Taiwan’s ChipMOS Technologies has projected a cautious revenue outlook for the second half of 2025 due to uncertainties related to US tariffs and decreased demand earlier in the year.

Chairman Cheng Chih-chieh mentioned the company is assessing the impact of early-year demand on second-half performance.

Customers are adopting a conservative approach because of the upcoming end of the 90-day pause on US tariffs, leading to an unclear industry outlook.

In Q1 2025, ChipMOS reported a net profit decline of 60% year-on-year to NT$176.3 million (US$5.79 million).

The gross margin dropped to 9.4%, down from 14.2% last year, while revenue increased by 2% to NT$5.53 billion (US$182.70 million), driven by rush orders.

Cheng noted potential growth in the memory chip segment, supported by a rebound in DRAM prices and rising demand for flash memory in AI devices, but the outlook for display driver ICs remains uncertain.

🔗 Source: Taipei Times

🧠 Food for thought

1️⃣ Tariff uncertainty reshapes semiconductor industry planning cycles

ChipMOS’s cautious outlook reflects a broader pattern affecting the entire semiconductor supply chain since trade tensions escalated.

The US-China trade conflict has demonstrably disrupted normal planning cycles, with the Semiconductor Industry Association noting that ongoing disputes cause significant anxiety among semiconductor companies, affecting both financial markets and supply chains 1.

When tariffs were first implemented, they directly impacted $47.91 billion worth of products including machinery and electronic equipment, creating ripple effects throughout tech manufacturing 2.

These trade tensions have particularly complicated business planning for semiconductor companies that operate across borders, as they face both direct tariff costs and the unpredictability of customer demand patterns.

The front-loading phenomenon mentioned by ChipMOS, where customers accelerate purchases ahead of tariff implementation, creates artificial demand spikes followed by potential slumps, making factory utilization and capacity planning exceptionally challenging.

2️⃣ Memory and display driver markets face diverging trajectories

ChipMOS’s expectation that memory chips will outperform display driver ICs aligns with broader industry analysis of these two critical semiconductor segments.