongqingcheng Changhou") entered into the Equity Interest Transfer Agreement, pursuant to which Gongqingcheng Changhou will purchase 2% equity interests of Unimos Shanghai.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•On November 30, 2016, ChipMOS BVI and Accretech (China) Co., Ltd. ("Accretech (China)") entered into the Equity Interest Transfer Agreement, pursuant to which Accretech (China) will purchase 1.4162% equity interests of Unimos Shanghai.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•On November 30, 2016, ChipMOS BVI and Chao-Jung Tsai entered into the Equity Interest Transfer Agreement, pursuant to which Chao-Jung Tsai will purchase 1.3443% equity interests of Unimos Shanghai.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•On November 30, 2016, ChipMOS BVI and Shanghai Zuzhu Business Consulting Partnership (Limited Partnership) ("Shanghai Zuzhu") entered into the Equity Interest Transfer Agreement, pursuant to which Shanghai Zuzhu will purchase 0.9401% equity interests of Unimos Shanghai.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•On November 30, 2016, ChipMOS BVI and Shih-Jye Cheng entered into the Equity Interest Transfer Agreement, pursuant to which Shih-Jye Cheng will purchase 1.1202% equity interests of Unimos Shanghai.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•On November 30, 2016, ChipMOS BVI and Shou-Kang Chen entered into the Equity Interest Transfer Agreement, pursuant to which Shou-Kang Chen will purchase 0.1240% equity interests of Unimos Shanghai.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•On November 30, 2016, ChipMOS BVI and David W. Wang entered into the Equity Interest Transfer Agreement, pursuant to which David W. Wang will purchase 0.0310% equity interests of Unimos Shanghai.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•On November 30, 2016, ChipMOS BVI, Unigroup Guowei, Gongqingcheng Changhou, Accretech (China), Chao-Jung Tsai, Shanghai Zuzhu, Shih-Jye Cheng, Shou-Kang Chen and David W. Wang entered into the Agreement for Sino-Foreign Equity Joint Venture, pursuant to which the parties agreed to operate Unimos Shanghai's business together.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•On April 10, 2017, ChipMOS BVI, Unigroup Guowei, Gongqingcheng Changhou Hong Xin Investment Management Partnership (Limited Partnership) ("Gongqingcheng Changhou Hongsin"), Accretech (China), Chao-Jung Tsai, Shanghai Zuzhu, Shih-Jye Cheng, Shou-Kang Chen and David W. Wang entered into the Amendment of Agreement for Sino-Foreign Equity Joint Venture, pursuant to which the Gongqingcheng Changhou transfer the interest to Gongqingcheng Changhou Hong Xin.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•On November 28, 2017, ChipMOS BVI, Unigroup Guowei, Gongqingcheng Changhou Hong Xin, Accretech (China), Chao-Jung Tsai, Shanghai Zuzhu, Shih-Jye Cheng, Shou-Kang Chen and David W. Wang entered into the Amendment of Agreement for Sino-Foreign Equity Joint Venture, pursuant to which the extension of the paid in capital.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•On August 1, 2018, ChipMOS BVI, Unigroup Guowei, Gongqingcheng Changhou Hong Xin, Accretech (China), Chao-Jung Tsai, Shanghai Zuzhu, Shih-Jye Cheng, Shou-Kang Chen and David W. Wang entered into the Amendment of Agreement for Sino-Foreign Equity Joint Venture, pursuant to which ChipMOS TECHNOLOGIES (Shanghai) LTD., was renamed to Unimos Shanghai.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•On December 29, 2018, ChipMOS BVI, Beijing Unis Memory Technology Co., Ltd. ("Beijing Ziguang Storage") Gongqingcheng Changhou Hong Xin, Accretech (China), Chao-Jung Tsai, Shanghai Zuzhu, Shih-Jye Cheng, Shou-Kang Chen and David W. Wang entered into the Amendment of Agreement for Sino-Foreign Equity Joint Venture, pursuant to which the Unigroup Guowei will transfer the 48.0% equity interests of Unimos Shanghai to Beijing Ziguang Storage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•On February 1, 2019, ChipMOS BVI, Beijing Ziguang Storage, Gongqingcheng Changhou Hong Xin, Accretech (China), Chao-Jung Tsai, Shanghai Zuzhu, Shih-Jye Cheng, Shou-Kang Chen and David W. Wang entered into the Amendment of Agreement for Sino-Foreign Equity Joint Venture, pursuant to which the Gongqingcheng Changhou Hong Xin will transfer the 2% equity interests of Unimos Shanghai to Beijing Ziguang Storage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•On June 18, 2019, ChipMOS BVI, Beijing Ziguang Storage, Unigroup Guowei, Accretech (China), Chao-Jung Tsai, Shanghai Zuzhu, Shih-Jye Cheng, Shou-Kang Chen and David W. Wang entered into the Amendment of Agreement for Sino-Foreign Equity Joint Venture, pursuant to which Beijing Ziguang Storage cancelled the signed "Equity Interest Transfer Agreement" between Unigroup Guowei. Unigroup Guowei thus has restored to hold 48% of the equity of Unimos Shanghai.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•On August 8, 2019, ChipMOS BVI, Beijing Ziguang Storage, Unigroup Guowei, Accretech (China), Chao-Jung Tsai, Shanghai Zuzhu, Shih-Jye Cheng, Shou-Kang Chen and David W. Wang entered into the Amendment of Agreement for Sino-Foreign Equity Joint Venture, pursuant to which Unimos Shanghai was required consolidate the 4<sup>th</sup>, 5<sup>th</sup>, and 6<sup>th</sup> amendments to file the transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•On December 16, 2019, ChipMOS BVI, Yangtze Memory, Accretech (China), Chao-Jung Tsai, Shanghai Zuzhu, Shih-Jye Cheng, Shou-Kang Chen and David W. Wang entered into the Amended and Restated Agreement for Sino-Foreign Equity Joint Venture, pursuant to which Beijing Ziguang Storage and Unigroup Guowei sold and transferred all of the equity interests in Unimos Shanghai to Yangtze Memory.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•On May 11, 2020, ChipMOS BVI, Yangtze Memory, Accretech (China), Chao-Jung Tsai, Shih-Jye Cheng, Shou-Kang Chen and David W. Wang entered into the Amended and Restated Agreement for Sino-Foreign Equity Joint Venture, pursuant to which Shanghai Zuzhu sold and transferred all of the equity interests in Unimos Shanghai to Yangtze Memory.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•On December 15, 2022, ChipMOS BVI, Yangtze Memory, Accretech (China), Chao-Jung Tsai, Shih-Jye Cheng, Shou-Kang Chen and David W. Wang entered into the Amended and Restated Agreement for Sino-Foreign Equity Joint Venture, pursuant to which Unimos Shanghai in Chinese was renamed. (Its English name was same as before)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•On July 24, 2023, ChipMOS BVI, Yangtze Memory Holding, Accretech (China), Chao-Jung Tsai, Shih-Jye Cheng, Shou-Kang Chen and David W. Wang entered into the Amended and Restated Agreement for Sino-Foreign Equity Joint Venture, pursuant to which Yangtze Memory sold and transferred all of the equity interests in Unimos Shanghai to Yangtze Memory Holding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•On December 21, 2023, ChipMOS BVI, Suzhou Oriza PuHua ZhiXin Equity Investment Partnership (L.P.) and 10 other local Chinese investment management companies entered into the Equity Interest Transfer Agreement, pursuant to which those will purchase entire remaining 45.0242% equity interests of Unimos Shanghai.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•On April 19, 2024, ChipMOS BVI, Suzhou Oriza PuHua ZhiXin Equity Investment Partnership (L.P.) and 12 other local Chinese investment management companies entered into the Supplementary Agreement to Equity Interest Transfer Agreement, pursuant to which the counterparties change for the sale of interests in Unimos Shanghai.

For additional information regarding the Merger see "Item 4. Information on the Company—Our Structure and History".

Please see also "Item 7. Major Shareholders and Related Party Transactions" for further summary information regarding the contracts listed under "—Material Contracts" that are with certain of our related parties.

**Foreign Investment in the ROC** 

Since 1983, the ROC government has periodically enacted legislation and adopted regulations to permit foreign investment in the ROC securities market.

On September 30, 2003, the ROC Executive Yuan approved an amendment to Regulations Governing Investment in Securities by Overseas Chinese and Foreign Nationals, or the Regulations, which took effect on October 2, 2003. According to the Regulations, the ROC Financial Supervisory Commission (the "ROC FSC") abolished the mechanism of the so-called "qualified foreign institutional investors" and "general foreign investors" as stipulated in the Regulations before the amendment.

Under the Regulations, foreign investors are classified as either "onshore foreign investors" or "offshore foreign investors" according to their respective geographical location. Both onshore and offshore foreign investors are allowed to invest in ROC securities after they register with the TWSE. The Regulations further classify foreign investors into foreign institutional investors and foreign individual investors. "Foreign institutional investors" refer to those investors incorporated and registered in accordance with foreign laws outside of the ROC (i.e., offshore foreign institutional investors) or their branches set up within the ROC (i.e., onshore foreign institutional investors). Offshore overseas Chinese and foreign individual investors may be subject to a maximum investment ceiling that will be separately determined by the ROC FSC after consultation with the Central Bank of the Republic of China (Taiwan). Currently, there is no maximum investment ceiling for offshore overseas investment in the ROC securities market.

Except for certain specified industries, such as telecommunications, investments in ROC-listed companies by foreign investors are not subject to individual or aggregate foreign ownership limits. Custodians for foreign investors are required to submit to the Central Bank of the Republic of China (Taiwan) and the TWSE a monthly report of trading activities and status of assets under custody and other matters. Capital remitted to the ROC under these guidelines may be remitted out of the ROC at any time after the date the capital is remitted to the ROC. Capital gains and income on investments may be remitted out of the ROC at any time.

Foreign investors (other than foreign investors who have registered with the TWSE for making investments in the ROC securities market) who wish to make direct investments in the shares of ROC companies are required to submit a foreign investment approval application to the MOEA or other applicable government authority. The MOEA or such other government authority reviews each foreign investment approval application and approves or disapproves each application after consultation with other governmental agencies (such as the Central Banks of the Republic of China (Taiwan)) and the ROC FSC.

Under the current ROC law, any non-ROC person possessing a foreign investment approval may repatriate annual net profits, interest and cash dividends attributable to the approved investment. Stock dividend attributable to this investment, investment capital and capital gains attributable to this investment may be repatriated by the non-ROC person possessing a foreign investment approval after approvals of the MOEA or other government authorities have been obtained.

In addition to the general restriction against direct investment by non-ROC persons in securities of ROC companies, non-ROC persons (except in certain limited cases) are currently prohibited from investing in certain industries in the ROC pursuant to a "negative list", as amended by the ROC Executive Yuan. The prohibition on foreign investment in the prohibited industries specified in the negative list is absolute in the absence of a specific exemption from the application of the negative list. Pursuant to the negative list, certain other industries are restricted so that non-ROC person (except in limited cases) may invest in these industries only up to a specified level and with the specific approval of the relevant competent authority that is responsible for enhancing the relevant legislation that the negative list is intended to implement.

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The ROC FSC announced on April 30, 2009 the Regulations Governing Securities Investment and Futures Trading in Taiwan by Mainland Area Investors ("PRC Regulations") and amended the same on October 6, 2010. According to the PRC Regulations, a PRC QDII is allowed to invest in ROC securities (including less than 10% shareholding of a ROC company listed in TWSE or Taipei Exchange). Nevertheless, the total investment amount of QDIIs cannot exceed US$500 million. For each QDII, the custodians of such QDII must apply with the TWSE for the remittance amount for each QDII, which cannot exceed US$100 million, and QDII can only invest in the ROC securities market with the amount approved by the TWSE. In addition, QDIIs are currently prohibited from investing in certain industries, and their investment of certain other industries in a given company is restricted to certain percentage pursuant to a list promulgated by the FSC and amended from time to time. PRC investors other than QDII, however, are prohibited from making investments in a ROC company listed on the TWSE or the Taipei Exchange, unless with approval from the MOEA for its investment of 10% or more (or other percentage applicable to certain restricted industries) of the equity interest of such ROC company.

In addition to investments permitted under the PRC Regulations, PRC investors who wish to make (i) direct investment in the shares of ROC private companies or (ii) investments, individually or aggregately, in 10% or more (or other percentage applicable to certain restricted industries) of the equity interest of a ROC company listed on the TWSE or Taipei Exchange are required to submit an investment approval application to the MOEA or other government authority. The MOEA or such other government authority reviews investment approval application and approved or disapproves each application after consultation with other governmental agencies. Furthermore, PRC investor who wishes to be elected as a ROC company's director or supervisor shall also submit an investment approval application to the MOEA or other government authority for approval.

**Depositary Receipts** 

In April 1992, the ROC FSC began allowing ROC companies listed on the TWSE, with the prior approval of the FSC, to sponsor the issuance and sale of depositary receipts. The depositary receipts represent depositary shares. In December 1994, the ROC Ministry of Finance began allowing companies whose shares are listed on the Taipei Exchange also to sponsor the issuance and sale of depositary receipts.

After the issuance of a depositary share, a holder of depositary receipts (other than citizens of the PRC and entities organized under the laws of the PRC save for QDII or those which otherwise obtain the approval of MOEA) may request the depositary to either cause the underlying shares to be sold in the ROC and to distribute the sale proceeds to the holder or to withdraw from the depositary receipt facility the shares represented by the depositary receipts to the extent permitted under the deposit agreement and transfer the shares to the holder.

Under the current ROC law, if you are a non-ROC holder of our ADSs, you must register with the TWSE as a foreign investor before you will be permitted to withdraw and hold the shares represented by the depositary receipts. In addition to obtaining registration with the TWSE, you must also (i) appoint a qualified local agent to, among other things, open a securities trading account with a local securities brokerage firm and a bank account to remit funds, exercise shareholder's rights and perform other functions as holders of ADSs may designate, (ii) appoint a custodian to hold the securities and cash proceeds, confirm transactions, settle trades and report and declare other relevant information and; (iii) appoint a tax guarantor as guarantor for the full compliance of the withdrawing depositary receipt holders' tax filing and payment obligations in the ROC. A depositary receipt holder not registered as a foreign investor with the TWSE, or not has made the necessary appointments as outlined above, will be unable to hold or subsequently transfer the shares withdrawn from the depositary receipt facility.

No deposits of shares may be made in a depositary receipt facility and no depositary shares may be issued against deposits without specific FSC approval, unless they are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)stock dividends;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)free distributions of shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)due to the exercise by the depositary receipt holder preemptive rights in the event of capital increases for cash; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)if permitted under the deposit agreement and custody agreement and within the amount of depositary receipts which have been withdrawn, due to the direct purchase by investors or purchase through the depositary on the TWSE or delivery by investors of the shares for deposit in the depositary receipt facility. In this event, the total number of depositary receipts outstanding after an issuance cannot exceed the number of issued depositary receipts previously approved by the FSC in connection with the offering plus and ADSs issued pursuant to the events described in (i), (ii) and (iii) above.

The depositary may, without obtaining further approvals from the Central Bank of the Republic of China (Taiwan) or any other governmental authority or agency of the ROC, convert NT dollars into other currencies, including US dollars, in respect of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the proceeds of the sale of common shares represented by ADSs or received as share dividends with respect to the common shares and deposited into the depositary receipt facility; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•any cash dividend or cash distributions received.

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In addition, the depositary may also convert into NT dollars incoming payments for purchase of common shares for deposit in the depositary receipts facility against the creation of additional ADSs. If you withdraw the common shares underlying your ADSs and become a holder of the Company's common shares, you may convert into NT dollars subscription payment for rights offerings. The depositary may be required to obtain foreign exchange payment approval from the Central Bank of the Republic of China (Taiwan) on a payment-by-payment basis for conversion from NT dollars into foreign currencies of the proceeds from the sale of subscription rights of new common shares. Such approvals may not be obtained in a timely manner, or at all.

**Exchange Controls** 

The ROC Foreign Exchange Control Law and regulations provide that all foreign exchange transactions must be executed by banks designated by the FSC and by the Central Bank of the Republic of China (Taiwan) to engage in such transactions. Current regulations favor trade-related or service-related foreign exchange transactions. Consequently, foreign currency earned from exports of merchandise and services may be retained and used freely by exporters, and all foreign currency needed for the importation of merchandise and services may be purchased freely from the designated foreign exchange banks.

Apart from trade-related or service-related foreign exchange transactions, ROC companies and individual residents of the ROC reaching the age of 18 may, without foreign exchange approval, remit foreign currency of up to US$100 million (or its equivalent) and US$10 million (or its equivalent) to and from the ROC (or such other amount as determined by the Central Bank of the Republic of China (Taiwan) from time to time at its discretion in consideration of Taiwan's economic and financial conditions or the needs to maintain the order of foreign exchange market in Taiwan), respectively, in each calendar year. The above limits apply to remittances involving either a conversion of NT dollars into a foreign currency or a conversion of foreign currency into NT dollars. In addition, a requirement is also imposed on all enterprises to register medium- and long-term foreign debt with the Central Bank of the Republic of China (Taiwan).

In addition, foreign persons may, subject to specified requirements but without foreign exchange approval of the Central Bank of the Republic of China (Taiwan), remit to and from the ROC foreign currencies of up to US$100,000 (or its equivalent) per remittance if the required documentation is provided to the ROC authorities. The above limit applies to remittances involving either a conversion of NT dollars into a foreign currency or a conversion of foreign currency into NT dollars. The above limit does not, however, apply to the conversion of NT dollars into other currencies, including U.S. dollars, from the proceeds of a sale of any underlying shares withdrawn from a depositary receipt facility.

**ROC Taxation** 

The following summary constitutes the material ROC tax consequences of the ownership and disposition of our shares or ADSs by and to a non-resident individual or non-resident entity (referred to here as a "non-ROC holder"). As used in the preceding sentence, a "non-resident individual" is a non-ROC national who owns our shares or ADSs and is not physically present in the ROC for 183 days or more during any calendar year, and a "non-resident entity" is a corporation or a non-corporate body that owns our shares or ADSs, is organized under the laws of a jurisdiction other than the ROC and has no fixed place of business or business agent in the ROC. Holders of our ADSs and shares should consult their own tax advisors concerning the tax consequences of owning our ADSs or shares and any other relevant taxing jurisdiction to which they are subject.

*Dividends* 

Dividends (whether in the form of cash or common shares) declared by the Company out of retained earnings and distributed to a non-ROC holder are subject to ROC withholding tax, currently at the rate of 21% (unless a preferable tax rate is provided under a tax treaty between the ROC and the jurisdiction where the non-ROC holder is a resident) on the amount of the distribution (in the case of cash dividends) or on the par value of the distributed shares (in the case of stock dividends). The United States does not have an income tax treaty with the ROC. A 10% undistributed earnings tax was imposed on an ROC company for its after-tax earnings generated after January 1, 1998 which were not distributed in the following year. The undistributed earnings tax was reduced to 5% on January 1, 2018. The undistributed earnings tax so paid will further reduce the retained earnings available for future distribution. Furthermore, if and when the Company distributes any dividends in year 2018, for the portion of dividends out of those retained earnings on which the Company had paid the 10% ROC undistributed earnings tax, a credit of up to 5% of such portion of dividends may be offset against the 21% withholding tax imposed on the non-ROC holders. Starting from year 2019, no undistributed earnings tax paid can be offset as a credit against the 21% withholding tax.

Distributions of our shares or cash out of capital reserves are not subject to ROC withholding tax, except under limited circumstances.

*Capital Gains* 

Capital gains realized from the sale or disposal of our shares are exempt from ROC income tax under Article 4-1 of the ROC Income Tax Act.

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Sales of our ADSs are not regarded as sales of ROC securities and thus any gains derived from transfers of our ADSs are not regarded as ROC-sourced income. Accordingly, any gains derived from transfers of our ADSs by non- ROC holders are not currently subject to ROC income tax.

*Securities Transaction Tax* 

Securities transaction tax will be imposed on the seller at the rate of 0.3% of the transaction price upon a sale of our shares. Transfers of our ADSs are not subject to ROC securities transaction tax.

*Subscription Rights* 

Distributions of statutory subscription rights for our shares in compliance with the ROC Company Act are currently not subject to ROC tax. Proceeds derived from sales of statutory subscription rights evidenced by securities are subject to securities transaction tax, currently at the rate of 0.3% of the gross amount received. Non-ROC holders are exempt from income tax on capital gains from the sale of statutory subscription rights evidenced by securities. Proceeds derived from sales of statutory subscription rights which are not evidenced by securities are not subject to securities transaction tax but are subject to income tax at a fixed rate of 20% of the income if the seller is a non-ROC holder. Subject to compliance with the ROC law, the Company, in its sole discretion, may determine whether statutory subscription rights are evidenced by securities.

*Estate and Gift Tax* 

ROC estate tax is payable on any property within the ROC left by a deceased, and ROC gift tax is payable on any property within the ROC donated by an individual. Estate tax and gift tax are currently payable at the progressive rates of 10%, 15% and 20%. Under the ROC Estate and Gift Tax Act, common shares issued by ROC companies are deemed located in the ROC without regard to the location of the owner. It is unclear whether a holder of ADSs will be considered to own common shares for this purpose.

*Tax Treaty* 

At present, the ROC has income tax treaties with Indonesia, Singapore, New Zealand, Australia, the United Kingdom, South Africa, Gambia, Eswatini, Malaysia, North Macedonia, the Netherlands, Senegal, Sweden, Belgium, Denmark, Israel, Vietnam, Paraguay, Hungary, France, India, Slovakia, Switzerland, Germany, Thailand, Kiribati, Luxembourg, Austria, Italy, Japan, Canada, Poland, Czech Republic, Saudi Arabia and South Korea. These tax treaties may limit the rate of ROC withholding tax on dividends paid with respect to common shares issued by ROC companies. A non-ROC holder of our ADSs may or may not be considered as the beneficial owner of our shares for the purposes of such treaties. Accordingly, holders of our ADSs who wish to apply a reduced withholding tax rate that is provided under a tax treaty should consult their own tax advisors concerning such application. The United States does not have an income tax treaty with the ROC.

**Material U.S. Federal Income Tax Consequences** 

The summary below is for general information only and is not, and should not be interpreted to be, tax advice to any holder of our ADSs. Each holder or prospective holder of our ADSs is urged to consult his, her or its own tax advisor.

***General*** 

This is a general summary of the material U.S. federal income tax considerations to U.S. Holders as defined below, relating to the ownership and disposition of our ADSs as of the date of this summary. This summary is based on the provisions of the Internal Revenue Code of 1986, as amended, or the "Code," the applicable U.S. Treasury regulations promulgated and proposed thereunder, judicial decisions and current administrative rulings and guidance, all of which are subject to change, possibly on a retroactive basis. This summary applies to you only if you hold our ADSs as a capital asset within the meaning of Section 1221 of the Code (generally, held for investment). The U.S. Internal Revenue Service, or the "IRS," may challenge the tax consequences described below, and we have not requested, nor will we request, a ruling from the IRS or an opinion of counsel with respect to the U.S. federal income tax consequences of acquiring, holding or disposing of our ADSs. This summary does not purport to deal with all aspects of U.S. federal income taxation that may be relevant to the ownership of our ADSs. In particular, the summary does not address tax consequences that depend upon an investor's particular tax circumstances nor does it cover any state, local or foreign law, or the possible application of the U.S. federal estate or gift tax laws. You are urged to consult your own tax advisor regarding the application of the U.S. federal income tax laws to your particular situation as well as any state, local, foreign and U.S. federal estate and gift tax consequences resulting from the ownership and disposition of our ADSs. In addition, this summary does not take into account special U.S. federal income tax rules that apply to particular categories of holders of our ADSs, including, without limitation, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•dealers, brokers or traders in securities electing to use a mark-to-market method of accounting;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•banks, thrifts or other financial institutions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•individual retirement or tax-deferred accounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•insurance companies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•tax-exempt organizations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•regulated investment companies or real estate investment trusts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•persons holding our ADSs as part of a hedging, straddle or conversion transaction for U.S. federal income tax purposes or who are deemed to sell ADSs under the constructive sale provisions of the Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•persons required for U.S. federal income tax purposes to conform the timing of income accruals to their financial statements under Section 451 of the Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•persons whose functional currency for U. S. federal income tax purposes is not the U.S. dollar;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•persons subject to the alternative minimum tax;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•persons that own, or are treated as owning, 10% or more, by voting power or value, of our outstanding common stock (including common stock represented by ADSs);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•certain former U.S. citizens and residents who have expatriated; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•persons receiving our ADSs pursuant to the exercise of employee stock options or otherwise as compensation.

***U.S. Holders*** 

For purposes of the discussion below, you are a "U.S. Holder" if you are a beneficial owner of our ADSs that is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•an individual U.S. citizen or resident alien of the United States (as specifically defined for U.S. federal income tax purposes);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•a corporation, or other entity treated as a corporation for U.S. federal income tax purposes, created or organized in or under the laws of the United States, any state thereof or the District of Columbia;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•an estate whose income is subject to U.S. federal income taxation regardless of its source; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•a trust (x) if a U.S. court can exercise primary supervision over the trust's administration and one or more U.S. persons are authorized to control all substantial decisions of the trust or (y) that has a valid election in effect under applicable U.S. Treasury regulations to be treated as a U.S. person.

If a partnership (including any entity or arrangement treated as a partnership for U.S. federal income tax purposes) holds our ADSs, the tax treatment of a partner in such partnership will generally depend upon the status of the partner and upon the activities of the partnership. If you are a partnership holding our ADSs or a partner in such partnership, you should consult your tax advisor with respect to the U.S. federal income tax consequences of the ownership and disposition of our ADSs by the partnership.

**General** 

In general, a U.S. Holder of our ADSs will be treated as owning the underlying shares represented by those ADSs for U.S. federal income tax purposes. Accordingly, no gain or loss will be recognized if a U.S. Holder exchanges ADSs for the underlying shares represented by those ADSs. The U.S. Department of the Treasury has expressed concern that parties to whom ADSs are released before shares are delivered to the Depositary ("pre-release"), or intermediaries in the chain of ownership between holders and the issuer of the security underlying the ADSs, may be taking actions that are inconsistent with the claiming of foreign tax credits by holders of ADSs. These actions would also be inconsistent with the claiming of the preferential rate of tax, described below, applicable to dividends received by certain non-corporate U.S. Holders. Accordingly, the creditability of ROC taxes, and the availability of the preferential tax rate for dividends received by certain non-corporate U.S. Holders, each as described below, could be affected by actions taken by such parties or intermediaries.

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**Distributions** 

Subject to the "passive foreign investment company" (or "PFIC") rules discussed below, the amount of any cash distribution (other than in liquidation) that you receive with respect to our ADSs including the amount of any ROC taxes actually withheld therefrom (described above in "—ROC Taxation") generally will be taxed to a U.S. Holder as dividend income to the extent such distribution does not exceed ChipMOS Taiwan's current or accumulated earnings and profits (or "E&P"), as calculated for U.S. federal income tax purposes. Such income will be includable in a U.S. Holder's gross income as ordinary income on the date of receipt by the Depositary. The amount of any distribution paid in non-U.S. dollars will be equal to the US dollar value of the amount distributed, calculated by reference to the exchange rate in effect on the date the dividend is received by the depositary, regardless of whether the payment is in fact converted into US dollars on such date. *US holders should consult their own tax advisors regarding the treatment of foreign currency gain or loss, if any, on any amounts received by a US holder that are converted into US dollars on a date subsequent to receipt.* Dividends received by individuals and certain other non-corporate U.S. Holders from "qualified foreign corporations" are taxed at the rate of either 0 percent, 15 percent or 20 percent, depending upon the particular taxpayer's U.S. federal income tax bracket; provided that the recipient-shareholder has held his or her shares as a beneficial owner for more than 60 days during the 121-day period beginning on the date which is 60 days before the shares' ex-dividend date. A foreign corporation is a "qualified foreign corporation" if the stock with respect to which it pays dividends is traded on an established securities market in the United States, provided that the foreign corporation is not a PFIC. ChipMOS Taiwan ADSs are traded on an established securities market in the United States, although ChipMOS Taiwan cannot guarantee that its ADSs will be so traded in the future. ChipMOS Taiwan does not expect to be treated as a PFIC for U.S. federal income tax purposes for the current taxable year or the foreseeable future. If we are treated as a qualified foreign corporation, dividends we pay with respect to our ADSs would be eligible for the reduced rates of taxation described in this paragraph. No assurance can be given, however, that the IRS will not disagree and seek to treat ChipMOS Taiwan as a PFIC. If ChipMOS Taiwan were a PFIC with respect to a particular U.S. Holder, dividends received from ChipMOS Taiwan would be taxed at regular ordinary income tax rates and certain other rules will apply. See "Passive Foreign Investment Company (PFIC)," below. Holders of ChipMOS Taiwan ADSs should consult their own tax advisors regarding the availability of a reduced dividend tax rate in light of their own particular circumstances. To the extent any distribution exceeds ChipMOS Taiwan's E&P, the distribution will first be treated as a tax-free return of capital to the extent of a U.S. Holder's adjusted tax basis in ChipMOS Taiwan ADSs and will be applied against and reduce such basis on a dollar-for-dollar basis (thereby increasing the amount of gain and decreasing the amount of loss recognized on a subsequent disposition of such ChipMOS Taiwan ADSs). To the extent that such distribution exceeds a U.S. Holder's adjusted tax basis, the distribution will be taxed as gain recognized on a sale or exchange of ChipMOS Taiwan ADSs. However, because ChipMOS Taiwan does not maintain calculations of its E&P under U.S. federal income tax principles, it is expected that distributions will generally be reported to U.S. Holders as dividends. Because ChipMOS Taiwan is not a U.S. corporation, no dividends-received deduction will be allowed to corporations with respect to dividends paid by it.

For U.S. foreign tax credit limitation purposes, dividends received on ChipMOS Taiwan ADSs will be treated as foreign source income and will generally constitute "passive category income," or in the case of certain holders, "general category income." You may be eligible, subject to a number of complex limitations, to claim a foreign tax credit in respect of ROC taxes actually withheld on dividends paid on ChipMOS Taiwan ADSs. A U.S. Holder who does not elect to claim a foreign tax credit for foreign tax withheld may instead claim a deduction, for U.S. federal income tax purposes, in respect of such withholding, but only for a year in which such U.S. Holder elects to do so for all creditable foreign income taxes. The rules governing U.S. foreign tax credits are complex, and we recommend that you consult your tax advisor regarding the applicability of such rules to you.

**Sale, Exchange or Other Disposition of ChipMOS Taiwan ADSs** 

Subject to the PFIC rules discussed below, generally, in connection with the sale, exchange or other disposition of ChipMOS Taiwan ADSs:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•a U.S. Holder will recognize capital gain or loss equal to the difference (if any) between the amount realized on such sale, exchange or other disposition and your adjusted tax basis in such ChipMOS Taiwan ADSs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•such gain or loss will be long-term capital gain or loss if your holding period for such ChipMOS Taiwan ADSs is more than one year at the time of the sale or other disposition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•such gain or loss will generally be treated as U.S. source for U.S. foreign tax credit purposes; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•a U.S. Holder's ability to deduct capital losses is subject to limitations.

Long-term capital gains recognized by individuals and certain other non-corporate taxpayers are taxed at preferential rates.

------

**Passive Foreign Investment Company (PFIC)** 

A non-U.S. corporation will be classified as a PFIC for U.S. federal income tax purposes for any taxable year, if either (i) 75% or more of its gross income for such year consists of certain types of passive income or (ii) 50% or more of the value of its assets (determined on the basis of a quarterly average) during such year produce or are held for the production of passive income. For this purpose, cash and cash equivalents are categorized as passive assets and the Company's goodwill and other unbooked intangibles are taken into account as non-passive assets. Passive income generally includes, among other things, dividends, interest, rents, royalties, and gains from the disposition of passive assets. We will be treated as owning a proportionate share of the assets and earning a proportionate share of the income of any other corporation in which we own, directly or indirectly, more than 25% (by value) of the stock. ChipMOS Taiwan does not expect to be a PFIC for its current taxable year or the foreseeable future. However, a company's PFIC status is a legal and factual determination that must be made annually and thus may be subject to change. If ChipMOS Taiwan were treated as a PFIC, gain realized on the sale, exchange or other disposition of your ChipMOS Taiwan ADSs would in general not be treated as capital gain. Instead, such gain would be allocated ratably over your holding period for the ChipMOS Taiwan ADSs. The amounts allocated to the taxable year of the sale, exchange or other disposition and to any year before ChipMOS Taiwan became a PFIC would be taxed as ordinary income. The amount allocated to each other taxable year would be subject to tax at the highest rate in effect for such year, together with an interest charge on the tax attributable to each such year. If ChipMOS Taiwan were a PFIC for any year during a U.S. Holder's holding period for ChipMOS Taiwan ADSs, it generally will continue to be treated as a PFIC with respect to the U.S. Holder for all succeeding years during which the U.S. Holder owns the ADSs. Dividends received from ChipMOS Taiwan ADSs will not be eligible for the special tax rates applicable to qualified dividend income for certain non-corporate U.S. Holders if ChipMOS Taiwan is treated as a PFIC with respect to the U.S. Holder, either in the taxable year of the distribution or the preceding taxable year, but instead will be taxable at rates applicable to ordinary income. Further, any distribution in respect of ChipMOS Taiwan ADSs in excess of 125 percent of the average annual distributions on ChipMOS Taiwan ADSs received by the U.S. Holder during the preceding three years or the U.S. Holder's holding period, whichever is shorter, would be allocated ratably over the U.S. Holder's holding period for ChipMOS Taiwan ADSs and subject to taxation as described with respect to sales, exchanges or other dispositions above. Certain elections may be available that would result in alternative treatments such as mark-to-market treatment of the ADSs.

**3.8% Medicare Tax on "Net Investment Income"** 

Certain U.S. Holders that are individuals, estates, and certain trusts are subject to a 3.8% tax on all or a portion of their "net investment income," which may include any gain realized or amounts received with respect to their ChipMOS Taiwan ADSs, to the extent of their net investment income that, when added to other modified adjusted gross income, exceeds $200,000 for a single taxpayer (or a qualifying head of household), $250,000 for married taxpayers filing a joint return (or a qualifying widower), or $125,000 for a married taxpayer filing a separate return. U.S. Holders should consult their own tax advisors with respect to the applicability of the net investment income tax.

**Information Reporting and Backup Withholding** 

Except in the case of corporations or other exempt holders, amounts received by a U.S. Holder in connection with distributions, if any, paid by ChipMOS Taiwan with respect to ChipMOS Taiwan ADSs and proceeds from the sale, exchange or other disposition of ChipMOS Taiwan ADSs may be subject to U.S. information reporting requirements and backup withholding unless the U.S. Holder provides an accurate taxpayer identification number and complies with certain certification procedures or otherwise establishes an exemption from backup withholding. Backup withholding is not an additional tax and amounts withheld may be allowed as a credit against the U.S. Holder's U.S. federal income tax liability and may entitle the U.S. Holder to a refund, provided that certain required information is timely furnished to the IRS.

U.S. Holders who are individuals (and certain entities) and who own "specified foreign financial assets" with an aggregate value in excess of $50,000 on the last day of the tax year (or more than $75,000 at any time during the tax year) are generally required to file an information statement along with their tax returns, currently on IRS Form 8938, with respect to such assets, subject to certain exceptions (including an exception for shares held in custodial accounts maintained with a U.S. financial institution). "Specified foreign financial assets" include securities issued by a non-U.S. issuer (which would include ChipMOS Taiwan ADSs) that are not held in accounts maintained by financial institutions. Higher reporting thresholds apply to certain individuals living abroad and to certain married individuals. Individuals who fail to report the required information could be subject to substantial penalties, and such individuals should consult their own tax advisors concerning the application of these rules to their investment in ChipMOS Taiwan ADSs.

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**TAX MATTERS CAN BE COMPLICATED. THE FOREGOING SUMMARY OF MATERIAL U.S. FEDERAL INCOME TAX CONSEQUENCES IS NOT INTENDED TO BE A COMPLETE ANALYSIS OR DESCRIPTION OF ALL U.S. FEDERAL INCOME TAX CONSEQUENCES OF THE OWNERSHIP AND DISPOSITION OF CHIPMOS TAIWAN ADSs. IN ADDITION, THE SUMMARY DOES NOT ADDRESS TAX CONSEQUENCES THAT DEPEND UPON INDIVIDUAL CIRCUMSTANCES. THIS SUMMARY DOES NOT ADDRESS ANY U.S. FEDERAL TAX CONSEQUENCES OTHER THAN INCOME TAX OR ANY FOREIGN, STATE OR LOCAL TAX CONSIDERATIONS, NOR ANY TAX CONSEQUENCES OF ANY TRANSACTION OTHER THAN THE OWNERSHIP AND DISPOSITION OF CHIPMOS TAIWAN ADSs. ACCORDINGLY, YOU ARE STRONGLY URGED TO CONSULT YOUR OWN TAX ADVISOR TO DETERMINE THE PARTICULAR U.S. FEDERAL, STATE, LOCAL, OR FOREIGN INCOME OR OTHER TAX CONSEQUENCES OF THE OWNERSHIP AND DISPOSITION OF CHIPMOS TAIWAN ADSs TO YOU.** 

**Documents on Display** 

We are subject to the information requirements of the Securities Exchange Act of 1934, as amended. In accordance with these requirements, we file reports and other information with the SEC. These materials may be inspected and copied at the Commission's Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549. The public may obtain information on the operation of the Commission's Public Reference Room by calling the Commission in the United States at 1-800-SEC-0330. The Commission also maintains a web site at http://www.sec.gov that contains reports, proxy statements and other information regarding registrants that file electronically with the Commission.

**Item 11. Quantitative and Qualitative Disclosure about Market Risk** 

**Market Risks** 

Our exposure to financial market risks relates primarily to changes in interest rates and foreign exchange rates. To mitigate these risks, we utilize derivative financial instruments, the application of which is primarily for hedging, and not for speculative purposes.

*Interest Rate Risks* 

As of December 31, 2025, we had aggregate debts outstanding of NT$15,471 million (US$493 million), which was incurred for capital expenditure and general operating expenses. Of our outstanding debts as of December 31, 2025, 83% bear interest at variable rates. The interest rate for the majority of our variable rate debts varies based on a fixed percentage spread over the prime rate established by our lenders. Our variable rate debts had an annual interest rate between 1.525% to 1.975% as of December 31, 2025. Accordingly, we have cash flows and earnings exposure due to market interest rate changes for our variable rate debts. An increase in interest rates of 1% would increase our annual interest charge by NT$128 million (US$4 million) based on our outstanding floating rate indebtedness as of December 31, 2025.

As of December 31, 2024 and 2025, we had no interest rate swap agreements outstanding.

*Foreign Currency Exchange Rate Risks* 

Our foreign currency exposure gives rise to market risks associated with exchange rate movements against the NT dollar, the RMB, the Japanese yen and the US dollar. As of December 31, 2025, 29.5% of our monetary financial assets and 19.8% of our monetary financial liabilities are denominated in the RMB, Japanese yen and US dollar, respectively. We do not hold or issue any derivative for trading purposes or to hedge against fluctuations in foreign exchange rates. We mitigate this risk by conducting sales and purchases transactions in the same currency. These hedging transactions help to reduce, but do not eliminate, the impact of foreign currency exchange rate movements. An average appreciation of the NT dollar against all other relevant foreign currencies of 5% would decrease our exchange gain by NT$107 million (US$3 million) based on our outstanding assets and liabilities denominated in foreign currencies as of December 31, 2025. As of December 31, 2024 and 2025, we had no outstanding forward exchange or foreign currency option contracts.

See Note 41 of our audited consolidated financial statements for additional information on financial risk management.

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**Item 12. Description of Securities Other Than Equity Securities** 

**American Depositary Shares** 

*Depositary Fees* 

Under the terms of the Deposit Agreement for our ADSs, an ADS holder is required to pay the following service fees to the depositary bank:

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| | | |
|:---|:---|:---|
| **Service** | **Service** | &nbsp;&nbsp;&nbsp;**Fees**<br>|
| (1) | Issuance of ADSs (i.e., an issuance upon a deposit of Shares or upon a change in the ADS(s)-to-Share(s) ratio), excluding issuances as a result of distributions described in paragraph (4) below. | &nbsp;&nbsp;Up to US$5.00 per 100 ADS (or fraction thereof) issued. |
| (2) | Cancellation of ADSs (i.e., a cancellation of ADSs for delivery of deposited Shares or upon a change in the ADS(s)-to-Share(s) ratio). | &nbsp;&nbsp;Up to US$5.00 per 100 ADS (or fraction thereof) cancelled. |
| (3) | Distribution of cash dividends or other cash distributions (i.e., upon a sale of rights and other entitlements). | &nbsp;&nbsp;Up to US$5.00 per 100 ADS (or fraction thereof) held. |
| (4) | Distribution of ADSs pursuant to (i) stock dividends or other free stock distributions, or (ii) an exercise of rights to purchase additional ADSs. | &nbsp;&nbsp;Up to US$5.00 per 100 ADS (or fraction thereof) held. |
| (5) | Distribution of securities other than ADSs or rights to purchase additional ADSs (i.e., spin-off shares). | &nbsp;&nbsp;Up to US$5.00 per 100 ADS (or fraction thereof) held. |
| (6) | ADS Services. | &nbsp;&nbsp;Up to US$5.00 per 100 ADS (or fraction thereof) held on the applicable record date(s) established by the Depositary. |

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*Depositary Charges* 

A holder of our ADSs is responsible to pay certain charges such as:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)taxes (including applicable interest and penalties) and other governmental charges;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)such registration fees as may from time to time be in effect for the registration of Shares or other Deposited Securities on the share register and applicable to transfers of Shares or other Deposited Securities to or from the name of the Custodian, the Depositary or any nominees upon the making of deposits and withdrawals, respectively;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)such cable, telex and facsimile transmission and delivery expenses as are expressly provided in the Deposit Agreement to be at the expense of the person depositing Shares or withdrawing Deposited Securities or of the Holders and Beneficial Owners of ADSs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)the expenses and charges incurred by the Depositary in the conversion of foreign currency;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)such fees and expenses as are incurred by the Depositary in connection with compliance with exchange control regulations and other regulatory requirements applicable to Shares, Deposited Securities, ADSs and ADRs; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)the fees and expenses incurred by the Depositary, the Custodian, or any nominee in connection with the servicing or delivery of Deposited Property.

All ADS fees and charges so payable may be deducted from distributions or must be remitted to the Depositary, or its designee, and may, at any time and from time to time, be changed by agreement between the Depositary and the Company, but, in the case of ADS fees and charges payable by Holders and Beneficial Owners, only in the manner contemplated in the Deposit Agreement. The Depositary shall provide, without charge, a copy of its latest ADS fee schedule to anyone upon request.

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ADS fees and charges payable upon (i) the issuance of ADSs and (ii) the cancellation of ADSs will be payable by the person to whom the ADSs are so issued by the Depositary (in the case of ADS issuances) and by the person who ADSs are being cancelled (in the case of ADS cancellations). In the case of ADSs issued by the Depositary into DTC or presented to the Depositary via DTC, the ADS issuance and cancellation fees and charges will be payable by the DTC Participant(s) receiving the ADSs from the Depositary or the DTC Participant(s) holding the ADSs being cancelled, as the case may be, on behalf of the Beneficial Owner(s) and will be charged by the DTC Participant(s) to the account(s) of the applicable Beneficial Owner(s) in accordance with the procedures and practices of the DTC participant(s) as in effect at the time. ADS fees and charges in respect of distributions and the ADS service fee are payable by Holders as of the applicable ADS Record Date established by the Depositary. In the case of distributions of cash, the amount of the applicable ADS fees and charges is deducted from the funds being distributed. In the case of (i) distributions other than cash and (ii) the ADS service fee, the applicable Holders as of the ADS Record Date established by the Depositary will be invoiced for the amount of the ADS fees and charges and such ADS fees may be deducted from distributions made to Holders. For ADSs held through DTC, the ADS fees and charges for distributions other than cash and the ADS service fee may be deducted from distributions made through DTC, and may be charged to the DTC Participants in accordance with the procedures and practices prescribed by DTC from time to time and the DTC Participants in turn charge the amount of such ADS fees and charges to the Beneficial Owners for whom they hold ADSs.

The Depositary may reimburse the Company for certain expenses incurred by the Company in respect of the ADR program established pursuant to the Deposit Agreement, by making available a portion of the ADS fees charged in respect of the ADR program or otherwise, upon such terms and conditions as the Company and the Depositary agree from time to time. The Company shall pay to the Depositary such fees and charges, and reimburse the Depositary for such out-of-pocket expenses, as the Depositary and the Company may agree from time to time. Responsibility for payment of such fees, charges and reimbursements may from time to time be changed by agreement between the Company and the Depositary. Unless otherwise agreed, the Depositary shall present its statement for such fees, charges and reimbursements to the Company once every three months. The charges and expenses of the Custodian are for the sole account of the Depositary.

The obligations of Holders and Beneficial Owners to pay ADS fees and charges shall survive the termination of the Deposit Agreement. As to any Depositary, upon the resignation or removal of such Depositary as described in the Deposit Agreement, the right to collect ADS fees and charges shall extend for those ADS fees and charges incurred prior to the effectiveness of such resignation or removal.

**Depositary Payment**

In 2025, we received direct reimbursement of US$48,662.92 (net of U.S. withholding tax) from Citibank, N.A., the depositary bank for our ADR programs.

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**PART II** 

**Item 13. Defaults, Dividend Arrearages and Delinquencies** 

None.

**Item 14. Material Modifications to the Rights of Security Holders and Use of Proceeds** 

Not applicable.

**Item 15. Controls and Procedures** 

**Disclosure Controls and Procedures.** 

Our management, including our President, the principal executive officer and Vice President of the Finance and Accounting Management Center, the principal financial officer, conducted an evaluation of the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) of the Securities Exchange Act of 1934, as amended). Based upon that evaluation, our management concluded that, our disclosure controls and procedures were effective as of December 31, 2025.

**Management's Annual Report on Internal Control over Financial Reporting.** 

Management of ChipMOS TECHNOLOGIES INC. (together with its consolidated subsidiaries, the "Company") is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f) of the Securities Exchange Act of 1934, as amended). The Company's internal control over financial reporting is a process designed under the supervision of the Company's President, the principal executive officer, and Vice President of the Finance and Accounting Management Center, the principal financial officer, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the Company's financial statements for external reporting purposes in accordance with IFRS<sup>®</sup> Accounting Standards as issued by the International Accounting Standards Board. Our internal control over financial reporting includes those policies and procedures that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect our transactions and dispositions of our assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•provide reasonable assurance that our transactions are recorded as necessary to permit preparation of our financial statements in accordance with IFRSs, and that our receipts and expenditures are being made only in accordance with authorizations of our management and our directors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of internal control effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Our management assessed the effectiveness of our internal control over financial reporting as of December 31, 2025 based on the criteria set forth in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on the assessment, our management concludes that our internal control over financial reporting was effective as of December 31, 2025.

The effectiveness of our internal control over financial reporting as of December 31, 2025 has been audited by PricewaterhouseCoopers, Taiwan, an independent registered public accounting firm, as stated in their report included in this Annual Report on Form 20-F.

**Attestation Report of the Registered Public Accounting Firm.** 

Our independent registered public accounting firm, PricewaterhouseCoopers, Taiwan has audited the effectiveness of our internal control over financial reporting, as stated in its report, which appears on page F-2 of this annual report.

**Changes in Internal Control over Financial Reporting.** 

During the year ended December 31, 2025, there have been no changes in our internal control over financial reporting that has materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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**Item 16A. Audit Committee Financial Expert** 

Our Board of Directors have determined that Yuh-Fong Tang and Jyh-Chau Wang, our independent directors, qualified as audit committee financial expert and meets the independence requirement as defined in Item 16A to Form 20-F.

**Item 16B. Code of Ethics** 

We have adopted a Code of Ethics Conduct, which applies to our directors, managers, and other employees of the Company. A copy of our Code of Ethics Conduct is filed as Exhibit 11.1 to this Annual Report on Form 20-F.

**Item 16C. Principal Accountant Fees and Services** 

The table below summarizes the aggregate fees that we paid or accrued for services provided by PricewaterhouseCoopers, Taiwan ("PwC Taiwan") (PCAOB ID Number: 1345) for the years ended December 31, 2024 and 2025.

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| | | |
|:---|:---|:---|
|  | **2024** | **2025** |
|  | **NT$** | **NT$** |
|  | **(In thousands)** | **(In thousands)** |
| Audit Fees | $15522 | $15732 |
| Audit Related Fees | 208 | 208 |
| Tax Fees | 3150 | 3650 |
| Total | $18880 | $19590 |

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*Audit Fees*. This category includes the audit of our annual financial statements and services that are provided by the independent auditors in connection with our annual financial statements, internal control over financial reporting, quarterly financial statements, and related statutory and regulatory filings.

*Audit-Related Fees*. This category includes fees reasonably related to the performance of the audit or review of our financial statements and not included in the category of Audit Fees (described above). The services for the fees disclosed under this category were related to checklist of quarterly and annually financial statements and review of annual report.

*Tax Fees.* This category includes aggregate fees for respective years for services relating to tax compliance and review.

All non-audit services are pre-approved by our Audit Committee on a case-by-case basis. Accordingly, we have not established any pre-approval policies and procedures.

All audit services performed by PwC Taiwan were pre-approved by the Audit Committee.

**Item 16D. Exemptions from the Listing Standards for Audit Committees** 

Not applicable.

**Item 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers** 

*Share Repurchase Programs.*

On January 21, 2025, we announced a share repurchase program, which is approved by our Board of Directors to repurchase our common shares during the period from January 22, 2025 to March 21, 2025. The repurchase price was between NT$21.18 to NT$35.00 per common share. The maximum number of common shares allowed to be repurchased pursuant to the share repurchase program was 10.0 million common shares. The share repurchase program was concluded on March 14, 2025, with a total number of 10.0 million common shares being repurchased at an average price of NT$32.17 per common share. On April 15, 2025, the Company's Board of Directors resolved to cancel the 10,000 thousand common shares, with the effective date of capital reduction on May 28, 2025 and the alteration registration was completed on June 11, 2025.

On May 13, 2025, we announced a share repurchase program to transfer to employees, which is approved by our Board of Directors to repurchase our common shares during the period from May 14, 2025 to July 13, 2025. The repurchase price was between NT$18.87 to NT$35.00 per common share. The maximum number of common shares allowed to be repurchased pursuant to the share repurchase program was 15.0 million common shares. As of the end of the shares repurchase period, with a total number of 9,105 thousand common shares being repurchased at an average price of NT$28.22 per common share. On November 11, 2025, the Company's Board of Directors approved to transfer 4,565 thousand common shares to employees for subscription, and the transfer was fully completed on November 28, 2025.

------

On September 2, 2025, we announced a share repurchase program, which is approved by our Board of Directors to repurchase our common shares during the period from September 3, 2025 to November 2, 2025. The repurchase price was between NT$16.80 to NT$32.00 per common share. The maximum number of common shares allowed to be repurchased pursuant to the share repurchase program was 15.0 million common shares. As of the end of the shares repurchase period, with a total number of 12,717 thousand common shares being repurchased at an average price of NT$28.72 per common share. On November 11, 2025, the Company's Board of Directors resolved to cancel the 12,717 thousand common shares, with the effective date of capital reduction on November 12, 2025 and the alteration registration was completed on December 1, 2025.

The table below sets forth certain information related to purchases made by us of our common shares in the periods indicated.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Period** | **Total Number<br>of Shares<br>Purchased** | **Average Price<br>Paid Per<br>Share (NT$)** | **Total Number of<br>Shares Purchased<br>as Part of<br>Publicly Announced<br>Plans or Programs** | **Maximum Dollar Value <br>of Shares that May Yet <br>Be Purchased Under<br>the Plans or Programs<br>(NT$ Million)** |
| January 2025 - March 2025 <br>&nbsp;&nbsp;&nbsp;&nbsp; (Repurchase Program IV) | 10000000 | $32.17 | 10000000 |  |
| May 2025 - July 2025 <br>&nbsp;&nbsp;&nbsp;&nbsp; (Repurchase Program V) | 9105000 | 28.22 | 9105000 |  |
| September 2025 - November 2025 <br>&nbsp;&nbsp;&nbsp;&nbsp; (Repurchase Program VI) | 12717000 | 28.72 | 12717000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | **31822000** |  | **31822000** |  |

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**Item 16F. Change in Registrant's Certifying Accountant** 

Not applicable.

**Item 16G. Corporate Governance** 

Our corporate governance practices are governed by the applicable ROC law, specifically, the ROC Company Act and Securities and Exchange Act, and our Articles of Incorporation. Also, because our securities are listed on the Nasdaq, we are subject to corporate governance requirements applicable to Nasdaq-listed foreign private issuers under Nasdaq listing rules.

Under Nasdaq Rule 5615(a)(3), Nasdaq-listed foreign private issuers may, in general, follow their home country corporate governance practices instead of most Nasdaq corporate governance requirements. However, all Nasdaq-listed, foreign private issuers must comply with Nasdaq Rules 5605(c)(2)(A)(ii), 5605(c)(3), 5625 and 5640.

Item 16G requires a foreign private issuer to provide in its annual report filed with the SEC a brief, general summary of any significant ways its corporate governance practices differ from those followed by Nasdaq-listed domestic companies. The table below provides this summary information as required by Item 16G and by Nasdaq Rule 5615(a) (3):

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| | | |
|:---|:---|:---|
| **Nasdaq Listing Rule**<br>| &nbsp;&nbsp;&nbsp;**Corporate Governance Practice To Be**<br>**Followed by Domestic Companies**<br>| &nbsp;&nbsp;&nbsp;**Our Corporate Governance Practice**<br>|
| 5250(b)(3) | &nbsp;&nbsp;Disclosure of third party director and nominee compensation requirements. | &nbsp;&nbsp;We follow governance practices under the ROC law.<br>Nasdaq Rule 5250(b)(3) generally requires a Nasdaq-listed company to disclose at least annually material terms of agreements and arrangements with third parties (other than the Company) relating to compensation of or payment to the Company's directors in connection with candidacy or service as a company director, subject to certain limited exceptions. There is no similar regulation requiring disclosure of third party compensation of directors and nominees for director under the ROC law. However, certain laws and regulations are designed to enhance transparency by making investors aware of the relationship between independent directors or nominees for independent director of a TWSE-listed company and third party. For instance, the ROC Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies requires that, in the event that both of a TWSE-listed company and its group enterprises, and another company and its group enterprises, nominate any director, supervisor or managerial officer from the other company or its group enterprises as an independent director candidate, the TWSE-listed company shall disclose the information when receiving the nomination of  |

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| | | |
|:---|:---|:---|
| **Nasdaq Listing Rule**<br>| &nbsp;&nbsp;&nbsp;**Corporate Governance Practice To Be**<br>**Followed by Domestic Companies**<br>| &nbsp;&nbsp;&nbsp;**Our Corporate Governance Practice**<br>|
|  |  | &nbsp;&nbsp;an independent director candidate, and explain the competence of the independent director candidate. It further requires that, if the candidate becomes the TWSE-listed company's independent director through election, such company shall disclose the number of votes cast in favor of such independent director-elect. In addition, if an independent director of a TWSE-listed company concurrently serves as a director, supervisor or other position of other company, such concurrently held position shall be disclosed in the Market Observation Post System of the TWSE. |
| 5605(b) | &nbsp;&nbsp;Requires a majority independent board and an independent director executive session. | &nbsp;&nbsp;We follow governance practices under the ROC law.<br>We have five independent directors out of a total of nine directors on our board. Our standards in determining director independence substantially comply with the Nasdaq requirement, which include detailed tests for determining director independence. |
| 5605(c)(1) | &nbsp;&nbsp;Audit committee charter requirements. | &nbsp;&nbsp;We follow governance practices under the ROC law. |
| 5605(c)(2)(A)(ii) | &nbsp;&nbsp;Audit committee composition and independence requirements. | &nbsp;&nbsp;We follow the same Nasdaq listing rule governance practice as followed by domestic companies. |
| 5605(c)(2)(A)(i),<br>(iii), (iv) | &nbsp;&nbsp;Audit committee financial sophistication requirements. | &nbsp;&nbsp;We follow the same Nasdaq listing rule governance practice as followed by domestic companies. |
| 5605(c)(3) | &nbsp;&nbsp;Audit committee responsibilities and authority requirements. | &nbsp;&nbsp;We follow the same Nasdaq listing rule governance practice as followed by domestic companies. |
| 5605(d), (e) | &nbsp;&nbsp;Requires independent director oversight of executive officer compensation and director nominations. | &nbsp;&nbsp;We follow the same Nasdaq listing rule governance practice regarding the compensation committee as followed by domestic companies. <br>As for the director nominations, we follow governance practices under the ROC law. Under the ROC Company Act and the interpretations thereof, candidates to serve as directors are nominated either by the Board of Directors or by the shareholders. |
| 5610 | &nbsp;&nbsp;Requires a code of conduct for directors, officers and employees. | &nbsp;&nbsp;We follow governance practices under the ROC law.<br>We have adopted the Code of Ethics Conduct that satisfies the requirements promulgated by the TWSE, and applies to all employees, managerial officers and directors of our company. The details of the waiver of such Code for our directors and managerial officers will be disclosed in the Market Observation Post System of the TWSE. |
| 5620 | &nbsp;&nbsp;Annual shareholder meeting requirements. | &nbsp;&nbsp;We follow governance practices under the ROC law.<br>We are required by the ROC Company Act and our Articles of Incorporation to hold a general meeting of our shareholders within six months following the end of each fiscal year, unless for specific legitimate reasons or approved otherwise by the relevant authorities. Further, a majority of the holders of all issued and outstanding common shares present at a shareholders' meeting constitutes a quorum for meetings of our shareholders. |
| 5625 | &nbsp;&nbsp;Requires an issuer to notify Nasdaq of any material noncompliance with the Rule 5600 series. | &nbsp;&nbsp;We follow the same Nasdaq listing rule governance practice as followed by domestic companies. |
| 5630 | &nbsp;&nbsp;Requires oversight of related party transactions. | &nbsp;&nbsp;We follow governance practices under the ROC law.<br>According to Nasdaq Rule 5630(a), each company that is not a limited partnership shall conduct an appropriate review and oversight of all related party transactions for potential conflict of interest situations on an ongoing basis by the Company's Audit Committee or another independent body of the Board of Directors. According to our Operational Procedures for Acquisition and Disposal of Assets that satisfies the requirements promulgated by the FSC, any related party transaction exceeding a specified threshold shall be required to have an independent  |

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| | | |
|:---|:---|:---|
| **Nasdaq Listing Rule**<br>| &nbsp;&nbsp;&nbsp;**Corporate Governance Practice To Be**<br>**Followed by Domestic Companies**<br>| &nbsp;&nbsp;&nbsp;**Our Corporate Governance Practice**<br>|
|  |  | &nbsp;&nbsp;expert issue a fairness opinion, and be submitted to our audit committee for its review and approval. |
| 5635 | &nbsp;&nbsp;Circumstances that require shareholder approval. | &nbsp;&nbsp;We follow governance practices under the ROC law.<br>According to Nasdaq Rule 5635(c), each issuer shall require shareholder approval when a stock option or purchase plan is to be established or materially amended or other equity compensation arrangement made or materially amended, pursuant to which stock may be acquired by officers, directors, employees, or consultants. However, under the corresponding domestic requirements under the ROC Company Act and the Securities and Exchange Act, the Board of Directors has authority, subject to the approval of the Securities and Futures Bureau of the FSC, to approve employee stock option plans and to grant options to employees pursuant to such plans. |
| 5640 | &nbsp;&nbsp;Shareholder voting rights requirements. | &nbsp;&nbsp;We follow the same Nasdaq listing rule governance practice as followed by domestic companies. |

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**Item 16H. Mine Safety Disclosure** 

Not applicable.

**Item 16I. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections** 

Not applicable.

**Item 16J. Insider Trading Policies** 

We have adopted an insider trading policy governing the purchase, sale and/or other disposition of our company's securities by directors, officers and certain designated employees that is designed to promote compliance with insider trading laws, rules and regulations, as well as procedures designed to further the foregoing purposes. A copy of our insider trading policy is filed as an exhibit to this Annual Report on Form 20-F. It is our intent to comply with applicable laws and regulations relating to insider trading.

**Item 16K. Cybersecurity** 

As part of the enterprise risk management oversight, our Board of Directors, is the highest decision-making body, responsible for formulating risk management policy and organizational structure. The Risk Management Team is the competent authority for implementing risk management with Audit Committee supervising the implementation of risk management to ensure the effectiveness of the risk management mechanism, including information technology. The Information Security Team is composed of the team member of Information Security Office and each department management, which is assigned by each department head. The department management evaluates the frequency, impact and control degree of potential cybersecurity risks through identification, analysis, evaluation and other procedures. The department management also implements necessary procedures and cybersecurity works in compliance with the rules, and ensure that the known cybersecurity risks are controlled within the feasible scope and continue to monitor. Annually, the department management briefs the Information Security Team and Information Security Management Committee on the then current cybersecurity event environment facing the Company, the focus of the Company's enterprise cybersecurity management, cybersecurity assessment and cybersecurity mitigation actions to be taken. Our Information Security Management Committee is responsible for the overall information security across all subsidiaries. This committee is composed of all first-level supervisors at each division, including the head of Information Technology Management ("I.T.M") center. Currently, it is mainly led by the head of I.T.M. center and the information security manager, who are the subject matter expert on information security, privacy, information technology strategy and management. The Information Security Management Committee report to the Board of Directors at least once a year. If any, major incidents are escalated to our Information Security Team and our Information Security Management Committee, who may then inform our Board of Directors of the incident pursuant to our internal procedures. The primary objective is to strengthen governance by enabling direct oversight of cybersecurity risks and proposing related mitigation measures. In the three years through 2025, the Company has not experienced any material cybersecurity incidents.

Our information security manager of the I.T.M. center holds the following certifications: ISO 27001 LA, ITIL 4 Foundation and IPASS Information Security Engineer by Ministry of Economic Affairs. The Information Security Team members also possess international cybersecurity certifications such as ISC2 CISSP, CompTIA Security +, EC-Council CEH, CND, CHFI, CSA and CTIA. We arrange external training every year for our team to further enhance their knowledge and skills in the cybersecurity field.

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In respect of the assessing and managing of cybersecurity from our management, we have formulated management policies in eight aspects including strategies and policies, legal compliance, information security risk assessment, information security technology investment, risk monitoring and reporting, information outsourcing supplier management, disaster emergency response and continuous improvement as below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Strategies and policies: Management has formulated appropriate cybersecurity principles and policies to mitigate internal and external cybersecurity risks. Its content covers the formulation of information security policies, access control, data encryption, employee training plans and network security incident response procedures. The compliance and appropriateness of the policy will be reviewed and updated regularly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Legal compliance: Management ensures that the organization's cybersecurity measures comply with applicable laws, regulations and industry best practices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Information security risk assessment: Management is responsible for identifying and assessing the cybersecurity threats facing the organization. Understand potential threat sources, vulnerabilities, and system weaknesses and assess the potential impact of these threats on an organization's business, finances, and reputation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Information security technology investment: Management decided to invest in network security technology and tools to strengthen the organization's security defense capabilities. This includes investing in security information and event management systems such as firewalls, intrusion detection systems, two-factor authentication, Endpoint Detection and Response (EDR), Web Application Firewall (WAF), and Anti-DDoSprotection.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Risk monitoring and reporting: Management has established an effective monitoring mechanism to regularly check the effectiveness of network security controls, respond to potential security incidents, and report network security performance and risk status to other stakeholders. At the same time, we have also deployed SIEM and SOC to strengthen the 24-hour dedicated monitoring mechanism.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Information outsourcing supplier management: Management assesses and manages the cybersecurity risks associated with outsourcing. Ensure that suppliers and partners meet the organization's cybersecurity standards and take appropriate measures to protect the organization from supply chain attacks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Disaster emergency response: Management develops and implements an emergency response plan for network security incidents. Ensure that the organization has appropriate response capabilities to promptly handle cybersecurity incidents and reduce the impact on business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Continuous improvement: Management takes steps to continually improve the organization's cybersecurity defenses. This includes regularly assessing the effectiveness of cybersecurity measures, as well as revising and updating cybersecurity principles and controls in light of new threats and vulnerabilities.

We are committed to complying with international ISO standards, have passed the new version of ISO 27001:2022, and obtained ISO 15408 international certification, and continuously strengthen the implementation of cybersecurity technologies. In response to the trend of Generative AI, we have also formulated relevant management regulations to provide legal and safe tools. Under a reasonable monitoring mechanism, employees can use these tools safely, improving work efficiency and complying with safety regulations.

In the trend of increasing global information security threats, information security risks are increasing, and new types of information security threats are constantly being introduced. Please see "Item 3. Key Information—Risk Factors" for a discussion of potential information security risks. The management has taken the above practical measures for the information security of the Company, and strengthened the key infrastructure and external information security. We cooperate and implement corresponding protective measures to reduce the risk of malicious attacks to maintain the Company's information network security environment, avoid network attacks, and enable the Company to comprehensively protect the information environment.

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**PART III**

**Item 17. Financial Statements** 

The Company has elected to provide the financial statements and related information specified in Item 18 in lieu of Item 17.

**Item 18. Financial Statements** 

The financial statements and related information of the Company are located at pages F-1 to F-58.

**Item 19. Exhibits** 

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;**Exhibits** | &nbsp;&nbsp;&nbsp;**Description** |
| &nbsp;&nbsp;1.1 | &nbsp;&nbsp;[<u>Articles of Incorporation of ChipMOS TECHNOLOGIES INC. as amended on May 27, 2025. (English Translation)</u>](imos-ex1_1.htm) |
| &nbsp;&nbsp;2.1 | &nbsp;&nbsp;[<u>Form of the Deposit Agreement among ChipMOS TECHNOLOGIES INC., Citibank, N.A. and The Holders and Beneficial Owners of American Depositary Shares issued hereunder.</u> <sup>(2)</sup>](https://www.sec.gov/Archives/edgar/data/1123134/000119380516003485/e615152_ex99-a.htm) |
| &nbsp;&nbsp;4.1 | &nbsp;&nbsp;[<u>Agreement and Plan of Merger, dated January 21, 2016, between ChipMOS TECHNOLOGIES (Bermuda) LTD. and ChipMOS TECHNOLOGIES INC.</u> <sup>(1)</sup>](https://www.sec.gov/Archives/edgar/data/1123134/000095010316011381/dp63280_f4.htm#annex_a) |
| &nbsp;&nbsp;4.2 | &nbsp;&nbsp;[<u>Equity Interest Transfer Agreement, dated November 30, 2016, among ChipMOS TECHNOLOGIES (BVI) LTD., Tibet Unigroup Guowei Investment Co., Ltd. and ChipMOS TECHNOLOGIES INC. (English Translation)</u> <sup>(3)</sup>](https://www.sec.gov/Archives/edgar/data/1123134/000119312517129583/d256439dex411.htm) |
| &nbsp;&nbsp;4.3 | &nbsp;&nbsp;[<u>Equity Interest Transfer Agreement, dated November 30, 2016, between ChipMOS TECHNOLOGIES (BVI) LTD. and Gongqingcheng Changhou Investment Management Ltd. (English Translation)</u> <sup>(3)</sup>](https://www.sec.gov/Archives/edgar/data/1123134/000119312517129583/d256439dex412.htm) |
| &nbsp;&nbsp;4.4 | &nbsp;&nbsp;[<u>Equity Interest Transfer Agreement, dated November 30, 2016, between ChipMOS TECHNOLOGIES (BVI) LTD. and Accretech (China) Co., Ltd. (English Translation)</u> <sup>(3)</sup>](https://www.sec.gov/Archives/edgar/data/1123134/000119312517129583/d256439dex413.htm) |
| &nbsp;&nbsp;4.5 | &nbsp;&nbsp;[<u>Equity Interest Transfer Agreement, dated November 30, 2016, between ChipMOS TECHNOLOGIES (BVI) LTD. and Chao-Jung Tsai (English Translation)</u> <sup>(3)</sup>](https://www.sec.gov/Archives/edgar/data/1123134/000119312517129583/d256439dex414.htm) |
| &nbsp;&nbsp;4.6 | &nbsp;&nbsp;[<u>Equity Interest Transfer Agreement, dated November 30, 2016, between ChipMOS TECHNOLOGIES (BVI) LTD. and Shanghai Zuzhu Business Consulting Partnership (Limited Partnership) (English Translation)</u> <sup>(3)</sup>](https://www.sec.gov/Archives/edgar/data/1123134/000119312517129583/d256439dex415.htm) |
| &nbsp;&nbsp;4.7 | &nbsp;&nbsp;[<u>Equity Interest Transfer Agreement, dated November 30, 2016, between ChipMOS TECHNOLOGIES (BVI) LTD. and Shih-Jye Cheng (English Translation)</u> <sup>(3)</sup>](https://www.sec.gov/Archives/edgar/data/1123134/000119312517129583/d256439dex416.htm) |
| &nbsp;&nbsp;4.8 | &nbsp;&nbsp;[<u>Equity Interest Transfer Agreement, dated November 30, 2016, between ChipMOS TECHNOLOGIES (BVI) LTD. and Shou-Kang Chen (English Translation)</u> <sup>(3)</sup>](https://www.sec.gov/Archives/edgar/data/1123134/000119312517129583/d256439dex417.htm) |
| &nbsp;&nbsp;4.9 | &nbsp;&nbsp;[<u>Equity Interest Transfer Agreement, dated November 30, 2016, between ChipMOS TECHNOLOGIES (BVI) LTD. and David W. Wang (English Translation)</u> <sup>(3)</sup>](https://www.sec.gov/Archives/edgar/data/1123134/000119312517129583/d256439dex418.htm) |
| &nbsp;&nbsp;4.10 | &nbsp;&nbsp;[<u>Agreement for Sino-Foreign Equity Joint Venture, dated November 30, 2016, among ChipMOS TECHNOLOGIES (BVI) LTD., Tibet Unigroup Guowei Investment Co., Ltd., Gongqingcheng Changhou Investment Management Ltd., Accretech (China) Co., Ltd., Chao-Jung Tsai, Shanghai Zuzhu Business Consulting Partnership (Limited Partnership), Shih-Jye Cheng, Shou-Kang Chen and David W. Wang. (English Translation)</u> <sup>(3)</sup>](https://www.sec.gov/Archives/edgar/data/1123134/000119312517129583/d256439dex419.htm) |
| &nbsp;&nbsp;4.11 | &nbsp;&nbsp;[<u>Amendment of Agreement for Sino-Foreign Equity Joint Venture dated April 10, 2017, among ChipMOS TECHNOLOGIES (BVI) LTD., Tibet Unigroup Guowei Investment Co., Ltd., Gongqingcheng Changhou Hong Xin Investment Management Partnership (Limited Partnership), Accretech (China) Co., Ltd., Chao-Jung Tsai, Shanghai Zuzhu Business Consulting Partnership (Limited Partnership), Shih-Jye Cheng, Shou-Kang Chen and David W. Wang. (English Translation)</u> <sup>(4)</sup>](https://www.sec.gov/Archives/edgar/data/1123134/000119312519117833/d646880dex420.htm) |
| &nbsp;&nbsp;4.12 | &nbsp;&nbsp;[<u>Amendment of Agreement for Sino-Foreign Equity Joint Venture dated November 28, 2017, among ChipMOS TECHNOLOGIES (BVI) LTD., Tibet Unigroup Guowei Investment Co., Ltd., Gongqingcheng Changhou Hong Xin Investment Management Partnership (Limited Partnership), Accretech (China) Co., Ltd., Chao-Jung Tsai, Shanghai Zuzhu Business Consulting Partnership (Limited Partnership), Shih-Jye Cheng, Shou-Kang Chen and David W. Wang. (English Translation)</u> <sup>(4)</sup>](https://www.sec.gov/Archives/edgar/data/1123134/000119312519117833/d646880dex421.htm) |
| &nbsp;&nbsp;4.13 | &nbsp;&nbsp;[<u>Amendment of Agreement for Sino-Foreign Equity Joint Venture dated August 1, 2018, among ChipMOS TECHNOLOGIES (BVI) LTD., Tibet Unigroup Guowei Investment Co., Ltd., Gongqingcheng Changhou Hong Xin Investment Management Partnership (Limited Partnership), Accretech (China) Co., Ltd., Chao-Jung Tsai, Shanghai Zuzhu Business Consulting Partnership (Limited Partnership), Shih-Jye Cheng, Shou-Kang Chen and David W. Wang. (English Translation)</u> <sup>(4)</sup>](https://www.sec.gov/Archives/edgar/data/1123134/000119312519117833/d646880dex422.htm) |

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;**Exhibits** | &nbsp;&nbsp;&nbsp;**Description** |
| &nbsp;&nbsp;4.14 | &nbsp;&nbsp;[<u>Amendment of Agreement for Sino-Foreign Equity Joint Venture dated December 29, 2018, among ChipMOS TECHNOLOGIES (BVI) LTD., Beijing Unis Memory Technology Co., Ltd., Gongqingcheng Changhou Hong Xin Investment Management Partnership (Limited Partnership), Accretech (China) Co., Ltd., Chao-Jung Tsai, Shanghai Zuzhu Business Consulting Partnership (Limited Partnership), Shih-Jye Cheng, Shou-Kang Chen and David W. Wang. (English Translation)</u> <sup>(4)</sup>](https://www.sec.gov/Archives/edgar/data/1123134/000119312519117833/d646880dex423.htm) |
| &nbsp;&nbsp;4.15 | &nbsp;&nbsp;[<u>Amendment of Agreement for Sino-Foreign Equity Joint Venture dated February 1, 2019, among ChipMOS TECHNOLOGIES (BVI) LTD., Beijing Unis Memory Technology Co., Ltd., Accretech (China) Co., Ltd., Chao-Jung Tsai, Shanghai Zuzhu Business Consulting Partnership (Limited Partnership), Shih-Jye Cheng, Shou-Kang Chen and David W. Wang. (English Translation)</u> <sup>(4)</sup>](https://www.sec.gov/Archives/edgar/data/1123134/000119312519117833/d646880dex424.htm) |
| &nbsp;&nbsp;4.16 | &nbsp;&nbsp;[<u>Amendment of Agreement for Sino-Foreign Equity Joint Venture dated June 18, 2019, among ChipMOS TECHNOLOGIES (BVI) LTD., Beijing Unis Memory Technology Co., Ltd., Tibet Unigroup Guowei Investment Co., Ltd., Accretech (China) Co., Ltd., Chao-Jung Tsai, Shanghai Zuzhu Business Consulting Partnership (Limited Partnership), Shih-Jye Cheng, Shou-Kang Chen and David W. Wang. (English Translation)</u> <sup>(5)</sup>](https://www.sec.gov/Archives/edgar/data/1123134/000119312520115821/d822090dex426.htm) |
| &nbsp;&nbsp;4.17 | &nbsp;&nbsp;[<u>Amendment of Agreement for Sino-Foreign Equity Joint Venture dated August 8, 2019, among ChipMOS TECHNOLOGIES (BVI) LTD., Beijing Unis Memory Technology Co., Ltd., Tibet Unigroup Guowei Investment Co., Ltd., Accretech (China) Co., Ltd., Chao-Jung Tsai, Shanghai Zuzhu Business Consulting Partnership (Limited Partnership), Shih-Jye Cheng, Shou-Kang Chen and David W. Wang. (English Translation)</u> <sup>(5)</sup>](https://www.sec.gov/Archives/edgar/data/1123134/000119312520115821/d822090dex427.htm) |
| &nbsp;&nbsp;4.18 | &nbsp;&nbsp;[<u>Amendment and Restatement of Agreement for Sino-Foreign Equity Joint Venture dated December 16, 2019, among ChipMOS TECHNOLOGIES (BVI) LTD., Yangtze Memory Technologies Co., Ltd., Accretech (China) Co., Ltd., Chao-Jung Tsai, Shanghai Zuzhu Business Consulting Partnership (Limited Partnership), Shih-Jye Cheng, Shou-Kang Chen and David W. Wang. (English Translation)</u> <sup>(5)</sup>](https://www.sec.gov/Archives/edgar/data/1123134/000119312520115821/d822090dex428.htm) |
| &nbsp;&nbsp;4.19 | &nbsp;&nbsp;[<u>Amendment and Restatement of Agreement for Sino-Foreign Equity Joint Venture dated May 11, 2020, among ChipMOS TECHNOLOGIES (BVI) LTD., Yangtze Memory Technologies Co., Ltd., Accretech (China) Co., Ltd., Chao-Jung Tsai, Shih-Jye Cheng, Shou-Kang Chen and David W. Wang. (English Translation)</u> <sup>(6)</sup>](https://www.sec.gov/Archives/edgar/data/0001123134/000119312521121875/d74568dex430.htm) |
| &nbsp;&nbsp;4.20 | &nbsp;&nbsp;[<u>Amendment and Restatement of Agreement for Sino-Foreign Equity Joint Venture dated December 15, 2022, among ChipMOS TECHNOLOGIES (BVI) LTD., Yangtze Memory Technologies Co., Ltd., Accretech (China) Co., Ltd., Chao-Jung Tsai, Shih-Jye Cheng, Shou-Kang Chen and David W. Wang. (English Translation)</u> <sup>(7)</sup>](https://www.sec.gov/Archives/edgar/data/1123134/000095017023012607/imos-ex4_22.htm) |
| &nbsp;&nbsp;4.21 | &nbsp;&nbsp;[<u>Amendment and Restatement of Agreement for Sino-Foreign Equity Joint Venture dated July 24, 2023, among ChipMOS TECHNOLOGIES (BVI) LTD., Yangtze Memory Technologies Holding Co., Ltd., Accretech (China) Co., Ltd., Chao-Jung Tsai, Shih-Jye Cheng, Shou-Kang Chen and David W. Wang. (English Translation)</u><sup>(8)</sup>](https://www.sec.gov/Archives/edgar/data/1123134/000095017024043516/imos-ex4_23.htm) |
| &nbsp;&nbsp;4.22 | &nbsp;&nbsp;[<u>Equity Interest Transfer Agreement, dated December 21, 2023, among ChipMOS TECHNOLOGIES (BVI) LTD., Suzhou Oriza PuHua ZhiXin Equity Investment Partnership (L.P.) and 10 other local Chinese investment management companies. (English Translation)</u>](https://www.sec.gov/Archives/edgar/data/1123134/000095017024043516/imos-ex4_24.htm)<sup>(8)</sup> |
| &nbsp;&nbsp;4.23 | &nbsp;&nbsp;[<u>Supplementary Agreement to Equity Interest Transfer Agreement, dated April 19, 2024, among ChipMOS TECHNOLOGIES (BVI) LTD., Suzhou Oriza PuHua ZhiXin Equity Investment Partnership (L.P.) and 12 other local Chinese investment management companies. (English Translation)</u><sup>(9)</sup>](https://www.sec.gov/Archives/edgar/data/1123134/000095017025053927/imos-ex4_23.htm) |
| &nbsp;&nbsp;8.1 | &nbsp;&nbsp;[<u>List of principal subsidiaries of ChipMOS TECHNOLOGIES INC.</u>](imos-ex8_1.htm) |
| &nbsp;&nbsp;11.1 | &nbsp;&nbsp;[<u>Code of Ethics Conduct. (English Translation)</u> <sup>(7)</sup>](https://www.sec.gov/Archives/edgar/data/1123134/000095017023012607/imos-ex11_1.htm) |
| &nbsp;&nbsp;11.2 | &nbsp;&nbsp;[<u>Insider Trading Policy</u><sup>(8)</sup>](https://www.sec.gov/Archives/edgar/data/1123134/000095017024043516/imos-ex11_2.htm) |
| &nbsp;&nbsp;12.1 | &nbsp;&nbsp;[<u>Certification of Principal Executive Officer required by Rule 13a-14(a) under the Exchange Act.</u>](imos-ex12_1.htm) |
| &nbsp;&nbsp;12.2 | &nbsp;&nbsp;[<u>Certification of Principal Financial Officer required by Rule 13a-14(a) under the Exchange Act.</u>](imos-ex12_2.htm) |
| &nbsp;&nbsp;13.1 | &nbsp;&nbsp;[<u>Certification of Principal Executive Officer required by Rule 13a-14(b) under the Exchange Act.</u>](imos-ex13_1.htm) |
| &nbsp;&nbsp;13.2 | &nbsp;&nbsp;[<u>Certification of Principal Financial Officer required by Rule 13a-14(b) under the Exchange Act.</u>](imos-ex13_2.htm) |
| &nbsp;&nbsp;97.1 | &nbsp;&nbsp;[<u>Incentive-Based Compensation Recovery Policy</u><sup>(8)</sup>](https://www.sec.gov/Archives/edgar/data/1123134/000095017024043516/imos-ex97_1.htm) |
| &nbsp;&nbsp;101.INS | &nbsp;&nbsp;Inline XBRL Instance Document—the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document |
| &nbsp;&nbsp;101.SCH | &nbsp;&nbsp;Inline XBRL Taxonomy Extension Schema With Embedded Linkbase Documents |
| &nbsp;&nbsp;104 | &nbsp;&nbsp;Cover Page Interactive Data File (embedded within the Inline XBRL document) |

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(1)Incorporated by reference to our Registration Statement on Form F-4 (File No. 333-209733), filed on February 26, 2016.

(2)Incorporated by reference to our Registration Statement on Form F-6/Amendment No. 1 (File No. 333-209736), filed on June 21, 2016.

(3)Incorporated by reference to the Annual Report on Form 20-F (File No. 001-37928) of ChipMOS TECHNOLOGIES INC., filed on April 20, 2017.

(4)Incorporated by reference to the Annual Report on Form 20-F (File No. 001-37928) of ChipMOS TECHNOLOGIES INC., filed on April 25, 2019.

(5)Incorporated by reference to the Annual Report on Form 20-F (File No. 001-37928) of ChipMOS TECHNOLOGIES INC., filed on April 23, 2020.

(6)Incorporated by reference to the Annual Report on Form 20-F (File No. 001-37928) of ChipMOS TECHNOLOGIES INC., filed on April 20, 2021.

(7)Incorporated by reference to the Annual Report on Form 20-F (File No. 001-37928) of ChipMOS TECHNOLOGIES INC., filed on April 13, 2023.

(8)Incorporated by reference to the Annual Report on Form 20-F (File No. 001-37928) of ChipMOS TECHNOLOGIES INC., filed on April 11, 2024.

(9)Incorporated by reference to the Annual Report on Form 20-F (File No. 001-37928) of ChipMOS TECHNOLOGIES INC., filed on April 15, 2025.

We have not included as exhibits certain instruments with respect to our debt, the amount of debt authorized under each of which does not exceed 10% of our total assets, and we agree to furnish a copy of any such instrument to the Commission upon request.

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**SIGNATURES** 

Pursuant to the requirements of Section 12 of the Securities Exchange Act of 1934, the registrant certifies that it meets all the requirements for filing on Form 20-F and it has duly caused this Annual Report on Form 20-F to be signed on its behalf by the undersigned.

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| | | |
|:---|:---|:---|
| Date: April 14, 2026 | ChipMOS TECHNOLOGIES INC. | ChipMOS TECHNOLOGIES INC. |
|  | **By:** | **/s/ Shih-Jye Cheng** |
|  | **Name:** | **Shih-Jye Cheng** |
|  | **Title:** | **Chairman and President** |

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------

**ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES** 

**INDEX TO CONSOLIDATED FINANCIAL STATEMENTS**

---

| | | |
|:---|:---|:---|
|  | Page(s) | Page(s) |
| [***<u>Report of Independent Registered Public Accounting Firm</u>***](#report_of_independent_registered_public) | F-2 | F-3 |
| [***<u>Consolidated Statements of Financial Position</u>***](#consolid_stmt_of_financial_position) | F-4 | F-5 |
| [***<u>Consolidated Statements of Comprehensive Income</u>***](#consolidated_stmt_of_comp_income) | F-6 | F-6 |
| [***<u>Consolidated Statements of Changes in Equity</u>***](#consolidated_stmt_of_changes_in_equity) | F-7 | F-7 |
| [***<u>Consolidated Statements of Cash Flows</u>***](#consolidated_statements_of_cash_flows) | F-8 | F-9 |
| [***<u>Notes to the Consolidated Financial Statements</u>***](#notes_to_the_consolidated_financial) | F-10 | F-58 |

---

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**ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES** 

**Report of Independent Registered Public Accounting Firm**

To the Board of Directors and Shareholders of ChipMOS TECHNOLOGIES INC.

***Opinions on the Financial Statements and Internal Control over Financial Reporting*** 

We have audited the accompanying consolidated statements of financial position of ChipMOS TECHNOLOGIES INC. and its subsidiaries (the "Group") as of December 31, 2025 and 2024, and the related consolidated statements of comprehensive income, of changes in equity and of cash flows for each of the three years in the period ended December 31, 2025, including the related notes (collectively referred to as the "consolidated financial statements"). We also have audited the Group's internal control over financial reporting as of December 31, 2025, based on criteria established in *Internal Control - Integrated Framework* (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Group as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025 in conformity with IFRS Accounting Standards as issued by the International Accounting Standards Board. Also in our opinion, the Group maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in *Internal Control - Integrated Framework* (2013) issued by the COSO.

***Basis for Opinions*** 

The Group's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management's Annual Report on Internal Control over Financial Reporting appearing under Item 15. Our responsibility is to express opinions on the Group's consolidated financial statements and on the Group's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Group in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

***Definition and Limitations of Internal Control over Financial Reporting*** 

A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

------

**ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES** 

**Report of Independent Registered Public Accounting Firm**

***Critical Audit Matters*** 

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

*Revenue recognition – estimating progress relating to Assembly services, services for Display panel driver semiconductor assembly and testing and Bumping*

As described in Notes 4 bb), ee), 25 and 42 e) to the consolidated financial statements, the Group earns revenue from Assembly services, services for Display panel driver semiconductor assembly and testing and Bumping. The Group recognized revenue associated with aforementioned services totalling NT$18,254,977 thousand for the year ended December 31, 2025. Such revenue is recognized over a period of time, during which the Group satisfied its performance obligations to the customer. The Group used an input method (input costs incurred as a percentage of total expected input costs) to measure the progress towards completion of performance obligation and determine the amount of related revenue. Due to the nature of the work performed, management's estimation of the progress towards completion of performance obligation is complex and requires significant judgment.

The principal considerations for our determination that performing procedures relating to revenue recognition – estimating progress relating to Assembly services, services for Display panel driver semiconductor assembly and testing and Bumping is a critical audit matter are there was significant judgment made by management in estimating the progress towards completion of performance obligation. This in turn led to a high degree of auditor judgment, subjectivity and effort in performing procedures and in evaluating audit evidence relating to revenue generated from Assembly services, services for Display panel driver semiconductor assembly and testing and Bumping.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to accounting for revenue generated from aforementioned services, including the controls addressing the completeness and accuracy of the data utilized and the management's process to recognize and measure such revenue. These procedures also included, among others, (i) validating the reasonableness of total expected input costs incurred on a testing basis relating to aforementioned services, (ii) recalculating management's estimate of the progress towards completion of performance obligation and (iii) testing the reasonableness of management's key assumptions to estimate the progress towards completion of performance obligation (including utilizing data from recently completed services to estimate the progress towards completion of performance obligation for in-progress services).

---

| |
|:---|
| **/s/** PricewaterhouseCoopers, Taiwan |
| Taipei, Taiwan |
| Republic of China |
| April 14, 2026 |

---

We have served as the Group's auditor since 2015.

------

**ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES** 

**Consolidated Statements of Financial Position** 

**December 31, 2024 and 2025**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Notes** | **December 31, 2024** | **December 31, 2025** | **December 31, 2025** |
|  |  | **NT$000** | **NT$000** | **US$000** |
| **Assets** |  |  |  |  |
| Current assets |  |  |  |  |
| Cash and cash equivalents | 6 | 15219039 | 14858903 | 473666 |
| Current financial assets at fair value through <br> profit or loss | 7 | 68970 | 73150 | 2332 |
| Current financial assets at amortized cost | 8 | 46080 | 45963 | 1465 |
| Current contract assets | 25 | 397747 | 568088 | 18109 |
| Accounts receivable, net | 9 | 5010154 | 6042574 | 192623 |
| Other receivables |  | 77620 | 72540 | 2312 |
| Current tax assets |  | 18 | 1238 | 40 |
| Inventories | 10 | 2694594 | 3356503 | 106997 |
| Prepayments |  | 129294 | 128372 | 4092 |
|  |  | 23643516 | 25147331 | 801636 |
| Non-current assets |  |  |  |  |
| Non-current financial assets at fair value through <br> other comprehensive income | 11 | 103013 | 135172 | 4309 |
| Non-current financial assets at amortized cost | 836 | 43034 | 43219 | 1378 |
| Investments accounted for using equity method | 12 | 320213 | 190210 | 6063 |
| Property, plant and equipment, net | 1336 | 19996760 | 18691192 | 595830 |
| Right-of-use assets | 15 | 1026591 | 823311 | 26245 |
| Deferred tax assets | 31 | 126213 | 113049 | 3604 |
| Refundable deposits |  | 19852 | 21608 | 689 |
| Other non-current assets |  | 100660 | 187329 | 5972 |
|  |  | 21736336 | 20205090 | 644090 |
| **Total assets** |  | **45379852** | **45352421** | **1445726** |

---

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**ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES** 

**Consolidated Statements of Financial Position (Continued)**

**December 31, 2024 and 2025**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Notes** | **December 31, 2024** | **December 31, 2025** | **December 31, 2025** |
|  |  | **NT$000** | **NT$000** | **US$000** |
| **Liabilities** |  |  |  |  |
| Current liabilities |  |  |  |  |
| Short-term bank loans | 1634 | 339364 | 2706072 | 86263 |
| Notes payable |  | 773 | 1596 | 51 |
| Accounts payable |  | 698199 | 1166973 | 37200 |
| Other payables | 17 | 3913604 | 3365755 | 107292 |
| Other payables – related parties | 35 | 21473 | 8312 | 265 |
| Current tax liabilities |  | 108148 | 106315 | 3389 |
| Current provisions | 43 | 35924 | 78982 | 2518 |
| Current lease liabilities | 34 | 235898 | 114605 | 3653 |
| Long-term bank loans, current portion | 183436 | 3326042 | 2896893 | 92346 |
| Current refund liabilities | 43 | 36396 | 10333 | 330 |
| Other current liabilities |  | 23690 | 25267 | 806 |
|  |  | 8739511 | 10481103 | 334113 |
| Non-current liabilities |  |  |  |  |
| Long-term bank loans | 183436 | 10432539 | 9867797 | 314562 |
| Deferred tax liabilities | 31 | 93310 | 89924 | 2867 |
| Non-current lease liabilities | 34 | 821057 | 740311 | 23599 |
| Long-term deferred revenue |  | 122293 | 108018 | 3443 |
| Net defined benefit liability, non-current | 19 | 146638 | 57670 | 1838 |
| Guarantee deposits | 34 | 21186 | 20486 | 653 |
|  |  | 11637023 | 10884206 | 346962 |
| **Total liabilities** |  | **20376534** | **21365309** | **681075** |
| **Equity** |  |  |  |  |
| Equity attributable to equity holders of the Company |  |  |  |  |
| Capital stock | 21 | 7272401 | 7045231 | 224585 |
| Capital surplus | 22 | 6055773 | 5866991 | 187025 |
| Retained earnings | 23 |  |  |  |
| &nbsp;&nbsp;&nbsp;Legal reserve |  | 3121210 | 3268022 | 104177 |
| &nbsp;&nbsp;&nbsp;Unappropriated retained earnings |  | 8444082 | 7791481 | 248374 |
| Other equity interest | 24 | 109852 | 143502 | 4574 |
| Treasury shares | 21 |  | (128115) | (4084) |
| **Total equity** |  | **25003318** | **23987112** | **764651** |
| **Total liabilities and equity** |  | **45379852** | **45352421** | **1445726** |

---

The accompanying notes are an integral part of the consolidated financial statements.

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**ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES**

**Consolidated Statements of Comprehensive Income**

**Years Ended December 31, 2023, 2024 and 2025**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Notes** | **2023** | **2024** | **2025** | **2025** |
|  |  | **NT$000** | **NT$000** | **NT$000** | **US$000** |
| Revenue | 2542 | 21356228 | 22695909 | 23932900 | 762923 |
| Cost of revenue | 102930 | (17806803) | (19751813) | (21340484) | (680283) |
| **Gross profit** |  | **3549425** | **2944096** | **2592416** | **82640** |
| Sales and marketing expenses | 2930 | (135661) | (128733) | (119798) | (3819) |
| General and administrative expenses | 2930 | (497742) | (478553) | (491696) | (15674) |
| Research and development expenses | 2930 | (1093513) | (1162765) | (1077016) | (34333) |
| Other income (expenses), net |  | 85943 | 99892 | 238787 | 7612 |
| **Operating profit** | 42 | **1908452** | **1273937** | **1142693** | **36426** |
| Interest income | 2642 | 193189 | 197719 | 243324 | 7757 |
| Other income |  | 77583 | 58089 | 76081 | 2425 |
| Other gains and losses | 27 | 135501 | 393565 | (427216) | (13619) |
| Finance costs | 28 | (266390) | (278940) | (301285) | (9604) |
| Share of profit (loss) of associates and joint ventures<br> accounted for using equity method | 1242 | 219891 | 2683 | (142856) | (4554) |
| **Profit before income tax** |  | **2268226** | **1647053** | **590741** | **18831** |
| Income tax expense | 31 | (300661) | (207517) | (40106) | (1278) |
| **Profit for the year** |  | **1967565** | **1439536** | **550635** | **17553** |
| **Other comprehensive income (loss):** |  |  |  |  |  |
| Profit on remeasurements of defined benefit plans | 19 | 10699 | 56305 | 62804 | 2002 |
| Unrealized (loss) gain on valuation of equity instruments <br> at fair value through other comprehensive income | 1124 | (217785) | (17304) | 32159 | 1025 |
| Share of other comprehensive income of associates and<br> joint ventures accounted for using equity method that<br> will not be reclassified to profit or loss | 12 | 12993 | 16978 | 22084 | 704 |
| Income tax effect on components that will not be <br> reclassified to profit or loss | 31 | 49498 | (7803) | (21381) | (681) |
| **Components of other comprehensive (loss) income<br> that will not be reclassified to profit or loss** |  | **(144595)** | **48176** | **95666** | **3050** |
| Exchange differences on translation of foreign operations | 24 | 16713 | 18347 | (11732) | (374) |
| Equity directly related to non-current assets held for sale | 24 | (43094) | 43094 | **—** | **—** |
| **Components of other comprehensive (loss) income<br> that will be reclassified to profit or loss** |  | **(26381)** | **61441** | **(11732)** | **(374)** |
| **Other comprehensive (loss) income, net of income tax** |  | **(170976)** | **109617** | **83934** | **2676** |
| **Total comprehensive income for the year** |  | **1796589** | **1549153** | **634569** | **20229** |
| **Earnings per share – basic** | 32 | **NT$2.71** | **NT$1.98** | **NT$0.78** | **US$0.02** |
| **Earnings per share – diluted** | 32 | **NT$2.68** | **NT$1.96** | **NT$0.77** | **US$0.02** |
| **Earnings per equivalent ADS – basic** |  | **NT$54.11** | **NT$39.59** | **NT$15.50** | **US$0.49** |
| **Earnings per equivalent ADS – diluted** |  | **NT$53.54** | **NT$39.22** | **NT$15.45** | **US$0.49** |

---

The accompanying notes are an integral part of the consolidated financial statements.

------

**ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES** 

**Consolidated Statements of Changes in Equity** 

**Years Ended December 31, 2023, 2024 and 2025**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **Equity attributable to equity holders of the Company** | **Equity attributable to equity holders of the Company** | **Equity attributable to equity holders of the Company** | **Equity attributable to equity holders of the Company** | **Equity attributable to equity holders of the Company** | **Equity attributable to equity holders of the Company** | **Equity attributable to equity holders of the Company** | **Equity attributable to equity holders of the Company** |  |
|  |  |  |  | **Retained earnings** | **Retained earnings** | **Other equity interest** | **Other equity interest** | **Other equity interest** |  |  |
|  | **Notes** | **Capital<br>stock** | **Capital<br>surplus** | **Legal<br>reserve** | **Unappropriated<br>retained<br>earnings** | **Financial<br>statements<br>translation<br>differences <br>of foreign operations** | **Unrealized gain (loss) on valuation of financial assets at fair value through other<br>comprehensive<br>income** | **Equity directly related to <br>non-current assets held <br>for sale** | **Treasury shares** | **Total <br>equity** |
| **<u>Year 2023</u>** |  | **NT$000** | **NT$000** | **NT$000** | **NT$000** | **NT$000** | **NT$000** | **NT$000** | **NT$000** | **NT$000** |
| **Balance at January 1, 2023** |  | **7272401** | **6055773** | **2575987** | **8506816** | **(17369)** | **245652** | **—** | **—** | **24639260** |
| Profit for the year |  |  |  |  | 1967565 |  |  |  |  | 1967565 |
| Other comprehensive income (loss) | 24 |  |  |  | 8947 | 16713 | (153542) | (43094) |  | (170976) |
| &nbsp;&nbsp;Total comprehensive income (loss) for the year |  |  |  |  | 1976512 | 16713 | (153542) | (43094) |  | 1796589 |
| Appropriation of prior year's earnings: |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Legal reserve |  |  |  | 354986 | (354986) |  |  |  |  |  |
| &nbsp;&nbsp;Cash dividends |  |  |  |  | (1672652) |  |  |  |  | (1672652) |
| **Balance at December 31, 2023** |  | **7272401** | **6055773** | **2930973** | **8455690** | **(656)** | **92110** | **(43094)** | **—** | **24763197** |
| **<u>Year 2024</u>** |  |  |  |  |  |  |  |  |  |  |
| **Balance at January 1, 2024** |  | **7272401** | **6055773** | **2930973** | **8455690** | **(656)** | **92110** | **(43094)** | **—** | **24763197** |
| Profit for the year |  |  |  |  | 1439536 |  |  |  |  | 1439536 |
| Other comprehensive income | 24 |  |  |  | 45264 | 18347 | 2912 | 43094 |  | 109617 |
| &nbsp;&nbsp;Total comprehensive income for the year |  |  |  |  | 1484800 | 18347 | 2912 | 43094 |  | 1549153 |
| Appropriation of prior year's earnings: | 23 |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Legal reserve |  |  |  | 190237 | (190237) |  |  |  |  |  |
| &nbsp;&nbsp;Cash dividends |  |  |  |  | (1309032) |  |  |  |  | (1309032) |
| Disposal of investments in equity instruments at <br> fair value through other comprehensive income | 24 |  |  |  | 2861 |  | (2861) |  |  |  |
| **Balance at December 31, 2024** |  | **7272401** | **6055773** | **3121210** | **8444082** | **17691** | **92161** | **—** | **—** | **25003318** |
| **<u>Year 2025</u>** |  |  |  |  |  |  |  |  |  |  |
| **Balance at January 1, 2025** |  | **7272401** | **6055773** | **3121210** | **8444082** | **17691** | **92161** | **—** | **—** | **25003318** |
| Profit for the year |  |  |  |  | 550635 |  |  |  |  | 550635 |
| Other comprehensive income (loss) | 24 |  |  |  | 50236 | (11732) | 45430 |  |  | 83934 |
| &nbsp;&nbsp;Total comprehensive income (loss) for the year |  |  |  |  | 600871 | (11732) | 45430 |  |  | 634569 |
| Appropriation of prior year's earnings: | 23 |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Legal reserve |  |  |  | 146812 | (146812) |  |  |  |  |  |
| &nbsp;&nbsp;Cash dividends |  |  |  |  | (872688) |  |  |  |  | (872688) |
| Disposal of investments in equity instruments at<br> fair value through other comprehensive income | 24 |  |  |  | 48 |  | (48) |  |  |  |
| Purchase of treasury shares | 21 |  |  |  |  |  |  |  | (943867) | (943867) |
| Cancellation of treasury shares | 212223 | (227170) | (225738) |  | (234020) |  |  |  | 686928 |  |
| Treasury shares transferred to employees | 202122 |  | 36956 |  |  |  | **—** |  | 128824 | 165780 |
| **Balance at December 31, 2025** |  | **7045231** | **5866991** | **3268022** | **7791481** | **5959** | **137543** | **—** | **(128115)** | **23987112** |

---

The accompanying notes are an integral part of the consolidated financial statements.

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**ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES** 

**Consolidated Statements of Cash Flows** 

**Years Ended December 31, 2023, 2024 and 2025**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Notes** | **2023** | **2024** | **2025** | **2025** |
|  |  | **NT$000** | **NT$000** | **NT$000** | **US$000** |
| **Cash flows from operating activities** |  |  |  |  |  |
| Profit before income tax |  | 2268226 | 1647053 | 590741 | 18831 |
| **Adjustments to reconcile profit (loss)** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Depreciation expenses | 13152942 | 4779333 | 4856186 | 5100668 | 162597 |
| &nbsp;&nbsp;&nbsp;Expected credit (gains) losses |  | (302) | (1020) | 379 | 12 |
| &nbsp;&nbsp;&nbsp;Gain on valuation of financial assets at fair value<br> through profit or loss | 727 | (39254) | (48101) | (18752) | (598) |
| &nbsp;&nbsp;&nbsp;Interest expense | 2842 | 265957 | 278581 | 300883 | 9592 |
| &nbsp;&nbsp;&nbsp;Interest income | 2642 | (193189) | (197719) | (243324) | (7756) |
| &nbsp;&nbsp;&nbsp;Dividend income |  | (6592) | (1320) | (2622) | (84) |
| &nbsp;&nbsp;&nbsp;Share-based payments | 20 |  |  | 37342 | 1190 |
| &nbsp;&nbsp;&nbsp;Share of (profit) loss of associates and joint ventures<br> accounted for using equity method | 1242 | (219891) | (2683) | 142856 | 4554 |
| &nbsp;&nbsp;&nbsp;Gain on disposal of property, plant and equipment, net |  | (18431) | (55262) | (124483) | (3968) |
| &nbsp;&nbsp;&nbsp;Gain on disposal of non-current assets held for sale | 1427 |  | (72261) |  |  |
| &nbsp;&nbsp;&nbsp;Gain on disposal of investments accounted for using <br> equity method | 1227 |  |  | (3464) | (110) |
| &nbsp;&nbsp;&nbsp;Impairment loss on financial assets | 1227 |  |  | 10000 | 319 |
| &nbsp;&nbsp;&nbsp;Impairment loss on non-financial assets | 1343 | 9236 | 18618 | 764 | 24 |
| &nbsp;&nbsp;&nbsp;Gain from lease modifications |  |  | (13) |  |  |
| &nbsp;&nbsp;&nbsp;Deferred revenue |  | (20839) | (22003) | (24277) | (774) |
| Changes in operating assets and liabilities |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Financial assets mandatorily measured at fair value<br> through profit or loss |  | 124743 | 21866 | 14572 | 465 |
| &nbsp;&nbsp;&nbsp;Current contract assets |  | (2470) | (13809) | (170393) | (5432) |
| &nbsp;&nbsp;&nbsp;Accounts receivable |  | (944603) | 317191 | (1032743) | (32921) |
| &nbsp;&nbsp;&nbsp;Other receivables |  | 48736 | (23080) | (1872) | (60) |
| &nbsp;&nbsp;&nbsp;Inventories |  | 641761 | (125946) | (661909) | (21100) |
| &nbsp;&nbsp;&nbsp;Prepayments |  | 3104 | (9021) | 922 | 29 |
| &nbsp;&nbsp;&nbsp;Accounts and notes payable |  | 224469 | (86431) | 469597 | 14970 |
| &nbsp;&nbsp;&nbsp;Other payables |  | (90786) | 143234 | (316573) | (10092) |
| &nbsp;&nbsp;&nbsp;Other payables – related parties |  |  |  | 5384 | 172 |
| &nbsp;&nbsp;&nbsp;Current provisions |  | 6921 | 2360 | 43058 | 1373 |
| &nbsp;&nbsp;&nbsp;Current refund liabilities |  | 544 | (1271) | (26063) | (831) |
| &nbsp;&nbsp;&nbsp;Other current liabilities |  | 1293 | 79 | 1577 | 50 |
| &nbsp;&nbsp;&nbsp;Net defined benefit liability, non-current |  | (21179) | (24394) | (26164) | (834) |
| Cash generated from operations |  | 6816787 | 6600834 | 4066104 | 129618 |
| Interest received |  | 194136 | 191049 | 248578 | 7924 |
| Dividend received |  | 10327 | 3810 | 5317 | 170 |
| Interest paid |  | (227488) | (245910) | (268797) | (8569) |
| Income tax paid |  | (186280) | (609201) | (54762) | (1746) |
| **Net cash generated from operating activities** |  | **6607482** | **5940582** | **3996440** | **127397** |

---

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**ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES**

**Consolidated Statements of Cash Flows (Continued)**

**Years Ended December 31, 2023, 2024 and 2025**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Notes** | **2023** | **2024** | **2025** | **2025** |
|  |  | **NT$000** | **NT$000** | **NT$000** | **US$000** |
| **Cash flows from investing activities** |  |  |  |  |  |
| Acquisition of financial assets at fair value through <br> other comprehensive income | 12 | (12500) |  |  |  |
| Acquisition of financial assets at amortized cost |  | (72201) | (94845) | (124800) | (3979) |
| Proceeds from repayments of financial assets at<br> amortized cost |  | 130220 | 87035 | 122841 | 3916 |
| Acquisition of investments accounted for using <br> equity method | 1235 |  | (12500) |  |  |
| Proceeds from disposal of non-current assets held <br> for sale | 14 |  | 4394206 |  |  |
| Acquisition of property, plant and equipment | 33 | (3073881) | (5081154) | (3851238) | (122768) |
| Proceeds from disposal of property, plant and <br> equipment |  | 83679 | 74709 | 249868 | 7965 |
| Decrease (increase) in refundable deposits |  | 1064 | 922 | (1792) | (57) |
| Increase in other non-current assets |  | (160703) | (6811) | (144368) | (4602) |
| Increase in long-term deferred revenue |  | 14145 | 23333 | 10002 | 319 |
| **Net cash used in investing activities** |  | **(3090177)** | **(615105)** | **(3739487)** | **(119206)** |
| **Cash flows from financing activities** | 34 |  |  |  |  |
| Proceeds from short-term bank loans |  | 1273873 | 3225758 | 8556519 | 272761 |
| Payments on short-term bank loans |  | (1273873) | (2886394) | (6189811) | (197316) |
| Proceeds from long-term bank loans |  | 2430224 | 1078496 | 3502998 | 111667 |
| Payments on long-term bank loans |  | (1522918) | (2263718) | (4516894) | (143988) |
| Decrease in guarantee deposits |  | (365) | (49) | (700) | (22) |
| Payment on lease liabilities |  | (293383) | (320452) | (271189) | (8645) |
| Cash dividends paid | 23 | (1672652) | (1309032) | (872688) | (27819) |
| Payments to acquire treasury shares | 21 |  |  | (943867) | (30088) |
| Treasury shares transferred to employees |  |  |  | 128438 | 4094 |
| **Net cash used in financing activities** |  | **(1059094)** | **(2475391)** | **(607194)** | **(19356)** |
| Effect of foreign exchange rate changes |  | (780) | 14918 | (9895) | (315) |
| Net increase (decrease) in cash and cash equivalents |  | 2457431 | 2865004 | (360136) | (11480) |
| Cash and cash equivalents at beginning of year | 6 | 9896604 | 12354035 | 15219039 | 485146 |
| **Cash and cash equivalents at end of year** | 6 | **12354035** | **15219039** | **14858903** | **473666** |

---

The accompanying notes are an integral part of the consolidated financial statements.

------

**ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES** 

**Notes to the Consolidated Financial Statements** 

**December 31, 2023, 2024 and 2025**

***1.***Corporate and group information

ChipMOS TECHNOLOGIES INC. (the "Company" or "ChipMOS Taiwan") was incorporated in the Republic of China ("ROC") on July 28, 1997. The Company and its subsidiaries (the "Group") are primarily engaged in the research, development, manufacturing and sale of high-integration and high-precision integrated circuits and related assembly and testing services. On April 11, 2014, the Company's shares were listed on the Taiwan Stock Exchange ("TWSE"). On November 1, 2016, the Company's American Depositary Shares ("ADSs") were listed on the NASDAQ Global Select Market and traded under the ticker symbol "IMOS".

***2.*** ***The authorization of the consolidated financial statements***

The accompanying consolidated financial statements were authorized for issuance by the Board of Directors on April 14, 2026.

***3.*** ***Application of new and revised IFRS***<sup>®</sup>***Accounting Standards, International Accounting Standards ("IAS"), International Financial Reporting Interpretations Committee ("IFRIC***<sup>®</sup>***") Interpretations and Standing Interpretations Committee ("SIC***<sup>®</sup>***") Interpretations issued by the International Accounting Standards Board ("IASB"), (collectively, "IFRSs")***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***a)*** ***Amendments to IFRSs and the new interpretation that are mandatorily effective for the current year***

<u>New Standards, Interpretations and Amendments</u>   <u>Effective date issued by IASB</u> <br> Amendments to IAS 21, "Lack of Exchangeability" January 1, 2025

Based on the Group's assessment, the above standards and interpretations have no significant impact on the Group's financial position and financial performance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***b)*** ***New standards, interpretations and amendments in issue but not yet effective***

---

| | |
|:---|:---|
| New Standards, Interpretations and Amendments | Effective date issued <br>by IASB |
| Amendments to IFRS 9 and IFRS 7, "Amendments to the Classification and <br> Measurement of Financial Instruments" | January 1, 2026 |
| Amendments to IFRS 9 and IFRS 7, "Contracts Referencing Nature – <br> Dependent Electricity" | January 1, 2026 |
| Annual Improvements to IFRS Accounting Standards – Volume 11 | January 1, 2026 |
| Amendments to IFRS 10 and IAS 28, "Sale or Contribution of Assets between<br> an Investor and its Associate or Joint Venture" | To be determined by<br>IASB |
| IFRS 18, "Presentation and Disclosure in Financial Statements" | January 1, 2027 |
| IFRS 19, "Subsidiaries without Public Accountability: Disclosures" | January 1, 2027 |
| Amendments to IAS 21, "Translation to a Hyperinflationary Presentation<br> Currency" | January 1, 2027 |

---

Except for the following, the above standards and interpretations have no significant impact on the Group's financial position and financial performance based on the Group's assessment.

<u>IFRS 18, "Presentation and Disclosure in Financial Statements"</u>

IFRS 18, "Presentation and Disclosure in Financial Statements" replaces IAS 1. The standard introduces a defined structure of the statement of profit or loss, disclosure requirements related to management-defined performance measures, and enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes.

------

**ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES** 

**Notes to the Consolidated Financial Statements (Continued)**

**December 31, 2023, 2024 and 2025**

***4.*** ***Summary of material accounting policies***

The principal accounting policies applied in the preparation of these accompanying consolidated financial statements are set out below. These policies have been consistently applied during the reported periods, unless otherwise stated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***a)*** ***Statement of compliance***

The consolidated financial statements of the Group have been prepared in accordance with IFRSs as issued by the IASB.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***b)*** ***Basis of preparation***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Except for the following items, the consolidated financial statements have been prepared under the historical cost convention:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i)Financial assets at fair value through profit or loss.

ii)Financial assets at fair value through other comprehensive income.

iii)Defined benefit liabilities were recognized based on the net amount of pension fund assets less the present value of benefit obligation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The preparation of the consolidated financial statements in conformity with IFRSs requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Group's accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 4 ee).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)These consolidated financial statements are presented in New Taiwan dollars ("NT$"), which is the Company's functional currency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***c)*** ***Basis of consolidation***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Basis for preparation of consolidated financial statements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i)All subsidiaries are included in the Group's consolidated financial statements. Subsidiaries are all entities controlled by the Group. The Group controls an entity when the Group is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Consolidation of subsidiaries begins from the date the Group obtains control of the subsidiaries and ceases when the Group loses control of the subsidiaries.

ii)Transactions, balances and unrealized gains or losses on transactions between companies within the Group are eliminated. Accounting policies of subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Subsidiaries included in the consolidated financial statements:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  |  |  | **Percentage of<br>ownership (%)** | **Percentage of<br>ownership (%)** |
|  |  |  |  | **December 31,** | **December 31,** |
| **Name of investor** | **Name of investee** | **Main business** | **Location** | **2024** | **2025** |
| The Company | ChipMOS U.S.A., Inc. ("ChipMOS USA") | Marketing of semiconductors and electronic related products | San Jose, USA | 100 | 100 |
| The Company | ChipMOS TECHNOLOGIES (BVI) LTD. ("ChipMOS BVI") | Holding company | British Virgin Islands | 100 | 100 |
| ChipMOS BVI | ChipMOS SEMICONDUCTORS (Shanghai) LTD. ("ChipMOS Shanghai") | Marketing of semiconductors and electronic related products | Shanghai, People's Republic of China ("PRC") | 100 | 100 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Subsidiaries not included in the consolidated financial statements: None.

------

**ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES** 

**Notes to the Consolidated Financial Statements (Continued)**

**December 31, 2023, 2024 and 2025**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Adjustments for subsidiaries with different statements of financial position dates: Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)No significant restrictions on the ability of subsidiaries to transfer funds to parent company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)Subsidiaries that have non-controlling interests that are material to the Group: None.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***d)*** ***Foreign currency translation***

Items included in the financial statements of each of the Group's entities are measured using the currency of the primary economic environment in which the entity operates (the "functional currency"). The consolidated financial statements are presented in NT$, which is the Company's functional currency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Foreign currency transactions and balances

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i)Foreign currency transactions are translated into the functional currency using the exchange rates on the trade date or measurement date. Therefore, foreign exchange differences resulting from the settlement of such transactions are recognized in profit or loss in the period in which they arise.

ii)Monetary assets and liabilities denominated in foreign currencies at the period end are re-translated at the exchange rates prevailing at the statements of financial position date. Exchange differences arising upon re-translation are recognized in profit or loss on the statements of financial position date.

iii)Non-monetary assets and liabilities denominated in foreign currencies held at fair value through profit or loss are re-translated at the exchange rates prevailing at the statements of financial position date; their exchange differences are recognized in profit or loss. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through other comprehensive income are re-translated at the exchange rates prevailing at the statements of financial position date; their exchange differences are recognized in other comprehensive income. However, non-monetary assets and liabilities denominated in foreign currencies that are not measured at fair value are translated using the historical exchange rates at the initial dates of the transactions.

iv)All foreign exchange differences are presented in the statement of comprehensive income under "Other gains and losses" by the nature of transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Translation of foreign operations

The operating results and financial position of all the group entities, associates that have different functional currency and presentation currency are translated into the presentation currency as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i)Assets and liabilities for each statements of financial position are translated at the exchange rates prevailing at the statements of financial position date;

ii)Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period; and

iii)All exchange differences are recognized in other comprehensive income.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***e)*** ***Classification of current and non-current assets and liabilities***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Assets that meet one of the following criteria are classified as current assets:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i)Assets arising from operating activities that are expected to be realized, or are intended to be sold or consumed within the normal operating cycle;

ii)Assets held mainly for trading purposes;

iii)Assets that are expected to be realized within 12 months from the statements of financial position date;

iv)Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to settle liabilities more than 12 months after the statements of financial position date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All assets that do not meet the above criteria are classified as non-current assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Liabilities that meet one of the following criteria are classified as current liabilities:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i)Liabilities that are expected to be settled within the normal operating cycle;

------

**ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES** 

**Notes to the Consolidated Financial Statements (Continued)**

**December 31, 2023, 2024 and 2025**

ii)Liabilities arising mainly from trading activities;

iii)Liabilities that are to be settled within 12 months from the statements of financial position date;

iv)It does not have the right at the end of the reporting period to defer settlement of the liability at least 12 months after the reporting period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All liabilities that do not meet the above criteria are classified as non-current liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***f)*** ***Cash equivalents***

Cash equivalents refer to short-term, highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value (including time deposits with less than 3 months contract period). Time deposits that meet the above definition and are held for the purpose of meeting short-term cash commitments in operations are classified as cash equivalents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***g)*** ***Financial assets at fair value through profit or loss***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Financial assets at fair value through profit or loss are financial assets that are not measured at amortized cost or fair value through other comprehensive income.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)On a regular way purchase or sale basis, financial assets at fair value through profit or loss are recognized and derecognized using settlement date accounting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)At initial recognition, the Group measures the financial assets at fair value and recognizes the transaction costs in profit or loss. The Group subsequently measures the financial assets at fair value, and recognizes the gain or loss in profit or loss.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)The Group recognizes the dividend income when the right to receive such payment is confirmed, inflow of the future economic benefits associated with the dividend is probable to the Group and the amount of the dividend can be measured reliably.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***h)*** ***Financial assets at fair value through other comprehensive income***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Financial assets at fair value through other comprehensive income comprise equity instruments which are not held for trading, and for which the Group has made an irrevocable election at initial recognition to recognize changes in fair value in other comprehensive income.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)On a regular way purchase or sale basis, financial assets at fair value through other comprehensive income are recognized and derecognized using settlement date accounting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)At initial recognition, the Group measures the financial assets at fair value plus transaction costs. The Group subsequently measures the financial assets at fair value:

The changes in fair value of equity instruments that were recognized in other comprehensive income are reclassified to retained earnings and are not reclassified to profit or loss following the derecognition of the investment. Dividends are recognized as income when the right to receive such payment is confirmed, inflow of the future economic benefits associated with the dividend is probable to the Group and the amount of the dividend can be measured reliably.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***i)*** ***Financial assets at amortized cost***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Financial assets at amortized cost are those that meet all of the following criteria:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i)The objective of the Group's business model is achieved by collecting contractual cash flows.

ii)The financial assets' contractual cash flows represent solely payments of principal and interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The Group's time deposits which do not fall under cash equivalents are those with a short maturity period and are measured at initial investment amount as the effect of discounting is immaterial.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***j)*** ***Accounts receivable***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Accounts receivable entitle the Group a legal right to receive consideration in exchange for transferred goods or rendered services.

------

**ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES** 

**Notes to the Consolidated Financial Statements (Continued)**

**December 31, 2023, 2024 and 2025**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The short-term accounts receivable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***k)*** ***Impairment of financial assets***

For financial assets at amortized cost, at each reporting date, the Group recognizes the impairment provision for 12 months expected credit losses if there has not been a significant increase in credit risk since initial recognition or recognizes the impairment provision for the lifetime expected credit losses if such credit risk has increased since initial recognition after taking into consideration all reasonable and verifiable information that includes forecasts. On the other hand, for accounts receivable or contract assets that do not contain a significant financing component, the Group recognizes the impairment provision for lifetime expected credit losses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***l)*** ***Derecognition of financial assets***

The Group derecognizes a financial asset when the contractual rights to receive the cash flows from the financial asset have expired.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***m)*** ***Inventories***

Inventories are initially recorded at standard costs. Cost is determined on a weighted-average cost basis. At the end of reporting period, the differences between actual costs and standard costs were allocated to inventories and cost of revenue based on an appropriate rate. Allocation of fixed production overheads is based on the normal operating capacity of the production facilities. Costs associated with underutilized capacity are expensed in the period that the cost occurs.

Inventories are valued at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. The item by item approach is used in raw materials. The amount of any write-down of inventories to net realizable value and all losses of inventories are recognized as an expense in the period the write-down or loss occurs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***n)*** ***Non-current assets held for sale***

Non-current assets are classified as assets held for sale when their carrying amount is to be recovered principally through a sale transaction rather than through continuing use, and a sale is considered highly probable. They are stated at the lower of carrying amount and fair value less costs to sell.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***o)*** ***Investments accounted for using equity method – associates***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Associates are all entities over which the Group has significant influence but not control. In general, it is presumed that the investor has significant influence, if an investor holds, directly or indirectly 20 percent or more of the voting power of the investee or by holding one seat at the Board. Investments in associates are accounted for using the equity method and are initially recognized at cost.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The Group's share of its associates' post-acquisition profits or losses is recognized in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognized in other comprehensive income. When the Group's share of losses in an associate equals or exceeds its interests in the associate, including any other unsecured receivables, the Group does not recognize further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the associate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)When changes in an associate's equity that are not recognized in profit or loss or other comprehensive income of the associate and such changes not affecting the Group's ownership percentage of the associate, the Group recognizes the Group's share of change in equity of the associate in "Capital surplus" in proportion to its ownership.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Unrealized gains on transactions between the Group and its associates are eliminated to the extent of the Group's interests in the associates. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been adjusted where necessary to ensure consistency with the policies adopted by the Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)In the case where an associate issues new shares and the Group does not subscribe or acquire the new shares proportionately, which results in a change in the Group's ownership percentage of the associate while maintaining significant influence on the associate, then the Group will treat the transaction as deemed disposal and reclassify to profit or loss the proportion of the gain or loss previously recognized in other comprehensive income relating to that reduction in ownership interest where appropriate.

------

**ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES** 

**Notes to the Consolidated Financial Statements (Continued)**

**December 31, 2023, 2024 and 2025**

(f)At the statements of financial position date, the Group performs an impairment test for an investment in an associate when there is an indication that the investment may be impaired. The entire carrying amount of the investment (including goodwill) is tested for impairment as a single asset, by comparing its recoverable amount (higher of value in use and fair value less costs of disposal) with its carrying amount. Any impairment loss recognized forms part of the carrying amount of the investment. Any reversal of impairment loss is recognized to the extent that the recoverable amount of the investment subsequently increases.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***p)*** ***Property, plant and equipment***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Property, plant and equipment are initially recorded at cost. Borrowing costs incurred during the construction period are capitalized.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Subsequent costs are included in the asset's carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Land is not depreciated. Other property, plant and equipment apply cost model and are depreciated using the straight-line method to allocate their cost over their estimated useful lives. Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item must be depreciated separately.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each financial year-end. If expectations for the assets' residual values and useful lives differ from previous estimates or the patterns of consumption of the assets' future economic benefits embodied in the assets have changed significantly, any change is accounted for as a change in estimate under IAS 8, "Accounting Policies, Change in Accounting Estimates and Errors", from the date of the change. The estimated useful lives of property, plant and equipment are as follows:

---

| | |
|:---|:---|
| Buildings | 1 to 51 years |
| Machinery and equipment | 1 to 20 years |
| Tools | 1 to 4 years |
| Others | 1 to 7 years |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***q)*** ***Leasing arrangements (lessee) – right-of-use assets / lease liabilities***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Leases are recognized as a right-of-use asset and a corresponding lease liability at the date at which the leased asset is available for use by the Group. For short-term leases or leases of low value assets, lease payments are recognized as an expense on a straight-line basis over the lease term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Lease liabilities include the net present value of the remaining lease payments at the commencement date, discounted using the incremental borrowing interest rate. Lease payments are comprised of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i)Fixed payments, less any lease incentives receivable;

ii)The exercise price of a purchase option, if the lessee is reasonably certain to exercise that option.

The Group subsequently measures the lease liability at amortized cost using the interest method and recognizes interest expense over the lease term. The lease liability is remeasured and the amount of remeasurement is recognized as an adjustment to the right-of-use asset when there are changes in the lease term or lease payments and such changes do not arise from contract modifications.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)At the commencement date, the right-of-use asset is stated at the amount of the initial measurement of lease liability. The right-of-use asset is measured subsequently using the cost model and is depreciated from the commencement date to the earlier of the end of the asset's useful life or the end of the lease term. When the lease liability is remeasured, the amount of remeasurement is recognized as an adjustment to the right-of-use asset.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***r)*** ***Impairment of non-financial assets***

The Group assesses at each statements of financial position date the recoverable amounts of those assets where there is an indication that they are impaired. An impairment loss is recognized for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs to sell or value in

------

**ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES** 

**Notes to the Consolidated Financial Statements (Continued)**

**December 31, 2023, 2024 and 2025**

use. When the circumstances or reasons for recognizing impairment loss for an asset in prior years no longer exist or diminish, the impairment loss is reversed. The increased carrying amount due to reversal should not be more than what the depreciated or amortized historical cost would have been if the impairment had not been recognized.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***s)*** ***Loans***

Loans comprise short-term and long-term bank loans. Loans are recognized initially at fair value, net of transaction costs incurred. Loans are subsequently stated at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized as interest expense in profit or loss over the period of the loans using the effective interest method.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***t)*** ***Accounts and notes payable***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Accounts payable are liabilities for purchases of raw materials, goods or services and notes payable are those resulting from operating and non-operating activities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The short-term accounts and notes payable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***u)*** ***Derecognition of financial liabilities***

A financial liability is derecognized when the obligation specified in the contract is either discharged or cancelled or expires.

***v)*** ***Provisions***

Provisions are recognized when the Group has a present legal or constructive obligation as a result of past events, and it is probable that an outflow of economic resources will be required to settle the obligation and the amount of the obligation can be reliably estimated. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation on the statements of financial position date, which is discounted using a pre-tax discount rate that reflects the current market assessments of the time value of money and the risks specific to the obligation. When discounting is used, the increase in the provision arising from the passage of time is recognized as interest expense. Provisions are not recognized for future operating losses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***w)*** ***Employee benefits***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Short-term employee benefits

Short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in respect of service rendered by employees and should be recognized as expenses when the employees render service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Pensions

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i)Defined contribution plans

For defined contribution plans, the contributions are recognized as pension expenses when they are due on an accrual basis. Prepaid contributions are recognized as an asset to the extent of a cash refund or a reduction in future payments.

ii)Defined benefit plans

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Net obligation under a defined benefit plan is defined as the present value of an amount of pension benefits that employees will receive on retirement for their services with the Group in the current period or prior periods. The liability recognized in the statements of financial position in respect of defined benefit pension plans is the present value of the defined benefit obligation at the statements of financial position date less the fair value of plan assets. The net defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The discount rate is determined by using the interest rates of government bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Remeasurements arising on defined benefit plans are recognized in other comprehensive income in the period in which they arise and are recorded as retained earnings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Past service costs are recognized immediately in profit or loss.

------

**ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES** 

**Notes to the Consolidated Financial Statements (Continued)**

**December 31, 2023, 2024 and 2025**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Termination benefits

Termination benefits are employee benefits provided in exchange for the termination of employment as a result from either the Group's decision to terminate an employee's employment before the normal retirement date, or an employee's decision to accept an offer of redundancy benefits in exchange for the termination of employment. The Group recognizes an expense as it can no longer withdraw an offer of termination benefits, or it recognizes related restructuring costs, whichever is earlier. Benefits that are expected to be due more than 12 months after statements of financial position date shall be discounted to their present value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Employees' compensation and directors' remuneration

Employees' compensation and directors' remuneration are recognized as expenses and liabilities, provided that such recognition is required under legal obligation or constructive obligation and those amounts can be reliably estimated. Any difference between the resolved amounts and the subsequently actual distributed amounts is accounted for as changes in estimates. If employee compensation is paid by shares, the Company calculates the number of shares based on the closing price at the previous day of the board meeting resolution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***x)*** ***Employee share-based payment***

For the equity-settled share-based payment arrangements, the employee services received are measured at the fair value of the equity instruments granted at the grant date, and are recognized as compensation cost over the vesting period, with a corresponding adjustment to equity. The fair value of the equity instruments granted shall reflect the impact of market vesting conditions and non-market vesting conditions. Compensation cost is subject to adjustment based on the service conditions that are expected to be satisfied and the estimates of the number of equity instruments that are expected to vest under the non-market vesting conditions at each statements of financial position date. Ultimately, the amount of compensation cost recognized is based on the number of equity instruments that eventually vest. The aforementioned grant date represents the grant date resolved by the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***y)*** ***Income tax***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The income tax expense for the period comprises current and deferred tax. Income tax is recognized in profit or loss, except to the extent that it relates to items recognized in other comprehensive income or items recognized directly in equity, in which cases the income tax is recognized in other comprehensive income or equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The current income tax expense is calculated on the basis of the tax laws enacted or substantively enacted at the statements of financial position date in the countries where the Group and its subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in accordance with applicable tax regulations. It establishes provisions where appropriate based on the amounts expected to be paid to the tax authorities. An additional income tax is levied on the unappropriated retained earnings and is recorded as income tax expense in the year the profit generated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Deferred tax is recognized, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated statements of financial position. However, the deferred tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred tax is provided on temporary differences arising on investments in subsidiaries and associates, except where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax is determined using tax rates (and laws) that have been enacted or substantially enacted at the statements of financial position date and are expected to apply when the related deferred tax asset is realized or the deferred tax liability is settled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Deferred tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized. At each statements of financial position date, unrecognized and recognized deferred tax assets are reassessed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)A deferred tax asset shall be recognized for the carryforward of unused tax credits resulting from equity investments to the extent that it is possible that future taxable profit will be available against which the unused tax credits can be utilized.

------

**ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES** 

**Notes to the Consolidated Financial Statements (Continued)**

**December 31, 2023, 2024 and 2025**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***z)*** ***Capital stock***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares in net proceeds of tax are shown in equity as a deduction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Where the Company repurchases the Company's shares that have been issued, the consideration paid, including any directly attributable incremental costs (net of income taxes) is deducted from equity attributable to the Company's equity holders. Where such shares are subsequently reissued, the difference between their book value and any consideration received, net of any directly attributable incremental transaction costs and the related income tax effects, is included in equity attributable to the Company's equity holders.

***aa)*** ***Dividends***

Dividends are recorded in the Company's financial statements in the period in which they are resolved by the Company's shareholders. Cash dividends are recorded as liabilities; stock dividends are recorded as stock dividends to be distributed and are reclassified to ordinary shares on the effective date of new shares issuance.

***bb)*** ***Revenue recognition***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Group is primarily engaged in the customized assembly and testing services of high-integration and high-precision integrated circuits based on customer's specification demand to create or enhance the product. When providing assembly and testing services, the Group considers:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i)Customer controls the provided raw materials and the Group receives the instruction from the customer on providing assembly and testing services and subsequent treatments.

ii)The Group provides assembly and testing services to create or enhance an asset which is solely provided and controlled by the customer. The Group has no right to transfer the asset for another use.

As the asset ownership belongs to the customer, who bears the significant risk and rewards and rights on the use of the asset, the Group recognizes assembly and testing service revenue based on the progress towards completion of performance obligation during the service period, and the sales discount is accrued based on historical experience.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The progress towards completion on Assembly services, services for Display panel driver semiconductor assembly and testing ("LCDD") and Bumping are 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. The Group provides 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. Customer payment on assembly and testing services is based on predetermined payment schedule. A contract asset is recognized when the Group provides services in excess of customer's payment.

***cc)*** ***Government grants***

Government grants are recognized at their fair value only when there is reasonable assurance that the Group will comply with any conditions attached to the grants will be received. Government grants are recognized in profit or loss on a systematic basis over the periods in which the Group recognizes expenses for the related costs for which the grants are intended to compensate. Government grants related to property, plant and equipment are recognized as non-current liabilities and are amortized to profit or loss over the estimated useful lives of the related assets using straight-line method.

***dd)*** ***Operating segments***

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The Group's chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Chairman of the Board of Directors that makes strategic decisions.

------

**ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES** 

**Notes to the Consolidated Financial Statements (Continued)**

**December 31, 2023, 2024 and 2025**

***ee)*** ***Critical accounting judgments, estimates and key sources of assumption uncertainty***

The preparation of the accompanying consolidated financial statements requires management to make critical judgments in applying the Group's accounting policies and make critical assumptions and estimates concerning future events. Assumptions and estimates may differ from the actual results and are continually evaluated and adjusted based on historical experience and other factors. Such assumptions and estimates have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year; and the related information is addressed below:

<u>Critical accounting estimates and assumptions</u> ***<u>–</u>*** <u>Revenue recognition</u>

The Group recognizes revenue from services for Assembly, LCDD and Bumping based on the progress towards completion of performance obligation during the service period. The Group estimates total expected input costs based on historical experience and measures the progress towards completion by the actual input costs relative to the total expected input costs.

***5.*** ***Translation into U.S. dollar amounts***

The Company maintains its accounts and expresses its consolidated financial statements in New Taiwan dollars. For convenience purposes, U.S. dollar amounts presented in the accompanying consolidated financial statements have been translated from New Taiwan dollars to U.S. dollars at the noon buying rate in the City of New York for cable transfers as certified for customs purposes by the Federal Reserve Bank of New York as of December 31, 2025, which was NT$31.37 to US$1.00. These convenience translations should not be construed as representations that the New Taiwan dollar amounts have been, or could in the future be, converted into U.S. dollars at this or any other rate of exchange.

***6.*** ***Cash and cash equivalents***

---

| | | |
|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2025** |
|  | **NT$000** | **NT$000** |
| Cash on hand and petty cash | 450 | 450 |
| Checking accounts and demand deposits | 1194923 | 1621382 |
| Time deposits | 14023666 | 13237071 |
|  | **15219039** | **14858903** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)The Group transacts with a variety of financial institutions all with high credit quality to disperse credit risk, so it expects that the probability of counterparty default is remote.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)No cash and cash equivalents of the Group were pledged to others.

***7.*** ***Financial assets at fair value through profit or loss***

---

| | | |
|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2025** |
|  | **NT$000** | **NT$000** |
| Current: |  |  |
| Financial assets mandatorily measured at fair <br> value through profit or loss |  |  |
| &nbsp;&nbsp;Listed stocks | 53747 | 53747 |
| &nbsp;&nbsp;Valuation adjustment | 15223 | 19403 |
|  | **68970** | **73150** |

---

------

**ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES** 

**Notes to the Consolidated Financial Statements (Continued)**

**December 31, 2023, 2024 and 2025**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)Amounts recognized in profit or loss in relation to the financial assets at fair value through profit or loss are listed below:

---

| | | | |
|:---|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2023** | **2024** | **2025** |
|  | **NT$000** | **NT$000** | **NT$000** |
| Financial assets mandatorily measured at fair value <br> through profit or loss |  |  |  |
| &nbsp;&nbsp;Listed stocks | 22001 | 26235 | 4180 |
| &nbsp;&nbsp;Beneficiary certificates\* | 17253 | 21866 | 14572 |
|  | **39254** | **48101** | **18752** |

---

\* Beneficiary certificates represent money market funds the Company held during the reporting period. As of December 31, 2023, 2024 and 2025, there were no beneficiary certificates classified as current financial assets at fair value through profit or loss ("FVTPL").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)No financial assets at FVTPL were pledged to others.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)Information relating to price risk of financial assets at FVTPL is provided in Note 41 a).

***8.*** ***Financial assets at amortized cost***

---

| | | |
|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2025** |
|  | **NT$000** | **NT$000** |
| Current: |  |  |
| &nbsp;&nbsp;Time deposits | **46080** | **45963** |
| Non-current: |  |  |
| &nbsp;&nbsp;Restricted bank deposits | **43034** | **43219** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)Amounts recognized in profit or loss in relation to financial assets at amortized cost are listed below:

---

| | | | |
|:---|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2023** | **2024** | **2025** |
|  | **NT$000** | **NT$000** | **NT$000** |
| Interest income | **1861** | **2433** | **2076** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the financial assets at amortized cost held by the Group is the carrying amount at the end of each reporting period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)Information about the financial assets at amortized cost that were pledged to others as collateral is provided in Note 36.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d)Information relating to credit risk of financial assets at amortized cost is provided in Note 41 a).

***9.*** ***Accounts receivable***

---

| | | |
|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2025** |
|  | **NT$000** | **NT$000** |
| Accounts receivable | 5011644 | 6044387 |
| Less: Loss allowance | (1490) | (1813) |
|  | **5010154** | **6042574** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)The Group's credit term granted to customers is 30~90 days. Receivables do not bear interest. The loss allowance is determined based on the credit quality of customers. Information relating to credit risk is provided in Note 41 a).

------

**ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES** 

**Notes to the Consolidated Financial Statements (Continued)**

**December 31, 2023, 2024 and 2025**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)The aging analysis of accounts receivable based on past due date are as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2025** |
|  | **NT$000** | **NT$000** |
| Current | 5007362 | 6032806 |
| Within 1 month | 4282 | 11395 |
| 1-2 months |  | 186 |
|  | **5011644** | **6044387** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)As of December 31, 2024 and 2025, accounts receivable were all from contracts with customers. And as of January 1, 2024, the balance of accounts receivable from contracts with customers was NT$5,326,381 thousand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d)Without taking into account of any collateral held or other credit enhancements, the amount that best reflects the Group's maximum exposure to credit risk in respect of the accounts receivable is the carrying amount at the end of each reporting period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e)No accounts receivable of the Group were pledged to others.

***10.*** ***Inventories***

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Cost** | **Allowance for<br>impairment losses** | **Carrying amount** |
|  | **NT$000** | **NT$000** | **NT$000** |
| Raw materials | **2854743** | **(160149)** | **2694594** |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  | **Cost** | **Allowance for<br>impairment losses** | **Carrying amount** |
|  | **NT$000** | **NT$000** | **NT$000** |
| Raw materials | **3512294** | **(155791)** | **3356503** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The cost of inventories recognized as an expense for the year:

---

| | | | |
|:---|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2023** | **2024** | **2025** |
|  | **NT$000** | **NT$000** | **NT$000** |
| Cost of revenue | 17723687 | 19834784 | 21382972 |
| Gain on disposal of scrapped materials |  | (56959) | (53486) |
| Loss on abandonment | 2483 | 102 | 15356 |
| Allowance for (reversal of) inventory <br> valuation and obsolescence loss | 80633 | (26114) | (4358) |
|  | **17806803** | **19751813** | **21340484** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)Reversal of inventory valuation and obsolescence loss in 2024 was mainly due to the reversal of previously recognized obsolescence losses by utilizing and selling obsolete raw materials. Reversal of inventory valuation and obsolescence loss in 2025 was mainly due to the reversal of previously recognized obsolescence losses upon the actual scrapping of raw materials.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)No inventories of the Group were pledged to others.

------

**ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES** 

**Notes to the Consolidated Financial Statements (Continued)**

**December 31, 2023, 2024 and 2025**

***11.*** ***Non-current financial assets at fair value through other comprehensive income***

---

| | | |
|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2025** |
|  | **NT$000** | **NT$000** |
| Designation of equity instruments |  |  |
| &nbsp;&nbsp; Foreign unlisted stocks | 38534 | 38534 |
| &nbsp;&nbsp; Valuation adjustment | 64479 | 96638 |
|  | **103013** | **135172** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)Based on the Group's business model, the foreign unlisted stocks held for strategic investments were elected to classify as Financial assets at fair value through other comprehensive income.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Amounts recognized in other comprehensive income in relation to the financial assets at fair value through other comprehensive income are listed below:

---

| | | | |
|:---|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2023** | **2024** | **2025** |
|  | **NT$000** | **NT$000** | **NT$000** |
| Financial assets at fair value through other<br> comprehensive (loss) income |  |  |  |
| &nbsp;&nbsp;Foreign unlisted stocks | **(217785)** | **(17304)** | **32159** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)No financial assets at fair value through other comprehensive income were pledged to others.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d)Information about fair value measurement is provided in Note 41 b).

***12.*** ***Investments accounted for using equity method***

---

| | | |
|:---|:---|:---|
| **Associates** | **December 31, 2024** | **December 31, 2025** |
|  | **NT$000** | **NT$000** |
| JMC ELECTRONICS CO., LTD. ("JMC") | 293089 | 159271 |
| Daypower Energy Co., Ltd. ("Daypower Energy") | 27124 | 30939 |
|  | **320213** | **190210** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)The carrying amount of the Group's interests in all individually immaterial associates and the Group's share of the operating results are summarized below:

As of December 31, 2024 and 2025, the carrying amount of the Group's individually immaterial associates amounted to NT$320,213 thousand and NT$190,210 thousand, respectively.

---

| | | | |
|:---|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2023** | **2024** | **2025** |
|  | **NT$000** | **NT$000** | **NT$000** |
| Profit (loss) for the year from continuing operations | 1714 | 2683 | (142649) |
| Other comprehensive income, net of income tax | 12993 | 16978 | 22084 |
| Total comprehensive income (loss) | **14707** | **19661** | **(120565)** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)JMC is recognized as investment accounted for using equity method given that the Company retains significant influence by holding one seat in JMC's Board of Directors. In 2025, the Company recognized a loss from continuing operations of NT$144,034 thousand reflecting its share of JMC's operating results, primarily due to JMC recognized impairment loss on property, plant and equipment. This impairment was considered a one-time event and did not affect the Company's classification of JMC as an immaterial associate. JMC has quoted market prices, and the Company evaluated the recoverable amount based on its fair value on a quarterly basis. Consequently, the Company recognized an impairment loss of NT$10,000 thousand in 2025, which is recorded under "Other gains and losses". As of December 31, 2024 and 2025, the fair value was NT$303,365 thousand and NT$209,160 thousand, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)In April 2023, the Company acquired 1,000 thousand ordinary shares of Daypower Energy in the amount of NT$12,500 thousand, representing 10% of shareholding and was recorded as financial assets at fair value through other comprehensive

------

**ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES** 

**Notes to the Consolidated Financial Statements (Continued)**

**December 31, 2023, 2024 and 2025**

income. Subsequently, in August 2023, the Company participated in the re-election of the directors of Daypower Energy and obtained significant influence by holding one seat in Daypower Energy's Board of Directors. As a result, the Company reclassified the investment as investment accounted for using equity method from financial assets at fair value through other comprehensive income. In August 2024, the Company participated in the cash capital increase of Daypower Energy according to its shareholding ratio, with a payment amount of NT$12,500 thousand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d)The Company did not participate in the cash capital increase of Daypower Energy in May 2025, which reduced the Company's ownership from 10% to 7.9%. Daypower Energy is recognized as investment accounted for using equity method given that the Company still retains significant influence by holding one seat in Daypower Energy's Board of Directors. As a result of the change in shareholding, the Company recognized gain on disposal of investments accounted for using equity method amounted to NT$3,464 thousand for the year ended December 31, 2025, which is recorded under "Other gains and losses".

***13.*** ***Property, plant and equipment, net***

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2023** | **2023** | **2023** | **2023** | **2023** | **2023** | **2023** |
|  | **Land** | **Buildings** | **Machinery<br>and<br>equipment** | **Tools** | **Others** | **Construction in<br>progress and<br>equipment to<br>be inspected** | **Total** |
|  | **NT$000** | **NT$000** | **NT$000** | **NT$000** | **NT$000** | **NT$000** | **NT$000** |
| <u>January 1</u> |  |  |  |  |  |  |  |
| Cost | 452738 | 13379852 | 59197255 | 5716357 | 2615959 | 504200 | 81866361 |
| Accumulated depreciation <br> and impairment |  | (7994344) | (46438887) | (4919660) | (2067265) |  | (61420156) |
|  | **452738** | **5385508** | **12758368** | **796697** | **548694** | **504200** | **20446205** |
| January 1 | 452738 | 5385508 | 12758368 | 796697 | 548694 | 504200 | 20446205 |
| Additions |  | 1303 | 5579 | 291 | 1376 | 3219922 | 3228471 |
| Disposals |  |  | (16574) | (11038) |  |  | (27612) |
| Reclassifications | 2000 | 469597 | 1787140 | 586090 | 226610 | (3071437) |  |
| Depreciation expenses |  | (557187) | (3043504) | (635227) | (262388) |  | (4498306) |
| Impairment losses |  |  | (9236) |  |  |  | (9236) |
| Exchange adjustment |  |  |  |  | (19) |  | (19) |
| December 31 | **454738** | **5299221** | **11481773** | **736813** | **514273** | **652685** | **19139503** |
| <u>December 31</u> |  |  |  |  |  |  |  |
| Cost | 454738 | 13850418 | 60650428 | 5959251 | 2774055 | 652685 | 84341575 |
| Accumulated depreciation <br> and impairment |  | (8551197) | (49168655) | (5222438) | (2259782) |  | (65202072) |
|  | **454738** | **5299221** | **11481773** | **736813** | **514273** | **652685** | **19139503** |

---

------

**ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES** 

**Notes to the Consolidated Financial Statements (Continued)**

**December 31, 2023, 2024 and 2025**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  | **Land** | **Buildings** | **Machinery<br>and<br>equipment** | **Tools** | **Others** | **Construction in<br>progress and<br>equipment to<br>be inspected** | **Total** |
|  | **NT$000** | **NT$000** | **NT$000** | **NT$000** | **NT$000** | **NT$000** | **NT$000** |
| <u>January 1</u> |  |  |  |  |  |  |  |
| Cost | 454738 | 13850418 | 60650428 | 5959251 | 2774055 | 652685 | 84341575 |
| Accumulated depreciation <br> and impairment |  | (8551197) | (49168655) | (5222438) | (2259782) |  | (65202072) |
|  | **454738** | **5299221** | **11481773** | **736813** | **514273** | **652685** | **19139503** |
| January 1 | 454738 | 5299221 | 11481773 | 736813 | 514273 | 652685 | 19139503 |
| Additions |  | 5619 | 8260 | 665 |  | 5436887 | 5451431 |
| Disposals |  |  | (495) | (21744) | (501) |  | (22740) |
| Reclassifications |  | 1241424 | 3016325 | 859198 | 220864 | (5337811) |  |
| Depreciation expenses |  | (605548) | (3050253) | (642589) | (254502) |  | (4552892) |
| Impairment losses |  |  | (18618) |  |  |  | (18618) |
| Exchange adjustment |  |  | 24 |  | 52 |  | 76 |
| December 31 | **454738** | **5940716** | **11437016** | **932343** | **480186** | **751761** | **19996760** |
| <u>December 31</u> |  |  |  |  |  |  |  |
| Cost | 454738 | 15075654 | 62448765 | 6488339 | 2927335 | 751761 | 88146592 |
| Accumulated depreciation <br> and impairment |  | (9134938) | (51011749) | (5555996) | (2447149) |  | (68149832) |
|  | **454738** | **5940716** | **11437016** | **932343** | **480186** | **751761** | **19996760** |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  | **Land** | **Buildings** | **Machinery<br>and<br>equipment** | **Tools** | **Others** | **Construction in<br>progress and<br>equipment to<br>be inspected** | **Total** |
|  | **NT$000** | **NT$000** | **NT$000** | **NT$000** | **NT$000** | **NT$000** | **NT$000** |
| <u>January 1</u> |  |  |  |  |  |  |  |
| Cost | 454738 | 15075654 | 62448765 | 6488339 | 2927335 | 751761 | 88146592 |
| Accumulated depreciation <br> and impairment |  | (9134938) | (51011749) | (5555996) | (2447149) |  | (68149832) |
|  | **454738** | **5940716** | **11437016** | **932343** | **480186** | **751761** | **19996760** |
| January 1 | 454738 | 5940716 | 11437016 | 932343 | 480186 | 751761 | 19996760 |
| Additions |  | 2208 | 9293 | 338 |  | 3654248 | 3666087 |
| Disposals |  |  | (19117) | (14329) |  |  | (33446) |
| Reclassifications |  | 685896 | 2634679 | 580700 | 257504 | (4249024) | (90245) |
| Depreciation expenses |  | (670363) | (3207913) | (722586) | (246310) |  | (4847172) |
| Impairment losses |  |  | (764) |  |  |  | (764) |
| Exchange adjustment |  |  | (14) |  | (14) |  | (28) |
| December 31 | **454738** | **5958457** | **10853180** | **776466** | **491366** | **156985** | **18691192** |
| <u>December 31</u> |  |  |  |  |  |  |  |
| Cost | 454738 | 15696826 | 63802950 | 6683041 | 3081622 | 156985 | 89876162 |
| Accumulated depreciation <br> and impairment |  | (9738369) | (52949770) | (5906575) | (2590256) |  | (71184970) |
|  | **454738** | **5958457** | **10853180** | **776466** | **491366** | **156985** | **18691192** |

---

------

**ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES** 

**Notes to the Consolidated Financial Statements (Continued)**

**December 31, 2023, 2024 and 2025**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)Amount of borrowing costs capitalized as part of property, plant and equipment and the range of the interest rates for such capitalization are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2023** | **2024** | **2025** |
|  | **NT$000** | **NT$000** | **NT$000** |
| Amount of interest capitalized | 7692 | 12542 | 10331 |
| Range of the interest rates for capitalization | 1.4588% | 1.6380% | 1.9320% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Information about the property, plant and equipment that were pledged to others as collaterals is provided in Note 36.

***14.*** ***Non-current assets held for sale***

On December 21, 2023, the Company's Board of Directors approved its subsidiary ChipMOS BVI to sell the 45.0242% owned equity investment accounted for using equity method in Unimos Microelectronics (Shanghai) Co., Ltd. ("Unimos Shanghai"). Therefore, the investment accounted for using equity method of Unimos Shanghai have been reclassified as non-current assets held for sale at the carrying amount. In May 2024, the Group completed the equity transfer of Unimos Shanghai, recognizing a gain on disposal of NT$72,261 thousand, which is recorded under "Other gains and losses", is provided in Note 27. The consideration amounted to NT$4,394,206 thousand was received in December 2024. Information relating to cumulative income or expense recognized in other comprehensive income relating to disposal non-current assets classified as held for sale is provided in Note 24.

***15.*** ***Leasing arrangements – lessee***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)The Group leases various assets, including land, buildings, machinery and equipment, and others. Lease contracts are typically made for periods of 2 to 30 years. For machinery and equipment, lease contracts are 3 years. For land, lease contracts are between 20 to 30 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease contracts do not impose covenants, but leased assets may not be used as security for borrowing purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)The carrying amount of right-of-use assets and the depreciation expenses are as follows:

---

| | | |
|:---|:---|:---|
|  | **Carrying amount** | **Carrying amount** |
|  | **December 31, 2024** | **December 31, 2025** |
|  | **NT$000** | **NT$000** |
| Land | 734958 | 701638 |
| Buildings | 13458 | 25255 |
| Machinery and equipment | 260375 | 60985 |
| Others | 17800 | 35433 |
|  | **1026591** | **823311** |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Depreciation expenses** | **Depreciation expenses** | **Depreciation expenses** |
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2023** | **2024** | **2025** |
|  | **NT$000** | **NT$000** | **NT$000** |
| Land | 21524 | 24248 | 26215 |
| Buildings | 11738 | 12195 | 12255 |
| Machinery and equipment | 245304 | 261383 | 199391 |
| Others | 2461 | 5468 | 15635 |
|  | **281027** | **303294** | **253496** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)For the years ended December 31, 2024 and 2025, additions to right-of-use assets were NT$292,117 thousand and NT$50,098 thousand, respectively.

------

**ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES** 

**Notes to the Consolidated Financial Statements (Continued)**

**December 31, 2023, 2024 and 2025**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d)The information on profit or loss accounts relating to lease contracts is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2023** | **2024** | **2025** |
|  | **NT$000** | **NT$000** | **NT$000** |
| <u>Items affecting profit or loss</u> |  |  |  |
| Interest expense on lease liabilities | 18757 | 19902 | 19052 |
| Expense on short-term lease contracts | 55944 | 140029 | 208000 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e)For the years ended December 31, 2023, 2024 and 2025, the Group's total cash outflow for leases were NT$351,063 thousand, NT$443,345 thousand and NT$478,097 thousand, respectively.

***16.*** ***Short-term bank loans***

---

| | | |
|:---|:---|:---|
| **Type of loans** | **December 31, 2024** | **December 31, 2025** |
|  | **NT$000** | **NT$000** |
| Bank loans |  |  |
| &nbsp;&nbsp; Unsecured bank loans | **339364** | **2706072** |
| Interest rate range | **5.66%** | **4.09%~4.92%** |
| Unused credit lines of short-term bank loans |  |  |
| &nbsp;&nbsp; NT$000 | **5050836** | **4516882** |
| &nbsp;&nbsp; US$000 | **37000** | **18261** |

---

***17.*** ***Other payables***

---

| | | |
|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2025** |
|  | **NT$000** | **NT$000** |
| Payable to equipment suppliers | 1506821 | 1282516 |
| Salaries and bonuses payable | 1048883 | 815626 |
| Payable for maintenance expense | 175131 | 165788 |
| Payable for utilities | 157442 | 159333 |
| Payable for insurance | 140084 | 142855 |
| Employees' and directors' compensation payable | 193720 | 66845 |
| Business tax payable |  | 57622 |
| Other expense payable | 691523 | 675170 |
|  | **3913604** | **3365755** |

---

------

**ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES** 

**Notes to the Consolidated Financial Statements (Continued)**

**December 31, 2023, 2024 and 2025**

***18.*** ***Long-term bank loans***

---

| | | | |
|:---|:---|:---|:---|
| **Type of loans** | **Period and payment term** | **December 31, 2024** | **December 31, 2025** |
|  |  | **NT$000** | **NT$000** |
| Government granted bank loans | Borrowing period is from March 11, 2020 to February 15, 2035; interest is repayable monthly; principal is repayable monthly from March 15, 2023 | 13790193 | 12786299 |
| Less: Unamortized interest on <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;government granted <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;bank loans |  | (31612) | (21609) |
| Less: Current portion |  | (3326042) | (2896893) |
|  |  | **10432539** | **9867797** |
| Interest rate range |  | **1.325%~1.875%** | **1.525%~1.975%** |
| Unused credit lines of long-term <br> bank loans |  |  |  |
| &nbsp;&nbsp;&nbsp;NT$000 |  | **7863170** | **4350170** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)On January 1, 2019, Ministry of Economic Affairs, ROC ("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. The Company has obtained the qualification from the MOEA, and signed loan agreements with financial institutions during January 2020 and December 2024 with the line of credit amounted to NT$25.44 billion and terms from seven to ten years. Funding from these loans was used to invest in machineries, equipment and plant expansions and broaden the Company's working capital.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Information about the items that are pledged to others as collaterals for long-term bank loans is provided in Note 36.

***19.*** ***Pensions***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)Defined benefit plans

The Company has a defined benefit pension plan in accordance with the Labor Standards Act, covering all regular employees' service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Labor Standards Act. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. The Company contributes monthly an amount equal to 2% of the employees' monthly salaries and wages to the pension fund deposited with the Bank of Taiwan, the trustee, under the name of the independent pension fund committee. Also, the Company would assess the balance in the aforementioned labor pension reserve account by the end of every year. If the account balance is insufficient to pay the pension calculated by the aforementioned method, to the employees expected to be qualified for retirement next year, the Company will make contributions to cover the deficit by March of following year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The amounts recognized in the statements of financial position are as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2025** |
|  | **NT$000** | **NT$000** |
| Present value of defined benefit obligations | (706559) | (662149) |
| Fair value of plan assets | 559921 | 604479 |
| Net defined benefit liability | **(146638)** | **(57670)** |

---

------

**ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES** 

**Notes to the Consolidated Financial Statements (Continued)**

**December 31, 2023, 2024 and 2025**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Movements in net defined benefit liability are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **2023** | **2023** | **2023** |
|  | **Present value of<br>defined benefit<br>obligations** | **Fair value of<br>plan assets** | **Net defined<br>benefit liability** |
|  | **NT$000** | **NT$000** | **NT$000** |
| January 1 | (759548) | 500333 | (259215) |
| Current services cost | (133) |  | (133) |
| Interest (expense) income | (11150) | 7441 | (3709) |
|  | (770831) | 507774 | (263057) |
| Remeasurements: |  |  |  |
| Return on plan assets (excluding amounts included <br> in interest income or expense) |  | 3187 | 3187 |
| Impact on changes in demographic assumptions | 14216 |  | 14216 |
| Financial assumption movement effect | (7103) |  | (7103) |
| Experience adjustments | 399 |  | 399 |
|  | 7512 | 3187 | 10699 |
| Pension fund contribution |  | 25021 | 25021 |
| Paid pension | 19128 | (19128) |  |
| December 31 | **(744191)** | **516854** | **(227337)** |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **2024** | **2024** | **2024** |
|  | **Present value of<br>defined benefit<br>obligations** | **Fair value of<br>plan assets** | **Net defined<br>benefit liability** |
|  | **NT$000** | **NT$000** | **NT$000** |
| January 1 | (744191) | 516854 | (227337) |
| Current services cost | (125) |  | (125) |
| Interest (expense) income | (9934) | 6919 | (3015) |
|  | (754250) | 523773 | (230477) |
| Remeasurements: |  |  |  |
| Return on plan assets (excluding amounts included <br> in interest income or expense) |  | 45033 | 45033 |
| Financial assumption movement effect | 29825 |  | 29825 |
| Experience adjustments | (18553) |  | (18553) |
|  | 11272 | 45033 | 56305 |
| Pension fund contribution |  | 27534 | 27534 |
| Paid pension | 36419 | (36419) |  |
| December 31 | **(706559)** | **559921** | **(146638)** |

---

------

**ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES** 

**Notes to the Consolidated Financial Statements (Continued)**

**December 31, 2023, 2024 and 2025**

---

| | | | |
|:---|:---|:---|:---|
|  | **2025** | **2025** | **2025** |
|  | **Present value of<br>defined benefit<br>obligations** | **Fair value of<br>plan assets** | **Net defined<br>benefit liability** |
|  | **NT$000** | **NT$000** | **NT$000** |
| January 1 | (706559) | 559921 | (146638) |
| Current services cost | (129) |  | (129) |
| Interest (expense) income | (10772) | 8647 | (2125) |
|  | (717460) | 568568 | (148892) |
| Remeasurements: |  |  |  |
| Return on plan assets (excluding amounts included <br> in interest income or expense) |  | 39262 | 39262 |
| Financial assumption movement effect | (11685) |  | (11685) |
| Experience adjustments | 35227 |  | 35227 |
|  | 23542 | 39262 | 62804 |
| Pension fund contribution |  | 28418 | 28418 |
| Paid pension | 31769 | (31769) |  |
| December 31 | **(662149)** | **604479** | **(57670)** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The Bank of Taiwan was commissioned to manage the fund of the Company's defined benefit pension plan in accordance with the fund's annual investment and utilization plan and the Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund (Article 6: The scope of utilization for the fund includes deposit in domestic or foreign financial institutions, investment in domestic or foreign listed, over-the-counter, or private placement equity securities, investment in domestic or foreign real estate securitization products, etc.). With regard to the utilization of the fund, its minimum earnings in the annual distributions on the final financial statements shall be no less than the earnings attainable from the amounts accrued from two-year time deposits with the interest rates offered by local banks. If the earnings are less than aforementioned rates, government shall make payment for the deficit after being authorized by the authority. The Company has no right to participate in managing and operating that fund and hence the Company is unable to disclose the classification of the fair value of plan asset in accordance with IAS 19, "Employee Benefits" paragraph 142. The composition of fair value of plan assets as of December 31, 2024 and 2025 is given in the Annual Labor Retirement Fund Utilization Report announced by the government.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)The principal actuarial assumptions used were as follows:

---

| | | |
|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** |
|  | **2024** | **2025** |
| Discount rate | **1.60%** | **1.40%** |
| Future salary increase | **3.25%** | **3.25%** |

---

Assumptions regarding future mortality are set based on actuarial advice in accordance with published statistics and experience in each territory.

------

**ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES** 

**Notes to the Consolidated Financial Statements (Continued)**

**December 31, 2023, 2024 and 2025**

The present value of defined benefit obligations is affected by the change in actuarial assumption. The analysis was as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Discount rate** | **Discount rate** | **Future salary increase** | **Future salary increase** |
|  | **Increase<br>0.25%** | **Decrease<br>0.25%** | **Increase<br>0.25%** | **Decrease<br>0.25%** |
|  | **NT$000** | **NT$000** | **NT$000** | **NT$000** |
| December 31, 2024 |  |  |  |  |
| Effect on present value of defined benefit obligations | **(15943)** | **16520** | **16219** | **(15737)** |
| December 31, 2025 |  |  |  |  |
| Effect on present value of defined benefit obligations | **(14556)** | **15066** | **14762** | **(14340)** |

---

The sensitivity analysis above is based on a change in an assumption while holding all other assumptions constant. In practice, changes in some of the assumptions may be correlated. The method of sensitivity analysis and the method of calculating net defined benefit liability in the statements of financial position are the same.

The methods and types of assumptions used in preparing the sensitivity analysis remain unchanged from previous period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)Expected contributions to the defined benefit pension plans of the Company for the year ending December 31, 2026 amounts to NT$28,000 thousand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)As of December 31, 2025, the weighted average duration of that retirement plan is 9.1 years. The analysis of timing of the future pension payment was as follows:

---

| | |
|:---|:---|
|  | **December 31, 2025** |
|  | **NT$000** |
| Within 1 year | 63382 |
| 1-2 years | 37549 |
| 2-5 years | 104279 |
| 5-10 years | 171377 |
|  | **376587** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Defined contribution plans

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Effective from July 1, 2005, the Company established a defined contribution pension plan ("New Plan") under the Labor Pension Act, covering all regular employees with ROC nationality. Under the New Plan, the Company contributes monthly an amount based on 6% of the employees' monthly salaries and wages to the employees' individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment. The pension costs under defined contribution pension plans of the Company for the years ended December 31, 2023, 2024 and 2025 were NT$190,913 thousand, NT$211,985 thousand and NT$197,999 thousand, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)According to the defined contribution pension plan stipulated by PRC, ChipMOS Shanghai contributes monthly on amount based on a certain percentage of the local employees' monthly salaries and wages. The contribution percentage was both 16% for the years ended December 31, 2023, 2024 and 2025. The pension of each employee is managed by the government and ChipMOS Shanghai has no further obligations except the monthly contribution. The pension costs under defined contribution pension plan of ChipMOS Shanghai for the years ended December 31, 2023, 2024 and 2025 were NT$604 thousand, NT$715 thousand and NT$709 thousand, respectively.

------

**ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES** 

**Notes to the Consolidated Financial Statements (Continued)**

**December 31, 2023, 2024 and 2025**

***20.*** ***Share-based payment (For the year ended December 31, 2024: None)***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)For the year ended December 31, 2025, the Company's share-based payment arrangements was as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Type of arrangement** | **Grant date** | **Quantity granted<br> (in thousand shares)** | **Contract period** | **Vesting conditions** |
| Treasury shares transferred<br> to employees | 2025/11/11 | 4,565 | **—** | Vested immediately |

---

Please refer to Note 21 e) for the approval of transfer treasury shares to employees. The transferred shares were vested immediately upon subscription with no other conditions, and the exercise price was based on the average repurchase price of the treasury shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Details of the share-based payment arrangements is as follows:

---

| | | |
|:---|:---|:---|
|  | **2025** | **2025** |
|  | **Number of options** | **Weighted-average <br>exercise price** |
|  | **In thousand shares** | **NT$** |
| Options outstanding at January 1 |  |  |
| Options granted | 4565 | 28.22 |
| Options exercised | (4565) | 28.22 |
| Options outstanding at December 31 | **—** | **—** |
| Options exercisable at December 31 | **—** | **—** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)Details of the Company's share-based payment transactions granted at the grant date is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Type of arrangement** | **Grant date** | **Share price** | **Exercise price** | **Fair value per unit** |
|  |  | **NT$** | **NT$** | **NT$** |
| Treasury shares transferred<br> to employees | 2025/11/11 | 36.40 | 28.22 | 8.18 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d)For the year ended December 31, 2025, compensation costs for employees of the Company due to the transfer of treasury shares amounted to NT$37,342 thousand.

***21.*** ***Capital stock***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)As of December 31, 2025, the Company's authorized capital was NT$9,700,000 thousand, consisting of 970,000 thousand ordinary shares, and the paid-in capital was NT$7,045,231 thousand with a par value of NT$10 per share, consisting of 704,523 thousand ordinary shares. All proceeds from shares issued have been collected.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)As of December 31, 2025, the outstanding ADSs were approximately 3,443,872 units representing 68,877 thousand ordinary shares and each ADS represents 20 ordinary shares of the Company. The major terms and conditions of the ADSs are summarized as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Voting rights:

ADS holders have no right to directly attend, vote or speak in shareholders' meetings with respect to the deposited shares. The depository bank shall vote on behalf of ADS holders or provide voting instruction to the designated person of the Company. The depository bank shall vote in the manner as instructed by ADS holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Distribution of dividends:

ADS holders are deemed to have the same rights as holders of ordinary shares with respect to the distribution of dividends.

------

**ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES** 

**Notes to the Consolidated Financial Statements (Continued)**

**December 31, 2023, 2024 and 2025**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)Movements in the number of the Company's ordinary shares outstanding are as follows:

---

| | | |
|:---|:---|:---|
|  | **Number of shares (in thousands)** | **Number of shares (in thousands)** |
|  | **2024** | **2025** |
| January 1 | 727240 | 727240 |
| Purchase of treasury shares |  | (31822) |
| Treasury shares transferred to employees |  | 4565 |
| December 31 | **727240** | **699983** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d)On January 21, 2025, the Company's Board of Directors approved to repurchase up to 10,000 thousand shares to maintain the Company's credit and shareholders' equity. The Company has completed the aforementioned share buyback program during the first quarter of 2025, and the total amount was NT$321,705 thousand. Pursuant to the ROC Securities and Exchange Act, the repurchased shares were approved for cancellation by the Board of Directors on April 15, 2025, with the effective date of capital reduction on May 28, 2025 and the alteration registration was completed on June 11, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e)On May 13, 2025, to motivate employee morale and improve operational performance, the Company's Board of Directors approved to repurchase up to 15,000 thousand shares to transfer to employees. As of the end of the shares repurchase period, the Company has repurchased 9,105 thousand shares and the total amount was NT$256,939 thousand. On November 11, 2025, the Company's Board of Directors approved to transfer 4,565 thousand shares to employees for subscription, and the transfer was fully completed on November 28, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f)On September 2, 2025, the Company's Board of Directors approved to repurchase up to 15,000 thousand shares to maintain the Company's credit and shareholders' equity. As of the end of the shares repurchase period, the Company has repurchased 12,717 thousand shares and the total amount was NT$365,223 thousand. Pursuant to the ROC Securities and Exchange Act, the repurchased shares were approved for cancellation by the Board of Directors on November 11, 2025, with the effective date of capital reduction on November 12, 2025 and the alteration registration was completed on December 1, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g)Treasury shares

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Reason for share reacquisition and movements in the number of the Company's treasury shares are as follows (As of December 31, 2024: None):

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** |
| **Name of company <br>holding the shares** | **Reason for reacquisition** | **Number of shares** | **Carrying <br>amount** |
|  |  | **In thousands** | **NT$000** |
| The Company | Maintain the Company's credit <br>&nbsp;&nbsp;&nbsp;&nbsp;and shareholders' equity | 22,717<br>(cancelled) |  |
| The Company | Transfer to employees | 4540 | 128115 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Pursuant to the ROC Securities and Exchange Act, the number of shares bought back as treasury shares should not exceed 10% of the number of the Company's issued shares and the amount bought back should not exceed the sum of retained earnings, paid-in capital in excess of par value and realized capital surplus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Pursuant to the ROC Securities and Exchange Act, treasury shares should not be pledged as collateral and is not entitled to dividends before it is reissued.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Pursuant to the ROC Securities and Exchange Act, shares repurchased for transferring to employees should be reissued to the employees within 5 years from the repurchase date and shares not reissued within the 5-year period should be retired. Treasury shares to maintain the Company's credit and the shareholders' equity should be retired within 6 months of acquisition.

------

**ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES** 

**Notes to the Consolidated Financial Statements (Continued)**

**December 31, 2023, 2024 and 2025**

***22.*** ***Capital surplus***

Pursuant to the ROC Company Act, any capital surplus arising from paid-in capital in excess of par value on issuance of ordinary shares and donations can be used to cover accumulated deficits or to issue new shares or cash to shareholders in proportion to their share ownership, provided that the Company has no accumulated deficits. Furthermore, the ROC Securities and Exchange Act requires that the amount of capital surplus to be capitalized mentioned above may not exceed 10% of the paid-in capital each year. The capital surplus may not be used to cover accumulated deficits unless the surplus reserve is insufficient.

---

| | | | |
|:---|:---|:---|:---|
|  | **2023** | **2023** | **2023** |
|  | **Share premium** | **Others** | Total |
|  | **NT$000** | **NT$000** | **NT$000** |
| January 1 | **6043483** | **12290** | **6055773** |
| December 31 | **6043483** | **12290** | **6055773** |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **2024** | **2024** | **2024** |
|  | **Share premium** | **Others** | Total |
|  | **NT$000** | **NT$000** | **NT$000** |
| January 1 | **6043483** | **12290** | **6055773** |
| December 31 | **6043483** | **12290** | **6055773** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2025** | **2025** | **2025** |
|  | **Share <br>premium** | **Treasury shares transaction** | **Employee share options** | **Others** | **Total** |
|  | **NT$000** | **NT$000** | **NT$000** | **NT$000** | **NT$000** |
| January 1 | 6043483 |  |  | 12290 | 6055773 |
| Cancellation of treasury shares | (188782) | (36956) |  |  | (225738) |
| Share-based payments |  |  | 37342 |  | 37342 |
| Treasury shares transfer to employees |  | 36956 | (37342) |  | (386) |
| December 31 | **5854701** | **—** | **—** | **12290** | **5866991** |

---

***23.*** ***Retained earnings***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)Under the Company's Articles of Incorporation, upon the final settlement of accounts, if there is net profit, the Company shall first set aside the tax payable and offset its losses before setting aside a legal capital reserve at 10% of the remaining profit. The Company shall then set aside or reverse the special capital reserve in accordance with the laws and regulations and as requested by the competent authorities. The remaining profit of that fiscal year, as well as the accumulated undistributed profit at the beginning of the same year and the adjusted undistributed profit of the given fiscal year, shall be distributable profit. If there is any surplus distributable profit after the Board of Directors sets aside a reserve based on the Company's operational needs, such surplus profit may be distributed in full or in part to shareholders as dividends, subject to the approval of the shareholders' meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)The Company's dividend policy is summarized here. A proposal on the distribution of dividends shall be submitted by the Board of Directors annually to the Shareholders' Meeting, and be based on factors such as past years' profit, the current and future investment environment, the Company's capital needs, competition in the domestic and foreign markets, and budgets, with an aim to pursuing shareholders' interests and balancing the dividend distribution and the long-term financial plan of the Company. The distribution of profits of the Company can be made in the form of cash dividends or stock dividends, provided that the cash dividend shall account for at least 10% of the total profit distributed as dividends in the given year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)Except for covering accumulated deficits or issuing new shares or cash to shareholders in proportion to their share ownership, the legal reserve may not be used for any other purpose. The use of the legal reserve for the issuance of shares or cash to shareholders in proportion to their share ownership is permitted, provided that the distribution of the reserve is limited to the portion in excess of 25% of the Company's paid-in capital.

------

**ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES** 

**Notes to the Consolidated Financial Statements (Continued)**

**December 31, 2023, 2024 and 2025**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d)In accordance with the regulations, the Company must set aside a special reserve from the debit balance on other equity items at the statements of financial position date before distributing earnings. When the debit balance on other equity items is reversed subsequently, the reversed amount may be included in the distributable earnings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e)The appropriations of 2023, 2024 and 2025 earnings were resolved in the shareholders' meeting held on May 30, 2024 and May 27, 2025 and proposed in the board meeting held on February 24, 2026, respectively. The appropriations and dividends per share (including cash distribution from capital surplus) are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2023** | **2023** | **2024** | **2024** | **2025 (Note)** | **2025 (Note)** |
|  | **Amount** | **Cash<br>distribution<br>per share** | **Amount** | **Cash<br>distribution<br>per share** | **Amount** | **Cash<br>distribution<br>per share** |
|  | **NT$000** | **NT$** | **NT$000** | **NT$** | **NT$000** | **NT$** |
| Legal reserve | 190237 |  | 146812 |  | 31138 |  |
| Cash dividend | 1309032 | 1.80 | 872688 | 1.20 |  |  |
| Cash distribution from <br> capital surplus |  |  |  |  | 860979 | 1.23 |

---

Note: The appropriation of 2025 earnings has not yet been resolved in the shareholders' meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f)The cash dividend distribution ratio for 2024 was adjusted to NT$1.22996261 per share. The adjustment was due to the Company's cancellation of treasury shares and the repurchase of shares to transfer to employees in the second quarter of 2025, which resulted in a decrease in the number of ordinary shares outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g)On June 11, 2025 and December 1, 2025, the Company cancelled 10,000 thousand shares and 12,711 thousand shares of treasury shares, reducing retained earnings by NT$138,603 thousand and NT$95,417 thousand, respectively.

***24.*** ***Other equity interest***

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2023** | **2023** | **2023** | **2023** |
|  | **Financial statements<br>translation differences<br> of foreign operations** | **Unrealized gain (loss) <br>on valuation of<br>financial assets at fair<br>value through other<br>comprehensive income** | **Equity directly related to non-current assets held for sale** | **Total** |
|  | **NT$000** | **NT$000** | **NT$000** | **NT$000** |
| January 1 | (17369) | 245652 |  | 228283 |
| Currency translation differences |  |  |  |  |
| &nbsp;&nbsp; - The Company | 16713 |  |  | 16713 |
| &nbsp;&nbsp; - Non-current assets held for sale |  |  | (43094) | (43094) |
| Evaluation adjustment |  |  |  |  |
| &nbsp;&nbsp; - The Company |  | (217785) |  | (217785) |
| &nbsp;&nbsp; - Associates |  | 12605 |  | 12605 |
| Evaluation adjustment related tax |  |  |  |  |
| &nbsp;&nbsp; - The Company |  | 51638 |  | 51638 |
| December 31 | **(656)** | **92110** | **(43094)** | **48360** |

---

------

**ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES** 

**Notes to the Consolidated Financial Statements (Continued)**

**December 31, 2023, 2024 and 2025**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2024** | **2024** | **2024** | **2024** |
|  | **Financial statements<br>translation differences<br> of foreign operations** | **Unrealized gain (loss) <br>on valuation of<br>financial assets at fair<br>value through other<br>comprehensive income** | **Equity directly related to non-current assets held for sale** | **Total** |
|  | **NT$000** | **NT$000** | **NT$000** | **NT$000** |
| January 1 | (656) | 92110 | (43094) | 48360 |
| Currency translation differences |  |  |  |  |
| &nbsp;&nbsp; - The Company | 18347 |  |  | 18347 |
| &nbsp;&nbsp; - Non-current assets held for sale |  |  | 43094 | 43094 |
| Evaluation adjustment |  |  |  |  |
| &nbsp;&nbsp; - The Company |  | (17304) |  | (17304) |
| &nbsp;&nbsp; - Associates |  | 16758 |  | 16758 |
| Evaluation adjustment transferred<br> to retained earnings |  |  |  |  |
| &nbsp;&nbsp; - Associates |  | (2861) |  | (2861) |
| Evaluation adjustment related tax |  |  |  |  |
| &nbsp;&nbsp; - The Company |  | 3458 |  | 3458 |
| December 31 | **17691** | **92161** | **—** | **109852** |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **2025** | **2025** | **2025** |
|  | **Financial statements<br>translation differences<br> of foreign operations** | **Unrealized gain (loss) <br>on valuation of<br>financial assets at fair<br>value through other<br>comprehensive income** | **Total** |
|  | **NT$000** | **NT$000** | **NT$000** |
| January 1 | 17691 | 92161 | 109852 |
| Currency translation differences |  |  |  |
| &nbsp;&nbsp; - The Company | (11732) |  | (11732) |
| Evaluation adjustment |  |  |  |
| &nbsp;&nbsp; - The Company |  | 32159 | 32159 |
| &nbsp;&nbsp; - Associates |  | 22091 | 22091 |
| Evaluation adjustment transferred<br> to retained earnings |  |  |  |
| &nbsp;&nbsp; - Associates |  | (48) | (48) |
| Evaluation adjustment related tax |  |  |  |
| &nbsp;&nbsp; - The Company |  | (8820) | (8820) |
| December 31 | **5959** | **137543** | **143502** |

---

------

**ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES** 

**Notes to the Consolidated Financial Statements (Continued)**

**December 31, 2023, 2024 and 2025**

***25.*** ***Revenue*** 

---

| | | | |
|:---|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2023** | **2024** | **2025** |
|  | **NT$000** | **NT$000** | **NT$000** |
| Revenue from contracts with customers | &nbsp;&nbsp;**21356228** | &nbsp;&nbsp;**22695909** | &nbsp;&nbsp;**23932900** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)The Group is primarily engaged in the assembly and testing services of high-integration and high-precision integrated circuits, and recognized revenue based on the progress towards completion of performance obligation during the service period. Information on revenue disaggregation is provided in Note 42.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Contract assets

The Group has recognized the following contract assets in relation to revenue from contracts with customers:

---

| | | | |
|:---|:---|:---|:---|
|  | **January 1, 2024** | **December 31, 2024** | **December 31, 2025** |
|  | **NT$000** | **NT$000** | **NT$000** |
| Contract assets | **383883** | **397747** | **568088** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)The information relating to loss allowance for contract assets is provided in Note 41 a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d)All of the service contracts are for periods of one year or less. As permitted under IFRS 15, "Revenue from Contracts with Customers", the transaction price allocated to these unsatisfied contracts is not disclosed.

***26.*** ***Interest income*** 

---

| | | | |
|:---|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2023** | **2024** | **2025** |
|  | **NT$000** | **NT$000** | **NT$000** |
| Bank deposits | 191265 | 195236 | 241195 |
| Financial assets at amortized cost | 1861 | 2433 | 2076 |
| Other interest income | 63 | 50 | 53 |
|  | **193189** | **197719** | **243324** |

---

***27.*** ***Other gains and losses*** 

---

| | | | |
|:---|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2023** | **2024** | **2025** |
|  | **NT$000** | **NT$000** | **NT$000** |
| Foreign exchange gains (losses), net | 78170 | 242588 | (459565) |
| Gain on disposal of non-current assets held for sale |  | 72261 |  |
| Gain on valuation of financial assets at fair value <br> through profit or loss | 39254 | 48101 | 18752 |
| Impairment loss on financial assets |  |  | (10000) |
| Gain on disposal of investments accounted for using <br> equity method |  |  | 3464 |
| Reimbursement of ADSs service charge | 2121 | 2611 | 2136 |
| Others | 15956 | 28004 | 17997 |
|  | **135501** | **393565** | **(427216)** |

---

------

**ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES** 

**Notes to the Consolidated Financial Statements (Continued)**

**December 31, 2023, 2024 and 2025**

***28.*** ***Finance costs***

---

| | | | |
|:---|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2023** | **2024** | **2025** |
|  | **NT$000** | **NT$000** | **NT$000** |
| Interest expense |  |  |  |
| &nbsp;&nbsp;Bank loans | 254892 | 271221 | 292162 |
| &nbsp;&nbsp;Lease liabilities | 18757 | 19902 | 19052 |
| &nbsp;&nbsp;Less: Amounts capitalized in qualifying assets | (7692) | (12542) | (10331) |
|  | 265957 | 278581 | 300883 |
| Finance expense | 433 | 359 | 402 |
|  | **266390** | **278940** | **301285** |

---

***29.*** ***Expenses by nature***

---

| | | | |
|:---|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2023** | **2024** | **2025** |
|  | **NT$000** | **NT$000** | **NT$000** |
| Raw materials and supplies used | 3991490 | 4580706 | 5939395 |
| Employee benefit expenses | 5836068 | 6450534 | 6207834 |
| Depreciation expenses | 4779333 | 4856186 | 5100668 |

---

***30.*** ***Employee benefit expenses***

---

| | | | |
|:---|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2023** | **2024** | **2025** |
|  | **NT$000** | **NT$000** | **NT$000** |
| Salaries | 4741380 | 5139741 | 4930701 |
| Directors' remuneration | 23980 | 22718 | 19567 |
| Labor and health insurance | 432568 | 477338 | 471894 |
| Pension | 195359 | 215840 | 200962 |
| Other personnel expenses | 442781 | 594897 | 584710 |
|  | **5836068** | **6450534** | **6207834** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)In accordance with the Company's Articles of Incorporation, employees' compensation is based on the current year's earnings, which should first be used to cover accumulated deficits, if any, and then 10% of the remaining balance distributed as employees' compensation, of which the amount distributed to non-executive employees shall not be less than 3% of the profit, including distributions to certain qualifying employees in affiliate companies, and no more than 0.5% as directors' remuneration. Subject to the Board of Directors' approval, employees' compensation may be made by way of cash or share issuance. Distribution of employees' compensation and directors' remuneration shall be presented and reported in the subsequent shareholders' meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Based on profit as of the end of reporting period, for the years ended December 31, 2023, 2024 and 2025, the employees' compensation were accrued at NT$250,181 thousand, NT$186,484 thousand and NT$65,061 thousand, respectively; the directors' remuneration were accrued at NT$6,255 thousand, NT$4,662 thousand and NT$1,626 thousand, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)For the year of 2024, employees' compensation and directors' remuneration recognized were consistent with the amounts resolved in the Board of Directors' meeting.

------

**ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES** 

**Notes to the Consolidated Financial Statements (Continued)**

**December 31, 2023, 2024 and 2025**

***31.*** ***Income tax expense***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)Income tax expense

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Components of income tax expense:

---

| | | | |
|:---|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2023** | **2024** | **2025** |
|  | **NT$000** | **NT$000** | **NT$000** |
| Current income tax: |  |  |  |
| Current income tax on profits for the period | 426878 | 273836 | 111904 |
| Income tax on unappropriated retained earnings | 85607 | 66066 | 14012 |
| Prior year income tax overestimation | (182778) | (127768) | (74207) |
| Total current income tax | 329707 | 212134 | 51709 |
| Deferred income tax: |  |  |  |
| Relating to origination and reversal of temporary differences | (29046) | (4617) | (11603) |
| Income tax expense | **300661** | **207517** | **40106** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The income tax (charge)/credit relating to components of other comprehensive income are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2023** | **2024** | **2025** |
|  | **NT$000** | **NT$000** | **NT$000** |
| Unrealized loss (gain) on valuation of financial assets at fair<br> value through other comprehensive income | (51638) | (3458) | 8820 |
| Remeasurement of defined benefit obligations | 2140 | 11261 | 12561 |
|  | **(49498)** | **7803** | **21381** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Reconciliation of income tax expense and the accounting profit:

---

| | | | |
|:---|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2023** | **2024** | **2025** |
|  | **NT$000** | **NT$000** | **NT$000** |
| Tax calculated based on profit before tax and statutory tax rate | 451676 | 338116 | 119094 |
| Effects from adjustments based on regulation | (74094) | (38880) | (19839) |
| Gain (loss) on investment in associates | 19228 | (31151) |  |
| Prior year income tax overestimation | (182778) | (127768) | (74207) |
| Income tax on unappropriated retained earnings | 85607 | 66066 | 14012 |
| Effect of different tax rates in countries in which the Group operates | 1022 | 1134 | 1046 |
| Income tax expense | **300661** | **207517** | **40106** |

---

------

**ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES** 

**Notes to the Consolidated Financial Statements (Continued)**

**December 31, 2023, 2024 and 2025**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)The amounts of deferred tax assets or liabilities resulting from temporary differences and investment tax credits are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2023** | **2023** | **2023** | **2023** |
|  | **January 1** | **Recognized in <br>profit or loss** | **Recognized in other comprehensive income** | **December 31** |
|  | **NT$000** | **NT$000** | **NT$000** | **NT$000** |
| <u>Deferred tax assets</u> |  |  |  |  |
| Loss on inventories | 21126 | 16127 |  | 37253 |
| Property, plant and equipment | 38894 | 1847 |  | 40741 |
| Provisions | 12859 | 1518 |  | 14377 |
| Deferred revenue | 8132 | (6506) |  | 1626 |
| Net defined benefit liability | 48433 | (4236) | (2140) | 42057 |
| Unrealized exchange losses | 24217 | (6032) |  | 18185 |
| Others | 5625 | 3418 |  | 9043 |
| Total | **159286** | **6136** | **(2140)** | **163282** |
| <u>Deferred tax liabilities</u> |  |  |  |  |
| Property, plant and equipment | (116974) | 42142 |  | (74832) |
| Financial assets at fair value through<br> other comprehensive income | (72843) |  | 51638 | (21205) |
| Gain on investment in associates | (11923) | (19228) |  | (31151) |
| Others | (1) | (4) |  | (5) |
| Total | **(201741)** | **22910** | **51638** | **(127193)** |
| Information presented on statements <br> of financial position: |  |  |  |  |
| Deferred tax assets | **159286** |  |  | **163282** |
| Deferred tax liabilities | **(201741)** |  |  | **(127193)** |

---

------

**ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES** 

**Notes to the Consolidated Financial Statements (Continued)**

**December 31, 2023, 2024 and 2025**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2024** | **2024** | **2024** | **2024** |
|  | **January 1** | **Recognized in <br>profit or loss** | **Recognized in other comprehensive income** | **December 31** |
|  | **NT$000** | **NT$000** | **NT$000** | **NT$000** |
| <u>Deferred tax assets</u> |  |  |  |  |
| Loss on inventories | 37253 | (5223) |  | 32030 |
| Property, plant and equipment | 40741 | 1711 |  | 42452 |
| Provisions | 14377 | (10) |  | 14367 |
| Deferred revenue | 1626 | (1626) |  |  |
| Net defined benefit liability | 42057 | (4879) | (11261) | 25917 |
| Unrealized exchange losses | 18185 | (18185) |  |  |
| Others | 9043 | 2404 |  | 11447 |
| Total | **163282** | **(25808)** | **(11261)** | **126213** |
| <u>Deferred tax liabilities</u> |  |  |  |  |
| Property, plant and equipment | (74832) | 9086 |  | (65746) |
| Unrealized exchange gains |  | (9810) |  | (9810) |
| Financial assets at fair value through <br> other comprehensive income | (21205) |  | 3458 | (17747) |
| Gain on investment in associates | (31151) | 31151 |  |  |
| Others | (5) | (2) |  | (7) |
| Total | **(127193)** | **30425** | **3458** | **(93310)** |
| Information presented on statements <br> of financial position: |  |  |  |  |
| Deferred tax assets | **163282** |  |  | **126213** |
| Deferred tax liabilities | **(127193)** |  |  | **(93310)** |

---

------

**ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES** 

**Notes to the Consolidated Financial Statements (Continued)**

**December 31, 2023, 2024 and 2025**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2025** | **2025** |
|  | **January 1** | **Recognized in <br>profit or loss** | **Recognized in other <br>comprehensive income** | **December 31** |
|  | **NT$000** | **NT$000** | **NT$000** | **NT$000** |
| <u>Deferred tax assets</u> |  |  |  |  |
| Loss on inventories | 32030 | (872) |  | 31158 |
| Property, plant and equipment | 42452 | 108 |  | 42560 |
| Provisions | 14367 | 3500 |  | 17867 |
| Net defined benefit liability | 25917 | (5232) | (12561) | 8124 |
| Impairment loss on financial assets |  | 2000 |  | 2000 |
| Others | 11447 | (107) |  | 11340 |
| Total | **126213** | **(603)** | **(12561)** | **113049** |
| <u>Deferred tax liabilities</u> |  |  |  |  |
| Property, plant and equipment | (65746) | 3454 |  | (62292) |
| Unrealized exchange gains | (9810) | 8745 |  | (1065) |
| Financial assets at fair value through<br> other comprehensive income | (17747) |  | (8820) | (26567) |
| Others | (7) | 7 |  |  |
| Total | **(93310)** | **12206** | **(8820)** | **(89924)** |
| Information presented on statements <br> of financial position: |  |  |  |  |
| Deferred tax assets | **126213** |  |  | **113049** |
| Deferred tax liabilities | **(93310)** |  |  | **(89924)** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d)The Company has not recognized taxable temporary differences associated with investments as deferred tax liabilities. As of December 31, 2024 and 2025, the amounts of temporary differences not recognized as deferred tax liabilities were NT$1,392,934 thousand and NT$1,396,988 thousand, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e)The Company's income tax returns through 2023 have been assessed and approved by the Tax Authority.

***32.*** ***Earnings per share***

---

| | | | |
|:---|:---|:---|:---|
|  | **Year ended December 31, 2023** | **Year ended December 31, 2023** | **Year ended December 31, 2023** |
|  | **Amount after income tax** | **Weighted average<br>number of ordinary<br>shares outstanding** | **Earnings<br>per share** |
| **<u>Basic earnings per share</u>** | **NT$000** | **In thousands** | **NT$** |
| Profit attributable to equity holders of the Company | **1967565** | **727240** | **2.71** |
| **<u>Diluted earnings per share</u>** |  |  |  |
| Assumed conversion of all dilutive potential ordinary shares: |  |  |  |
| &nbsp;&nbsp; Employees' compensation |  | 7698 |  |
| Profit attributable to equity holders of the Company | **1967565** | **734938** | **2.68** |

---

------

**ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES** 

**Notes to the Consolidated Financial Statements (Continued)**

**December 31, 2023, 2024 and 2025**

---

| | | | |
|:---|:---|:---|:---|
|  | **Year ended December 31, 2024** | **Year ended December 31, 2024** | **Year ended December 31, 2024** |
|  | **Amount after income tax** | **Weighted average<br>number of ordinary<br>shares outstanding** | **Earnings<br>per share** |
| **<u>Basic earnings per share</u>** | **NT$000** | **In thousands** | **NT$** |
| Profit attributable to equity holders of the Company | **1439536** | **727240** | **1.98** |
| **<u>Diluted earnings per share</u>** |  |  |  |
| Assumed conversion of all dilutive potential ordinary shares: |  |  |  |
| &nbsp;&nbsp; Employees' compensation |  | 6772 |  |
| Profit attributable to equity holders of the Company | **1439536** | **734012** | **1.96** |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Year ended December 31, 2025** | **Year ended December 31, 2025** | **Year ended December 31, 2025** |
|  | **Amount after income tax** | **Weighted average<br>number of ordinary<br>shares outstanding \*** | **Earnings<br>per share** |
| **<u>Basic earnings per share</u>** | **NT$000** | **In thousands** | **NT$** |
| Profit attributable to equity holders of the Company | **550635** | **710445** | **0.78** |
| **<u>Diluted earnings per share</u>** |  |  |  |
| Assumed conversion of all dilutive potential ordinary shares: |  |  |  |
| &nbsp;&nbsp; Employees' compensation |  | 2202 |  |
| Profit attributable to equity holders of the Company | **550635** | **712647** | **0.77** |

---

\* When calculating earnings per share, the weighted average number of shares outstanding has excluded treasury shares.

***33.*** ***Supplemental cash flow information***

Partial cash paid for investing activities

Property, plant and equipment

---

| | | | |
|:---|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2023** | **2024** | **2025** |
|  | **NT$000** | **NT$000** | **NT$000** |
| Purchase of property, plant and equipment | 3228471 | 5451431 | 3666087 |
| Add: Beginning balance of payable to equipment suppliers | 1405931 | 1196181 | 1506821 |
| Add: Beginning balance of payable to equipment suppliers<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;– related parties |  | 58549 | 21473 |
| Less: Ending balance of payable to equipment suppliers | (1196181) | (1506821) | (1282516) |
| Less: Ending balance of payable to equipment suppliers <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;– related parties | (58549) | (21473) | (2928) |
| Less: Transfer from other non-current assets | (305791) | (96713) | (57699) |
| Cash paid during the year | **3073881** | **5081154** | **3851238** |

---

------

**ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES** 

**Notes to the Consolidated Financial Statements (Continued)**

**December 31, 2023, 2024 and 2025**

***34.*** ***Changes in liabilities from financing activities***

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2023** | **2023** | **2023** | **2023** |
|  | **Long-term bank<br>loans (including<br>current portion)** | **Guarantee<br>deposits** | **Lease<br>liabilities** | **Total liabilities<br>from financing<br>activities** |
|  | **NT$000** | **NT$000** | **NT$000** | **NT$000** |
| January 1 | 13967801 | 21600 | 920402 | 14909803 |
| Changes in cash flow from financing <br> activities | 907306 | (365) | (293383) | 613558 |
| Adjustment of right-of-use assets |  |  | 419625 | 419625 |
| Amortization of interest expense | 36612 |  | 18757 | 55369 |
| December 31 | **14911719** | **21235** | **1065401** | **15998355** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **2024** | **2024** | **2024** | **2024** | **2024** |
|  | **Short-term<br>bank loans** | **Long-term bank<br>loans (including<br>current portion)** | **Guarantee<br>deposits** | **Lease<br>liabilities** | **Total liabilities<br>from financing<br>activities** |
|  | **NT$000** | **NT$000** | **NT$000** | **NT$000** | **NT$000** |
| January 1 |  | 14911719 | 21235 | 1065401 | 15998355 |
| Changes in cash flow from financing <br> activities | 339364 | (1185222) | (49) | (320452) | (1166359) |
| Adjustment of right-of-use assets |  |  |  | 292104 | 292104 |
| Amortization of interest expense |  | 32084 |  | 19902 | 51986 |
| December 31 | **339364** | **13758581** | **21186** | **1056955** | **15176086** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2025** | **2025** | **2025** |
|  | **Short-term<br>bank loans** | **Long-term bank<br>loans (including<br>current portion)** | **Guarantee<br>deposits** | **Lease<br>liabilities** | **Total liabilities<br>from financing<br>activities** |
|  | **NT$000** | **NT$000** | **NT$000** | **NT$000** | **NT$000** |
| January 1 | 339364 | 13758581 | 21186 | 1056955 | 15176086 |
| Changes in cash flow from financing <br> activities | 2366708 | (1013896) | (700) | (271189) | 1080923 |
| Adjustment of right-of-use assets |  |  |  | 50098 | 50098 |
| Amortization of interest expense |  | 20005 |  | 19052 | 39057 |
| December 31 | **2706072** | **12764690** | **20486** | **854916** | **16346164** |

---

***35.*** ***Related party transactions***

Parent and ultimate controlling party

The Company has neither a parent company nor an ultimate controlling party. The transactions between the Company and its subsidiaries were eliminated in the accompanying consolidated financial statements and were not disclosed herein. The transactions between the Group and other related parties are as follows.

------

**ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES** 

**Notes to the Consolidated Financial Statements (Continued)**

**December 31, 2023, 2024 and 2025**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)Names of related parties and relationship

---

| | |
|:---|:---|
| **Name** | **Relationship** |
| JMC | Associate |
| Daypower Energy | Associate |
| Xingwang Energy Co., Ltd. ("Xingwang Energy") | Associate |
| Siliconware Precision Industries Co., Ltd. ("SPIL") | Entity that has significant influence over the Company |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Significant related party transactions

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Other payables

---

| | | |
|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2025** |
|  | **NT$000** | **NT$000** |
| Daypower Energy | 21473 | 3612 |
| Xingwang Energy |  | 4700 |
|  | **21473** | **8312** |

---

Transactions with Xingwang Energy mainly related to the purchase of green power.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Property transactions

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i)Acquisition of property, plant and equipment and other non-current assets

---

| | | | |
|:---|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2023** | **2024** | **2025** |
|  | **NT$000** | **NT$000** | **NT$000** |
| SPIL | 35261 | 10496 |  |
| Daypower Energy | **—** | **—** | 84919 |
|  | **35261** | **10496** | **84919** |

---

ii)The amount of the property, plant and equipment returned by the Company to Daypower Energy was NT$90,245 thousand for the year ended December 31, 2025.

iii)Acquisition of financial assets (For the years ended December 31, 2023 and 2025: None)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  |  |  | **Year ended December 31, 2024** |
|  | **Account items** | **Number of <br>shares traded** | **Object of transaction** | **Acquisition price** |
|  |  |  |  | **NT$000** |
| Associate | Investments accounted for using equity method | 1,000 thousand <br>shares | Daypower <br>Energy | **12500** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)Key management personnel compensation

---

| | | | |
|:---|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2023** | **2024** | **2025** |
|  | **NT$000** | **NT$000** | **NT$000** |
| Salaries and other short-term employee benefits | 176702 | 181436 | 165428 |
| Post-employment compensation | 2158 | 2396 | 2427 |
|  | **178860** | **183832** | **167855** |

---

------

**ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES** 

**Notes to the Consolidated Financial Statements (Continued)**

**December 31, 2023, 2024 and 2025**

***36.*** ***Pledged assets***

---

| | | | |
|:---|:---|:---|:---|
|  |  | **Carrying amount** | **Carrying amount** |
| **Assets** | **Purpose** | **December 31, 2024** | **December 31, 2025** |
|  |  | **NT$000** | **NT$000** |
| Non-current financial assets at amortized cost | Lease | 43034 | 43219 |
| Property, plant and equipment, net |  |  |  |
| &nbsp;&nbsp;- Land | Bank loan | 454738 | 454738 |
| &nbsp;&nbsp;- Buildings | Bank loan | 5722487 | 5745435 |
| &nbsp;&nbsp;- Machinery and equipment | Bank loan | 7172859 | 6377840 |
|  |  | **13393118** | **12621232** |

---

***37.*** ***Significant contingent liabilities and unrecognized contract commitments***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)A letter of guarantee was issued by the financial institutions to the Customs Administration of the Ministry of Finance for making payment of customs-duty deposits when importing. As of December 31, 2024 and 2025, the amounts guaranteed by the financial institutions were NT$59,800 thousand and NT$66,000 thousand, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Capital expenditures that are contracted for, but not provided for are as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2025** |
|  | **NT$000** | **NT$000** |
| Property, plant and equipment, net | **1279217** | **1321008** |

---

***38.*** ***Significant disaster loss***

None.

***39.*** ***Significant events after the reporting period***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)The Company's appropriation of 2025 earnings is provided in Note 23.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)On March 10, 2026, the Company's Board of Directors resolved to acquire plant and facilities located in Xinshi District, Tainan City from a non-related party for a total transaction amount of NT$880,000 thousand.

***40.*** ***Capital management***

The Group's objectives when managing capital are to safeguard the Group's ability to continue as a going concern in order to provide returns for shareholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. The Group monitors capital on the basis of the liabilities to assets ratio. Total capital is shown as "Equity" in the consolidated statements of financial position, which is also equal to total assets minus total liabilities.

The liabilities to assets ratio at December 31, 2024 and 2025 were as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2025** |
|  | **NT$000** | **NT$000** |
| Total liabilities | 20376534 | 21365309 |
| Total assets | 45379852 | 45352421 |
| Liabilities to assets ratio | **44.90%** | **47.11%** |

---

------

**ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES** 

**Notes to the Consolidated Financial Statements (Continued)**

**December 31, 2023, 2024 and 2025**

***41.*** ***Financial risk management and fair values of financial instruments***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)Financial instruments

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Financial instruments by category

---

| | | |
|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2025** |
|  | **NT$000** | **NT$000** |
| <u>Financial assets</u> |  |  |
| &nbsp;&nbsp;Financial assets at fair value through profit or loss |  |  |
| &nbsp;&nbsp;&nbsp;Financial assets mandatorily measured at fair value <br> through profit or loss | 68970 | 73150 |
| &nbsp;&nbsp;Financial assets at fair value through other <br> comprehensive income |  |  |
| &nbsp;&nbsp;&nbsp;Designation of equity instruments | 103013 | 135172 |
| &nbsp;&nbsp;Financial assets at amortized cost |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | 15219039 | 14858903 |
| &nbsp;&nbsp;&nbsp;Financial assets at amortized cost | 89114 | 89182 |
| &nbsp;&nbsp;&nbsp;Accounts receivable | 5010154 | 6042574 |
| &nbsp;&nbsp;&nbsp;Other receivables | 77620 | 72540 |
| &nbsp;&nbsp;&nbsp;Refundable deposits | 19852 | 21608 |
|  | **20587762** | **21293129** |
| <u>Financial liabilities</u> |  |  |
| &nbsp;&nbsp;Financial liabilities at amortized cost |  |  |
| &nbsp;&nbsp;&nbsp;Short-term bank loans | 339364 | 2706072 |
| &nbsp;&nbsp;&nbsp;Notes payable | 773 | 1596 |
| &nbsp;&nbsp;&nbsp;Accounts payable | 698199 | 1166973 |
| &nbsp;&nbsp;&nbsp;Other payables | 3913604 | 3365755 |
| &nbsp;&nbsp;&nbsp;Other payables – related parties | 21473 | 8312 |
| &nbsp;&nbsp;&nbsp;Long-term bank loans (including current portion) | 13758581 | 12764690 |
| &nbsp;&nbsp;&nbsp;Guarantee deposits | 21186 | 20486 |
| &nbsp;&nbsp;Lease liabilities (including current portion) | 1056955 | 854916 |
|  | **19810135** | **20888800** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Risk management policies

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i)The Group's risk management objective is to manage the market risk, credit risk and liquidity risk related to its operating activities. The Group identifies, measures, and manages such risks by its policies and preferences.

ii)The Group has established appropriate policies, procedures and internal controls for financial risk management. Before entering into significant financial transactions, a due approval process must be carried out by the Board of Directors based on related protocols and internal control procedures. The Group complies with its financial risk management policies at all times.

iii)In order to minimize and manage financial risks, the Group's overall risk management program focuses on analyzing, identifying, and evaluating financial risk factors that may potentially have adverse effects on the Group's financial position, and provide feasible solutions to avoid those factors.

------

**ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES** 

**Notes to the Consolidated Financial Statements (Continued)**

**December 31, 2023, 2024 and 2025**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Significant financial risks and degrees of financial risks

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i)Market risk

The Group's market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risks comprise foreign currency risk, interest rate risk, and other price risks.

In practice, the risk variable rarely changes individually, and the change of each risk variable is usually correlative. The following sensitivity analysis did not consider the interaction of each risk variable.

<u>Foreign exchange risk</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.The Group's exposure to the risk of changes in foreign exchange rates relates primarily to the Group's operating activities (when revenue or expense is denominated in a different currency from the Company's and its subsidiaries' functional currency) and the Group's net investments in foreign operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.The Group applies natural hedges by using accounts receivable and accounts payable denominated in the same currency. However, this natural hedge does not concur with the requirement for hedge accounting. Furthermore, as net investments in foreign operations are for strategic purposes, they are not hedged by the Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.The Group's foreign currency exposure gives rise to market risks associated with exchange rate movements against the NT dollar for cash and cash equivalents, accounts receivable, other receivables, bank loans, accounts payable and other payables (including related parties).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.The Group's businesses involve some non-functional currency operations. The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Foreign<br>currency** | **Exchange<br>rate** | **Carrying amount<br>(NT$000)** |
| (Foreign currency: functional currency) |  |  |  |
| <u>Financial assets</u> |  |  |  |
| &nbsp;&nbsp;<u>Monetary items</u> |  |  |  |
| &nbsp;&nbsp;&nbsp;US$000 | 157974 | 32.7850 | 5179178 |
| &nbsp;&nbsp;&nbsp;JPY000 | 262664 | 0.2099 | 55133 |
| &nbsp;&nbsp;&nbsp;RMB000 | 13328 | 4.4780 | 59683 |
| &nbsp;&nbsp;<u>Non-monetary items</u> |  |  |  |
| &nbsp;&nbsp;&nbsp;JPY000 | 490770 | 0.2099 | 103013 |
| <u>Financial liabilities</u> |  |  |  |
| &nbsp;&nbsp;<u>Monetary items</u> |  |  |  |
| &nbsp;&nbsp;&nbsp;US$000 | 23675 | 32.7850 | 776185 |
| &nbsp;&nbsp;&nbsp;JPY000 | 1271975 | 0.2099 | 266988 |

---

------

**ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES** 

**Notes to the Consolidated Financial Statements (Continued)**

**December 31, 2023, 2024 and 2025**

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  | **Foreign<br>currency** | **Exchange<br>rate** | **Carrying amount<br>(NT$000)** |
| (Foreign currency: functional currency) |  |  |  |
| <u>Financial assets</u> |  |  |  |
| &nbsp;&nbsp;<u>Monetary items</u> |  |  |  |
| &nbsp;&nbsp;&nbsp;US$000 | 197135 | 31.4300 | 6195953 |
| &nbsp;&nbsp;&nbsp;JPY000 | 69622 | 0.2008 | 13980 |
| &nbsp;&nbsp;&nbsp;RMB000 | 13848 | 4.4960 | 62261 |
| &nbsp;&nbsp;<u>Non-monetary items</u> |  |  |  |
| &nbsp;&nbsp;&nbsp;JPY000 | 673169 | 0.2008 | 135172 |
| <u>Financial liabilities</u> |  |  |  |
| &nbsp;&nbsp;<u>Monetary items</u> |  |  |  |
| &nbsp;&nbsp;&nbsp;US$000 | 119380 | 31.4300 | 3752113 |
| &nbsp;&nbsp;&nbsp;JPY000 | 1940541 | 0.2008 | 389661 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.The total exchange gains (losses), including realized and unrealized gains (losses) arising from significant foreign exchange variations on monetary items held by the Group for the years ended December 31, 2023, 2024 and 2025, amounted to NT$78,170 thousand, NT$242,588 thousand and (NT$459,565) thousand, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.Analysis of foreign currency market risk arising from significant foreign exchange variations:

---

| | | | |
|:---|:---|:---|:---|
|  | **Year ended December 31, 2023** | **Year ended December 31, 2023** | **Year ended December 31, 2023** |
|  | **Sensitivity analysis** | **Sensitivity analysis** | **Sensitivity analysis** |
|  | **Change in<br>exchange <br>rate** | **Effect on <br>profit (loss)<br>(NT$000)** | **Effect on other<br>comprehensive<br>income<br>(NT$000)** |
| <u>Financial assets</u> |  |  |  |
| &nbsp;&nbsp;<u>Monetary items</u> |  |  |  |
| &nbsp;&nbsp;&nbsp;US$000 | 5% | 230037 |  |
| &nbsp;&nbsp;&nbsp;JPY000 | 5% | 2052 |  |
| &nbsp;&nbsp;&nbsp;RMB000 | 5% | 1211 |  |
| <u>Financial liabilities</u> |  |  |  |
| &nbsp;&nbsp;<u>Monetary items</u> |  |  |  |
| &nbsp;&nbsp;&nbsp;US$000 | 5% | 32509 |  |
| &nbsp;&nbsp;&nbsp;JPY000 | 5% | 11971 |  |

---

------

**ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES** 

**Notes to the Consolidated Financial Statements (Continued)**

**December 31, 2023, 2024 and 2025**

---

| | | | |
|:---|:---|:---|:---|
|  | **Year ended December 31, 2024** | **Year ended December 31, 2024** | **Year ended December 31, 2024** |
|  | **Sensitivity analysis** | **Sensitivity analysis** | **Sensitivity analysis** |
|  | **Change in<br>exchange <br>rate** | **Effect on <br>profit (loss)<br>(NT$000)** | **Effect on other<br>comprehensive<br>income<br>(NT$000)** |
| <u>Financial assets</u> |  |  |  |
| &nbsp;&nbsp;<u>Monetary items</u> |  |  |  |
| &nbsp;&nbsp;&nbsp;US$000 | 5% | 258959 |  |
| &nbsp;&nbsp;&nbsp;JPY000 | 5% | 2757 |  |
| &nbsp;&nbsp;&nbsp;RMB000 | 5% | 2984 |  |
| <u>Financial liabilities</u> |  |  |  |
| &nbsp;&nbsp;<u>Monetary items</u> |  |  |  |
| &nbsp;&nbsp;&nbsp;US$000 | 5% | 38809 |  |
| &nbsp;&nbsp;&nbsp;JPY000 | 5% | 13349 |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Year ended December 31, 2025** | **Year ended December 31, 2025** | **Year ended December 31, 2025** |
|  | **Sensitivity analysis** | **Sensitivity analysis** | **Sensitivity analysis** |
|  | **Change in<br>exchange <br>rate** | **Effect on <br>profit (loss)<br>(NT$000)** | **Effect on other<br>comprehensive<br>income<br>(NT$000)** |
| <u>Financial assets</u> |  |  |  |
| &nbsp;&nbsp;<u>Monetary items</u> |  |  |  |
| &nbsp;&nbsp;&nbsp;US$000 | 5% | 309798 |  |
| &nbsp;&nbsp;&nbsp;JPY000 | 5% | 699 |  |
| &nbsp;&nbsp;&nbsp;RMB000 | 5% | 3113 |  |
| <u>Financial liabilities</u> |  |  |  |
| &nbsp;&nbsp;<u>Monetary items</u> |  |  |  |
| &nbsp;&nbsp;&nbsp;US$000 | 5% | 187606 |  |
| &nbsp;&nbsp;&nbsp;JPY000 | 5% | 19483 |  |

---

<u>Price risk</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.The Group's financial instruments, which are exposed to price risk, are the financial assets at fair value through profit or loss and financial assets at fair value through other comprehensive income. To manage its price risk arising from investments in financial instruments, the Group diversifies its portfolio. Diversification of the portfolio is in accordance with the limits set by the Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.The Group invests in beneficiary certificates and listed stocks issued by the domestic companies. The prices of equity securities would change due to change of the future value of investee companies. For the years ended December 31, 2023, 2024 and 2025, it is estimated that the prices of equity securities increase or decrease by 1%, with all other variables held constant, would increase or decrease the Group's profit before income tax by NT$427 thousand, NT$690 thousand and NT$732 thousand, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.The Group's investments in financial instruments comprise foreign unlisted stocks. The prices of financial instruments would change due to different valuation models and assumptions used. Analysis related to the effect on profit or other comprehensive income if these assumptions change is provided in Note 41 b) (g).

------

**ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES** 

**Notes to the Consolidated Financial Statements (Continued)**

**December 31, 2023, 2024 and 2025**

<u>Interest rate risk on cash flow and fair value</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Group's exposure to the risk of changes in market interest rates relates primarily to the Group's bank loans with floating interest rates. The Group manages its interest rate risk by having a balanced portfolio of fixed and variable rate bank loans. The Group reassesses the hedge management periodically to make sure it complies with the cost effectiveness.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.The sensitivity analysis depends on the exposure of interest rate risk at the end of the reporting period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Analysis of debt with floating interest rates is based on the assumption that the outstanding debt at the end of the reporting period is outstanding throughout the period. The degree of variation the Group used to report to internal management is increase or decrease of 1% in interest rates which is assessed as the reasonable degree of variation by the management.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.For the years ended December 31, 2023, 2024 and 2025, it is estimated that a general increase or decrease of 1% in interest rates, with all other variables held constant, would decrease or increase the Group's profit before income tax approximately by NT$149,723 thousand, NT$137,902 thousand and NT$127,863 thousand, respectively, mainly due to the Group's floating rate on bank loans.

ii)Credit risk

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss, mainly resulted from its operating activities (primarily accounts receivable) and from its financing activities (primarily deposits with banks and financial instruments). The Group is exposed to credit risk arising from the carrying amount of the financial assets recognized in the consolidated statements of financial position.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Each business unit performs ongoing credit evaluations of its debtors' financial conditions according to the Group's established policies, procedures and controls relating to customer credit risk management. The Group maintains an account for loss allowance based upon the available facts and circumstances, history of collection and write-off experiences of all trade and other receivables which consequently minimize the Group's exposure to bad debts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Credit risk from balances with banks and financial institutions is managed by the Group's finance unit in accordance with the Group's policies. Transaction counterparty of the Group is determined through its internal controls policy. For banks and financial institutions, only parties rated above BBB+ by Taiwan Ratings are accepted. The probability of counterparty default is remote, so there is no significant credit risk.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.The Group adopts the assumptions under IFRS 9, "Financial Instruments" and the default is deemed to have occurred when the contract payments are past due over 90 days.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.The Group categorized contract assets, accounts receivable and other receivables by characteristics of credit risk and applied the simplified approach using loss rate methodology to estimate expected credit loss.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.The Group referred to the forecastability of business monitoring indicators published by the ROC National Development Council to adjust the loss rate which is based on historical and current information when assessing the future default possibility of contract assets, accounts receivable and other receivables. As of December 31, 2024 and 2025 the loss rate methodologies are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Contract<br>assets** | **Accounts receivable<br>(including<br>related parties)** | **Other receivables<br>(including<br>related parties)** |
|  | **NT$000** | **NT$000** | **NT$000** |
| Expected loss rate | 0.030% | 0.030% | 0.030% |
| Total carrying amount | 397866 | 5011644 | 77632 |
| Loss allowance | (119) | (1490) | (12) |

---

------

**ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES** 

**Notes to the Consolidated Financial Statements (Continued)**

**December 31, 2023, 2024 and 2025**

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  | **Contract<br>assets** | **Accounts receivable<br>(including<br>related parties)** | **Other receivables<br>(including<br>related parties)** |
|  | **NT$000** | **NT$000** | **NT$000** |
| Expected loss rate | 0.030% | 0.030% | 0.030% |
| Total carrying amount | 568259 | 6044387 | 72556 |
| Loss allowance | (171) | (1813) | (16) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.Under the simplified approach, movements in relation to loss allowance for contract assets, accounts receivable, and other receivables are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **2023** | **2023** | **2023** |
|  | **Contract<br>assets** | **Accounts receivable<br>(including<br>related parties)** | **Other receivables<br>(including<br>related parties)** |
|  | **NT$000** | **NT$000** | **NT$000** |
| January 1 | (229) | (2669) | (45) |
| Reversal of impairment loss | 55 | 215 | 32 |
| December 31 | **(174)** | **(2454)** | **(13)** |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **2024** | **2024** | **2024** |
|  | **Contract<br>assets** | **Accounts receivable<br>(including<br>related parties)** | **Other receivables<br>(including<br>related parties)** |
|  | **NT$000** | **NT$000** | **NT$000** |
| January 1 | (174) | (2454) | (13) |
| Reversal of impairment loss | 55 | 964 | 1 |
| December 31 | **(119)** | **(1490)** | **(12)** |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **2025** | **2025** | **2025** |
|  | **Contract<br>assets** | **Accounts receivable<br>(including<br>related parties)** | **Other receivables<br>(including<br>related parties)** |
|  | **NT$000** | **NT$000** | **NT$000** |
| January 1 | (119) | (1490) | (12) |
| Provision for impairment loss | (52) | (323) | (4) |
| December 31 | **(171)** | **(1813)** | **(16)** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.The Group's recorded financial assets at amortized cost include time deposits with contract period over 3 months and restricted bank deposits. Because of the low credit risk, expected credit losses for the period are measured through a loss allowance at an amount equal to the 12-month expected credit losses. There is no significant provision for the losses.

iii)Liquidity risk

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.The Group manages and maintains adequate cash and cash equivalents to finance the Group's operations, and minimize the impact from cash flow fluctuations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.The primary source of liquidity for the Group is from bank loans. See Notes 16 and18 for details of the unused credit lines of the Group as of December 31, 2024 and 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.The contractual undiscounted cash flows of notes payable, accounts payable and other payables (including related parties) due within one year and is equivalent to its carrying amount. Except for the aforementioned,

------

**ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES** 

**Notes to the Consolidated Financial Statements (Continued)**

**December 31, 2023, 2024 and 2025**

the table below summarizes the maturity profile of the Group's non-derivative financial liabilities based on the earliest repayment dates and contractual undiscounted payments, including principal and interest. The Group does not consider the probability of early repayments requested by the banks.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Within<br>1 year** | **1 to 3 <br>years** | **3 to 5 <br>years** | **Over<br>5 years** | **Total** |
|  | **NT$000** | **NT$000** | **NT$000** | **NT$000** | **NT$000** |
| <u>Non-derivative financial</u><br> <u>liabilities</u> |  |  |  |  |  |
| Short-term bank loans | 341018 |  |  |  | 341018 |
| Long-term bank loans | 3525490 | 6678601 | 3061642 | 1050523 | 14316256 |
| Lease liabilities | 253805 | 149308 | 71714 | 824641 | 1299468 |
| Guarantee deposits |  |  |  | 21186 | 21186 |
|  | **4120313** | **6827909** | **3133356** | **1896350** | **15977928** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  | **Within<br>1 year** | **1 to 3 <br>years** | **3 to 5 <br>years** | **Over<br>5 years** | **Total** |
|  | **NT$000** | **NT$000** | **NT$000** | **NT$000** | **NT$000** |
| <u>Non-derivative financial</u><br> <u>liabilities</u> |  |  |  |  |  |
| Short-term bank loans | 2733648 |  |  |  | 2733648 |
| Long-term bank loans | 3090262 | 5243541 | 3193533 | 1865231 | 13392567 |
| Lease liabilities | 130616 | 95654 | 71610 | 782095 | 1079975 |
| Guarantee deposits |  |  |  | 20486 | 20486 |
|  | **5954526** | **5339195** | **3265143** | **2667812** | **17226676** |

---

The difference between the floating interest rates and estimated interest rates will affect the non-derivative financial liabilities stated above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Fair value information

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The different levels of inputs used in valuation techniques to measure fair value of financial and non-financial instruments are defined as follows:

---

| | |
|:---|:---|
| Level 1: | Quoted prices (unadjusted) in active markets for identical assets or liabilities that can be accessed at the measurement date. An active market is a market in which trading for the asset or liability takes place with sufficient frequency and volume to provide pricing information on an ongoing basis.  |
| Level 2: | Inputs other than quoted prices from Level 1 that are observable information for the asset or liability, either directly or indirectly. |
| Level 3: | Unobservable inputs for the asset or liability. The fair value of the Group's investment in equity investment without active market is included in Level 3.  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The carrying amounts of cash and cash equivalents, financial assets at amortized cost, contract assets, accounts receivable, other receivables, refundable deposits, short-term and long-term bank loans, notes payable, accounts payable, other payables (including related parties), and guarantee deposits are approximate to their fair values.

------

**ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES** 

**Notes to the Consolidated Financial Statements (Continued)**

**December 31, 2023, 2024 and 2025**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The related information of financial and non-financial instruments measured at fair value by level based on the nature, characteristics and risks of the assets and liabilities are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i)The related information of natures of the assets and liabilities are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  | **NT$000** | **NT$000** | **NT$000** | **NT$000** |
| Assets |  |  |  |  |
| <u>Recurring fair value measurements</u> |  |  |  |  |
| Financial assets at fair value through profit or loss |  |  |  |  |
| &nbsp;&nbsp;- Listed stocks | 68970 |  |  | 68970 |
| Financial assets at fair value through other <br> comprehensive income |  |  |  |  |
| &nbsp;&nbsp;- Foreign unlisted stocks |  |  | 103013 | 103013 |
|  | **68970** | **—** | **103013** | **171983** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  | **NT$000** | **NT$000** | **NT$000** | **NT$000** |
| Assets |  |  |  |  |
| <u>Recurring fair value measurements</u> |  |  |  |  |
| Financial assets at fair value through profit or loss |  |  |  |  |
| &nbsp;&nbsp;- Listed stocks | 73150 |  |  | 73150 |
| Financial assets at fair value through other <br> comprehensive income |  |  |  |  |
| &nbsp;&nbsp;- Foreign unlisted stocks |  |  | 135172 | 135172 |
|  | **73150** | **—** | **135172** | **208322** |

---

ii)The methods and assumptions the Group used to measure fair value are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.The fair value of the Group's listed stocks is measured by using the market quoted prices, which is categorized within Level 1 fair value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Except for listed stocks with active markets, the fair value of the Group's other financial instruments is measured by using valuation techniques or by reference to counterparty quotes. The fair value of financial instruments measured by using valuation techniques can be referred to current fair value of instruments with similar terms and characteristics in substance, discounted cash flow method or other valuation methods, including calculated by applying model using market information available at the consolidated statement of financial position date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.The Group's financial instruments issued by foreign companies are measured by the comparable company valuation (EV/EBITDA ratio and P/B ratio).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.The Group takes into account adjustments for credit risks to measure the fair value of financial and non-financial instruments to reflect credit risk of the counterparty and the Group's credit quality.

------

**ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES** 

**Notes to the Consolidated Financial Statements (Continued)**

**December 31, 2023, 2024 and 2025**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)The following table shows the movements of Level 3 for the years ended December 31, 2024 and 2025:

---

| | | |
|:---|:---|:---|
|  | **Equity instruments** | **Equity instruments** |
|  | **2024** | **2025** |
|  | **NT$000** | **NT$000** |
| January 1 | 120317 | 103013 |
| Gains or losses recognized in other comprehensive income |  |  |
| &nbsp;&nbsp; Recorded as unrealized (loss) gain on valuation of financial<br>&nbsp;&nbsp;&nbsp;&nbsp;assets at fair value through other comprehensive income | (17304) | 32159 |
| December 31 | **103013** | **135172** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)The Group performs the fair value measurements being categorized within Level 3 with assistance from specialist. Such assessment is to ensure the valuation results are reasonable by applying independent information to make results close to current market conditions, confirming the resource of information is independent, reliable and in line with other resources and represented as the exercisable price, and frequently calibrating valuation model, updating inputs used to the valuation model and making any other necessary adjustments to the fair value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)The following is the qualitative information and sensitivity analysis of changes in significant unobservable inputs under valuation model used in Level 3 fair value measurement:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Fair value as of December 31, 2024** | **Valuation<br>technique** | **Significant<br>unobservable <br>input** | **Range** | **Relationship of <br>inputs to fair value** |
|  | **NT$000** |  |  |  |  |
| Non-derivative equity<br> instrument: |  |  |  |  |  |
| &nbsp;&nbsp; Foreign unlisted <br>&nbsp;&nbsp;&nbsp;&nbsp;stocks | 103013 | Comparable companies | Enterprise value to EBITDA multiple | 8.90 | The higher the multiple, the higher the fair value |
|  |  |  | Price to book ratio multiple | 1.36~1.53 | The higher the multiple, the higher the fair value |
|  |  |  | Discount for lack of marketability | 15.60% | The higher the discount for lack of marketability, the lower the fair value |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Fair value as of December 31, 2025** | **Valuation<br>technique** | **Significant<br>unobservable<br>input** | **Range** | **Relationship of inputs to fair value** |
|  | **NT$000** |  |  |  |  |
| Non-derivative equity<br> instrument: |  |  |  |  |  |
| &nbsp;&nbsp; Foreign unlisted <br>&nbsp;&nbsp;&nbsp;&nbsp;stocks | 135172 | Comparable companies | Enterprise value to EBITDA multiple | 9.37~15.09 | The higher the multiple, the higher the fair value |
|  |  |  | Price to book ratio multiple | 1.44 | The higher the multiple, the higher the fair value |
|  |  |  | Discount for lack of marketability | 15.60% | The higher the discount for lack of marketability, the lower the fair value |

---

------

**ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES** 

**Notes to the Consolidated Financial Statements (Continued)**

**December 31, 2023, 2024 and 2025**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)The Group has carefully assessed the valuation models and assumptions used to measure fair value. However, use of different valuation models or assumptions may result in different measurement. The following is the effect of profit or loss or of other comprehensive income from financial assets categorized within Level 3 if the inputs used to valuation models have changed:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  |  | **Recognized in <br>profit or loss** | **Recognized in <br>profit or loss** | **Recognized in other<br>comprehensive income** | **Recognized in other<br>comprehensive income** |
|  | **Input** | **Change** | **Favorable<br>change** | **Unfavorable<br>change** | **Favorable<br>change** | **Unfavorable<br>change** |
|  |  |  | **NT$000** | **NT$000** | **NT$000** | **NT$000** |
| Financial assets: |  |  |  |  |  |  |
| &nbsp;&nbsp;Foreign unlisted stocks | Enterprise value to <br> EBITDA multiple | ±1% |  |  | 114 | 114 |
|  | Price to book ratio<br> multiple | ±1% |  |  | 1392 | 1436 |
|  | Discount for lack <br> of marketability | ±1% |  |  | 1208 | 1233 |
|  |  |  | **—** | **—** | **2714** | **2783** |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  |  | **Recognized in <br>profit or loss** | **Recognized in <br>profit or loss** | **Recognized in other<br>comprehensive income** | **Recognized in other<br>comprehensive income** |
|  | **Input** | **Change** | **Favorable<br>change** | **Unfavorable<br>change** | **Favorable<br>change** | **Unfavorable<br>change** |
|  |  |  | **NT$000** | **NT$000** | **NT$000** | **NT$000** |
| Financial assets: |  |  |  |  |  |  |
| &nbsp;&nbsp;Foreign unlisted stocks | Enterprise value to <br> EBITDA multiple | ±1% |  |  | 344 | 363 |
|  | Price to book ratio<br> multiple | ±1% |  |  | 746 | 746 |
|  | Discount for lack <br> of marketability | ±1% |  |  | 1603 | 1622 |
|  |  |  | **—** | **—** | **2693** | **2731** |

---

***42.*** ***Segment information***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)General information

The Group engages mainly in the assembly and testing of semiconductors, memory modules and general investments. In accordance with IFRS 8, "Operating Segments", the Group's segments include Testing, Assembly, LCDD, Bumping and others as the five reportable segments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Measurement of segment information

The Group's reportable segments are strategic business units which provide different products and services. The accounting policies adopted by the operating segments are the same as the accounting policies described in Note 4.

------

**ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES** 

**Notes to the Consolidated Financial Statements (Continued)**

**December 31, 2023, 2024 and 2025**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)Information about segment profit or loss

The segment information provided to the chief operating decision maker for the reportable segments is as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Year ended December 31, 2023** | **Year ended December 31, 2023** | **Year ended December 31, 2023** | **Year ended December 31, 2023** | **Year ended December 31, 2023** | **Year ended December 31, 2023** | **Year ended December 31, 2023** |
|  | **Testing** | **Assembly** | **LCDD** | **Bumping** | **Others** | **Elimination** | **Total** |
|  | **NT$000** | **NT$000** | **NT$000** | **NT$000** | **NT$000** | **NT$000** | **NT$000** |
| Revenue |  |  |  |  |  |  |  |
| &nbsp;&nbsp;External customers | 4394726 | 4629430 | 7821640 | 4510432 |  |  | 21356228 |
| &nbsp;&nbsp;Inter-segment |  |  |  |  | 59481 | (59481) |  |
| Total revenue | **4394726** | **4629430** | **7821640** | **4510432** | **59481** | **(59481)** | **21356228** |
| Operating profit (loss) | **514707** | **(1180481)** | **2058285** | **522386** | **(6194)** | **(251)** | **1908452** |
| Depreciation expenses | **(1065689)** | **(722462)** | **(2547253)** | **(435709)** | **(8220)** |  | **(4779333)** |
| Share of profit of <br> associates | **—** | **—** | **—** | **—** | **420393** | **(200502)** | **219891** |
| Interest income | **—** | **—** | **—** | **—** | **193189** | **—** | **193189** |
| Interest expense | **—** | **—** | **—** | **—** | **(265957)** | **—** | **(265957)** |
| Purchase of property, <br> plant and equipment | **749158** | **568289** | **1756590** | **152908** | **1526** | **—** | **3228471** |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Year ended December 31, 2024** | **Year ended December 31, 2024** | **Year ended December 31, 2024** | **Year ended December 31, 2024** | **Year ended December 31, 2024** | **Year ended December 31, 2024** | **Year ended December 31, 2024** |
|  | **Testing** | **Assembly** | **LCDD** | **Bumping** | **Others** | **Elimination** | **Total** |
|  | **NT$000** | **NT$000** | **NT$000** | **NT$000** | **NT$000** | **NT$000** | **NT$000** |
| Revenue |  |  |  |  |  |  |  |
| &nbsp;&nbsp;External customers | 4967849 | 5390447 | 7318997 | 5018616 |  |  | 22695909 |
| &nbsp;&nbsp;Inter-segment |  |  |  |  | 60131 | (60131) |  |
| Total revenue | **4967849** | **5390447** | **7318997** | **5018616** | **60131** | **(60131)** | **22695909** |
| Operating profit (loss) | **625435** | **(1190575)** | **1281862** | **555419** | **1863** | **(67)** | **1273937** |
| Depreciation expenses | **(1075612)** | **(799273)** | **(2568610)** | **(405330)** | **(7361)** |  | **(4856186)** |
| Share of profit of <br> associates | **—** | **—** | **—** | **—** | **119118** | **(116435)** | **2683** |
| Interest income | **—** | **—** | **—** | **—** | **197719** | **—** | **197719** |
| Interest expense | **—** | **—** | **—** | **—** | **(278581)** | **—** | **(278581)** |
| Purchase of property, <br> plant and equipment | **1555415** | **1273837** | **2257968** | **364139** | **72** | **—** | **5451431** |

---

------

**ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES** 

**Notes to the Consolidated Financial Statements (Continued)**

**December 31, 2023, 2024 and 2025**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Year ended December 31, 2025** | **Year ended December 31, 2025** | **Year ended December 31, 2025** | **Year ended December 31, 2025** | **Year ended December 31, 2025** | **Year ended December 31, 2025** | **Year ended December 31, 2025** |
|  | **Testing** | **Assembly** | **LCDD** | **Bumping** | **Others** | **Elimination** | **Total** |
|  | **NT$000** | **NT$000** | **NT$000** | **NT$000** | **NT$000** | **NT$000** | **NT$000** |
| Revenue |  |  |  |  |  |  |  |
| &nbsp;&nbsp;External customers | 5677923 | 6827404 | 5869849 | 5557724 |  |  | 23932900 |
| &nbsp;&nbsp;Inter-segment |  |  |  |  | 57974 | (57974) |  |
| Total revenue | **5677923** | **6827404** | **5869849** | **5557724** | **57974** | **(57974)** | **23932900** |
| Operating profit (loss) | **930874** | **(630407)** | **201964** | **636760** | **3139** | **363** | **1142693** |
| Depreciation expenses | **(1208025)** | **(901225)** | **(2621030)** | **(363094)** | **(7294)** |  | **(5100668)** |
| Share of loss of <br> associates | **—** | **—** | **—** | **—** | **(130990)** | **(11866)** | **(142856)** |
| Interest income | **—** | **—** | **—** | **—** | **243324** | **—** | **243324** |
| Interest expense | **—** | **—** | **—** | **—** | **(300883)** | **—** | **(300883)** |
| Purchase of property, <br> plant and equipment | **1819916** | **690525** | **814160** | **341461** | **25** | **—** | **3666087** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d)Reconciliation for segment income (loss)

Revenue from external customers and segment income (loss) reported to the chief operating decision maker are measured using the same method as for revenue and operating profit in the financial statements. Thus, no reconciliation is needed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e)Information on products and services

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2023** | **2023** | **2024** | **2024** | **2025** | **2025** |
|  | **NT$000** | **%** | **NT$000** | **%** | **NT$000** | **%** |
| Testing | 4394726 | 20 | 4967849 | 22 | 5677923 | 24 |
| Assembly | 4629430 | 22 | 5390447 | 24 | 6827404 | 29 |
| LCDD | 7821640 | 37 | 7318997 | 32 | 5869849 | 24 |
| Bumping | 4510432 | 21 | 5018616 | 22 | 5557724 | 23 |
|  | **21356228** | **100** | **22695909** | **100** | **23932900** | **100** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f)Geographical information

---

| | | | |
|:---|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2023** | **2024** | **2025** |
|  | **NT$000** | **NT$000** | **NT$000** |
| **<u>Revenue</u>** |  |  |  |
| ROC | 17287574 | 18079388 | 20784732 |
| Japan | 1176163 | 1352192 | 1227096 |
| PRC | 1729908 | 1683358 | 1430399 |
| Singapore | 676088 | 981329 |  |
| Others | 486495 | 599642 | 490673 |
|  | **21356228** | **22695909** | **23932900** |

---

------

**ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES** 

**Notes to the Consolidated Financial Statements (Continued)**

**December 31, 2023, 2024 and 2025**

---

| | | |
|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2025** |
|  | **NT$000** | **NT$000** |
| **<u>Non-current assets</u>** |  |  |
| ROC | 21120719 | 19681783 |
| PRC | 2861 | 1551 |
| Others | 431 | 18498 |
|  | **21124011** | **19701832** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g)Major customer information

The information on the major customers which constituted more than 10% of the Group's total revenue for the years ended December 31, 2023, 2024 and 2025 is as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2023** | **2023** | **2024** | **2024** | **2025** | **2025** |
|  | **NT$000** | **%** | **NT$000** | **%** | **NT$000** | **%** |
| **<u>Customers</u>** |  |  |  |  |  |  |
| Customer A | 5251529 | 25 | 5376979 | 24 | 5393013 | 23 |
| Customer K | 1787471 | 8 | 2487062 | 11 | 3673340 | 15 |
| Customer B | 2834188 | 13 | 2604235 | 11 | 2209678 | 9 |

---

***43.*** ***Financial statements schedule: valuation and qualifying accounts***

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **January 1** | **Additions charged<br> to expense or <br>deduction of revenue** | **Deduction /<br>Write-offs /<br>Reversal** | **December 31** |
|  | **NT$000** | **NT$000** | **NT$000** | **NT$000** |
| **<u>Year 2023</u>** |  |  |  |  |
| Allowance for impairment of property, plant <br> and equipment | 194467 | 9236 |  | 203703 |
| Allowance for impairment of obsolescence <br> and decline in market value of inventories | 105630 | 80633 |  | 186263 |
| Provision for deficiency compensation | 26643 | 21495 | (14574) | 33564 |
| Sales for allowance | 37123 | 112488 | (111944) | 37667 |
| **<u>Year 2024</u>** |  |  |  |  |
| Allowance for impairment of property, plant <br> and equipment | 203703 | 18618 | (10061) | 212260 |
| Allowance for impairment of obsolescence <br> and decline in market value of inventories | 186263 |  | (26114) | 160149 |
| Provision for deficiency compensation | 33564 | 44297 | (41937) | 35924 |
| Sales for allowance | 37667 | 115150 | (116421) | 36396 |
| **<u>Year 2025</u>** |  |  |  |  |
| Allowance for impairment of property, plant <br> and equipment | 212260 | 764 | (226) | 212798 |
| Allowance for impairment of obsolescence <br> and decline in market value of inventories | 160149 |  | (4358) | 155791 |
| Provision for deficiency compensation | 35924 | 77456 | (34398) | 78982 |
| Sales for allowance | 36396 | 76359 | (102422) | 10333 |

---

For movements in loss allowance for contract assets, accounts receivable, and other receivables, please refer to Note 41 a).

------

## Exhibit 1.1

**Exhibit 1.1**

![img15787646_0.jpg](img15787646_0.jpg)

**ChipMOS TECHNOLOGIES INC.**

**Articles of Incorporation**

**Section I General Provisions**

**Article 1**

The Company has been incorporated as a company limited by shares under the Company Act. The name of the Company is "南茂科技股份有限公司" in Chinese, and "ChipMOS TECHNOLOGIES INC." in English.

**Article 2**

The scope of business of the Company shall be as follows:

CC01080 Electronic Parts and Components Manufacturing,

I501010 Product Designing,

F119010 Wholesale of Electronic Materials,

CC01120 Data Storage Media Manufacturing and Duplicating, and

F401010 International Trade (limited to the import and export of the registered business items)

The research, development, production, manufacturing, and sales of the products listed below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Assembly and testing services for functional highly integrated memory semiconductors (principal products are DRAM with 64Mb, 256Mb and above).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Assembly and testing services for mixed-signal products and its modules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Assembly and testing services for flat-panel display (FPD) driver ICs and FPD driver modules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. LCOS optical engine sub-systems.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Surface-mount technology and its related products.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Trading (import and export) of the products relating to the above.

**Article 3**

The Company may conduct investment which is necessary for its business operations, and may act as a shareholder with limited liability of another company by the resolution of the Board of Directors. The total amount of the Company's investment shall not be subject to the restriction of the total amount of the investment provided in Article 13 of the Company Act.

**Article 4**

The Company may provide guarantee as required by its business operations in accordance with the Operational Procedures for Endorsements and Guarantees.

**Article 5**

The Company establishes its head office in Hsinchu Science Park, and may, when necessary, establish branches domestically or abroad in accordance with the laws and regulations by the resolution of the board of directors and with the approval of the competent authorities.

**Article 6**

Public announcements of the Company shall be made in accordance with Article 28 of the Company Act.

------

**SECTION II CAPITALSTOCK**

**Article 7**

The total capital of the Company shall be in the amount of 9,700,000,000 New Taiwan Dollars, divided into 970,000,000 shares, of which the par value is 10 New Taiwan Dollars per share. For the shares not yet issued, the board of directors is authorized to issue such shares in installments based on the actual need.

970,000,000 New Taiwan Dollars included in the total capital under paragraph 1, which is equivalent to 97,000,000 shares at a par value of 10 New Taiwan Dollars each, shall be reserved for the employee stock options. The board of directors is authorized to issue such shares in installments based on the actual need.

**Article 7-1**

If the Company issues the employee stock options after the Company has been listed on a stock exchange, the Company may issue the employee stock options at a price below the market price; provided however, that such issuance shall be adopted by two-thirds or more of the shareholders present at a shareholders' meeting who represent the majority of the total number of issued shares. The employee stock options may be issued in installments within a year after the resolution of the shareholders' meeting.

In the event that the Company buys back treasury stocks and transfers them to the employees at a price below the average buy-back price, before making the transfer, the Company shall obtain the approval of two-thirds or more of the shareholders present at a shareholders' meeting who represent the majority of the total number of issued shares.

**Article 7-2**

The employees entitled to receive treasury stock bought back by the company in accordance with the Company Act may include employees of parents or subsidiaries of the Company meeting certain specific requirements.

The employees entitled to receive share subscription warrants may include employees of parents or subsidiaries of the Company meeting certain specific requirements.

When the Company issues new shares, the employees entitled to subscribe the new shares may include employees of parents or subsidiaries of the Company meeting certain specific requirements.

The employees entitled to receive restricted stock may include employees of parents or subsidiaries of the Company meeting certain specific requirements.

**Article 8**

The stock certificates of the Company shall be in a name-bearing form, and shall be made in accordance with the relevant regulations of the Company Act. The shares may be issued without printing share certificates; provided however, that the shares issued without share certificates shall be registered with a centralized securities depository enterprise.

**Article 9**

The matters related to the shares of the Company shall be conducted in accordance with the Regulations Governing the Administration of Shareholder Services of Public Companies and other related laws and regulations.

**Article 10**

Registration for transfer of shares shall be suspended sixty days prior to the date of an annual meeting of the shareholders, thirty days prior to the date of a special meeting of the shareholders, or five days prior to the record day for the distribution of dividend, bonus, or any other benefit by the Company.

------

**SECTION III SHAREHOLDERS' MEETING**

**Article 11**

Meetings of the shareholders are of two kinds: annual meetings and special meetings. Annual meetings shall be held at least once a year and shall be convened within six months after the close of each fiscal year in accordance with the law. Special meetings shall be held when necessary according to the law.

In case a shareholder is unable to attend the shareholders' meeting, he or she may appoint a representative to attend the meeting by issuing a letter of proxy prepared by the Company in which the scope of proxy shall be indicated with the signature or chop affixed that comply with Article 177 of the Company Act.

**Article 11-1**

The Company shall notify the shareholders of the shareholders' meetings thirty days in advance of an annual meeting, and fifteen days in advance of a special meeting. The meeting notice shall set forth the date, time, place and purposes of the meeting.

**Article 11-2**

Shareholders who hold 1% or more of the total issued shares may propose a matter to be discussed at the annual shareholders' meeting in writing. The relevant matters shall be handled in accordance with Article 172-1 of the Company Act.

**Article 11-3**

The shareholders' meeting of the Company can be held by means of visual communication network or other methods promulgated by the central competent authority.

In case a shareholders' meeting is preceded via visual communication network, the shareholders taking part in such a visual communication meeting shall be deemed to have attended the meeting in person.

**Article 12**

For shareholders of the Company, each share shall be entitled to one vote. However, shares held in accordance with Article 179 of the Company Act or relevant laws and regulations do not have any voting right.

**Article 13**

Except as otherwise provided by the relevant laws and regulations, the resolution of a shareholders' meeting shall be adopted by a majority vote of the shareholders present who represent the majority of the total number of the issued shares.

**Article 13-1**

In case the Company plans to revoke its public company status, the revocation shall be subject to a resolution of the shareholders' meeting. This provision shall not be modified when the stocks of the Company are registered with the Emerging Stock Market or the Company is listed on a stock exchange.

**Article 14**

The shareholders' meeting convened by the board of directors shall be presided over by the Chairperson of the board of directors. In case of his or her absence, a proxy shall be designated in accordance with Article 208 of the Company Act.

**Article 15**

The resolutions of a shareholders' meeting shall be recorded in the meeting minutes, which shall be signed or stamped by the chairperson of the meeting and shall be distributed to the shareholders within twenty days after the meeting.

The making and distribution of the meeting minutes in the preceding paragraph may be made by electronic methods. The company which is a public company may distribute the meeting minutes by making a public announcement.

------

**SECTION IV DIRECTORS**

**Article 16**

The Company shall have nine to eleven directors to be elected by the shareholders' meeting from among candidates of legal capacity. The term of the directors shall be three years. The directors may be re-elected and re-appointed. The Company adopts the candidate nomination system under Article 192-1 of the Company Act for the election of directors and independent directors. The directors and independent directors shall be elected by the shareholders from the list of candidates. The matters regarding the acceptance and the announcement of the nomination of directors and independent directors shall be handled in accordance with the laws and regulations related to the Company Act and the Securities and Exchange Act, and in accordance with the Company's rules related to the election of directors and independent directors.

**Article 16-1**

The Company shall have independent directors in accordance with Article 14-2 of the Securities and Exchange Act. Among the directors, there shall be three to five independent directors, the total number of which shall not be less than one-third of the directors.

The chairman and president or the same position are the same person or spouse or first-degree relatives. There must be at least four independent directors and more than half of the directors should not serve as employees or managers.

The professional qualifications, shareholding, term, restrictions on holding concurrent positions, and other requirements of the independent directors shall be handled in accordance with relevant laws and regulations promulgated by securities authorities.

**Article 16-2**

The Company shall establish an audit committee in accordance with Articles 14-4 of the Securities and Exchange Act, which shall consist of all independent directors.

**Article 17**

The board of directors consists of directors. The chairperson of the board of directors shall be elected from among the directors by a majority vote at a meeting attended by two-thirds or more of the directors. The chairperson of the board of directors shall act in his capacity to represent the Company externally and shall comply with Article 195 of the Company Act.

The chairperson of the board of directors shall preside over the shareholders' meeting and the board of directors meeting, and shall externally represent the company to perform his or her duties accorded by law. In his or her absence, a proxy shall be designated in accordance with Article 208 of the Company Act. If the board of directors meeting is held via visual communication meeting, the directors who attend the meeting via visual communication meeting shall be deemed as attending the meeting in person.

**Article 18**

Except as otherwise provided by the Company Act, a resolution of the board of directors is adopted if it is approved by the majority of the directors present at a meeting attended by the majority of the directors. The board of directors meeting shall be held at least quarterly. A director may appoint another director to attend the board of directors meeting on his or her behalf; provided however that a letter of proxy listing the scope of authorization with regard to the agenda of the meeting is issued. Each director may only act as the proxy for one director.

The stipulation regarding the meeting minutes for shareholders' meeting under Article 15 shall be applied to the board of directors meetings, *mutatis mutandis*.

------

**Article 19**

The board of directors has the authority to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. review the business policy and mid-term and long-term development plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. review and supervise the operation of the annual business plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. review and approve the budget and review the settlement of accounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. review plans for increase or decrease in capital;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. review proposals for the distribution of profits or covering of losses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. review and approve material agreements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. submit the proposal to the shareholders' meeting with regard to distribution of profits, amendment of the Articles of Incorporation, change of capital, and dissolution or merger of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. review and approve the charter documents and important business rules of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. approve material project of capital expenditure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. appoint and terminate the president and vice president(s);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. execute the resolutions of the shareholders' meeting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. hold the shareholders' meeting and prepare business reports; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. handle other matters required or permitted by the law.

**Article 20**

The scope of authority of the audit committee shall be the performance of the responsibilities of supervisors specified under the Company Act, Securities and Exchange Act and other relevant laws and regulations, and the authorities stipulated under the charter document in respect of the audit committee of the Company.

**Article 21**

The resolution of the audit committee shall be adopted with the consent of the majority of the committee members.

**Article 21-1**

The board of directors is authorized to determine the remuneration of all directors based on the level of involvement of and the value of contribution by the directors, taking into account the level of remuneration given by companies in the same industry.

**Article 21-2**

The Company should purchase liability insurance for its directors and independent directors in relation to the liabilities to be borne by them under the law for the performance of their responsibilities during the office term.

**SECTION V OFFICERS**

**Article 22**

The Company shall appoint one president and one or more vice presidents based on its business needs. The president shall be nominated by the chairperson of the board of directors and comply with Article 29 of the Company Act.

**Article 23**

The president shall act in accordance with the instructions of the chairperson of the board of directors and manage the business of the Company in accordance with the resolutions of the board of directors and shareholders' meeting and these Articles of Incorporation. Except for the vice presidents, the president may nominate other officers and has the right of performance evaluation. The vice presidents shall assist the president in the daily operation of the Company.

------

**SECTION VI ACCOUNTING**

**Article 24**

The fiscal year of the Company shall commence from January 1 of each year and end on December 31 of the same year, and shall conduct the assessment of settlement of accounts after the close of each fiscal year. The board of directors shall prepare the following reports and shall send such reports to the audit committee for review thirty days before the annual shareholders' meeting, and then submit such reports to the annual shareholders' meeting for recognition:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. a business report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. financial statements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. a proposal on the distribution of profits or covering of losses.

**Article 25**

If there is profit in any given year, the Company shall set aside 10% thereof as employee compensation, of which the amount distributed to non-executive employees shall not be less than 3% of the profit. The board of directors may resolve to pay said compensation in the form of shares or cash. Such compensation may be paid to the employees of an affiliated company who meet the conditions set by the board of directors. The board of directors may resolve to set aside no more than 0.5% of the above-mentioned profit as the remuneration of the directors. A proposal on the compensation for the employees and remuneration of the directors shall be presented at the shareholders' meeting. If the Company has accumulated losses, the amount for making up said losses shall be reserved before setting aside the compensation for the employees and the remuneration of directors at the rates stated above.

**Article 25-1**

Upon the final settlement of accounts, if there is net profit, the Company shall first set aside the tax payable and offset its losses before setting aside a legal capital reserve at 10% of the remaining profit. The Company shall then set aside or reverse the special capital reserve in accordance with the laws and regulations and as requested by the competent authorities. The remaining profit of that fiscal year, as well as the accumulated undistributed profit at the beginning of the same year and the adjusted undistributed profit of the given fiscal year, shall be distributable profit. If there is any surplus distributable profit after the board of directors sets aside a reserve based on the Company's operational needs, such surplus profit may be distributed in full or in part to shareholders as dividends, subject to the approval of the shareholders' meeting.

A proposal on the distribution of dividends shall be submitted by the board of directors annually to the shareholders' meeting, and be based on factors such as past years' profit, the current and future investment environment, the Company's capital needs, competition in the domestic and foreign markets, and budgets, with an aim to pursuing shareholders' interests and balancing the dividend distribution and the long-term financial plan of the Company. The distribution of profits of the Company can be made in the form of cash dividends or stock dividends, provided that the cash dividend shall account for at least 10% of the total profit distributed as dividends in the given year.

**SECTION VII SUPPLEMENTARYPROVISIONS**

**Article 26**

The internal organization of the Company and the detailed procedures of business operation shall be determined separately by the board of directors.

**Article 27**

Matters not provided for in these Articles of Incorporation shall be handled in accordance with the Company Act.

------

**Article 28**

These Articles of Incorporation are agreed upon and signed by all the promoters of the Company on July 17, 1997. The first amendment was made on April 27, 1998. The second amendment was made on May 18, 2000. The third amendment was made on June 5, 2002. The fourth amendment was made on June 26, 2003. The fifth amendment was made on June 11, 2004. The sixth amendment was made on June 15, 2005. The seventh amendment was made on August 2, 2005. The eighth amendment was made on June 15, 2006. The ninth amendment was made on April 12, 2007. The tenth amendment was made on June 28, 2007. The eleventh amendment was made on December 17, 2007. The twelfth amendment was made on March 30, 2010. The thirteenth amendment was made on June 22, 2012. The fourteenth amendment was made on June 17, 2013. The fifteenth amendment was made on December 30, 2014. The sixteenth amendment was made on January 28, 2016. The seventeenth amendment was made on May 26, 2017. The eighteenth amendment was made on June 10, 2019. The nineteenth amendment was made on June 9, 2020. The twentieth amendment was made on July 12, 2021. The twenty-first amendment was made on May 26, 2022. The twenty-second amendment was made on May 27, 2025.

ChipMOS TECHNOLOGIES INC.

Chairman: Shih-Jye Cheng

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## Exhibit 8.1

**Exhibit 8.1**

***<u>List of Principal Subsidiaries</u>*** 

---

| | |
|:---|:---|
| **Name**<br>| &nbsp;&nbsp;&nbsp;**Place of Incorporation** <br>|
| ChipMOS TECHNOLOGIES (BVI) LTD. | &nbsp;&nbsp;British Virgin Islands |
| ChipMOS U.S.A., INC. | &nbsp;&nbsp;U.S.A. |
| ChipMOS SEMICONDUCTORS (Shanghai) LTD. | &nbsp;&nbsp;People's Republic of China |

---

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## Exhibit 12.1

**Exhibit 12.1** 

**CERTIFICATIONS** 

I, Shih-Jye Cheng, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this annual report on Form 20-F of ChipMOS TECHNOLOGIES INC.;

&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;4.The company's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Evaluated the effectiveness of the company's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Disclosed in this report any change in the company's internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the company's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;5.The company's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company's auditors and the audit committee of the company's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the company's internal control over financial reporting.

Date: April 14, 2026

---

| | |
|:---|:---|
| /s/ Shih-Jye Cheng | /s/ Shih-Jye Cheng |
| **Name:** | **Shih-Jye Cheng** |
| **Title:** | **Chairman and President** |

---

------

## Exhibit 12.2

**Exhibit 12.2** 

**CERTIFICATIONS** 

I, Silvia Su, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this annual report on Form 20-F of ChipMOS TECHNOLOGIES INC.;

&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;4.The company's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Evaluated the effectiveness of the company's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Disclosed in this report any change in the company's internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the company's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;5.The company's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company's auditors and the audit committee of the company's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the company's internal control over financial reporting.

Date: April 14, 2026

---

| | |
|:---|:---|
| /s/ Silvia Su | /s/ Silvia Su |
| **Name:** | **Silvia Su** |
| **Title:** | **Vice President, Finance and Accounting Management Center** |

---

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## Exhibit 13.1

**Exhibit 13.1** 

**ChipMOS TECHNOLOGIES INC.** 

**CERTIFICATION** 

Pursuant to 18 U.S.C. §1350, the undersigned, Shih-Jye Cheng, Chairman and President of ChipMOS TECHNOLOGIES INC. (the "Company"), hereby certifies, to his knowledge, that the Company's Annual Report on Form 20-F for the year ended December 31, 2025 (the "Report") fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

The foregoing certification is being furnished solely pursuant to 18 U.S.C. §1350 and is not being filed as part of the Report or as a separate disclosure document.

Date: April 14, 2026

---

| | |
|:---|:---|
| /s/ Shih-Jye Cheng | /s/ Shih-Jye Cheng |
| **Name:** | **Shih-Jye Cheng** |
| **Title:** | **Chairman and President** |

---

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## Exhibit 13.2

**Exhibit 13.2** 

**ChipMOS TECHNOLOGIES INC.** 

**CERTIFICATION** 

Pursuant to 18 U.S.C. §1350, the undersigned, Silvia Su, Vice President of the Finance and Accounting Management Center of ChipMOS TECHNOLOGIES INC. (the "Company"), hereby certifies, to her knowledge, that the Company's Annual Report on Form 20-F for the year ended December 31, 2025 (the "Report") fully complies with the requirements of Section13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

The foregoing certification is being furnished solely pursuant to 18 U.S.C. §1350 and is not being filed as part of the Report or as a separate disclosure document.

Date: April 14, 2026

---

| | |
|:---|:---|
| /s/ Silvia Su | /s/ Silvia Su |
| **Name:** | **Silvia Su** |
| **Title:** | **Vice President, Finance and Accounting Management Center** |

---

------