ChipMOS TECHNOLOGIES : 2022

2022 Annual Report

Printed on April 13, 2023

Company Spokesperson

Name: Jesse Huang

Title: Senior Vice President, Strategy and

Investor Relations

Tel: [phone]

E-MAIL: [e-mail]

Deputy Spokesperson

Name: Silvia Su

Title:Vice President, Finance & Accounting

Management Center

Tel: [phone]

E-MAIL: [e-mail]

Headquarter and Fabs

Hsinchu Headquarter (Hsinchu fab.) Address: No. 1, R&D Rd. 1, Hsinchu Science Park, Hsinchu City, Taiwan, R.O.C.

Tel: [phone]

Fax: [phone]

Tainan fab.

Address: No. 5, Nanke 7th Rd., Southern Taiwan Science Park, Tainan City, Taiwan, R.O.C.

Tel: [phone]

Fax: [phone]

Tainan fab. 2

Address: No. 3, Nanke 7th Rd., Southern Taiwan Science Park, Tainan City, Taiwan, R.O.C.

Tel: [phone]

Fax: [phone]

Zhubei fab.

Address: No. 37, Xintai Rd., Zhubei City, Hsinchu County, Taiwan, R.O.C.

Tel: [phone]

Fax: [phone]

Zhubei fab. 2

Address: No. 112, Zhonghe St., Zhubei City, Hsinchu County, Taiwan, R.O.C.

Tel: [phone]

Fax: [phone]

Hukou fab.

Address: No. 4, Rende Rd., Feng Shan Vil.,

Hukou Township, Hsinchu County, Taiwan,

R.O.C.

Tel: [phone]

Fax: [phone]

U.S. subsidiary

Address: 2890 North First Street, San Jose, CA 95134, U.S.A.

Tel: [phone]

Fax: [phone]

Shanghai subsidiary

Address: Room 309-C, 6 Building, 990

Shenchang Road, Minhang District, Shanghai

Tel: [phone]

Stock Transfer Agent

Company: KGI Securities Co., Ltd., Transfer Agency Department

Address: 5F., No. 2, Sec. 1, Chongqing S. Rd., Zhongzheng Dist., Taipei City, Taiwan, R.O.C. Website: https://www.kgi.com.tw

Tel: [phone]

The Certified Public Accountants for the Latest Annual Financial Statements Company: PricewaterhouseCoopers,Taiwan Auditors: Chien-YehHsu, Yi- Chang Liang Address: 27F., No. 333, Sec. 1, Keelung Rd., Xinyi Dist., Taipei City, Taiwan, R.O.C. Website: https://www.pwc.tw

Tel: [phone]

Foreign Securities Trade & Exchange ADS exchange:

NASDAQ Stock Market

Disclosed information can be found at: https://www.nasdaq.com

ADS code: IMOS

Corporate Website https://www.chipmos.com

		Table of Contents
I.	Letter to Shareholders	1
II.	Company Profile
	I.	Date of Incorporation	3
	II.	Company History	3
III. Corporate Governance Report
	I.	Organization System	7

1. Information of Directors (including independent directors), President,

	Vice Presidents, Assistant Presidents, Officers of Departments and Branches	9
III. Remuneration to Directors (including independent directors), President
	and Vice Presidents	26
IV.	Implementation of Corporate Governance	33
V.	Information on the Professional Fees of the Attesting CPAs	93
VI.	Information on Replacement of CPAs	94
VII. Company's Chairman, President, or Any Manager in Charge of Finance or
	Accounting Matters has Held a Position at the Accounting Firm of Its CPA or at an
	Affiliated Enterprise of Such Accounting Firm in the Most Recent Year	94
VIII.Changes in Equity Interests by Directors (including independent directors),
	Managers or Shareholders with a Stake of More Than 10 Percent in the Most
	Recent Year and Up to the Date of Publication of the Annual Report	94
IX. Relationship Information, if among the Company's 10 Largest Shareholders Any One
	is a Related Party or a Relative within the Second Degree of Kinship of Another	96

1. The Total Number of Shares and Total Equity Stake held in any Single Enterprise by

the Company, its Directors (including independent directors), Managers, and
Any Companies Controlled Either Directly or Indirectly by the Company	97

IV. Capital Overview

I.	Capital and Shares	98
II.	Corporate Bonds	103
III.	Preferred Shares	103
IV.	Global Depository Receipts	104
V.	Employee Share Subscription Warrants and New Restricted Employee Shares	104
VI.	Status of New Shares Issuance in Connection with Mergers or Acquisitions	104
VII.	Implementation of Capital Allocation Plans	105

1. Business Operations Overview

I.	Business Contents	106
II.	Market, Production, and Sales Overview	118
III.	Employees Status	130

IV.	Disbursements for Environmental Protection	130
V.	Labor Relations	131
VI.	Cyber Security and Intellectual Property Management	133
VII. Material Contracts	135
VI. Financial Information
I. Condensed Balance Sheets, Statements of Comprehensive Income, Attesting
CPA' Name and the Auditor's Opinions for the Most Recent 5 Years	139
II. Financial Analysis for the Most Recent 5 Years	144
III. Audit Committee's Review Report of the Most Recent Year	147
IV. Consolidated Financial Report of the Most Recent Year	148
V. Parent Company Only Financial Report of the Most Recent Year	211
VI. Explanations Regarding Impacts on Company's Financial Status in the Event that
	the Company or its Affiliates Have Financial Difficulties in the Most Recent Year
	and Up to the Date of Publication of the Annual Report	284

VII. Review of Financial Position, Financial Performance and Risk Management

I.	Financial Position	285
II.	Financial Performance	286
III.	Cash Flow	287
IV.	Effect Upon Financial Operations of Major Capital Expenditures in the Most
	Recent Year	287

1. Investment Policy in the Most Recent Year, Main Causes for Profits or

Losses, Improvement Plans and Investment Plans for the Coming Year	287
VI. Risk Management as in the Most Recent Year and Up to the Date of Publication
Date of the Annual Report	288
VII. Other Important Matters	295

VIII. Special Items to be included
I. Information Related to the Company's Affiliates	296

1. Status of Company's Private Placement of Securities in the Most Recent Year

and Up to the Date of Publication of the Annual Report	297
III. Holding or Disposal of Shares of the Company by Subsidiaries in the Most Recent
Year and Up to the Date of Publication of the Annual Report	298
IV. Other Matters that Require Additional Description	298
IX. Any of the Situations Listed in Article 36, Paragraph 3, Subparagraph 2 of
the Securities and Exchange Act, which might Materially Affect
Shareholders' Equity or the Price of the Company's Securities, has
Occurred in the Most Recent Year and Up to the Date of Publication of the
Annual Report	298

I. Letter to Shareholders

Dear Shareholders,

Operation challenges in 2022 are unprecedented, under the influences of geopolitics, global inflationary pressures, pandemic lock downs and semiconductor supply chain imbalance. In the first half of year, the operation momentum continued growth, driven by the semiconductor supply chain shortage from 2021. However, the semiconductor supply chain inventory level increases and end-demand rapidly decrease influenced by geopolitics and global inflationary pressures. Demand soft caused customers' inventory adjustments and macro weakness. China COVID lock downs have further aggravated the problem of consumer electronics macro softness. These macro headwinds impacted our 2022 results, including revenue and profit both declined compared to 2021. By cautiously stable operating strategy, in line with industry trend and customer requirements, ChipMOS will keep moving forward expanding the core technologies and product developments to maintain growth momentum and improve profitability. The followings are the major operating results of 2022:

Operating Result

Consolidated revenue for the fiscal year ended December 31, 2022 was NT$23.52 billion, which reflects 14.2% down from 2021. The consolidated gross margin for the year was 20.9%. In individual product lines, memory product revenue decreased 15.6% from 2021, and represented 41.8% of 2022 total revenue. The revenue of flat panel display driver IC (DDIC) related products, including gold bump declined 13.2% and represented 47.3% of 2022 total revenue. Driven by automotive and smart mobile, OLED panel driver IC revenue grew more than 35% from 2021.

Financial Performance

The profit attributable to equity holders of the Company and the basic earnings per share were NT$3.37 billion and NT$4.64. Till the end of 2022, the aggregated amount of ChipMOS' consolidated assets was NT$44.94 billion and the cash and cash equivalents was NT$9.90 billion. The consolidated liabilities was NT$20.13 billion with the consolidated liabilities to assets ratio of 44.8%. The equity attributable to equity holders of the Company was NT$24.81 billion with the Return on Equity (ROE) was 13.7% for 2022. Overall, ChipMOS has strengthened financial structure.

Technological Developments

Single integrated device and the thinning & small foot print requirements are driving the packaging technology development with the rising of emerging applications such as AI and 5G, and the popularity of mobile devices. We completed the following technologies development results in 2022:

1. Wafer level packaging: pure copper RDL for 2P2M RDL structure of complex circuit.
2. Fine pitch 45um copper pillar process for micro bump structure.
3. Ultra Fine Pitch (UFP) COF assembly and testing technology.
4. Implement new thermal conductive resin with higher conductivity for COF package.
5. Optimized RLC for high frequency and low loss substrate design

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