ChipMOS REPORTS FOURTH QUARTER AND FULL YEAR 2018 RESULTS

HSINCHU,March 7,2019 /PRNewswire-FirstCall/ --

Full Year 2018 Highlights (as compared to the Full Year 2017):

Revenue Increases to US$603.8 Million from US$586.1 Million

Gross Profit Increases to US$112.1 Million from US$105.8 Million

Gross Margin Increases to 18.6% from 18.0%

Ended 2018 with Cash and Cash Equivalents Balance of US$151.7 Million After Distributing Cash Dividend of US$8.4 Million and Capital Reduction of US$42.0 Millionto Shareholders and Investing US$161.6 Million in CapEx to Support Growth Programs

ChipMOS TECHNOLOGIES INC. ("ChipMOS"or the "Company") (Taiwan Stock Exchange:8150 and NASDAQ: IMOS),an industry leading provider of outsourced semiconductor assembly and test services ("OSAT"),today reported unaudited consolidated financial results for the fourthquarter and full year ended December 31,2018.All U.S. dollar figures cited in this press release are based on the exchange rate of NT$30.61against US$1.00 as of December 31,2018.

All the figures were prepared in accordance with Taiwan-International Financial Reporting Standards ("Taiwan-IFRS").

Revenue for the fourthquarter of 2018was NT$4,972.3millionor US$162.4million,a decreaseof 0.7%from NT$5,005.2million or US$163.5millionin the third quarter of 2018 and an increaseof 12.8%from NT$4,408.2million or US$144.0million for the same period in 2017. Net profit attributable to equity holders of the Company for the fourth quarter of 2018 was NT$516.6 million or US$16.9 million,and NT$0.71 or US$0.02 per basic common share,as compared to net profit attributable to equity holders of the Company for the third quarter of 2018 of NT$439.6 million or US$14.4 million,and NT$0.56 or US$0.02 per basic common share,and compared to net profit attributable to equity holders of the Company in the fourth quarter of 2017 of NT$163.0 million or US$5.3 million,and NT$0.19 or US$0.01 per basic common share. Net earnings for the fourth quarter of 2018 were US$0.46 per basic ADS,compared to US$0.37 per basic ADS for the third quarter of 2018 and US$0.13 per basic ADS in the fourth quarter of 2017.

Revenue for the fiscal year ended December 31,2018was NT$18,480.0millionor US$603.8million,an increase of 3.0%from NT$17,940.8 million or US$586.1 million for the fiscal year ended December 31,2017. Net profit attributable to equity holders of the Company for the fiscal year ended December 31,2018was NT$1,103.1 million or US$36.0 million,and NT$1.37 or US$0.04 per basic common share,compared to net profit attributable to equity holders of the Company for the fiscal year ended December 31,2017was NT$3,026.5 million or US$98.9 million,and NT$3.57 or US$0.12 per basic common share. Net earnings for the fiscal year ended December 31,2018were US$0.90 per basic ADS,compared to US$2.34 per basic ADS for the fiscal year ended December 31,2017. 2017 reflects the benefit of the Company's sale and transfer of 54.98% equity interests off a former wholly-owned subsidiary to Tsinghua Unigroup led strategic investors.

S.J. Cheng,Chairman and Presidentof ChipMOS,said,"2018 was marked by significant accomplishments,including the completion of our capital reduction and the expansion of our higher margin TDDI business. We exited the year with our gross margin at22.8% in Q4 up from 19.5% in Q3,and gross margin also up on a full year basis in 2018 compared to 2017. We achieved this improvement on modest revenue growth,as we benefitted from stable utilization and pricing levels combined with the benefit of ongoing operating efficiency improvements. This helped us to offset headwinds impacting the entire industry in the Niche DRAM business. While uncertainty remains around the trade tensions and the overall macroeconomic environment,ChipMOS is in a strong position entering 2019 having completed our capital reduction,fortified our balance sheet and secured long-term financing agreements on favorable terms from our banking partners. We are focused on achieving profitable annual revenue growth in 2019. We are confident we will be able to achieve our goals as we benefit from healthy demand in our COF business,led by stable demand from 4K TV customers and demand created by new smartphone models featuring bezel-less panels."

Silvia Su,Vice President of Finance and Accounting,commented,"We are encouraged with our improved financial positon exiting Q4,which enables us to fully support existing customer programs,while having the capacity to support new growth opportunities,including those in our DDIC business. Revenue for the full year 2018 increased 3.0%,with net earnings of US$0.90 per basic ADS or net earnings of US$0.04 per basic common share. We generated US$134.9 million cash from operations in 2018,ending 2018 with a cash and cash equivalents balance of US$151.7 million. This is after we distributed a cash dividend of US$8.4 millionand capital reduction of US$42.0 million to shareholders; and invested US$161.6 million in CapEx. We continue to take a conservative approach to our CapEx plan as we invest based on customer forecasts and demand trends. We remain focused on leveraging ChipMOS's technical expertise,geographic footprint and financial strength to build further shareholder value."

Selected Operations Data

4Q18

4Q17

FY18

FY17

Revenue by segment

Testing

23.5%

26.6%

25.9%

27.0%

Assembly

24.6%

26.0%

25.3%

29.3%

LCD Driver

33.7%

29.8%

30.8%

26.7%

Bumping

18.2%

17.6%

18.0%

17.0%

CapEx

US$55.7 million

US$34.4 million

US$161.6 million

US$153.6 million

Testing

21.0%

7.4%

31.7%

17.8%

Assembly

5.6%

19.2%

6.5%

14.0%

LCD Driver

69.5%

67.3%

55.2%

55.6%

Bumping

3.9%

6.1%

6.6%

12.6%

Depreciation and amortization expenses

US$28.1 million

US$25.5 million

US$110.3 million

US$94.7 million

Utilization by segment

Testing

73%

79%

77%

79%

Assembly

69%

62%

64%

66%

LCD Driver

81%

85%

80%

85%

Bumping

75%

66%

72%

69%

Overall

75%

74%

74%

75%

Condensed consolidated statements of cash flows

Year ended

Dec. 31,2018

Year ended

Dec. 31,2017

US$ million

US$ million

Net cash generated from (used in) operating activities

134.9

155.3

Net cash generated from (used in) investing activities

(167.5)

(106.4)

Net cash generated from (used in) financing activities

(78.4)

(33.1)

Net increase (decrease) in cash and cash equivalents

(111.0)

15.8

Effect of exchange rate changes on cash

0.2

(0.6)

Cash and cash equivalents at beginning of period

262.5

247.3

Cash and cash equivalents at end of period

151.7

262.5

Investor Conference Call / Webcast Details

ChipMOS will host two conference calls on Thursday,2019 to discuss the Company's financial results for the fourth quarter and full year of 2018.

Date: Thursday,2019

Time: 4:00PM Taiwan (3:00AM New York)

Dial-In: +886-2-21928016

Password: 572038 #

Replay Starting 2 Hours After Live Call Ends: www.chipmos.com

Language: Mandarin

Date: Thursday,2019

Time: 8:00PM Taiwan (7:00AM New York)

Dial-In: +1-201-689-8562

Password: 13687371

Replay Starting 2 Hours After Live Call Ends: +1-412-317-6671,with ID 13687371

Webcast of Live Call and Replay: www.chipmos.com

Language: English

About ChipMOS TECHNOLOGIES INC.:

ChipMOS TECHNOLOGIES INC. ("ChipMOS" or the "Company") (Taiwan Stock Exchange: 8150 and NASDAQ: IMOS) (https://www.chipmos.com) is an industry leading provider of outsourced semiconductor assembly and test services. With advanced facilities in Hsinchu Science Park,Hsinchu Industrial Park and Southern Taiwan Science Park in Taiwan,ChipMOS provide assembly and test services to a broad range of customers,including leading fabless semiconductor companies,integrated device manufacturers and independent semiconductor foundries.

Forward-Looking Statements

This press release may contain certain forward-looking statements. These forward-looking statements may be identified by words such as 'believes,' 'expects,' 'anticipates,' 'projects,' 'intends,' 'should,' 'seeks,' 'estimates,' 'future' or similar expressions or by discussion of,among other things,strategy,goals,plans or intentions. These statementsmayinclude financial projections and estimates and their underlying assumptions,statements regarding plans,objectives and expectations with respect to future operations,products and services,and statements regarding future performance. Actual results may differ materially in the future from those reflected in forward-looking statements contained in this document,due to various factors. Further information regarding these risks,uncertainties and other factors are included in the Company's most recent Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission (the "SEC") and in the Company's other filings with the SEC.

About Non-Generally Accepted Accounting Principles ("Non-GAAP") Financial Measures

To supplement the consolidated financial results presented in accordance with the Taiwan-IFRS,ChipMOS uses non-GAAP free cash flow,non-GAAP earnings before interest,taxes,depreciation and amortization ("EBITDA") and non-GAAP net debt to equity ratioin this press release. The non-GAAP free cash flow represents operating profit plus depreciation,amortizationandinterest income and less capital expenditures,interest expenses,income tax expense and dividend. The non-GAAP EBITDA represents operating profit plus depreciation and amortization.The non-GAAP net debt to equity ratio represents the ratio of net debt,the sum of debt less cash and cash equivalent,divided by equity attributable to equity holders of the Company. These non-GAAP financial measures may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently.

The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with the Taiwan-IFRS.

ChipMOS considers the use ofnon-GAAPfree cash flow,non-GAAP EBITDA and non-GAAP net debt to equity ratio provides useful information to management to manage the Company's business and make financial and operational decisions and also to the investors to understand and evaluate the Company's business and operating performance. For more information on these non-GAAP financial measures,please refer to the table captioned "Reconciliations of Non-GAAP Measures to the Nearest Comparable GAAP Measures" in this press release.

- FINANCIAL TABLES FOLLOW BELOW -

ChipMOS TECHNOLOGIES INC.

UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Three Months and the Year Ended Dec. 31,2018 and Dec. 31,2017

Figures in Million of U.S. dollars (USD) (1)

Except for Per Share Amounts and Weighted Average Shares Outstanding

3 months ended

Year ended

Dec. 31,2018

Dec. 31,2017

Dec. 31,2017

USD

USD

USD

USD

Revenue

162.4

144.0

603.8

586.1

Cost of revenue

(125.3)

(119.5)

(491.7)

(480.3)

Gross profit (loss)

37.1

24.5

112.1

105.8

Research and development expenses

(7.9)

(7.8)

(30.7)

(32.2)

Sales and marketing expenses

(0.5)

(0.5)

(1.7)

(2.1)

General and administrative expenses

(3.7)

(3.8)

(15.9)

(20.9)

Other operating income (expenses),

net

0.9

(1.5)

4.8

22.6

Operating profit (loss)

25.9

10.9

68.6

73.2

Non-operating income (expenses),net

(3.3)

(4.0)

(10.4)

(23.7)

Profit (loss) before tax

22.6

6.9

58.2

49.5

Income tax benefit (expense)

(5.7)

(1.6)

(22.2)

(9.9)

Profit (loss) from continuing

operations

16.9

5.3

36.0

39.6

Profit (loss) from discontinued

operations

-

-

-

59.3

Profit (loss) for the period

16.9

5.3

36.0

98.9

Attributable to:

Equity holders of the Company

– Continuing operations

16.9

5.3

36.0

39.6

– Discontinued operations

-

-

-

59.3

16.9

5.3

36.0

98.9

Profit (loss) for the period

16.9

5.3

36.0

98.9

Other comprehensive income (loss)

Exchange differences on translation

of foreign operations

0.9

0.1

(1.6)

(7.6)

Profit (loss) on remeasurements of

defined benefit plans

(2.0)

1.7

(2.0)

1.7

Unrealized gain (loss) on valuation of

equity instruments at fair value

through other comprehensive

income

1.0

-

2.8

-

Share of other comprehensive

income (loss) of associates and

joint ventures accounted for using

equity method

-

0.0

(0.1)

0.0

Income tax effect

0.2

(0.3)

(0.1)

(0.3)

Total other comprehensive income

(loss)

0.1

1.5

(1.0)

(6.2)

Total comprehensive income (loss)

17.0

6.8

35.0

92.7

Attributable to:

Equity holders of the Company

– Continuing operations

17.0

6.8

35.0

42.8

– Discontinued operations

-

-

-

49.9

17.0

6.8

35.0

92.7

Profit (loss) attributable to the

Company - basic

16.9

5.3

36.0

98.9

Earnings (loss) per share attributable

to the Company - basic

0.02

0.01

0.04

0.12

Earnings (loss) per ADS equivalent -

basic

0.46

0.13

0.90

2.34

Weighted average shares outstanding

(in thousands) - basic

726,925

849,571

802,725

846,686

Profit (loss) attributable to the

Company - diluted

16.9

5.3

36.0

98.9

Earnings (loss) per share attributable

to the Company - diluted

0.02

0.01

0.04

0.11

Earnings (loss) per ADS equivalent -

diluted

0.46

0.12

0.89

2.28

Weighted average shares outstanding

(in thousands) - diluted

730,212

854,606

813,707

865,795

Note:

(1) All U.S. dollar figures in this release are based on the exchange rate of NT$30.61 against US$1.00 as of Dec. 31,2018. The

convenience translation should not be construed as representations that the NT dollar amounts have been,or could be in the

future be,converted into US dollars at this or any other exchange rate.

ChipMOS TECHNOLOGIES INC.

UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Three Months and the Year Ended Dec. 31,2017

Figures in Million of NT dollars (NTD)

Except for Per Share Amounts and Weighted Average Shares Outstanding

3 months ended

Year ended

Dec. 31,2017

NTD

NTD

NTD

NTD

Revenue

4,972.3

4,408.2

18,480.0

17,940.8

Cost of revenue

(3,837.5)

(3,658.9)

(15,050.0)

(14,703.7)

Gross profit (loss)

1,134.8

749.3

3,430.0

3,237.1

Research and development expenses

(240.3)

(237.6)

(939.3)

(985.9)

Sales and marketing expenses

(14.8)

(14.7)

(53.4)

(64.4)

General and administrative expenses

(112.9)

(116.6)

(485.1)

(639.8)

Other operating income (expenses),

net

25.1

(45.7)

147.5

692.9

Operating profit (loss)

791.9

334.7

2,099.7

2,239.9

Non-operating income (expenses),net

(100.8)

(122.8)

(317.3)

(724.4)

Profit (loss) before tax

691.1

211.9

1,782.4

1,515.5

Income tax benefit (expense)

(174.5)

(49.7)

(679.3)

(303.9)

Profit (loss) from continuing

operations

516.6

162.2

1,103.1

1,211.6

Profit (loss) from discontinued

operations

-

0.8

-

1,814.9

Profit (loss) for the period

516.6

163.0

1,103.1

3,026.5

Attributable to:

Equity holders of the Company

– Continuing operations

516.6

162.2

1,211.6

– Discontinued operations

-

0.8

-

1,814.9

516.6

163.0

1,026.5

Profit (loss) for the period

516.6

163.0

1,026.5

Other comprehensive income (loss)

Exchange differences on translation

of foreign operations

26.3

3.6

(51.1)

(232.7)

Profit (loss) on remeasurements of

defined benefit plans

(60.0)

50.8

(60.0)

50.8

Unrealized gain (loss) on valuation of

equity instruments at fair value

through other comprehensive

income

31.4

-

85.0

-

Share of other comprehensive

income (loss) of associates and

joint ventures accounted for using

equity method

-

0.6

(2.7)

0.6

Income tax effect

5.7

(8.6)

(4.1)

(8.6)

Total other comprehensive income

(loss)

3.4

46.4

(32.9)

(189.9)

Total comprehensive income (loss)

520.0

209.4

1,070.2

2,836.6

Attributable to:

Equity holders of the Company

– Continuing operations

520.0

208.6

1,070.2

1,309.3

– Discontinued operations

-

0.8

-

1,527.3

520.0

209.4

1,836.6

Profit (loss) attributable to the

Company - basic

516.6

163.0

1,026.5

Earnings (loss) per share attributable

to the Company - basic

0.71

0.19

1.37

3.57

Earnings (loss) per ADS equivalent -

basic

14.21

3.84

27.48

71.49

Weighted average shares outstanding

(in thousands) - basic

726,686

Profit (loss) attributable to the

Company - diluted

516.6

163.0

1,026.5

Earnings (loss) per share attributable

to the Company - diluted

0.71

0.19

1.36

3.50

Earnings (loss) per ADS equivalent -

diluted

14.15

3.81

27.11

69.91

Weighted average shares outstanding

(in thousands) - diluted

730,795

ChipMOS TECHNOLOGIES INC.UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL POSITIONAs of Dec. 31,Sep. 30,2018,and Dec. 31,2017Figures in Millions of U.S. dollars (USD) (1)

Dec. 31,2018

Sep. 30,2018

Dec. 31,2017ASSETSUSD

USD

USDCurrent assets

Cash and cash equivalents151.7

198.2

262.5Current financial assets at amortized cost5.5

-

-Accounts and notes receivable,net155.1

154.4

131.2Inventories58.1

57.8

63.0Other current assets18.0

17.5

7.2Total current assets388.4

427.9

463.9

Non-current assets

Financial assets at fair value through profit or loss0.4

0.4

-Financial assets at fair value through other

comprehensive income5.7

4.7

-Non-current financial assets at amortized cost3.2

-

-Non-current financial assets carried at cost-

-

0.7Investments accounted for using equity method126.2

129.2

112.2Property,plant & equipment549.5

522.0

498.7Other non-current assets9.1

12.8

11.1Total non-current assets694.1

669.1

622.7Total assets1,082.5

1,097.0

1,086.6

LIABILITIES AND EQUITY

LIABILITIES

Current liabilities

Short-term bank loans-

-

31.7Accounts payable and payables to contractors and

equipment suppliers 70.4

44.5

45.8Long-term bank loans,current portion24.4

24.4

70.0Long-term lease obligations payable,current portion0.6

0.7

0.4Other current liabilities74.2

121.7

70.0Total current liabilities169.6

191.3

217.9

Non-current liabilities

Long-term bank loans295.4

307.7

245.0Long-term lease obligations payable-

-

0.6Other non-current liabilities27.1

24.6

22.2Total non-current liabilities322.5

332.3

267.8Total liabilities492.1

523.6

485.7

EQUITY

Capital stock – common stock246.0

246.0

289.5Capital surplus205.2

205.2

205.4Retained earnings166.8

151.5

138.5Other equity interest3.9

2.2

0.4Treasury stock(31.5)

(31.5)

(32.9)Equity attributable to equity holders of the Company590.4

573.4

600.9Total equity590.4

573.4

600.9Total liabilities and equity 1,086.6

Note:(1) All U.S. dollar figures in this release are based on the exchange rate of NT$30.61 against US$1.00 as of Dec. 31,2018. The

convenience translation should not be construed as representations that the NT dollar amounts have been,or could be in the

future be,converted into US dollars at this or any other exchange rate.

ChipMOS TECHNOLOGIES INC.UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL POSITIONAs of Dec. 31,2017Figures in Millions of NT dollars (NTD)

Dec. 31,2017ASSETSNTD

NTD

NTDCurrent assets

Cash and cash equivalents4,642.5

6,067.2

8,035.7Current financial assets at amortized cost169.2

-

-Accounts and notes receivable,net4,747.4

4,725.3

4,015.8Inventories1,778.8

1,770.1

1,929.2Other current assets550.2

535.0

220.3Total current assets11,888.1

13,097.6

14,201.0

Non-current assets

Financial assets at fair value through profit or loss11.5

11.4

-Financial assets at fair value through other

comprehensive income174.4

142.9

-Non-current financial assets at amortized cost99.1

-

-Non-current financial assets carried at cost-

-

20.9Investments accounted for using equity method3,863.7

3,954.2

3,433.3Property,plant & equipment16,819.6

15,979.9

15,265.3Other non-current assets277.3

391.7

339.4Total non-current assets21,245.6

20,480.1

19,058.9Total assets33,133.7

33,577.7

33,259.9

LIABILITIES AND EQUITY

LIABILITIES

Current liabilities

Short-term bank loans-

-

969.4Accounts payable and payables to contractors and

equipment suppliers 2,154.4

1,360.7

1,401.4Long-term bank loans,current portion747.4

747.3

2,143.2Long-term lease obligations payable,current portion17.8

20.7

11.8Other current liabilities2,270.6

3,725.7

2,144.8Total current liabilities5,190.2

5,854.4

6,670.6

Non-current liabilities

Long-term bank loans9,042.1

9,418.4

7,498.9Long-term lease obligations payable-

-

18.0Other non-current liabilities830.6

754.6

679.1Total non-current liabilities9,872.7

10,173.0

8,196.0Total liabilities15,062.9

16,027.4

14,866.6

EQUITY

Capital stock – common stock7,528.6

7,529.0

8,863.0Capital surplus6,280.5

6,280.9

6,288.3Retained earnings5,104.5

4,636.1

4,237.9Other equity interest119.7

66.8

11.7Treasury stock(962.5)

(962.5)

(1,007.6)Equity attributable to equity holders of the Company18,070.8

17,550.3

18,393.3Total equity18,393.3Total liabilities and equity33,259.9RECONCILIATIONS OF NON-GAAP MEASURES TO THE NEAREST COMPARABLE GAAP MEASURES(Figures in Millions of U.S. dollars (USD))

The table below sets forth a reconciliation of our operating profit to non-GAAP free cash flow for the periods indicated:

Three months ended

Dec. 31,2017

USD

USD

USDOperating profit25.9

20.8

10.9Add: Depreciation28.1

28.1

25.5 Interest income0.5

0.4

0.5Less: Capital expenditures(55.7)

(32.6)

(34.4) Interest expense(1.3)

(1.1)

(1.5) Income tax expense(5.7)

(4.1)

(1.6) Dividend(8.4)

-

-Non-GAAP free cash flow(16.6)

11.5

(0.6)

The table below sets forth a reconciliation of our operating profit to non-GAAP EBITDA for the periods indicated:

Three months ended

Dec. 31,2017

USD

USD

USDOperating profit25.9

20.8

10.9Add: Depreciation28.1

28.1

25.5Non-GAAP EBITDA54.0

48.9

36.4

The table below sets forth a calculation of our non-GAAP net debt to equity ratio for the periods indicated:

Dec. 31,2017

USD

USD

USDShort-term bank loans-

-

31.7Long-term bank loans

(including current portion)319.8

332.1

315.0Long-term lease obligations payable

(including current portion)0.6

0.7

1.0Less: Cash and cash equivalents(151.7)

(198.2)

(262.5)Net debt168.7

134.6

85.2Equity attributable to equity holders

of the Company590.4

573.4

600.9Net debt to equity ratio28.6%

23.5%

14.2%Contacts:In TaiwanJesse HuangChipMOS TECHNOLOGIES INC.+886-6-5052388 ext. 7715jesse_huang@chipmos.comIn the U.S.David PasqualeGlobal IR Partners+1-914-337-8801dpasquale@globalirpartners.com

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